UK WINNERS & LOSERS SUMMARY: Hyve Shares Rally On 2021 Optimism

Tue, 01st Dec 2020 10:44

(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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Smith & Nephew, up 4.1%. Barclays initiated the medical technology firm with an Overweight rating. "The strategic and commercial model changes in early 2019 should, in our view, support a sustainable improvement in the top line over the medium term," said Barclays.

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JD Sports, up 2.9%. The athleisurewear retailer confirmed that discussions with the administrators of Debenhams for a potential takeover of the on-the-brink UK department store chain have been terminated. JD Sports was the last remaining bidder for Debenhams, which has been in administration since April. Debenhams confirmed that its administrators FRP Advisory has concluded the initial sale process as part of their assessment of options for the UK business in administration. The process did not lead to a deliverable proposal, and especially with the current trading environment and the likely prolonged effects of the Covid-19 pandemic, the administrators have decided to start a wind-down of Debenhams UK, while continuing to seek offers. Operations of the UK business will close if no alternative offers are received by the end of the wind-down process. On Saturday, the Times reported that the FTSE 100 atheleisurewear retailer was considering backing out of the offer, amid the collapse of Philip Green's Arcadia Group. Arcadia, which runs the Topshop, Dorothy Perkins and Burton fashion store brands, is the biggest holder of concessions within Debenhams department stores, the newspaper noted.

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FTSE 250 - WINNERS

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easyJet, up 2.8%. Goldman Sachs upgraded the airline to Neutral from Sell.

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Frasers Group, up 4.4%, and Marks & Spencer, up 1.1%. The retailers were higher in the wake of the collapse of Debenhams. "Shares in Frasers Group and Marks and Spencer rose strongly in early trading with expectations they could be the last big department store chains standing in town centres," said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.

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FTSE 250 - LOSERS

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Wizz Air, down 2.3%. Both UBS and Goldman Sachs cut the central and eastern Europe-focused airline to Sell from Neutral.

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OTHER MAIN MARKET AND AIM - WINNERS

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Hyve, up 16%. The exhibitions and conferences organiser said it swung to an annual loss on a drop in revenue as Covid-19 caused face-to-face events to be cancelled around the world, but it expects trade to increase in 2021, particularly in the second half. Hyve posted a pretax loss for the financial year ended September 30 of GBP312.9 million, swinging from a profit of GBP8.7 million the year prior. Revenue halved to GBP105.1 million from GBP220.7 million. Hyve did not declare a final dividend, compared to 1.6 pence per share a year prior, nor had it paid an interim dividend. This means no payout at all, compared to the prior year's 2.5 pence per share. Going forward, Chair Richard Last said: "With the increasing expectation of a successful immunisation programme commencing early in 2021, we look forward, with some optimism, to an improving economy. We expect to see a steady increase in the number of in-person events being held, particularly in the second half of 2021. The size of the events will initially be smaller and more domestic when compared to the same events held prior to the pandemic."

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By Lucy Heming;Â lucyheming@alliancenews.com