(Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Friday.
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FTSE 100 - WINNERS
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Halma, up 0.4%. The hazard detection technology company bought Utah-based Maxtec, which distributes oxygen analysis and delivery products for use in medical and non-medical applications. Maxtec will be managed as part of Halma's Perma Pure business in the US, it said, medical dehydration products of which are also used in acute care units. The cash consideration for Maxtec is USD20 million, on a cash and debt free basis, which will be funded from Halma's existing facilities, it said. "Maxtec is highly aligned with our purpose, and further extends our presence in diagnostic products and acute healthcare," said Halms Chief Executive Andrew Williams.
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FTSE 100 - LOSERS
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Pearson, down 4.9%. The education publisher said its sales decreased by 6% in headline terms in 2019 to GBP3.87 billion from GBP4.13 billion a year earlier, halving pretax profit to GBP232 million from GBP498 million. Pearson noted that its profit was further hurt by the reduced gains on disposals and higher restructuring charges. The FTSE 100-listed company believes that "the future of learning will be increasingly digital" and therefore, the company is restructuring to keep pace. Looking ahead, Pearson said it expects to deliver 2020 adjusted operating profit of between GBP410 million to GBP490 million, down from GBP581 million reported in 2019, with the 2020 figures excluding the recently sold 25% stake in Penguin Random House. "As we benefit from further efficiencies from the investments we have made and deploy our strong balance sheet, Pearson is now well placed, in time, to grow in a profitable and sustainable way," said Chief Executive John Fallon.
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FTSE 250 - WINNERS
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Daejan Holdings, up 55% at GBP80.00. The British property company agreed a takeover offer from major shareholder Freshwater Group Ltd. Dock Newco, part of Freshwater, is offering GBP80.50 in cash for each Daejan share. The offer price values the entire issued shares capital of Daejan at GBP1.31 billion and 20.5% of free float shares at GBP269.5 million. Freshwater currently owns 79.5% of entire issued share capital of Daejan. The financial terms of the offer are final and will not be increased, Dock Newco noted. Solly Benaim, independent director of Daejan, said: "The offer represents an opportunity for shareholders to realise in cash their investment in Daejan at a premium of approximately 56% to the prevailing share price and I intend to recommend shareholders to vote in favour of the offer."
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Hammerson, up 1.6%. The property development company sold a portfolio of seven retail parks in the UK for GBP400 million. The sale of the portfolio, to Orion European Real Estate Fund V, is expected to generate net proceeds for Hammerson of GBP395 million. It includes retail parks such as the Forge Shopping Park in Telford and Cleveland Retail Park in Middlesbrough. The total sale price of the portfolio represents a net initial yield of 8.9% and is 23% below the last reported book value as at June 30. Separately, Hammerson said it sold Parc Tawe in Swansea and Abbey Retail Park in Belfast individually, generating proceeds of GBP55 million.
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James Fisher & Sons, up 0.7%. The marine engineering services provider has secured a GBP35 million contract extension from the Royal Australian Navy for the supply of a submarine escape and rescue system. The contract extension to December 2023 was secured by the company's Perth, Australia-based business JFD Australia. It also includes an option of a further extension option to November 2024. Eoghan O'Lionaird, chief executive officer of James Fisher, said: "We are delighted to secure this four year contract extension from our valued customer, the Royal Australian Navy. Keeping submariners and other defence force personnel safe remains our foremost priority. JFD Australia looks forward to continuing to be a reliable partner for the RAN through the ongoing delivery of its industry leading submarine escape and rescue service."
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FTSE 250 - LOSERS
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Hunting, down 1.8%. The energy services company acquired Enpro Subsea for USD33.0 million, plus a potential maximum earn out of USD3.0 million based on earnings performance in 2020. Enpro has developed subsea production technology that has been adopted by offshore operators within the global oil and gas industry, Hunting said. "The acquisition of Enpro further strengthens Hunting's subsea offering and adds a high technology product group to our portfolio," said Hunting Chief Executive Jim Johnson.
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TBC Bank, down 1.9%. Nikoloz Kurdiani, deputy chief executive Of JSC TBC Bank, sold GBP212,373 in shares in a transaction on Thursday. Kurdiani disposed of 15,338 shares at a price of GBP13.85 each. It has not been disclosed how many shares, if any, he has left after the sale.
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OTHER MAIN MARKET AND AIM - WINNERS
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Hornby, up 3.9% at 37.40 pence. The model train set maker plans to raise GBP15.0 million through a share issue in a bid to spend on its key brands and digital marketing. Hornby plans to issue 41.7 million shares at 36.00p each through a placing and open offer, which is set to close at 1600 GMT on Friday. The issue will consist of a "firm placing" of up to 37.2 million new share, raising GBP13.4 million. There will also be a conditional placing for another 4.5 million shares to secure a further GBP1.6 million. Hornby said the equity raise is to "reinvigorate the group's key brands through accelerated product development and additional capital expenditure", and invest in digital marketing. Hornby also said it has amended a sale and purchase agreement with LCD Enterprises, which it acquired a 49% stake of in 2017. LCD is the holding company diecast model vehicles and railway products supplier Oxford Diecast. Hornby acquired the stake for GBP1.6 million. The company has extended a lock-in period until December 8, 2023, six years after the sale and purchase deal was agreed.
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OTHER MAIN MARKET AND AIM - LOSERS
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600 Group, down 15%. The industrial engineering company said its trading has been hurt by Boeing Co's 737 MAX grounding, a General Motors Co strike and the coronavirus outbreak in China. The firm said its full-year performance is now expected to be "significantly below" expectations. In December, the AIM-listed firm said macro-economic and political uncertainties hurt fourth quarter order intake, causing it to fall "significantly" below originally predicted levels. 600 said: "Trading conditions have since become more challenging with the combination of the General Motors strike in US plants at the end of last year and the suspension of manufacture by Boeing of its 737 MAX in January this year further impacting hundreds of thousands of suppliers across our core industrial markets. What's more, 600 reported that the coronavirus "is causing disruption to shipping from the Far East".
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By Evelina Grecenko; evelinagrecenko@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
Hunting (HTG)
Pearson (PSON)
Halma (HLMA)
TBC Bank Group (TBCG)
Hammerson (HMSO)
James Fisher and Sons (FSJ)
Hornby (HRN)