WINNERS & LOSERS SUMMARY: Costain Drops Almost 40% On Contract Delays

(Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Friday.----------FTSE 100 - WINNERS----------Burberry Group, up 3.2%. Goldman Sachs raised the fashion house to Neutral from Sell.----------J Sainsbury, up 2.5%. Goldman upgraded the supermarket chain to Neutral from Sell. ----------FTSE 100 - LOSERS----------BT Group, down 1.5%. The UK Office of Communications confirmed its new rules will give broadband and mobile networks providers greater access to Openreach's infrastructure. Openreach is wholly owned by BT Group but has its own board to ensure some independence. The new rules will give rival broadband and mobile networks providers, such as TalkTalk Telecom, greater access to Openreach's infrastructure. Last year, Ofcom required Openreach - which maintains the UK's main broadband network - to let rival companies use its telegraph poles and underground "ducts" to lay their own fibre networks. Until now, this rule has been available to companies focusing on residential and small-business customers. Friday's final decision would extend it to firms serving large businesses, as well as companies laying high-speed lines that support mobile and broadband networks. TalkTalk shares were up 0.2%. ----------FTSE 250 - WINNERS----------Merlin Entertainments, up 14% at 450 pence. The theme park and attractions operator agreed to a GBP4.77 billion takeover offer from a group comprising the investment vehicle of Lego's founding family, US private equity firm Blackstone and a Canadian pension fund. The deal values Merlin shares at 455p each in cash, representing a 15% premium compared to the attraction operator's closing price of 395p on Thursday. The deal values Merlin - which operates Legoland theme parks among a number of other attractions - at GBP4.77 billion on a fully diluted basis, and implies an enterprise value of GBP5.91 billion. The bid is from Berkeley Bidco, a newly-formed company owned by Kirkbi, Blackstone Core Equity Partners and the Canada Pension Plan Investment Board. Kirkbi and Blackstone jointly controlled Merlin in the eight years prior to its 2013 float in London.----------FTSE 250 - LOSERS----------Paypoint, down 3.2%. The payments processing firm said it will cease working with Centrica-owned British Gas after the end of 2019, due to being unable to agree appropriate renewal terms for its multi-year contract. In 2009, PayPoint and British Gas signed a contract where British Gas's pre-payment customers would be able to top-up their meters using PayPoint terminals and outlets. This deal now will end on December 31. Paypoint said the hit to net revenue and contribution in the current financial year ending March 2020 will be around GBP1.4 million, followed by GBP3.5 million in the 2021 financial year. PayPoint said it has plans underway to mitigate this, in particular through revenue trends in its Bill Payment business, and a strong performance from its omni-channel payments platform MultiPay.----------OTHER MAIN MARKET AND AIM - WINNERS----------Surface Transforms, up 23%. The brake disc manufacturer said it has been awarded a contract to supply ceramic brake discs to an existing UK original equipment manufacturer, whom it didn't name. The new contract award by 'OEM 6' is for a new car that will be produced over three years with the start of production scheduled towards the end of 2021. Surface Transforms expects the contract to generate revenue of GBP6 million over its lifetime. Surface Transforms secured a second new contract with Swedish car manufacturer Koenigsegg Automotive, for its new 300 miles per hour supercar Jesko. The Jesko will replace the Regara model with an expected start of production in the autumn of 2020.----------OTHER MAIN MARKET AND AIM - LOSERS----------Costain, down 39%. The engineering services company said 2019 earnings will take a hit from delays to the timing of some contracts. Costain said revenue secured to-date for 2019 is GBP1.1 billion, down from GBP1.49 billion reported for 2018. Revenue secured for 2020 is GBP900 million compared to GBP850 million for 2019 at the same stage last year. The first-half results will also include a one-off charge of GBP9.8 million, the company noted. Costain said it has recently seen a number of delays to the timing of contract start dates and new awards. Projects affected include the M6 Smart Motorway, Preston distributor road and HS2 Southern Section main works. As a result, the company said it now expects lower revenue for 2019 and underlying operating profit for the full year is expected to be in the range of GBP38.0 million to GBP42.0 million. Last year, underlying operating profit totalled GBP52.5 million.----------