31st Aug 2016 09:49
LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Wednesday.
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FTSE 100 - LOSERS
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Randgold Resources, down 2.1%, Fresnillo, down 2.1%. The two gold miners were adding to losses on Tuesday, when they had closed down 4.1% and 5.6%, respectively, amid a weak gold price. The precious metal was quoted at USD1,314.75 an ounce Wednesday, compared to USD1,316.80 at the London equities close Tuesday.
Anglo American, down 2.0%, Rio Tinto, down 2.0%, BHP Billiton, down 1.9%. The diversified miners were extending losses from Tuesday as well. The FTSE 350 mining index was down 1.7%, having closed down 4.4% on Tuesday. "Miners are once again under pressure in London, taking their cue from a dire session for BHP Billiton in Australia, and while the weaker dollar this morning may provide a breathing space the final months of 2016 do not look pretty for miners if the greenback can keep rallying." IG analyst Chris Beauchamp said.
AstraZeneca, down 1.3%. The US Securities & Exchange Commission said the drugmaker will pay USD5.5 million to resolve a foreign bribery case, in relation to improper conduct in China and Russia. The SEC detailed that AstraZeneca, through "at least 2010", failed to devise and maintain a sufficient system of internal accounting controls relating to the interactions in its Chinese and Russian subsidiaries with government officials. In its filing, the US regulator said sales and marketing staff at the two Astrazeneca subsidiaries designed and authorised several schemes to make "improper payments of gifts, conference support, travel, cash and other benefits" to health care providers in the two countries, and additionally, employees in China made cash payments to local officials to reduce or avoid fines levied against the Chinese subsidiary.
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FTSE 250 - LOSERS
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Grafton Group, down 7.4%. The building supplies firm said demand remained relatively flat within its UK Merchanting business in July and August after weak trading in June, though said it was too early to assess the impact of the Brexit vote. The builders merchanting and DIY group said markets remained "very price competitive" in July and August, in light of which it was progressing a number of initiatives with a focus on cost control. Grafton reported an 8.0% rise in pretax profit to GBP62.8 million for the six months ended June 30 from GBP57.9 million a year before, on the back of an increase in revenue to GBP1.23 billion from GBP1.08 billion. Grafton lifted its interim dividend to 4.75 pence per share from 4.50p per share. The marginally positive like-for-like growth in UK merchanting at the start of the second half disappointed Liberum saying, "We are surprised by the continued weakness seen in the UK in August, and we believe that Grafton may be losing share in its Buildbase activities." Buildbase is one of Grafton's UK merchanting brands.
Restaurant Group, down 4.6%. The Garfunkel's and Frankie & Benny's restaurant chains owner was downgraded to Sell from Neutral by Citigroup, according to traders.
Inmarsat, down 4.4%. The firm launched an offering of USD550 million in convertible bonds, due 2023, to fund the repurchase of its outstanding 1.75% USD287.7 million convertible bonds due 2017. The remaining proceeds will be used to further strengthen the satellite communications company's financial position and support its investment in mobile satellite solutions. Inmarsat said the new bonds will be issued as part of its ongoing plans to optimise financing costs and its debt maturity profile. It currently plans to launch a further benchmark offering in the debt capital markets this year, subject to market conditions.
James Fisher & Sons, down 2.3%. The marine service provider said it expects to see growth resume in its second half, leading to an improved full-year result, as it saw profit fall slightly in the first half of 2016. James Fisher reported a pretax profit of GBP17.4 million for the six months to the end of June, compared to GBP17.9 million in the same period the prior year, as revenue fell to GBP209.3 million from GBP213.1 million. The company said it had traded in line with management expectations in the first half, with the fall in revenue due to reduced activity levels in its Offshore Oil business and the cessation of a contract in the second quarter.
Halfords Group, down 1.5%. The car parts and bicycle retailer was cut to Hold from Buy by HSBC.
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MAIN MARKET AND AIM - WINNERS
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Taptica International, up 28%. The mobile advertising company reported a rise in pretax profit for the first half of 2016, and reiterated its confidence in delivering "significant" revenue growth in line with market expectations. The group reported a pretax profit of USD6.9 million for the six months to the end of June, up from USD1.1 million a year before, on revenue of USD51.8 million, up from USD33.9 million. Taptica said mobile business accounted for 79% of its revenue in the first half, compared to 51% the prior year, as it added new customers and won contracts. It has also resolved to pay a special dividend of USD0.0579 in relation to the first half. Taptica said mobile business accounted for 79% of its revenue in the first half, compared to 51% the prior year, as it added new customers and won contracts.
Styles & Wood Group, up 17%. The integrated property services and project delivery specialist said it has been appointed as one of four strategic partners by "one of the world's largest" banking and financial services organisations. The company said the associated framework will work with the unnamed client to deliver its UK Capital Plan for over the next five years. The partners will be developing spaces that deliver "best-in-class" experiences for both internal and external partners. The appointment is expected to deliver revenue in excess of GBP100.0 million evenly spread over the term of the contract to Styles & Wood, the company said.
Gulf Marine Services, up 9.7%. The oil and gas company reported a fall in pretax profit for the first half of 2016 but maintained its interim dividend and reiterated its guidance to reflect its confidence. The company proposed an unchanged interim dividend of 0.41 pence for the first half of 2016. For the half year to the end of June, Gulf Marine Services reported a pretax profit of USD28.1 million, down from USD36.2 million a year before, as a rise in revenue to USD110.4 million from USD98.2 million was offset by an impairment charge of USD14.2 million. This impairment charge related to two anchor tug supply vessels and an accommodation barge, it said. The group reiterated its guidance for earnings before interest, tax, depreciation and amortisation of between USD100 million to USD110 million for the full year 2016. It reported Ebitda of USD70.7 million for the first half, up from USD60.1 million.
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MAIN MARKET AND AIM - LOSERS
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Gulf Keystone Petroleum, down 25% at 3.63p. The oil and gas company said it has launched an open offer for up to 2.29 billion shares at 0.8314p per share to raise up to USD25.0 million. Gulf Keystone said the open offer was being made to its shareholders, on the basis of 20 open offer share for every nine existing common shares in the company. The open offer will close at GMT1100 on September 15, Gulf Keystone said. The company noted that the open offer was being conducted in connection with its restructuring efforts, and the open offer is conditional upon implementation of the restructuring.
Glenwick, down 15%. The investment company with a focus on the oil and gas sector, said it expects its shares to be suspended from trading on AIM next Tuesday as it does not expect to have completed a transaction in time under AIM rules. Glenwick sold its operating assets and became in investing company last September. It had twelve months to make an acquisition that constitute a reverse takeover or otherwise implement its investing policy. Whilst it has reviewed and is in the process of reviewing opportunities in the natural resources sector, no decision has been made yet, Glenwick said. It is hopeful of concluding a transaction, but this process remains at an early stage and will not be concluded by the deadline, it said.
Carclo, down 13%. The technical plastics supplier said it is unlikely to be able to pay its final dividend due to legal and accounting restraints resulting from the UK's vote to leave the European Union. Carclo had declared in June a final dividend of 1.95p per share for its year ended March 31, but said it expects its available distributable reserves to be extinguished. This comes after corporate bond yields decreased materially in the UK following the Brexit vote, with the yield used to discount its pension liability. If the corporate bond yield remains at its current low level this would result in a "significant increase" in its pension deficit as at September 30, Carclo said. A higher pension deficit would "have the effect of extinguishing the company's available distributable reserves, in which case the company will not be able to pay the final dividend", the company said.
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By Arvind Bhunjun; [email protected]; @ArvindBhunjun
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