30th Nov 2015 10:27
LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Monday.
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FTSE 100 - WINNERS
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InterContinental Hotels Group, up 2.0%. Chinese bidders are understood to be eyeing a bid for the hotel operator after rival Starwood Hotels & Resorts Worldwide agreed to be acquired by Marriott, another hotel industry player, The Daily Telegraph reported. City sources told the newspaper that IHG has been left vulnerable by the merger of Starwood and Marriott, and three Chinese suitors - including Shanghai Jin Jiang International Hotels Group, airline owner HNA Group and sovereign wealth fund China Investment Corp - all were understood to have run the rule over Starwood prior to the deal.
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FTSE 100 - LOSERS
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BHP Billiton, down 5.3%. The Anglo-Australian miner and Brazilian partner Vale said a total of 13 fatalities have been recorded so far after the pair's tailings dam in Brazil burst earlier this month, as the clean up operation commences. The pair each own a 50% stake in the Samarco joint venture, which was responsible for the Fundão dam which burst in early November. A further six people are still missing. On Friday, the Brazilian federal government tabled plans to sue BHP and Vale for causing an environmental catastrophe in the region. The Attorney General of the Union, the Brazilian prosecutor, and the Minas Gerais and Espirito Santo states, filed a civil suit against the two companies along with the Samarco joint venture itself, for up to BRL20.0 billion, or USD5.2 billion, for the environmental damage caused by the Fundão dam bursting. On Monday, the two companies said they are still committed to establishing a separate, voluntary, non-profit fund to support the recovery of the Rio Doce river system, which was affected by the dam burst.
Aberdeen Asset Management, down 4.5%. The emerging markets-focused investment manager reported stable profit in its last financial year, as weak investor sentiment towards Asia and emerging markets in general weighed on its results, with heavy net outflows hitting assets under management. Pretax profit fell to GBP353.7 million in the year ended September 30, compared with GBP354.6 million the prior year. On an underlying basis, which is stated before amortisation of intangible assets and acquisition-related items, pretax profit edged up to GBP491.6 million from GBP490.3 million. Aberdeen increased its dividend for the full year to 19.5 pence from 18.0p.
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FTSE 250 - WINNERS
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Cranswick, up 4.1%. The food company said its pretax profit ticked higher in the first half, held back slightly by an impairment charge, as revenue came in slightly ahead of its expectations. The pork and poultry producer said its pretax profit for the six months to the end of September was GBP25.5 million, 3.0% higher than the GBP24.6 million it posted a year earlier and held back somewhat by a GBP4.6 million goodwill charge the company booked on its sandwiches business. Cranswick said it will pay an interim dividend of 11.6 pence per share, up from 10.6p.
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FTSE 250 - LOSERS
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TalkTalk Telecom Group, down 2.6%. The telecommunications company was downgraded to Sell from Hold by investment bank Berenberg, which cut its price target to 208 pence from 290p. TalkTalk shares were trading at 237.79p. Berenberg said TalkTalk's plans to improve margins face significant challenges, made more difficult by the recent cyber attack on the company.
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MAIN MARKET AND AIM - WINNERS
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French Connection Group, up 25%. The fashion retailer said it has seen improved trading in the second half, with sales higher and its gross margin healthier. The company said sales of its Winter 15 collection continued to be strong in the 16 weeks to November 21, following a promising start to the season. Like-for-like UK and Europe retail sales were up 0.2%, compared to a 6.1% decline a year earlier, with full-price like-for-like sales growth flat at 6.0%. The gross margin for the half also improved, up 1.5 percentage points as the full-price contribution to the sales mix improved, along with better input margins. The group is also seeking to continue rationalising its store portfolio and expects to close another seven non-contributing stores in the second half of its financial year to the end of January 2016. It also will vacate its loss-making store on Regent Street in central London due to the redevelopment of the site and will receive a compensation payment of GBP2.4 million for doing so.
APC Technology Group, up 14%. The electronic components supplier said it has secured GBP5.0 million in contracts for its components and Minimise Water divisions in the first quarter of its financial year. APC said its components business strengthened in the quarter to the end of October, with a new contract on a major UK defence programme and another for interconnect devices for counter-improvised explosive devices equipment. It has also secured contract wins for its Minimise Water arm, including a sole supplier agreement with an unnamed hotel company for its water hygiene and treatment business, along with a win for its facilities management unit for government sites in the south west of England. The group also said its Minimise Solutions energy consultancy business is seeing significant opportunities to win contract related to the impending deadline for compliance with the Energy Savings Opportunity Scheme
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MAIN MARKET AND AIM - LOSERS
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Aureus Mining, down 45%. The miner said it had agreed terms for USD21.5 million of financing, the majority of which will come from heavily-discounted equity financing, and also warned it may have to raise further funds in the future if gold prices do not improve. Overall, the new financing is aimed at giving the company breathing space to optimise the New Liberty mine, which is behind schedule and currently unable to generate sufficient cashflow. Aureus said it believes it can "deliver on the production and cost estimates, which at the prevailing gold price, should see it generate sufficient cashflow to meet its continuing obligations, including its debt repayments, until the end of 2016," it said.
Craven House Capital, down 41%. The investment company said its last financial year represented a "frustrating" time, after a writedown on the value of Pressfit Holdings hit the company's net asset value. Pressfit was listed on AIM and then delisted in January after failing to find a new nominated adviser within the deadline set under stock exchange rules. More broadly, Craven House said it doesn't believe the flight of capital from the emerging and frontier markets in which it operates has run its course.
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By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
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InterContinental HotelsBHP Billiton PLCCranswickTALK.LFCCN.LCraven House CapitalADN.LAUE.LAPC Technology