UK WINNERS & LOSERS: IHG And Sports Direct Lead FTSE 100 Fallers

LONDON (Alliance News) - The following stocks are amongst the biggest risers and fallers within the main London indices midday Tuesday.
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FTSE 100 LOSERS
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Intercontinental Hotels Group, down 4.6%. The hotels group, which owns brands including Holiday Inn, Crowne Plaza and InterContinental Hotels, reported an operating profit of USD651 million for 2014, down 3% on 2013's USD668 million profit. The decline was caused by hotel disposals and by liquidated damage receipts in 2013 that weren't all repeated, as well as revenue dipping 2% to USD1.86 billion from USD1.90 billion. IHG said pretax profit for the year was flat at USD600 million. In China, the group has experienced negative revenue per available room in recent months but its hotels have continued to outperform the industry for the last couple of years. IHG said again Tuesday that its 2014 performance was "significantly" ahead of the industry.

Sports Direct International, down 2.4%. The UK's biggest sporting goods retailer's shares are trading down on a negative read-across from a brace of bad news regarding Rangers International Football Club, to whom Sports Direct owner Mike Ashley recently lent GBP10 million to help keep the club afloat, says Mike van Dulken, head of research at Accendo Markets. Rangers said it has secured a venue to hold its upcoming extraordinary general meeting, having had its previous booking cancelled amid concerns of disturbance for other guests. In addition, auditor Deloite has raised questions over whether Ranger’s operating company can continue as a going concern, according to van Dulken. Meanwhile, two media reports have said Sports Direct's strategic development director Jeff Blue is set to leave his position in charge of M&A at the end of March. Sport Direct is scheduled to provide an interim management statement on Thursday.

Standard Chartered, down 0.6%. Investec has cut the emerging markets bank to Hold from Buy.

International Consolidated Airlines Group, down 0.6%. Commerzbank has cut the British Airways owner to Hold from Buy.
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FTSE 250 WINNERS
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Brit, up 10%. Canadian property and casualty insurer Fairfax Financial Holdings Ltd said it has reached a deal with Brit to buy the insurance company for around USD1.88 billion. Fairfax said Brit shareholders will get 305 pence per share, inclusive of any final dividend for the year to the end of December. Fairfax said the offer represents an 11% premium to Brit's closing price on Monday of 274.2 pence per share. Shares in the company currently trade at 302.5 pence.

John Wood Group, up 10%. The oil-services company said it increased its dividend for the full year after the company reported a rise in earnings, profit and revenue in 2014, and said it intends to increase the dividend further from 2015 onwards. For the year ended December 31, John Wood reported a 3.1% rise in earnings before interest, tax and amortization of USD549.6 million, from USD533.0 million in 2013. The rise resulted from increased revenue and by the company's production services unit providing 30% year-on-year growth in EBITA in 2014.

DS Smith, up 3.8%. Jefferies has raised the packaging company to Buy from Hold.

Just Eat, up 2.6%. Barclays has initiated coverage of the online and mobile takeaway food ordering platform with an Overweight rating.
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AIM ALL-SHARE WINNERS
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Lifeline Scientific, up 22%. The medical technology company said it expects revenue for 2014 to be ahead of market expectations on the back of a strong second half performance. It said the second half of the year to the end of December was positive, boosted by growing market adoption of its products and positive clinical evidence in support of its lead offerings.

Ironveld, up 13%. The company said its critical infrastructure programme application for its 15 megawatt smelter has been approved by the South African government.

Tandem Group, up 13%. The sports equipment company said its 2014 revenue rose on the back the acquisition of Pro Rider and robust like-for-like sales growth. Tandem said it expects its revenue for the year to the end of December to be up 10% to around GBP31.3 million. Pro Rider, which it acquired in August, delivered GBP1.4 million in revenue, while like-for-like revenue in the year rose 6% against 2013. The group also said it expects a significant rise in operating profit for the year.

Monitise, up 12%. The mobile banking software provider said its first-half pretax loss widened amid its continued transition away from upfront licence revenue to a subscription model, as speculation about potential suitors mounts after the payments company put itself up for sale last month. Within its interim results statement for the six months to the end of December 2014, Monitise said it has had "positive discussions with market-leading players" under a strategic review initiated last month, when the company cut its revenue guidance for the current financial year and warned that its EBITDA (earnings before interest, tax, depreciation and amortisation) loss also was likely to widen.
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AIM ALL-SHARE LOSERS
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Ferrex, off 14%. The miner reported a wider pretax loss for the year and reported a low cash balance, but said it is confident it will secure further funding to move into production during 2015, which will generate the company's maiden revenue. For the year ended September 30, the company reported a wider pretax loss of GBP1.9 million, from GBP1.7 million a year earlier. The company does not currently generate any revenue, and the wider loss was caused by GBP426,000 in finance costs in 2014, compared to nil a year earlier.

Hargreaves Services, down 9.8%. The supplier of solid fuel and bulk material logistics reported a significant fall in profit for the first half of the year as revenue declined, but the company increased its interim dividend in line with its previous guidance. For the six months ended November 30, the company reported a 49% fall in continuing profit before tax of GBP15.2 million from GBP29.7 million a year earlier, whilst underlying profit before tax fell by 29% to GBP20.3 million from GBP28.5 million.
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By Neil Thakrar; neilthakrar@alliancenews.com; @NeilThakrar1

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