(Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Tuesday.
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FTSE 100 - WINNERS
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Kingfisher, up 3.0%. The do-it-yourself products retailer was benefiting from high-demand for home improvements as lockdown restrictions continue. Kingfisher said it expects annual profit to be at the top end of market estimates as the B&Q and Screwfix DIY chains have continued to see "strong" demand so far in its fourth quarter. In the 10 weeks to January 9, group like-for-like sales jumped 17% year-on-year, helped by e-commerce sales more than doubling. Kingfisher added that its year-to-date like-for-like sales are up 6.5%. The retailer said it is confident its annual adjusted pretax profit can land in the top end of the GBP667 million to GBP742 million analyst expectations range. For the year ended January 31, 2020, Kingfisher reported adjusted pretax profit of GBP544 million, so financial 2021 could see a jump of up to 36%. DIY store owners such as Kingfisher, which in mainland Europe owns Castorama France and Brico Depot, have benefited from boosted demand for home improvement as locked down consumers spend more time indoors.
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Avast, up 1.5%. Berenberg started coverage on the cybersecurity firm with a Buy rating.
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FTSE 250 - WINNERS
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Playtech, up 7.7%. The online gaming and sports betting firm said it expects its 2020 results to beat forecasts, adding that while Covid-19 related uncertainties remain, it is well-placed to make progress in 2021. Playtech it expects adjusted earnings before interest, tax, depreciation and amortisation for 2020 of at least EUR300 million following its entry into the US market and its expansion in Latin America. This would reflect a 22% decrease from the 2019 adjusted Ebitda which was EUR383.1 million. Playtech said its performance was hurt by retail closures amid lockdowns and the cancellation of sporting events. Its business in Asia was negatively impacted by government restrictions in response to the pandemic as well as restrictions on payment processing. Looking ahead, Playtech said: "Whilst the Covid-19 pandemic continues to pose challenges and the macroeconomic outlook remains highly uncertain, Playtech remains well placed to make further strategic and operational progress in 2021."
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Gamesys, up 4.5%. The online bingo and casino games operator shook off Covid-19's "unprecedented challenges" and tipped its 2020 performance to top market expectations. The Jackpot Joy and Rainbow Riches owner said it is "confident" that revenue and adjusted earnings before interest, tax, depreciation and amortisation will be at or above the top end of market estimates. Davy Research said that Gamesys is likely to achieve an adjusted Ebitda above GBP200 million, up at least 69% annually, and above consensus of GBP197 million. In 2019, Gamesys reported adjusted Ebitda of GBP118.2 million, up 9.0%, on revenue of GBP415.1 million, up 35% from 2018.
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Rathbone Brothers, up 2.5%. The wealth manager reported a rise in funds under management and administration, benefiting from "strong market movements" in the final quarter of 2020. Rathbone said total funds under management and administration at December 31 was GBP54.7 billion, up 8.6% from GBP50.4 billion at the same time in 2019. Rathbone said this reflected not only "strong market movements" in the last quarter, but also continuing net inflows and strong investment performance. In 2020, total net inflows were GBP2.1 billion, more than double the GBP600 million in 2019.
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FTSE 250 - LOSERS
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Games Workshop, down 7.2%. The wargames manufacturer and retailer lowered its interim payout and warned on current trading conditions, despite reporting a solid rise in profit and revenue for the period. For the six months ended November 29, the company posted pretax profit of GBP91.6 million, up 56% from GBP58.6 million a year before. This was on revenue that grew by 26% year-on-year to GBP186.8 million from GBP148.4 million on a reported basis. On a constant currency basis, revenue rose by 27%. The Retail business declined by 19% to GBP36.9 million, with trading in most countries stifled by government restrictions. Games Workshop warned that should current sales trends continue for the full year, the group would have around 50 stores that would not break even. Games Workshop declared an interim ordinary dividend of 80 pence per share, down 20% from 100p the prior year. However, in early December, the group declared an additional payout of 60p per share.
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Clarkson, down 3.0%. JPMorgan downgraded the shipping services provider to Neutral from Overweight.
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OTHER MAIN MARKET AND AIM - WINNERS
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THG, up 2.8%. The luxury brands retailer raised its 2021 growth forecast after it finished a busy 2020 with a revenue rise of more 50% in its final quarter. The Manchester-based firm, which owns the Hut Group, said its fourth quarter revenue jumped 51% to GBP558.7 million, from GBP370.0 million a year earlier. The 51% jump topped its forecast of a rise between 40% and 4%%, which itself was raised significantly from 16% to 25% growth. The fourth-quarter is often labelled as the "golden quarter" in the retail sector, due to the Christmas period and the Black Friday sales event. For the whole of 2020, THG's revenue jumped 41% to GBP1.61 billion from GBP1.14 billion.
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By Arvind Bhunjun; arvindbhunjun@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
Kingfisher (KGF)
Rathbone (RAT)
Games Workshop (GAW)
Playtech (PTEC)
Clarkson (CKN)