UK WINNERS & LOSERS: IAG Dives Despite Raising Profit Guidance

LONDON (Alliance News) - The following stocks are the leading risers and fallers on the main London indices midday Friday.

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FTSE 100 - Losers

Vedanta Resources is down 6.2%. The India-focused miner reported a plunge in pretax profit for the first half of the year, falling to USD261.1 million from USD1.07 billion in the previous year. Revenue declined 17% to USD6.16 billion from last year's USD7.45 billion. During the period, average prices received by Vedanta fell 9% for copper, 7% for aluminium and 3% for zinc, while average Brent oil prices were down 2%.

Centrica, down 2.1%, continues to slide after saying Thursday that it expects to report adjusted earnings per share at similar levels to last year. The figure had been up 2% at the half-year stage, so the outlook represents a deterioration in the second half. Additionally, it confirmed that it will take about GBP240 million in provisions for deciding not to proceed with an offshore gas storage project in Baird and to put the Caythorpe onshore project on hold indefinitely.

International Consolidated Airlines is down 1.6% despite raising its 2015 operating profit target. In a statement ahead of a capital markets day, the airline group said it is now targeting a EUR1.8 billion operating profit in 2015, up from its previous forecast for EUR1.6 billion. It raised its target for British Airways to GBP1.3 billion, from GBP1.1 billion, citing improved margins. Deutsche Bank analyst Anand Date says the upgrade of the company's guidance left unanswered questions. While overall profit was increased by only EUR200 million, BA profit was upgraded by GBP200 million, equivalent to EUR239 million, possibly implying a downgrade in estimates for Iberia, Data says.

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FTSE 250 - Winners

Genus, up 3.7%, is the index's leading riser. The animal genetics company's revenues and volumes have risen in recent months as its customers saw pork and beef prices rise and feed costs fall. The company said volumes of both products and services were up 5% between July 1 and November 14, with revenues up by the same amount at constant currencies. Additionally, Genus acquired Génétiporc's business in North America and Mexico in October, and said it was pleased with the initial reaction of customers and with the progress of integration.

African Barrick Gold climbs 2.5% after it said it had reached a deal with the Tanzanian State Mining Corporation, or Stamico, to sell its Tulawaka Gold Mine and certain exploration licenses surrounding Tulawaka for cash and future smelter royalties. In a statement, the gold miner said it would get USD4.5 million and be granted a 2% net smelter royalty on future production in excess of 500,000 ounces, capped at USD500,000. African Barrick had planned to close the mine. Under the deal, Stamico will take ownership and management of a rehabilitation fund that was established as part of the closure plan. It will also assume all the closure and rehabilitation liabilities and indemnify African Barrick against the liabilities. African Barrick will pay Stamico the USD17.6 million balance of the rehabilitation fund, minus the mine sale price.

Capital & Counties Properties, up 1.9%, has said that its Covent Garden estate continues to perform strongly with 14 new store openings since June. The company said it had secured new lettings and renewals at its Covent Garden site, representing annualised rental income of GBP2.7 million, with occupancy levels of 99% at September 30. The property investor also said detailed planning applications will be submitted for Earls Court Village after it received formal outline planning consent for its regeneration scheme. The Earls Court masterplan covers an area of 77 acres and provides for 10.1 million square feet of new residential-led, mixed-use space.

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FTSE 250 - Losers

Ultra Electronics Holdings is the biggest faller on the FTSE 250, down 6.1%. The defence, security, transport and energy group warned that it has been hit by the US government shutdown and a general slowdown in government spending in that market. It said the US shutdown delayed expected orders, approvals and payments, while many of the contracts it has won are still being funded incrementally. It also warned that it is continuing to experience delays on a contract in Oman, which means that it will now not be able to install its products until next year rather than in the fourth quarter.

Rotork is down 2.2%. The company reported that third quarter revenue was up 13% on last year, reflecting a strong performance across the business. In an interim management statement for the period July 1 to November 14, the company said it had benefited from currency movements which had been favourable throughout the year. However, the company has been on a strong run coming into the statement, with share price rising to 2,830.00 pence from 2,693.00 in mid-October, says Scott Cagehin, analyst at Numis. Despite this, the investment bank is confident about the company's growth profits, maintaining an Add recommendation, with a price target of 3,200.00p.

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AIM - Winners

Serica Energy climbs 9.4% after 67.4 million new shares started trading on AIM as part of the company's recent GBP14.3 million capital raising through a placing and open offer.

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AIM - Losers

Antrim Energy falls 40% despite reporting its first ever quarterly profit. The company with assets in the North Sea and offshore Ireland reported a net profit of USD930,000 for the second quarter of 2013, compared with a loss of USD6.4 million a year earlier. However, as a young company, Antrim gave its going concern disclaimer, saying there are a number of material uncertainties that raise significant doubts as to the company’s ability to continue as a going concern. Those include the performance of the producing wells, oil prices, ability to finish the planned development program for Causeway within budget, ability to secure additional financing, relinquishment of commitments on certain licences and settlement of contingencies.

ValiRx is down 18%. The pharmaceutical company said that it has raised GBP1 million in a placing of 307.7 million shares with institutional and other investors. The cancer drug developer said that it will use the funds to further advance its development programmes. Following the placing, ValiRx has 2.02 billion shares issued.

Cyan Holdings slides 10%. The software company said an Indian metering order worth over USD1 million that was won in 2012 and then delayed into 2013 has suffered a further delay and will now be delivered in 2014. Cyan had won the contract from a "major" metering customer in India, but there have since been delays by the Tamil Nadu energy company TNEB in tendering for the broader contract.

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By James Kemp; jameskemp@alliancenews.com; @jamespkemp

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