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UK WINNERS & LOSERS SUMMARY: Centamin Up As It Rejects Takeover Offer

Tue, 3rd Dec 2019 10:45

(Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Tuesday.



FTSE 100 - WINNERS



Rightmove, up 3.0%. Goldman Sachs raised the property portal to Neutral from Sell.



FTSE 100 - LOSERS



Ferguson, down 2.4%. The plumbing and heating products supplier's shares were down despite reporting a rise in first quarter revenue. Ferguson recorded USD5.21 billion of revenue in the three months to October 31, up 5.3% on the USD4.95 billion seen the year before. In the US, revenue was up 6.1% year on year to USD4.89 billion, while Canadian revenue slipped 5.8% to USD315 million. Ferguson's UK revenue dropped 2.2% to USD541 million, with trading profit down 17% to USD15 million. The company said its UK demerger is progressing as planned, and is expected to be completed in 2020. Ferguson made no mention of whether it would transfer its stock listing to the US once the demerger is complete. ""The separation of the US and UK businesses makes strategic sense but will result in a rather different offering for investors. In the meantime, and given the recent price strength and some tough comparative quarters to follow, the shares are being seen as up with events," said Interactive Investor's Richard Hunter.



TUI, down 1.7%. The Anglo-German travel operator was downgraded to Neutral from Buy by Oddo BHF.



FTSE 250 - WINNERS



Centamin, up 7.7% at 120.85 pence. The gold miner said the combination proposal made by Canadian peer Endeavour Mining would provide greater benefit to Endeavour's shareholders than to its own shareholders and does not reflect the contribution that would be made by Centamin to the merged entity. In response to the GBP1.47 billion all-share combination proposal, Centamin, which operates the Sukari gold mine in Egypt, also said it is "better positioned" to deliver shareholder returns on a stand alone basis than the combined entity and, as result, its board has unanimously rejected the proposal. Earlier on Tuesday, Endeavour said it had unsuccessfully attempted to engage with Centamin over an all-share merger The offer values Centamin at GBP1.47 billion and proposes a share-exchange ratio of 0.0846 Endeavour share for each Centamin share. Were the merger offer to go ahead, Endeavour shareholders would own just shy of 53% of the new company, while Centamin shareholders would have just over a 47% stake. The deal represents a 13% premium to Centamin's closing price on Monday of 112.20 pence, Endeavour said.



Cineworld Group, up 2.0%. The cinema chain warned 2019 trading will be "slightly" below management's expectations due to a weak box office performance, partially offset by "strong execution of synergies and revenue initiatives". For the 11 months to December 1, the company reported a 9.7% year-on-year drop in total revenue. The UK & Ireland unit posted a 9.7% fall and US business recorded a 10.9% drop. Group box office revenue fell 13% year-on-year, with UK & Ireland similarly seeing a 13% decline and US a 14% drop. The second half of the year started strongly with the release of The Lion King, Spider-Man: Far from Home, Joker and Frozen 2, Cineworld said, adding that there are still two major blockbusters to be released in 2019, Jumanji: The Next Level and Star Wars: The Rise of Skywalker in December. "A rise in Cineworld's share price on today's news is probably down to short sellers closing out their positions now we've had confirmation of weaker trading," said AJ Bell's Russ Mould.



NewRiver REIT, up 1.8%. The property investor has acquired community pub firm Bravo Inns for GBP17.9 million. Bravo Inns owns 44 wet-led community pubs - meaning the pub focuses on drinks rather than food - which are mainly situated in north west England. The acquisition is expected to generate GBP2.6 million in annualised outlet earnings before interest, taxes, depreciation and amortisation, equal to a yield on cost of 14%, and is also anticipated to be accretive to underlying funds from operations. The deal will also complement NewRiver subsidiary Hawthorn Leisure's 660 community pub portfolio, and increase the real estate investment trust's exposure to the operator managed pub model.



FTSE 250 - LOSERS



Aston Martin Lagonda Holdings, down 5.9%. The DBX sports utility vehicle manufacturer was downgraded to Neutral from Buy by Goldman Sachs.



OTHER MAIN MARKET AND AIM - WINNERS



boohoo Group, up 2.5%. The online fashion retailer said it saw a record performance over the Black Friday weekend and trading since half-year end on August 31 remained "strong" across key brands. The company added that its continues to trade "comfortably" in line with market expectations. In the year to the end of February, boohoo reported 38% growth in pretax profit to GBP59.9 million, as revenue rose 48% to GBP856.9 million. Revenue growth across all territories and brands was strong, the company noted, with UK revenue up 37% and international revenue up 64%.



By Arvind Bhunjun; arvindbhunjun@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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