UK WINNERS & LOSERS SUMMARY: Smurfit Results Lift Packaging Peers

(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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Smurfit Kappa, up 8.1%. The Irish corrugated paper and packaging company upped its final payout and swung to an annual profit in 2019 after one-off costs in 2018 related to the seizure of its Venezuelan business didn't repeat. For 2019, the company reported pretax profit of EUR677 million, swinging from 2018's EUR404 million loss on a revenue of EUR9.05 billion, up1.1% from EUR8.95 billion. Smurfit raised its final dividend by 12% to 80.90 cents a share, taking its full-year payout to 108.80 cents, up 21% from 89.90 cents. Peers DS Smith and Mondi were up 6.0% and 4.8% respectively.

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Antofagasta, up 4.7%. Deutsche Bank raised the Chilean copper miner to Hold from Sell.

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easyJet, up 3.5%. Societe Generale raised the budget airline to Hold from Sell.

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Barratt Developments, up 3.3%. The UK housebuilder raised its interim dividend and boosted its special returns programme after a "strong first half performance". In the six months to December 31, revenue was 6.3% higher year-on-year at GBP2.27 billion from GBP2.13 billion, with pretax profit climbing 3.7% to GBP423.0 million from GBP408.0 million. Total home completions jumped 9.1% to 8,314, Barratt's highest during a half in 12 years. Barratt upped its half-year dividend by 2.1% to 9.8 pence per share from 9.6p the year prior. The company also extended its capital returns plan, proposing special returns of GBP175 million in November 2021, on top of the GBP175 million planned for this November. "Impressively the company has been able to increase its margin despite a fall in average selling prices as it delivers new product ranges and there looks to be a chance for full year estimates to be moved upwards off the back of these numbers," commented AJ Bell's Russ Mould.

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FTSE 100 - LOSERS

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Imperial Brands, down 8.0%. The tobacco firm issued a profit warning following new vaping regulation in the US. Tobacco trading remains in line with expectations, the West and Gauloises Blondes cigarettes maker told its annual general meeting, but group constant currency net revenue is now seen at a "similar level" to last year and adjusted earnings per share are expected to be slightly lower. This is because of the US Food & Drug Administration's ban on certain flavours of cartridge-base vapour devices, as well as weaker-than-expected consumer demand for vapour. First half adjusted earnings per share are expected to be down around 10% at constant currency, which the company said is due to the phasing of inventory write-downs, "primarily relating to the US flavour ban". It said half-year adjusted operating profit will take a GBP45 million hit from the inventory write-down, which Imperial said is in line with its previous estimates. Peer British American Tobacco was down 1.5%.

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United Utilities, down 1.5%. The water company said Chief Financial Officer Russ Houlden will step down as CFO, with effect at the group's upcoming annual general meeting, which is expected in July. Houlden has been in his role at United Utilities for ten years since 2010, and has been chair of the Financial Reporting Committee of the 100 Group, which reflects the collective views of the FTSE 100 constituents on financial reporting matters, for six years since 2014. Warrington-based United Utilities said succession plans are in progress to find a new finance chief.

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FTSE 250 - WINNERS

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Domino's Pizza, down 7.8%. The pizza delivery chain reported fourth-quarter revenue growth, helped by an improved like-for-like performance in the UK, and added that an international unit disposal programme is progressing. In the 13 weeks to December 29, group sales were 3.7% higher year-on-year at GBP352.0 million from GBP339.6 million. On an organic basis, at constant currency and excluding acquisitions and disposals, sales climbed 4.1% from the year prior. In the UK & Republic of Ireland, sales were 4.4% higher at GBP326.7 million from GBP312.9 million, or up 4.5% organically. On the international front, Domino's said its disposal programme is "progressing" and added that it is focusing on offloading its Norway operations. Domino's back in October said it was reviewing operations abroad and decided to pull out of four countries despite them being "attractive" markets.

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Kaz Minerals, up 4.5%. Deutsche Bank raised the miner to Buy from Hold.

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FTSE 250 - LOSERS

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Senior, down 1.5%. Redburn cut the aircraft parts maker to Sell from Neutral.

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OTHER MAIN MARKET AND AIM - WINNERS

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Lookers, up 1.5%. The car dealer said it expects underlying profit to be in line with management expectations, despite challenging trading in the fourth quarter of 2019. Lookers said in November that underlying pretax profit for 2019 is expected to be around GBP20 million, down 62% from GBP53.1 million the year before. For the three months to the end of December, Lookers said like-for-like sales of new vehicles declined by 6.6%, compared to a 3.2% fall in the third quarter, due to a contracting UK new car market, and a reduction in lower margin fleet volume. Like-for-like sales of used cars were more positive, increasing by 3.8% compared with 2.6% growth the quarter before, while gross profit from the Aftersales division remained flat. Despite the tough period, Lookers said it expects pretax profit on an underlying basis for 2019 to be in line with management expectations.

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By Arvind Bhunjun; arvindbhunjun@alliancenews.com

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