(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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Rio Tinto, up 3.7%. The Anglo-Australian miner was upgraded to Buy from Hold by Societe Generale.
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DS Smith, up 1.7%. The packaging firm said trading has continued to "progress well" with no material impact from the coronavirus. Like-for-like corrugated box volume growth has increased during the second half of its financial year, with good performances in Iberia, eastern Europe and the UK. The domestic US business remains "robust", though lower US paper export prices are ongoing amid reduced demand from China. "The company continues to benefit from the increase in online retailing and the fact its profit margins remain steady is another positive for investors given the uncertain and volatile economic background," said the Share Centre. Peers Smurfit Kappa and Mondi were up 2.5% and 2.3% respectively in a positive read-across.
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FTSE 250 - WINNERS
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Hill & Smith Holdings, up 6.2%. The infrastructure products and galvanising services firm attributed an increase in 2019 earnings to "strong progress" in UK and US markets. Hill & Smith reported pretax profit of GBP61.8 million on revenue of GBP694.7 million. In 2018, it posted pretax profit of GBP59.8 million on revenue of GBP637.9 million. Performance in the US was driven by investment in ageing infrastructure and new construction projects, Hill & Smith said. Results from its UK business were ahead of 2018, it said, with infrastructure spending underpinning demand. Combined, the UK and US operations generated 83% of company revenue and 96% of its underlying operating profit. The company proposed an increased final dividend of 23.0 pence per share, up 6% from the 21.8p payout the year prior. For the full year, the dividend rose 5.7% to 33.6p from 31.8p.
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Wizz Air Holdings, up 3.7%. The Hungarian low-cost airline said it has implemented measures "to address the financial implications of covid-19". The outbreak of covid-19, a form of coronavirus which originated in China, has reduced air travel demand in Europe in March, especially in areas most affected by the virus. Consequently, Wizz Air said it has adjusted its flight schedule from March 11 to April 2 of 2020, predominantly to destinations in Italy. Measures taken so far to address covid-19's "financial implications" have included cutting overhead and discretionary spending significantly, as well as leveraging staff across its network so as to pause recruitment along with "non-essential travel". Additionally, Wizz Air said it is "working with suppliers to reduce cost" and is "considering further adjusting network capacity in the magnitude of 10%" in the first quarter of its financial year ending March 2021.
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OTHER MAIN MARKET AND AIM - WINNERS
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Sirius Minerals, up 17% at 5.5p. The potash mine developer said its takeover by blue chip miner Anglo American was approved by shareholders. The vote, meeting and long wait came after Sirius failed to raise the funds it needed for a fertiliser mine, forcing the board to recommend the GBP405 million rescue package. Typically, a delayed result suggests the numbers are too close to call. Announcing the result, Sirius said the resolutions had been passed "by the requisite majorities". They were being asked to vote in favour of the 5.5 pence per share offer, despite some paying as much as 25p a share when the company was growing. Anglo American shares were up 2.2%. The London and Johannesburg-listed miner separately reported a substantial decline in rough diamonds sales from its De Beers unit in its second sales cycle for 2020 as it deferred allocations amid the coronavirus outbreak.
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OTHER MAIN MARKET AND AIM - LOSERS
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Hostelworld, down 10%. The Dublin-based hostel booking platform chopped its payout amid an earnings fall, and added that the coronavirus has caused "a material reduction in bookings". The company said revenue in 2019 came in 1.7% lower at EUR80.7 million from EUR82.1 million. Pretax profit tumbled by more than half to EUR3.0 from EUR6.7 million. Administrative expenses climbed by 2.4% to EUR63.4 million from EUR61.9 million. Hostelworld paid a full-year dividend of 6.3 euro cents per share, down 54% from 13.8 cents in 2018. The company added that it has "rebased" its payout policy "to a progressive dividend with a pay-out of between 20% to 40% of adjusted profit after tax". Net bookings were down by 4.8% to 6.6 million from 7.0 million reported in 2018, though average booking value rose 2.8% to EUR11.97 from EUR11.64.
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By Arvind Bhunjun; arvindbhunjun@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
Wizz Air (WIZZ)
Anglo American (AAL)
Hostelworld (HSW)
Rio Tinto (RIO)
Smith (DS) (SMDS)
Hill & Smith (HILS)
Smurfit Kappa (SKG)
Mondi (MNDI)