UK WINNERS & LOSERS SUMMARY: easyJet Rises After Bolstering Finances

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

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FTSE 100 - WINNERS

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easyJet, up 4.5%. The budget airline said it secured extra funds of nearly GBP2 billion to help the company deal with the grounding of its fleet in light of the Covid-19 pandemic. easyJet said it has secured roughly GBP400 million on two-term loans, secured against its aircraft assets. Earlier in April, it said it was issued with GBP600 million under the UK's Covid corporate financing facility. The carrier has also drawn down a USD500 million revolving credit facility. However, in the six months to March 31, the company is expected to take a hit of GBP175 million and GBP185 million in relation to the over-hedging of fuel and foreign exchange. "We're glad easyJet has revealed its expected cash costs for the coming months, it's the final piece of the puzzle that investors needed to assess its true position. The results are reasonably reassuring, even though the group expects to burn around GBP3.0bn in cash if the lockdown lasts nine months. While it's possible that the fleet, or a large part of it, is grounded for longer than this, the group has some breathing space and investors can make a better-informed decision about its prospects," said Hargreaves Lansdown's William Ryder.

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Rentokil Initial, up 3.1%. The pest control and hygiene firm said first-quarter revenue climbed despite a "marked" impact from the Covid-19 pandemic in the final two weeks of March. Revenue in the first three months of 2020 was 4.4% higher year-on-year at GBP634.1 million. At constant currency, it climbed 5.8%. Ongoing Revenue, which excludes acquisition and disposals, was 5.8% higher annually at GBP630.5 million, rising 7.2% at constant currency. It was a "good start to the year" by Rentokil's reckoning, with net operating margins also rising in line with expectations. It added on Thursday that its chief executive will take a 35% salary cut in the second quarter of the year. Rentokil also has furloughed staff, laid some off, and reduced salaries and hours.

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FTSE 100 - LOSERS

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M&G, down 11%, St James's Place, down 5.9%. The stock went ex-dividend meaning new buyers no longer qualify for the latest payout.

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FTSE 250 - WINNERS

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Avast, up 11%. The antivirus software maker affirmed its full-year guidance following a first quarter which played out in line with expectations. Avast's adjusted revenue in the period to March 31 was 1.3% higher year-on-year at USD214.6 million from USD211.8 million. Avast added: "Group revenue performance in the first quarter was in line with expectations. Install, uninstall and retention rates continued to trend positively." The company reiterated its intention to make its planned 10.3 cents per share final payout for 2019.

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Dunelm Group, up 2.5%. The home furnishings retailer said its online offering is operational again after a temporary closure due to the Covid-19 outbreak. The FTSE 250 firm's brick and mortar stores, however, remain subject to a UK government lockdown and are closed. A majority of the company's in-store staff have been furloughed under the UK government's job retention scheme. Dunelm has received confirmation that it is eligible to receive funding under the Bank of England's Covid corporate financing facility. Dunelm's Chief Executive Officer Nick Wilkinson has taken a 90% pay cut, with the company's chair and non-executive directors waiving 100% of their fees.

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FTSE 250 - LOSERS

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Petrofac, down 12%. The oilfield services firm said the Abu Dhabi National Oil Co has cancelled two contracts for work on the Dalma gas development project. The contracts, awarded in February, were worth about USD1.65 billion, with Petrofac's Emirates joint venture expecting about USD1.5 billion. The company stressed it will continue to tender major contracts in Abu Dhabi despite this setback "Petrofac is committed to working with ADNOC over the coming weeks to explore alternative options to deliver this project in a way that supports their strategic objectives within the current challenging environment," the company said. Petrofac added that it is continuing to progress its remaining backlog of about USD7 billion as planned.

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By Arvind Bhunjun; arvindbhunjun@alliancenews.com

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