12th Mar 2020 10:31
(Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Thursday.
----------
FTSE 100 - LOSERS
----------
Travel stocks, including TUI, down 9.6%, Carnival, down 9.0% and International Consolidated Airlines, down 7.6%. The stocks were reeling from US President Donald Trump's travel ban for those arriving to the US from mainland Europe.
----------
Berkeley Group Holdings, down 6.4%. The housebuilder said it will postpone an increase in its shareholder returns until it has certainty on the impact the coronavirus will have on trading. The firm said it "currently still intends" to deliver the shareholder return increase, which was expected to be made through a B and C share scheme, but will reassess this when the group publishes its full-year results in June. Berkeley has reverted to its current schedule for shareholder returns, with a dividend of GBP124.8 million to be made on March 31 followed by a payment of GBP140 million every six months. This has replaced the revised schedule which had a GBP500 million payout for the end of March 2020 and 2021 each. "While there has been no noticeable impact on Berkeley's business to date, the ultimate impact on UK business is unknown. There is no recent historic precedent and for this reason it is absolutely right for any responsible business to approach the next six months with a reduced risk appetite and heightened sense of caution," the group stated.
----------
FTSE 250 - LOSERS
----------
Finablr, down 63%. The foreign exchange business slumped as it warned on its cash position. Abu Dhabi-headquartered Finablr, which owns the Travelex currency exchange brand, is taking "urgent" steps to look into liquidity and cash flow. This has been hit by a number of issues, Finablr said, including the spread of covid-19 around the world, a recent credit downgrade on Travelex's bonds, a liquidity squeeze, and a perception in the market that NMC Health's problems also relate to Finablr. "Due to the fast-moving nature of the events and circumstances referred to above, the company is urgently seeking to complete its assessment of its liquidity and cash flow position and negotiate the steps that are necessary to address its short- and longer-term financing needs," Finablr said.
----------
Cineworld, down 35%. The cinema operator posted a profit fall during a year which had a weaker "comparative film slate" and added that the full impact of covid-19 will be uncertain. In 2019, London-based Cineworld said its profit fell by two-thirds to USD212.3 million from USD349.0 million, due to biting finance expenses which more than doubled from 2018. This was largely due to a lease liability interest charge of USD304.2 million compared to USD6.9 million in 2018. There was, however, a 6.1% rise in revenue to USD4.37 billion from USD4.12 billion, though Cineworld cautioned that on a pro-forma basis, revenue slipped from 2018. In a worst case covid-19 downside scenario, the company said that should it lose out on the equivalent of between two and three months worth of revenue, it could be at risk of breaking financial covenants, unless a waiver pact is reached with a majority of its lenders.
----------
Go-Ahead, down 20%. The transport operator reported a first-half earnings rise and added that its majority-owned Southeastern rail unit is in the "final stages of discussions" with the UK's Department of Transport over a franchise contract. In the six months ended December 28, Go-Ahead's revenue rose 2.7% to GBP1.97 billion from GBP1.92 billion. Pretax profit rose 11% to GBP49.0 million from GBP44.2 million. However, not including an exceptional charge of GBP16.8 million from the year prior, pretax profit fell 20% from GBP61.0 million. Finance costs in the first half of the current year more than doubled to GBP13.4 million. Go-Ahead said in recent weeks, passenger revenue was been hurt by "adverse weather" and areas "most exposed to tourism" have been hurt by the virus spread.
----------
Trainline, down 11%. The transport ticketing platform said its revenue increase in its recently ended financial year was at the top end of guidance but added that it is assessing its outlook amid the spread of covid-19. In the year ended February 29, revenue rose 24% to GBP261 million, the operator of the eponymous online transport ticket sales platform said. It expected revenue growth between the low to mid-20% range. Due to the contagion, which was on Wednesday officially declared a pandemic by the World Health Organization, Trainline said it has seen "softened" trading in Italy during the month of February. The company said it will have "greater visibility" in relation to the full impact of the virus on May 7. Until then, it will not issue any guidance for financial 2021. For 2020, it expects adjusted earnings before interest, tax, depreciation and amortisation between GBP82 million and GBP86 million, "ahead of our expectations at the IPO". Trainline floated back in June.
----------
OTHER MAIN MARKET AND AIM - WINNERS
----------
Moss Bros, up 47% at 20.20 pence. The firm has agreed a takeover by the owner of Crew Clothing Menoshi Shina, the men's formal wear retailer said. The acquisition is by Brigadier Acquisition Co Ltd, which is majority-owned by Regiment Acquisition Co, which is in turn majority-owned by Shina, who owns Crew Clothing. Brigadier Acquisition will be paying 22p per share for Moss Bros, which is a 61% premium to London-headquartered Moss Bros' closing price of 13.7p in London on Wednesday.
----------
By Lucy Heming; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
International AirlinesBerkeley GroupGOG.LCarnivalTUI.LCINE.LFinsetaTrainline