(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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WPP, up 2.2%. The advertising firm has agreed with Goldman Sachs International to repurchase up to GBP300 million of its shares. The advertising company said the share buyback programme will take place between Thursday and March 18 next year. The purpose of this programme is to reduce the share capital of WPP, it said.
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Ocado Group, up 1.9%. The online grocer reported a jump in revenue in its retail arm, which it operates in a joint venture with retailer Marks & Spencer. In the 13 weeks to December 1, Ocado Retail revenue was 11% higher at GBP429.1 million a year ago. Average order size was stable at GBP104.9 but average weekly orders climbed 10% to 350,000. Ocado announced in August it would sell 50% of its retail business to M&S. By September 1, 2020, Ocado will stock over 6,500 M&S grocery products and terminate its current arrangement with John Lewis & Partners-owned grocer Waitrose.
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HSBC, up 1.5%. Bank of America Merrill Lynch raised the global lender to Buy from Neutral.
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FTSE 100 - LOSERS
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Associated British Foods, down 1.7% and 3i Group, down 1.0%. The stocks went ex-dividend meaning new buyers no longer qualify for the latest dividend payout.
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FTSE 250 - WINNERS
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Tullow Oil, up 11%. Shares in the oil and gas company continued to stage a partial rebound following a catastrophic fall on Monday, which saw the stock drop to a record low and finish the session down 72%. Tullow on Monday was knocked after the suspension of its dividend, a "reset" of future production guidance, and the resignation of Chief Executive Paul McDade.
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Dixons Carphone, up 5.5%. The electrical goods retailer expects a surge in profit in its current financial year despite reporting mixed performance in the first half. Dixons Carphone reported a pretax loss of GBP86 million for the 26 weeks to October 26, narrowed compared to the GBP440 million loss a year earlier, despite revenue slipping 3.7% to GBP4.71 billion. Dixons recorded just GBP110 million in adjusting items for the recent period versus GBP500 million a year ago. Adjusted pretax profit of GBP24 million still was sharply lower than the GBP60 million recorded a year prior.
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Balfour Beatty, up 4.0%. The construction firm expects annual profit to be "slightly" ahead of its own expectations and in line with 2018 at GBP205 million, following additional Infrastructure Investment disposals in the second half. Group revenue for the current year is expected to be 5% higher than the GBP7.8 billion recorded the year before. On top of this, Balfour said 2019 average monthly net cash flow is expected to be about GBP310 million, ahead of the previously guided GBP280 million to GBP300 million range. Balfour said its year-end order book will be "in excess" of GBP14 billion, ahead of the GBP12.6 billion seen at the end of 2018.
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FTSE 250 - LOSERS
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John Laing, down 16%. The public infrastructure investor said net asset value at the end of 2019 will be "marginally" below market expectations. John Laing said it has continued to benefit from strong public private partnership project delivery in the second half but said "uncertainty remains over a number of factors", leading it to guide for NAV to fall below current market views. These include the final level of value enhancements achieved on internal valuation and ongoing transactions and discussions continuing on "certain" PPP projects. Additionally, a decline in power price forecasts - which John Laing is guiding to take GBP40 million off NAV - and changes in "macroeconomic and tax assumptions", which will shave GBP7 million off NAV. Finally, John Laing pointed to sterling strengthening as a final factor in its declining NAV. The company's portfolio will take a GBP50 million hit on currency movements.
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OTHER MAIN MARKET AND AIM - WINNERS
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Keller Group, up 4.5%. The geotechnical contractor said the Asia Pacific segment will return to profit in 2019 following a "successful" restructuring. North America will also achieve a "materially improved" financial performance by 2022 following a restructuring. It will be withdrawing from South America, where conditions are "challenging", and is also to review its Franki Africa business. Meanwhile, on top of its normal 5% annual dividend increase, Keller said it will return a non-recurring extra payment of 2.3 pence per share for 2019 and 4.4p for 2020. This means a total return of 40p for 2019 and 44p for 2020. It has also made the interim chief executive's role permanent.
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OTHER MAIN MARKET AND AIM - LOSERS
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Superdry, down 4.7%. The fashion retailer moved into a loss as interim revenue dropped significantly as expected. Superdry, on a post-IFRS16 basis, posted a pretax loss of GBP4.2 million for the six months to October 26, after a profit of GBP26.4 million the year prior. On a pre-IFRS16 basis, underlying pretax profit was just GBP200,000, from GBP12.9 million the year before. Superdry's revenue fell 11% to GBP369.1 million, which the company said reflects a year of "reset" as it fixes legacy issues. Superdry said trading was hit by the difficult conditions on the UK High Street as well as a move away from discounting. Looking ahead, Superdry sees second-half revenue falling year-on-year in the low single digits, leading to a mid single digit fall in annual revenue. This second-half performance would be an improvement on the first half. Superdry is to pay a 2.0 pence per share dividend for the half, significantly lower than the 9.3p it returned a year before.
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By Arvind Bhunjun; arvindbhunjun@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.
Tullow Oil (TLW)
Balfour Beatty (BBY)
HSBC Holdings (HSBA)
Keller (KLR)
Ocado (OCDO)
WPP (WPP)
AB Foods (ABF)
3i Group (III)
Superdry (SDRY)