(Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Monday.
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FTSE 100 - WINNERS
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JD Sports Fashion, up 4.7%. The sportswear retailer raised its annual profit guidance, and the sportswear retailer said demand during the key festive period was "robust". The FTSE 100 firm, hit by store closures due to Covid-19 restrictions, said it expects full-year headline pretax profit of at least GBP400 million, up from the previous forecast of GBP295 million. This would be down 8.8% from its pretax profit before exceptional items of GBP438.8 million in the financial year that ended February 1, 2020. It would however be a 15% climb from its statutory pretax profit of GBP348.5 million. Over the 22 weeks to January 2, revenue in JD's like-for-like businesses were 5% higher annually, helped in part by consumers "readily" switching between bricks and mortar and digital channels amid the closures. "Given this encouraging update, investors will be even more relieved management did not take on the distraction of buying failing department store Debenhams before Christmas. The recent bolt-on acquisition of Shoe Palace in the US looks a much better fit," said AJ Bell's Russ Mould.
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FTSE 100 - LOSERS
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Smith & Nephew, down 2.5%. The medical devices maker said it expects its fourth-quarter and full-year sales to be hurt by Covid-19 restrictions, which resulted in surgical procedures being postponed. The company stated it expects to post a fourth-quarter underlying revenue decline of around 7.0%. It said sales were hurt by increased rates of Covid-19 infection from mid-October onwards, particularly in the US and Europe, as surgical procedures unconnected to the pandemic were postponed following the reintroduction of restrictions. Smith & Nephew added that annual underlying revenue is expected to have declined by around 12%. The company reiterated trading profit margin will be substantially lower year-on-year, with negative operating leverage due to lower volumes partially offset by cost control measures. It posted a trading profit margin of 22.8% in 2019 and revenue of USD5.14 billion.
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Entain, down 1.0%. The gambling firm said Chief Executive Officer Shay Segev has given notice of his intention to leave the company to become Co-CEO of sports streaming platform DAZN. The FTSE 100 gambling company, formerly known as GVC Holdings, said Segev has a notice period of six months and will remain in his current role for that period or until a successor is in place. It added a process is "well under way to find his successor". Entain is a takeover target for US casino operator MGM Resorts International and reiterated its stance that the bid "significantly undervalues the company and its prospects".
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FTSE 250 - WINNERS
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Signature Aviation, up 8.7% at 447.10 pence. The aviation services company agreed to a USD4.63 billion takeover, suitor Global Infrastructure Partners said on Monday, fighting off interest from US-based private equity firm Blackstone, which had secured the backing of Bill Gates. Global Infrastructure said it will pay USD5.50 for each Signature Aviation share, a 51% premium to the aviation services company's 268 pence share price on December 16, the day before talks between the two parties were first announced. Signature Aviation's directors said the offer from GIP IV Hancock Bidco, controlled by GIP, is "fair and reasonable" and have backed the takeover bid. The agreement ends a bidding war for the FTSE 250 company, which back in December said it told Blackstone it "would currently be minded to recommend" a firm takeover bid by the private equity firm. GIP co-owns London's Gatwick Airport with France's Vinci.
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FTSE 250 - LOSERS
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Unite Group, down 2.0%. The student accommodation provider said its tenants will be able to apply for a rental discount of 50% for a total of four weeks, after England entered its third national lockdown last week. In addition, students will be able to get a four-week complimentary extension on their tenancy agreements, Unite said. Teaching at universities across the UK has been hit by Covid-19, with some even being forced to provide just online learning only. Unite's EPRA earnings will take a hit of up to GBP8 million, or 2 pence per share, as a result of the rent reduction and tenancy extension. The company said the valuation of the Unite UK Student Accommodation Fund slipped 0.3% quarter-on-quarter and 1.8% annually to GBP2.80 billion on December 31.
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OTHER MAIN MARKET AND AIM - WINNERS
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SIG, up 5.9%. The building products supplier said its second half revenue topped internal expectations as it posted fourth-quarter like-for-like growth. For the whole of 2020, revenue from underlying operations is expected to come in at GBP1.87 billion, down 13% like-for-like. "Revenues in the second half of the year showed a solid recovery, ahead of the board's previous expectations, with progress throughout the half resulting in like-for-like revenues for the fourth quarter, up 4% compared to the prior year," the company said, owing the performance to an "initial impact" from its growth strategy. The UK was the worst-hit, with like-for-like sales tumbling 25%. In the EU arm, the sales fall was 6%.
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By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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SIG (SHI)
Smith & Nephew (SN.)
Unite (UTG)
JD Sports (JD.)
Entain (ENT)