UK WINNERS & LOSERS SUMMARY: FirstGroup Sinks As Interim Loss Widens

Thu, 14th Nov 2019 10:31

(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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Burberry, up 4.5%. The fashion house affirmed its full-year guidance after reporting a first-half earnings rise, despite uncertainty in Hong Kong. In the six months to September 28, revenue rose by 5.0% to GBP1.28 billion from GBP1.22 billion. Comparable store sales grew 4%, comprising 4% growth in the first quarter which accelerated to 5% in the second. The company, known for its checked print and trench coats, reported pretax profit increased by 11% to GBP193 million from GBP174 million. Burberry upped its interim dividend by 2.7% to 11.3 pence per share from 11.0p last year. Looking ahead, the company said it expects sales in Hong Kong, where there is increased civil disruption, to remain under pressure.

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National Grid, up 1.0%. The electricity firm delivered a "solid" financial performance, it said Thursday, with organic growth at the top end of targets. Pretax profit for the six months to September 30 fell 23% to GBP404 million, and on an underlying basis the figure was 4% lower at GBP785 million. Profit fell, National Grid said, due to higher interest charges included mark-to-market financial remeasurements, which were partly offset by lower taxes. London-headquartered National Grid's revenue fell 0.9% to GBP6.29 billion. "In the first half of this year we have delivered solid financial performance and continued to deliver strong organic growth at the top end of the 5% to 7% range," said Chief Executive John Pettigrew.

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FTSE 100 - LOSERS

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3i Group, down 4.5%. The private equity and infrastructure investment company reported an increased total return for the first half of its year and said it "saw a good performance" across its portfolios. Net asset value per share was 873 pence at September 30, up 13% from 776p a year ago. The company reported "good performance" across its portfolios, with the Private Equity portfolio recording a gross investment return of GBP666.0 million, driven by assets including Action, Hans Anders, and Aspen Pumps. A good contribution was also reported from the Infrastructure business, with a gross investment return of GBP88.0 million. Meanwhile, European ferry operator Scandlines delivered a gross investment return of GBP44 million in the period, driven by a good trading performance.

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Fresnillo, down 2.7%. Goldman Sachs cut the gold miner to Sell from Neutral.

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FTSE 250 - WINNERS

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QinetiQ, up 4.5%. The defence firm kept annual forecasts unchanged after reporting double-digit earnings growth in the first half of its current financial year. The Farnborough, Hampshire-based defence technology company reported a pretax profit of GBP71.3 million for the six months to the end of September, up 35% compared to GBP52.7 million a year prior, as revenue grew by 16% to GBP486.5 million from GBP420.3 million. Looking ahead, the FTSE 250-listed company maintained expectations for full year operating profit, and forecasts high single-digit revenue growth.

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Premier Oil, up 3.1%. The oil & gas firm posted a rise in year-to-date production and forecast annual production to be at the upper end of guidance. The company, which has interests in the UK, Asia, Africa, and Mexico, said production averaged 79,400 barrels of oil equivalent per day for the 10 months to October end, up from 77,700 barrels in the comparative year ago period, underpinned by continued high operating efficiency of 94%. October production averaged 78,400 barrels per day, Premier added. Premier expects 2019 production to be at the upper end of its 75,000 barrel to 80,000 barrel of oil equivalent guidance range.

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FTSE 250 - LOSERS

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FirstGroup, down 20%. The transport operator reported a significantly wider interim loss due to an impairment on US coach operator Greyhound because of deteriorating results. Aberdeen-based FirstGroup posted a pretax loss of GBP187.1 million for the six months to September, from just GBP4.6 million the prior year. On an adjusted basis, which strips out exceptional items, pretax profit fell 32% to GBP28.7 million. The company booked a GBP124.4 million impairment on its Greyhound bus operations in the US, as well as a reserve charge of GBP59.3 million for its North American self-insurance business. The company said the impairment was due to Greyhound's financial performance in recent months relative to budget, due to a decline in immigration on the southern US border and increased competition, and added it was "disappointed" with a further deterioration in the US motor claims environment which led to the increase in insurance costs.

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Card Factory, down 4.0%. The retailer reported a "robust" sales performance, with growth accelerating from the year before. Revenue growth in the nine months to October 31 was 5.0% on the year before, with the prior year period achieved 3.4% growth. Like-for-like growth was 0.9%, compared to flat a year before. The Wakefield, Yorkshire-based greeting card and gift retailer's online business delivered 22% revenue growth for the period, well down from 71% a year before, the latter of which Card Factory described as a "strong performance". The company said it continues to face external cost pressures such as the UK's national living wage, while year-to-date performance has also been hit by storage costs. Card Factory expects these to ease in its next financial year.

OTHER MAIN MARKET AND AIM - LOSERS

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Stobart Group, down 4.6%. The aviation, energy and civil engineering company has suspended its dividends in order to maximize capital available for further development and said its performance is in line with expectations. The firm's loss for the six months ended August 31 increased to GBP20.9 million, compared to GBP17.5 million a year ago. The company said its revenue for the period rose to GBP93.1 million from GBP69.4 million at the same period last year, driven "in particular by strong performance in Stobart Energy". However, its interim loss was widened by an GBP8.5 million non-cash impairment of intangible assets in Stobart Rail & Civils, GBP3.7 million non-cash brand amortization, and GBP7.4 million of new business and new contract set-up costs.

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By Lucy Heming; lucyheming@alliancenews.com