(Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Wednesday.
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FTSE 100 - LOSERS
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HSBC, down 4.1%. Investec downgraded the bank to Hold from Buy.
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WPP, down 3.6%. Credit Suisse reinitiated coverage of the advertising giant with Underperform.
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FTSE 250 - WINNERS
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Pantheon International, up 1.2%. The private equity investor said it expects a slight rise in annual net asset value, outperforming one benchmark but falling short of another. The investor said its net asset value at the May 31 year-end was 2,882.8 pence, up 4.0% year-on-year from 2,770.6p. The 4.0% gain compares favourably to the FTSE All-Share Index which returned negative 11% during the period. Pantheon lagged behind the MSCI World Index which returned 7.4%, however.
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FTSE 250 - LOSERS
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FirstGroup, down 15%. The Aberdeen-headquartered public transport company posted a GBP299.6 million pretax loss for the year ended March 31, widened from a GBP97.9 million loss the year before. This was due to operating costs, which rose 11% to GBP7.91 billion from GBP7.12 billion and more than offset FirstGroup's revenue rise of 8.7% to GBP7.75 billion from GBP7.13 billion. This resulted in a swing to a GBP152.7 million operating loss from a GBP9.8 million profit. FirstGroup said this swing "reflects charges relating to the North American self-insurance provision, Greyhound impairment charges, restructuring and reorganisation costs and coronavirus-related charges". Finance costs also increased to GBP149.6 million from GBP110.4 million. In March, average passenger volumes fell by around 90% by month end amid lockdowns and school closures in North America.
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Victrex, down 5.2%. The polymers manufacturer said sales volume for its third quarter to June 30 was 805 tonnes, down 12% from 912 tonnes in the comparative period the year prior. Revenue was down 18% year-on-year to GBP58.8 million. The decline was attributed to the negative impact of the Covid-19 crisis. Sales volume from the start of the year to June 30 was broadly in line with the previous year. Revenue fell to GBP210.3 million from GBP217.8 million, reflecting a 3% decline. Victrex said the Aerospace, Automotive & Energy markets experienced the greatest level of decline. The deferral of elective procedures in Medical started to hurt performance from April as monthly revenue declines of 40% was recorded however, it added market indicators suggest that procedure deferral will gradually reverse. Looking ahead, the Lancashire-based company said with lower production levels reflecting weaker demand and inventory reduction, and consequently the under-absorption of fixed costs as well as a weaker mix, it expects its margin to be further hurt in the second half and into financial 2020.
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OTHER MAIN MARKET AND AIM - WINNERS
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Distil, up 17%. The owner of premium drinks brands RedLeg Spiced Rum, Blackwoods Gin and Vodka said unaudited year-on-year first quarter revenue grew by 21%, thanks to an increase in domestic retail sales both in store and on-line across our product range. Volumes were flat in the three months to the end of June year-on-year. Looking forward, Distil said its expectations for the six-month period to September versus the same period prior year are for revenue to increase by between 75% and 85%, which will allow increased marketing investment. Operating profit is expected in the range of GBP50,000 to GBP70,000. In the six months to the end of September 2019, the company reported operating profit of GBP1,000 on turnover of GBP824,000 and marketing costs of GBP219,000.
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Hurricane Energy, up 7.2%. The exploration & production company said the 205/21a-6 well on the Lancaster field, offshore UK, has produced at an average rate of 12,000 barrels of oil per day during the second quarter of 2020. The increase in oil production from the 205/21a-6 well implemented on June 5 has, as expected, been accompanied by an increase in produced water. The combined oil production from the 205/21a-6 and 205/21a-7z wells, however, was 1.3 million barrels in the second quarter of 2020, down slightly from 1.4 million barrels reported in the fist quarter. Following the relaxation of Covid-19 restraints on UK offshore operations, on Friday last week the company said it began commissioning the electric submersible pumps in the Lancaster production wells.
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OTHER MAIN MARKET AND AIM - LOSERS
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E-Therapeutics, down 24% at 13.13 pence. The Oxford, England-based drug discovery company reported a closure of retail offer, raiding GBP750,000. The company said it issued 6.3 million shares at a price of 12p each. The shares were placed at a 31% discount to the closing mid-price on Monday, the latest practicable date prior to the time and date of retail offer announcement. The retail offer is a part of E-Therapeutics' plans to raise up to GBP12.4 million through placing, subscription, retail offer and broker option. The company said it will use the funds raised to facilitate a number of initiatives to enable its next stage of growth and value creation by expanding its platform capabilities and asset pipeline.
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boohoo, down 22%. It is launching an immediate independent review of its UK supply chain, led by lawyer Alison Levitt. The fashion retailer said it is also accelerating its independent third party supply chain review with ethical audit and compliance specialists Verisio and Bureau Veritas. In addition, boohoo said it will be making an initial commitment to invest an incremental GBP10 million to eradicate supply chain malpractice. The move comes after Next and ASOS dropped boohoo clothing from their websites after claims that the fast-fashion retailer sold clothes made in factories where staff were paid less than the minimum wage and worked in poor conditions. boohoo has had more than GBP1 billion wiped from its share value in the past two days after an article in the Sunday Times newspaper alleged that workers in a Leicester factory making clothes destined for boohoo were being paid as little as GBP3.50 an hour.
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By Evelina Grecenko; evelinagrecenko@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
HSBC Holdings (HSBA)
Victrex (VCT)
Pantheon International (PIN)
Distil (DIS)
WPP (WPP)
Firstgroup (FGP)
E-therapeutics (ETX)
Boohoo (BOO)