LONDON (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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BT Group, up 3.1%. The telecommunications company said BT Group reaffirmed its outlook for the full financial year in its current guise, as it reported a rise in pretax profit in its third quarter and year to date and outlined a new organisational structure following its acquisition of mobile network EE. For the quarter to end-December the telecommunications and pay-TV company reported a pretax profit of GBP862 million, up from GBP694 million a year before, as revenue rose to GBP4.64 billion from GBP4.48 billion.
Sky, up 1.1% at 1,094.00p. The broadcaster benefited from an upgrade by Citi to its Europe Focus List, from previously only holding a Buy rating on the stock.
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FTSE 250 - WINNERS
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Allied Minds, up 2.7%. The science and technology development group said it now owns a 73% stake in Federated Wireless after a recent fundraising round in which Federated Wireless raised USD22 million. The fundraising values Federated Wireless as USD82 million, increased from USD10 million, and Allied Minds' stake in the company is now valued at USD60 million, up from USD9 million.
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FTSE 250 - LOSERS
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Just Eat, down 2.4% at 364.50p. Swiss bank UBS initiated the online takeaway company at Sell with a 330p price target. The bank said the business is somewhat immature and the potential impact from the food home-delivery company's competitors is being underestimated by investors. "We believe emerging alternative platforms add more value and that their adverse impact on Just Eat's future market share gains is currently being underestimated by market participants," said UBS analyst Tal Grant.
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MAIN MARKET AND AIM - WINNERS
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IS Solutions, up 21%. The data and analytics company said it expects its profit to be significantly ahead of market forecasts for the full year following recent success in winning new contracts. The company said it has seen stronger demand for sales across its divisions in the first months of 2016, with both trading well ahead of budget. It has won two new contracts in the retail and financial services sector which will add another GBP2.0 million to its revenue for the financial year to the end of March.
SpaceandPeople, up 15%. The retail, promotional and brand specialist said it expects its pretax profit for 2015 to miss management expectations due to a deferral of revenue, as it also announced a contract to manage promotional space at British Land's Plymouth shopping centre. SpaceandPeople said that, whilst its trading for the second half of the year ended December 31 has been in line with expectations, its pretax profit will be GBP1.0 million, which is below market expectations. It said this was due to a "timing difference" following a decision to recognise an element of promotional revenue on the same basis as revenue from retail merchandising units, meaning GBP150,000 has been deferred from 2015 to 2016.
Nighthawk Energy, up 10%. The oil and gas company said its revenue for 2015 significantly outpaced market expectations. Nighthawk said its gross production for 2015 was around 654,800 barrels in total, down from 706,319 barrels a year earlier. The company said the decline was primarily due to a natural rate of decline on its existing wells, which was offset by the results from its behind pipe and solvent treatment programmes.
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MAIN MARKET AND AIM - LOSERS
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Lakehouse, off 57%. The asset and energy support services company said budget cuts within its housing association clients have resulted in it winning fewer contracts than expected. The company said it has seen good bidding success since the start of its financial year on October 1, but said it is currently operating in a backdrop of active cost reductions taking place across its housing association clients, in particular a requirement for social landlords to cut rents by 1.0% a year for the next four years. Energy Services, Compliance and Construction division revenues have remained in line, albeit with selective bidding in the construction arm, but the group said the problems in its Regeneration unit will hit its results for the full year, which will mean profit will fall year-on-year.
Litebulb Group, down 56%. The branded product developer said it has continued talks on its convertible loan notes and said it had identified the need for additional financing. Litebulb said following talks with its convertible loan note holders, it expects the refinancing of the notes to take the form of part of the liability being converted into equity. It noted, however, the current liability of the principal of the loan notes is GBP6.6 million, much higher than its entire market capitalisation of GBP1.1 million.
Mosman Oil & Gas, down 47%. The oil and gas company said it has cancelled its deal to acquire the South Taranaki Energy Project in New Zealand from Origin Energy due to the drop in the oil price. Mosman said while the assets remain strong and have long-term development potential, at the current depressed oil price, the acquisition no longer meets its investment criteria.
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By Arvind Bhunjun; arvindbhunjun@alliancenews.com; @ArvindBhunjun
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BT (BT.A)
Mosman Oil Gas (MSMN)
SpaceandPeople (SAL)