(Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Friday.
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FTSE 100 - WINNERS
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Ferguson, up 2.2%. The plumbing and heating products supplier said trading has improved steadily since April with revenue almost reaching a position of positive growth in the fourth quarter of its financial year. Ferguson said revenue from continuing operations shrank by 3.6% year-on-year in the quarter, starting May 1 and ending 21 July, compared a decline of 15% in April alone. Revenue in the third quarter to April 30 had increased by 0.9%, having only partially covered the pandemic period. The US market did the best in the third quarter, with revenue only declining 0.6%, owing to the quick easing of lockdown there now being partially reversed. Revenue trends have improved in both Canada and the UK as widespread lockdown restrictions have started to be eased, Ferguson said. In the UK recent revenue trends have been more encouraging as lockdown measures have been eased, the company said.
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FTSE 100 - LOSERS
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Vodafone Group, down 5.0%. The telecommunications firm said revenue growth in the first quarter of its financial 2021 was hurt by the Covid-19 crisis, driven by lower revenue from roaming and visitors, project delays and lower prepaid revenue in some smaller markets. Vodafone said, in the first quarter ended June 30, total revenue slipped 1.4% to EUR10.51 billion from EUR10.65 billion a year ago and was down 2.8% on an organic basis. However, service revenue rose 1.3% to EUR9.11 billion from EUR8.99 billion, though was down 1.3% on an organic basis. "Trading has struggled a little under Covid-19, mainly because we've not been going on holiday and paying roaming charges so much. This is the sort of impact that should unwind once people start taking trips again. It could be some time before roaming revenue fully recovers, especially if we face a sustained recession, but in the long run we're not overly concerned," said Hargreaves Lansdown analyst William Ryder.
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Pearson, down 4.5%. The education publisher said the first-half sales were hurt by test centre and school closures due to the Covid-19 pandemic. Pearson's sales for the six months to June 30, decreased by 18% to GBP1.49 billion from GBP1.83 billion, with portfolio adjustments reducing sales by GBP53 million and currency movements increasing revenue by GBP25 million. Covid-19 impacted sales by GBP260 million in the first half. Adjusted operating profit - the company's preferred profit measure - declined to a loss of GBP23 million from GBP144 million with a profit impact of GBP140 million from Covid-19 trading pressures after cost mitigations. "The current crisis could end up being make or break for Pearson - if it can get customers to shift online and stick with it then all the pain of the last few years will have been worth it, if not the group risks becoming a lesson in how not to handle the looming digital revolution," said Hargreaves Lansdown analyst Nick Hyett.
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M&G, down 4.0%. Barclays downgraded the fund manager to Underweight from Equal Weight.
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FTSE 250 - WINNERS
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Centrica, up 20%. The British Gas parent said it will sell its North American business Direct Energy for USD3.63 billion to Houston, Texas-based energy company NRG Energy on a debt free, cash free basis. The disposal increases the long-term strength of its balance sheet, Centrica said, with proceeds intended to be used to reduce net debt significantly and to make a contribution to the defined benefit pension schemes. The sale is also expected to result in a more stable financial profile for Centrica, with an increased proportion of its cash flows generated from contracted services, and removal of volatility that is inherent within Direct Energy business, the company added. Separately, Centrica said it delivered a resilient first half performance overall against the backdrop of the Covid-19 pandemic. For the six months to June 30, the company's revenue fell to GBP10.70 billion from GBP11.57 billion last year and its pretax loss narrowed to GBP264 million from GBP569 million.
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FTSE 250 - LOSERS
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Just Group, down 2.5%. Barclays downgraded the retirement products specialist to Equal Weight from Overweight.
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By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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Pearson (PSON)
Just Group (JUST)
Centrica (CNA)
Ferguson (FERG)
Vodafone (VOD)
M&G (MNG)