(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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Hargreaves Lansdown, up 0.6%. Deutsche Bank raised the fund supermarket to Hold from Sell.
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FTSE 100 - LOSERS
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International Consolidated Airlines, down 4.3%. The British Airways parent said it will raise EUR2.74 billion through a share issue to strengthen its balance sheet and reduce leverage. The Anglo-Spanish airline said it will issue 2.98 billion shares at a price of EUR0.92 each. The subscription price represents a 36% discount to Wednesday's closing price. The FTSE 100-listed company said the funds raised will strengthen its balance sheet and reduce leverage. Turning to trading, the British Airways parent said June saw a significant increase in bookings to 30% of prior year levels by the end of the month, following an almost complete cessation of new booking activity in April and May. Since July, IAG said it has experienced an overall levelling off of bookings. Short-haul bookings have fallen slightly following the re-implementation of quarantine requirements by the UK and other European governments for travellers returning from some countries. As a result, the company said its capacity planning scenario for 2020 has been lowered to minus 63% in terms of available seat kilometres compared to 2019 from minus 59% previously.
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Wm Morrison Supermarkets, down 4.2%. The retailer reported a much lower interim profit due to costs associated with Covid-19, though lifted its dividend with a "confident outlook". The Bradford-based supermarket chain posted a GBP145 million pretax profit for the 26 weeks ended August 2, a 28% drop from its GBP202 million profit the year before. Morrison explained that its profit has been temporarily hurt by considerable Covid-19 costs, amounting to around GBP155 million in the first half. These extra costs were partially mitigated by business rates relief totalling GBP93 million, giving a net half-year Covid-19 cost impact of GBP62 million. Revenue in the first half fell 1.1% to GBP8.73 billion from GBP8.83 billion due to very low fuel demand during and after the UK lockdown, though the company said this is now rebuilding.
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FTSE 250 - WINNERS
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Games Workshop, up 12%. The miniature wargames manufacturer said trading for the first quarter of financial 2021 remained strong due to a healthy growth in online and trade channels. For the three months to the end of August, the Nottingham-based firm said it expects sales to reach GBP90 million, up 15% from GBP78 million the same period the year before. Operating profit for the period before royalty income is set to be GBP45 million, a 61% rise from GBP28 million the prior year. Although Games Workshop said growth has been solid in its online and trade channels, its retail channel is still in a state of recovery from the Covid-19 closures earlier in 2020. Looking ahead, the group said the longer term impact as a result of the pandemic is still unknown. Games Workshop declared a dividend of 50 pence per share, in line with the group's policy to distribute truly surplus cash.
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Dixons Carphone, up 5.3%. The mobile phone and electricals retailer said sales were up in all markets and it had a strong online performance, adding that it is considering listing a minority stake of its Nordics business. UK & Ireland Electricals revenue was up 12% on a like-for-like basis in the 16 weeks ended August 29, with online sales three times higher year-on-year while stores were closed and have continued at more than twice the prior year's sales since stores reopened. UK & Ireland Mobile total revenue was down 56%, with sales and cashflow in line with plans following closures of UK standalone stores. International like-for-like revenue was up 16%, including 17% Nordics growth ad 12% growth in Greece. Nordic online sales were up 49% and were more than 100% higher in Greece. The company is exploring a listing for a minority stake in its Nordics business, which has performed well in the last 10 years.
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FTSE 250 - LOSERS
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Petrofac, down 3.5%. Bernstein cut the oilfield services company to Underperform from Market Perform.
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Dunelm, down 2.8%. The home furnishings retailer said total sales fell by 3.9% in the 52 weeks to June 27 to GBP1.06 billion from GBP1.10 billion reported a year earlier, resulting in a 13% fall in pretax profit to GBP109.1 million from GBP125.9 million. Dunelm explained that the reduction in profit reflects the impact of Covid-19 and the store closure period. The company reported a robust balance sheet with year-end net cash of GBP45.4 million, access to GBP175 million of approved banking facilities, and confirmed Covid-19 corporate financing facility eligibility. Dunelm reported strong recent trading, with total year-on-year sales growth of 59% in July and 24% in August, partly as a result of pent up demand, the timing of its summer sale and a resilient homewares market.
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By Lucy Heming; lucyheming@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
International Airlines (IAG)
Petrofac (PFC)
Hargreaves Lansdown (HL.)
Dunelm (DNLM)
Games Workshop (GAW)
