15th Jan 2016 08:32
LONDON (Alliance News) - Stocks had a nervous open on Friday fluctuating between gains and losses, with Experian one of the top FTSE 100 gainers after reiterating its guidance for the full year and posting total and organic revenue growth of 3% in the third quarter of its financial year at constant exchange rates.
The information services company, known for providing credit checks on consumers and businesses, said organic revenue growth was balanced across the regions in which it does business. However, total revenue was down 3% at actual exchange rates in the quarter ended December 31.
"Looking ahead, our guidance for the full year is unchanged. While foreign exchange will be a headwind, at constant currency we expect organic revenue growth in the mid-single digit range, to deliver stable margins and to see further progress in benchmark earnings per share," Chief Executive Brian Cassin said in a statement.
Experian shares traded up 2.3% just after the London open.
The FTSE 100 index was down 0.2% at 5,906.32 points, the FTSE 250 was flat at 16,415.51, and the AIM All-Share index was up 0.1% at 709.06. In Europe, the CAC 40 in Paris was flat and the DAX 30 in Frankfurt up 0.2%.
In Asia, the Nikkei 225 index in Tokyo ended down 0.5%, the Shanghai Composite closed down 3.6% and the Hang Seng in Hong Kong down 1.5%.
BT Group was another top gainer, up 1.3% after the UK Competition and Markets Authority said it has approved BT's GBP12.5 billion acquisition of mobile operator EE.
The CMA, the UK's antitrust regulator, said it decided, despite a number of concerns raised by other UK telecoms operators, that the deal would not result in a substantial lessening of competition.
"Since our provisional findings, we have taken extra time to consider responses in detail but the evidence does not show that this merger is likely to cause significant harm to competition or the interests of consumers," said John Wotton, chair of the CMA's inquiry.
In the FTSE 250, MoneySupermarket.com was the worst performer, down 9.3%. The company said full-year operating profit adjusted for costs relating to amortisation and acquisitions, should grow by around 13% and end up slightly ahead of market expectations.
However, there was a decline in revenue at the price comparison website's insurance activities in the final quarter of the year, as rivals stepped up the competition.
Also in the FTSE 230, Bovis Homes Group shares traded up 2.5% after it said it expects to deliver a big rise in pretax profit and revenue for 2015 following a strong year for the UK housebuilding industry.
The housebuilder said it sold 3,934 homes in the year to the end of December, up 8.0% year-on-year, at an average selling price of GBP231,000, up from GBP216,600. Bovis said its operating margin improved to over 17%, which should result in its return on capital employed for the year rising to over 18%, up from 16.2% in 2014.
Bovis added the UK land market remains strong, and it expects to increase its estate of sales outlets in 2016 as it remains optimistic the robust conditions in the housing market will continue.
On AIM, Hotel Corp revealed plans to raise up to GBP2.5 million through a placing and open offer, amid a broader capital reorganisation, in a move designed to fund the acquisition of investment properties under its investing policy. The fund-raising is a multiple of Hotel Corp's current market capitalisation of less than GBP500,000.
The move, which will raise a minimum of GBP2.0 million for the company, comes after shareholders in September 2015 approved a new strategy of acquiring and holding freehold properties in specialised parts of the property market.
Initially, the company will invest in purpose-built homes for adults with learning difficulties requiring support from carers, care homes for the elderly, and converted dwellings for young people requiring extensive support from social services.
The stock traded up 7.0%.
In the economic calendar, Italian consumer price index readings are at 0900 GMT, the Bank of England's credit conditions survey is at 0930 GMT, and eurozone trade balances are at 1000 GMT.
In the afternoon, the New York State manufacturing index is at 1330 GMT, as are the US retail sales and producer price indices. US capacity utilisation and industrial production are at 1415 GMT, and the Reuters/Michigan Consumer Sentiment Index is at 1500 GMT.
By Neil Thakrar; [email protected]; @NeilThakrar1
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