UK WINNERS & LOSERS SUMMARY: M&G Rises After Ascentric Acquisition

Wed, 27th May 2020 11:06

(Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Wednesday.

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FTSE 100 - WINNERS

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M&G, up 9.0%. The savings and investments company said it added GBP14 billion to its assets under management by acquiring Royal London Mutual Insurance Society's platform business Ascentric. No financial details of the deal were disclosed. M&G separately reported an 8.2% drop in total assets under management and administration mainly due to the "shock to markets in March from the disruption associated with the outbreak of Covid-19". M&G said its total assets under management and administration declined 8.2% to GBP323 billion at March 31 from GBP352 billion at the end of 2019 due to the coronavirus disruption, but that the company's solvency ratio remained comfortably above its risk appetite throughout the crisis. M&G confirmed its intention to pay on Friday dividends of GBP410 million, comprising an ordinary dividend of 11.92 pence per share and a special demerger dividend of 3.85p per share.

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British Land, up 7.7%. The property company reported a widened loss for financial 2020 but said it remains "encouraged" by its current negotiations and financial position amid the Covid-19 pandemic. For its financial year ended March 31, the company posted revenue of GBP613 million, down 32% from GBP904 million reported for financial 2019. The IFRS pretax loss was GBP1.12 billion, widened significantly from a loss of GBP319 million. Underlying profit dropped 10% to GBP306 million from GBP340 million. This figure was broadly in line with analyst expectations of GBP305 million. British Land's EPRA net asset value per share fell 15% to 774 pence at the end of March from 905p a year ago as its portfolio valuation shrank by 10% to GBP11.16 billion. "At the moment the company has robust enough financial foundations to withstand a further significant collapse in the valuation of its assets. For now the value of its offices are holding up and most of its tenants are paying rent on time," aid AJ Bell's Russ Mould.

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St James's Place, up 7.3%. The wealth manager said April gross inflows were "robust", though they did come in lower than a year ago, as its partners shifted to managing clients "virtually". St James's Place said gross inflows for April amounted to GBP1.17 billion versus GBP1.35 billion a year ago, with net inflows broadly flat at GBP810 million. Closing funds under management totalled GBP108.83 billion, up 1.5% from 107.19 billion. For the four months to April, gross inflows were GBP5.21 billion, up from GBP4.96 billion a year before, and net inflows were up to GBP3.18 billion from GBP2.98 billion.

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FTSE 100 - LOSERS

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Pearson, down 4.5%. Berenberg downgraded the education publisher to Sell from Hold.

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FTSE 250 - WINNERS

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Unite Group, up 6.5%. JPMorgan raised the student accommodation provider to Overweight from Neutral.

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OTHER MAIN MARKET AND AIM - WINNERS

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SIG, up 2.7%. The building products supplier its underlying pretax profit for 2019 is still expected at about GBP42 million. The firm also noted its 2019 results will be released Friday this week, instead of Thursday as originally planned. SIG did not give a reason for the 24-hour delay.

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OTHER MAIN MARKET AND AIM - LOSERS

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boohoo Group, down 4.5%. The online fashion retailer "strongly" refuted allegations made by short seller ShadowFall as it noted a recent fall in its share price. The stock ended down 5.8% on Tuesday. ShadowFall, which has previously taken aim at London-listed companies such as Future and IQE, on Tuesday in a 53-page report claimed boohoo has provided "a misleading impression" of its free cash flow. ShadowFall questioned if PrettyLittleThing's profit is "boosted by another BOO entity 'wearing' some of its costs and calculate that this could result in an additional GBP193 million paid to PLT's non-controlling interest". Firing back on Wednesday, boohoo said free cash flow is disclosed on page 9 of its most recent annual results, and contains "clear" definitions, alongside a full reconciliation down to net cash flow for the financial year, including items such as tax paid and dividends paid to minority shareholders.

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By Arvind Bhunjun; arvindbhunjun@alliancenews.com