27th May 2016 09:38
LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Friday.
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FTSE 100 - WINNERS
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United Utilities, up 1.4%. The water and sewage services provider's shares were rebounding after losing 1.1% on Thursday. United Utilities had reported that its profit fell in line with its expectations in its recent financial year. However revenue grew, and the water group said it is well positioned for the current regulatory period. Peer Severn Trent was up 0.8% Friday.
BAE Systems, up 0.9%. The defence contractor said it has secured two contracts worth a total of USD61.7 million to handle repair and maintenance on two US Navy ships in Jacksonville, Florida. The two contracts are worth USD61.7 million initially and could be worth up to USD68.6 million if all options are exercised. The work will cover the Arleigh Burke-class destroyer USS Farragut and the Whidbey Island-class dock landing ship USS Fort McHenry.
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FTSE 250 - WINNERS
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Phoenix Group Holdings, up 2.5%. The closed-life fund consolidator said it has agreed a GBP375.0 million deal to acquire the pensions and protection business of AXA Wealth, the wealth management arm of French insurer AXA. Phoenix will pay the consideration in cash, and the deal will add around GBP12.3 billion in assets under management to its books, along with more than 910,000 policies. The businesses acquired trade under the Embassy and SunLife brands. The deal will be funded by a share placing, through which Phoenix will seek to raise around GBP190.0 million, along with a new debt facility with a consortium of banks.
Softcat, up 0.9%. The IT infrastructure company was initiated with a Buy rating by Berenberg. Softcat demonstrates strong revenue growth, best-in-class operating margins and is highly cash generative, the German bank said. "We believe Softcat still has scope to grow its customer base and take market share. With strong cash conversion we forecast the business to grow its net cash position substantially, giving capacity for major shareholder returns."
Croda International, up 0.9%. Barclays started coverage on the speciality chemicals company with an Overweight rating.
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FTSE 250 - LOSERS
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Bodycote, down 1.6%. The thermal processing services company maintained its expectations for 2016, as revenue fell in the first four months of the year. The company said group revenue for the four months to the end of April was GBP192.4 million, down 4.9% year-on-year, or 9.1% at constant currencies. After taking into account Bodycote's exit from its business in Brazil and the restructuring actions it announced in 2015, like-for-like revenue fell 2.7%, it said, and 7.0% at constant currencies. Bodycote's weak revenue figures led N+1 Singer to lower its forecasts for full-year like-for-like sales. "While we expect organic growth rates to improve through the year as comparatives ease, we anticipate trimming our LFL sales assumption for 2016 from the 5.2% currently in our forecasts," the broker said.
BGEO Group, down 1.4%. The holding company for Bank of Georgia said it has received a GEL220.0 million loan from the European Bank for Reconstruction & Development. BGEO said the five-year loan has been secured through the issue of GEL-denominated bonds arranged by its Galt & Taggart subsidiary. The group said the loan will allow it to issue longer-term local currency loans in Georgia and provide support to small and medium-sized businesses in the country.
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MAIN MARKET AND AIM - WINNERS
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Circle Oil, up 15%. The oil and gas company said International Finance Corp has agreed to extend the suspension of the December 2015 redetermination and any repayments due under its reserve-based lending facility. Circle Oil produces gas and condensate in Egypt which is sold to state-owned Egyptian General Petroleum Corp, but Circle Oil has been working on the commercial terms of those payments since last year and has failed to strike a deal as of yet. IFC provided Circle Oil with another extension on Friday, giving Circle Oil until June 24 to repay the amounts due under the reserve-based lending facility. There is a good chance further extensions will be granted if the company remains in trouble, as the lender has said it is willing to consider future waivers, Circle Oil said.
Pinnacle Technology Group, up 5.4% at 6.85 pence. The IT services company said it has agreed to acquire adept4, funded by a loan notes issue, and intends to change its name to adept4. Pinnacle said it will pay an initial GBP4.5 million in cash, plus deferred consideration of GBP1.0 million payable in January 2018. A further GBP1.5 million will be paid based on adept4 meeting performance targets through to December 2017. The acquisition will be part-financed through a GBP5.0 million loan note issue to the Business Growth Fund, along with an associated option to subscribe for Pinnacle shares at 6.0p each.
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MAIN MARKET AND AIM - LOSERS
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Nature Group, down 22%. The port reception facilities and waste treatment company said its annual pretax loss widened due to writedowns its booked, though revenue edged up and the group was confident on its prospects. Nature said its pretax loss in 2015 was GBP2.4 million, compared to a GBP1.4 million loss in 2014. The loss was driven by writedowns that the company booked on its Norway and Gibraltar businesses, plus share-based payments which were not made the year earlier. Revenue, however, grew to GBP16.3 million from GBP14.3 million, with Nature's maritime division benefiting from good growth in waste collection work in the US, while volumes at its operations in Rotterdam in the Netherlands were boosted by one-off projects.
Boxhill Technologies, down 16%. The lottery administration and payment processing products company said it swung to a profit in its recently-ended financial year as revenue more than doubled and its shares resumed trading. Boxhill said it made a pretax profit of GBP204,000 in the year ended January 31, having suffered a GBP187,000 pretax loss in the year before, as revenue more than doubled to GBP3.3 million from GBP1.4 million."The year ahead sees the challenge of delivering shareholder value through the continuing growth in the payments business which will be aided by the planned appointment of a new chief executive in the near future," Chairman Edward Razzall said.
Clontarf Energy, down 12%. The oil and gas exploration company said its administrative expenses dipped slightly in 2015, causing its pretax loss to narrow, as it said it has "cut spending to the bone". Clontarf said said its pretax loss narrowed to GBP204,559 for the year ended December 31, from GBP274,196 in 2014, after administrative expenses fell to GBP204,559 from GBP244,303. Clontarf said this was because it "cut spending to the bone" as "financing has been difficult if not impossible to secure". Clontarf is not yet revenue producing. Clontarf also said it has not been able to resolve outstanding issues at its Bolivian interests, which have been "effectively dormant in recent years, due to government policy towards international oil and gas investors, in effect, nationalisation".
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By Arvind Bhunjun; [email protected]; @ArvindBhunjun
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