24th Nov 2020 10:51
(Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Tuesday.
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FTSE 100 - WINNERS
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Compass Group, up 5.0%. The contract caterer reported a sharp fall in annual earnings, but had returned to profit by the fourth quarter. For the 12 months ended September 30, revenue fell 20% to GBP20 billion from GBP24.9 billion in financial 2019, and pretax profit slumped 86% to GBP210 million from GBP1.49 billion last year. Operating profit dropped 82% to GBP294 million from GBP1.63 billion. More encouragingly, Compass said in the fourth quarter it returned the business to profitability and is now cash neutral. This was achieved, it said, mainly through contract renegotiations to reflect the difficult trading environment, continued discipline in terms of costs, and improvement in volumes. "With a significant amount of good vaccine news behind us and the gradual end to lockdown-measures approaching, hopefully the company will be able to start trading normally again soon and begin to regain the strong revenue and profit levels it posted prior to March 2020," said Edison's Neil Shah.
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International Consolidated Airlines, up 4.5%. The British Airways parent was higher after UK Transport Secretary Grant Shapps said he wanted to phase out quarantines by replacing it with daily coronavirus tests. Travellers arriving in England will be able to end their quarantine period with a negative coronavirus test after five days from December 15, Shapps announced. The travel industry welcomed the policy but described it as "long overdue". Under the new rules, passengers who arrive from a destination not on the government's travel corridors list will still need to enter self-isolation. But they can reduce the 14-day period by paying for a test from a private firm on or after day five at a cost of GBP65 to GBP120. Results will normally be issued in 24 to 48 hours. This means people could be released from quarantine six days after arrival. Midcap travel stocks TUI and easyJet were up 11% and 6.5% respectively.
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FTSE 100 - LOSERS
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Intertek, down 6.5%. The quality assurance provider said it is strongly positioned for growth going forward, despite weak performance so far in 2020. Revenue for the four months to the end of October declined by 9.9% to GBP941.0 million from GBP1.05 billion. On a constant currency basis, it fell by 6.2%. For the first ten months of 2020, revenue decreased by 8.7% year-on-year to GBP2.27 billion. On a constant currency basis, it was 7.2% lower on the prior year. Like-for-like revenue was down 10% and 8.8% in the four and 10 months to the end of October, respectively. Going forward, Intertek said, in 2020, it expects to deliver a mid-single digit decline in like-for-like revenue at constant currency in its Products, Resources and Trade division.
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FTSE 250 - WINNERS
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Meggitt, up 6.7%. Barclays double upgraded the aerospace parts maker to Overweight from Underweight.
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FTSE 250 - LOSERS
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AO World, down 5.0%. The online electrical goods retailer said swung to an interim profit from a loss a year before, it said, after closing its Dutch operation and recording strong revenue growth in the UK and Germany. AO World said pretax profit in the six months ended September 30 was GBP18.3 million, versus a loss of GBP5.9 million a year before. Total revenue, excluding its shuttered Netherlands operation, rose 58% to GBP717.0 million from GBP454.9 million in the six months period. Revenue was up by 54% in the UK and by 85% in Germany. The AOL.nl website was closed during the quarter that ended March 31. "AO has been one of the biggest lockdown beneficiaries, but what happens when those restrictions ease and more people spend less time at home. A key sales tailwind could disappear, meaning AO will have to work hard to keep the customers it won during lockdown by encouraging them to buy other goods, as well as find ways to recruit more customers. That won't be easy," said AJ Bell's Russ Mould.
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By Arvind Bhunjun; [email protected]
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Related Shares:
International AirlinesMGGT.LCompass GroupeasyJetTUI.LAo WorldIntertek Group