16th Jan 2014 11:40
LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices midday Thursday.
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FTSE 100 - WINNERS
Rio Tinto, up 3.8%. The mining company has reported that it has increased production for iron-ore and other metals, achieved record shipment numbers and slashed its annual costs. The company produced 70.4 million tonnes of iron ore in its fourth quarter ending December 31, 2013, a 6% increase on the same quarter the previous year, while full-year 2013 iron ore production increased 5% from the previous year. Meanwhile, global iron-ore shipments for the quarter grew 8% to a record 72.41 million tonnes from the year-ago quarter. The company also reported that it had exceeded its cost-cutting targets for the year.
Experian, up 1.8%. Experian said its growth in the third-quarter had been strong, with total revenue growth of 7% and organic revenue growth of 5%. It said all of its business lines contributed to the growth, and it expects organic revenue growth for the second-half to be at least similar to that in the third quarter. In a separate statement, the firm unveiled a boardroom shuffle with current Chief Executive Don Robert replacing John Peace as chairman, while current Chief Financial Officer Brian Cassin is set to become the company's new chief executive.
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FTSE 100 - LOSERS
Associated British Foods, down 4.1%. The food producer and clothing retailer reported another stellar performance from its low-cost fashion retailer Primark for the first quarter, with sales up 14%. However, ABF warned that its sugar business was weaker than expected, and it now expects an even bigger fall in profits for the year from the division. Further weighing on the share price, Numis has cut the company to Sell from Hold, saying that, with an inflated share price, profit taking is now warranted.
Aberdeen Asset Management, down 2.8%. The asset manager said its clients withdrew GBP4.4 billion in the first-quarter, as investors turned against Asian and emerging markets. Aberdeen said it attracted GBP6.8 billion to its funds in the last three months of 2013, but saw GBP11.2 billion of funds leave.
Sports Direct International, down 1.1%. The company said it has sold its 4.6% stake in Debenhams, acquired only three days ago, and has instead entered into a put option agreement for a 6.6% stake in the ailing retailer. Sports Direct said that it was required to transfer cash collateral to cover its obligations under the put option, and the maximum exposure is around GBP64 million.
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FTSE 250 - WINNERS
Halfords, up 5.9%. The company has reported that total revenue for the 15 weeks to January 10 increased 6.6%, with like-for-like revenue growth up 5.2%, as it saw record growth of 13.8% in online retail sales. Revenue was up 7.3% for the 41-week period to January 10 while like-for-like revenue growth was 5.9%.
Polymetal International, up 5.1%. UBS has upgraded the company to Buy from Neutral, increasing its price target to 610.00 pence from 590.00p, saying that Polymetal is well positioned to grow free cash flow. "In an uncertain commodity price environment, we believe mining companies that can grow free cash flow based on conservative commodity price assumptions will be in a strong position to outperform their peers," says UBS.
ComputaCenter, up 2.3%. The IT infrastructure company said that it now expects its results to be slightly ahead of previous expectations. The firm also reported that revenue rose in the year ended December 31, 2013, as good performances in the UK and Germany offset declines in France. In the period, total revenues increased 6%.
Home Retail Group, up 3%. The home improvement retailer has reported strong sales growth for the 18 weeks to January 4, boosted by a strong Christmas period for both its Argos and Homebase businesses. After strong sales in its peak trading period, the company now expects to achieve full-year group benchmark profits towards the top end of the current range of market expectations of GBP90 million to GBP109 million. The group also announced at John Walden will be taking over from Terry Duddy as Chief Executive Officer, when he steps down on March 14.
Ladbrokes, up 2.2%. The betting company said it expects operating profit for the group to meet the middle of analysts' current forecasts of between GBP129.8 million and GBP151 million, following guidance issued in November. In line with previous guidance, Ladbrokes intends to hold the total dividend per share at its current level of 8.90p, as paid in 2012, for 2013. The company said it will at least maintain it at this level in 2014.
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FTSE 250 - LOSERS
SVG Capital, down 8.1%. In a statement released late Thursday, Aegon N.V. said it plans to sell a 7.5% stake in private equity business SVG Capital. Aegon intends to sell about 17.7 million shares in SVG Capital through an accelerated bookbuild to be orchestrated by J.P. Morgan Securities PLC. The company's stake stands at about 40.2 million shares - 17.00% of SVG Capital - ahead of the sale.
Xaar, down 5.9%. Despite saying that it expects full-year adjusted revenue of around GBP134 million, up from GBP86.3 million the previous year, the inkjet printing technology is a big faller. Jefferies analyst Andy Douglas believes that investors may have been hoping for an upgrade to keep earnings momentum moving forward.
Premier Oil, down 6.5%. Although the oil and gas company said it expects to record higher sales from 2013 as total production increases, it noted that profits will be hit by impairments. The company said profits for the full year will reflect updated future abandonment costs and related non-cash impairment costs. Moreover, Liberum Capital said that the firm's 2014 production forecast is disappointing.
Dixons Retail, down 3.1%. The electrical retailer said it saw strong sales growth over the Christmas period, as its UK and Ireland business continued to drive growth. However, it warned that it faces some tough comparables in the fourth quarter ahead. The group said that it expects performance in the remainder of the financial year to be more modest than the year to date.
Booker, down 2.2%. The food wholesaler has released a statement showing further good progress, with sales growth of more than 19%. However, with a share price that has been on an "almost inexorable rise for the last five years, the occasional pause for breath is understandable", says Shore Capital analyst Clive Black. For a company with such a solid performance history, earnings upgrades may be needed at this stage to push the stock higher, says Black. Investors are also awaiting news on a cash distribution, expected in spring this year.
Ocado, down 1.5%. Following a strong recent stock run, Numis has downgraded the online grocer to Add, from Buy. Ocado has released a strong trading update, with fourth-quarter sales up 20%. Although remaining positive on the shares, Numis has left its full-year estimates unchanged as a tough trading environment is likely to persist through the year.
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AIM - WINNERS
Pilat Media Global, up 23%. The company has announced that it had received and recommended a takeover offer from SintecMedia Ltd. The offer is for 95 pence per share, valuing Pilat Media at GBP63.3 million.
Plutus Resources, up 10%. The company has acquired a 25% stake in Attune Energy Ltd for a price of GBP125,000. The resource project investment company said it will issue 20.8 million shares to AEL at an issue price of 0.60 pence per share to satisfy the deal.
Keywords Studios, up 8.5%. The company has acquired video games voice-production services company Liquid Violet Ltd for an initial consideration of GBP300,000. A further GBP1.3 million is payable to Liquid Violet contingent on the achievement of certain financial targets in the three years to March 31, 2016.
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By James Kemp; [email protected]; @jamespkemp
Copyright 2014 Alliance News Limited. All Rights Reserved.
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