UK WINNERS & LOSERS: Unilever Outperforms; SABMiller, PZ Cussons Hit By Sterling

Tue, 21st Jan 2014 11:37

LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices midday Tuesday.

-------

FTSE 100 - WINNERS

Unilever, up 3.8%. The consumer goods and food giant reported a drop in revenues for the fourth quarter, as expected, but beat analysts' expectations for underlying sales growth, margin improvements, and core earnings per share for both the fourth quarter and the year as a whole. The company reported that full-year sales rose by 4.3%, slightly ahead of the 4.2% expected, while core operating margin for the year was up 40 basis points at 14.1%. Core EPS was up 3% at EUR1.58, beating expectations of EUR1.52.

IMI, up 0.9%. The group has announced the terms of its proposed return of GBP620 million to shareholders, following the completion of the disposal of its Beverage Dispense and Merchandising divisions. The company said that it intends to return 200 pence per existing share.

-------

FTSE 100 - LOSERS

SABMiller, down 0.8%. The brewer said that growth in the third quarter continued to be driven by its emerging markets business. Although the group's organic revenue growth came in at 4% for the period, ahead of Shore Capital's 3% forecast, it fell below consensus expectations of 5%, according to a Bloomberg survey, says Shore Capital analyst Phil Carroll. Furthermore, Carroll is concerned that many of the company's key countries have seen their currencies weaken against the dollar. "Whilst the impact of this is seen on a short-term basis through FX translation in reported numbers, we wonder if there will be a latent impact on consumer spending if imported inflation comes through," Carroll says.

-------

FTSE 250 - WINNERS

African Barrick Gold, up 7.7%. The gold production company said it has exceeded its initial full-year gold production guidance and continued its cost-reduction strategy. The company said its gold production of 641,931 ounces for 2013 was 3% higher than the previous year and significantly exceeded the company's full-year production guidance of between 540,000 and 600,000 ounces of gold. The company also said its preliminary fourth quarter all-in sustaining cost is USD1,171 per ounce of gold sold, down 30% on the previous year and 8% on the previous quarter.

Polymetal International, up 2.5%. The gold, silver and copper-mining exploration company said it has produced 1.3 million ounces of gold equivalent in 2013, a 21% increase on the previous year and above its production guidance of 1.2 million ounces. The company said its full-year gold production was up 37% at 805,000 ounces and its silver production was up 3% at 27.2 million ounces.

Marston's, up 1.1%. The British brewer and pub operator said that trading in the financial year to date has been "encouraging", with profitability in line with expectations, boosted by good trading over the Christmas and New Year period. The brewer also said that it achieved like-for-like sales growth across is business estate.

-------

FTSE 250 - LOSERS

PZ Cussons, down 2.6%. The company has revealed that revenue for the half-year was up 4.1% on the comparable period, in line with management expectations, as it boosted its interim dividend to 2.53 pence per share. However, Shore Capital analyst Darren Shirley believes that, looking ahead, currency headwinds in Australia and Indonesia are strengthening, and he expects this will hold back progress in Asia. Furthermore, Shirley believes that the Nigerian naira will create a mid-high single digit hit to the company's second-half performance in Africa.

-------

AIM - WINNERS

Rose Petroleum, up 73%. The natural resources company said it has now completed the previously announced acquisition of two fracking licences in Germany. The company said it has purchased the entire share capital of Parkyn Energy Holdings PLC, which owns 100% of the German licences through its subsidiary Parkyn Energy Germany Ltd, for EUR400,000. The two concessions are shale gas prospects in an area covering 635,000 acres.

Pressure Technologies, up 9.2%. The company has announced that its alternative energy division, Chesterfield BioGas, has been awarded a GBP4.2 million contract to supply, install and commission biogas upgrading equipment, and is also in advanced talks on potential further deals. The company said the project, the largest of any biogas to grid project so far announced in the UK, is forecast to be completed early in the current financial year.

IQE, up 6.7%. IQE expects to report 2013 revenue of at least GBP126.0 million, up 43% from GBP88.0 million in 2012, after an increase in the second half. The company also expects EBITDA of at least GBP24.5 million, up 49% from GBP16.4 million in 2012, as it also improved its operational efficiency.

-------

AIM - LOSERS

Touchstone Gold, down 42%. The company said that if it cannot find additional funding it will not be able to meet scheduled payments to vendors of its concession contracts. Touchstone also said it has managed to enter into an agreement to grant 6.5 million shares at a price of 0.932 pence per share by way of a private placement.

Red Rock Resources, down 12%. The company has announced that it has raised GBP360,000 following a placing of 77 million shares at 0.47 pence each. The proceeds of the placing will be put towards repayments and working capital.

Corero Network Security, down 11%. The network security provider said that it expects its EBITDA loss to widen for 2013. The company expects an EBITDA loss of USD4.6 million, widened from a USD3.1 million loss in 2012, including a USD200,000 unrealised foreign-exchange loss on an inter-company loan compared with USD300,000 a year before.

-------

By James Kemp; jameskemp@alliancenews.com; @jamespkemp