1st May 2019 10:53
LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Wednesday.----------FTSE 100 - WINNERS----------J Sainsbury, up 4.1%. The supermarket chain said it intends to invest in improving stores and reduce costs following a double-digit decline in pretax profit in its most recently ended financial year. The grocer, which last week was blocked from merging with rival Asda, reported pretax profit of GBP239 million for the 52 weeks to March 9, down 42% from GBP409 million a year earlier, due to an increase in administrative expenses to GBP1.73 billion from GBP1.42 billion. Underlying pretax profit came in at GBP635 million, up from GBP589 million a year ago and beating market expectations. Analysts had expected underlying pretax profit for financial 2019 to be GBP626 million. Sainsbury's proposed a final dividend of 7.9 pence a share, bringing the total payout for the year to 11.0p, up 7.8% year-on-year. "Underlying profits and dividends both growing don't suggest a business in drastic trouble. If you dig deeper it says the performance has been partially helped by Argos and reduced interest costs. The supermarket also credits a solid food performance but there is a sense that the grocery side of its business is still the weakest part of the overall equation," said AJ Bell's Russ Mould. ----------London Stock Exchange Group, up 2.3%. The stock exchange operator reported an increase in first quarter revenue on Wednesday, seeing growth from its two largest divisions - Information Services and Post Trade Services. In the three months to March 31, the clearing operator and calculator of market indices saw its total revenue increase 3.4% to GBP486 million from GBP470 million the previous year. The company's total income increased 5.0% to GBP546 million. LSE's gross profit in the first quarter increased 5.6% to GBP490 million from GBP464 million in the corresponding period a year earlier.----------FTSE 100 - LOSERS----------Just Eat, down 2.0%. JPMorgan double downgraded the online takeaway platform to Underweight from Overweight. ----------Persimmon, down 0.9%. The housebuilder, ahead of its annual general meeting, said it expects half-year legal completions to remain flat, as forward sales revenue in 2019 to date declined compared to the year before. For the period from January 1 to date, total forward sales revenue, including legal completions, was GBP2.70 billion, down from GBP2.80 billion for the same period in 2018. Persimmon had 350 active sales outlets, down from 375 outlets the prior year, while its weekly private sales rate per site was 5% lower. However, the private average selling price of sales in the group's forward order book rose slightly to GBP237,850 from GBP236,500 the year before, as pricing conditions remained firm in regional markets. Looking ahead, Persimmon said sales reservations remain in line with company expectations, and legal completions for the first half are expected to be flat compared to a year before.----------FTSE 250 - WINNERS----------Spirent Communications, up 1.5%. The telecommunications testing company said 2019 has started "well" as the company saw earnings growth in the first quarter, thanks to new contract wins and improved demand for its products. The company said trading in the three months to the end of March was in line with plan, as revenue and earnings grew compared to the first quarter of 2018. In addition, the order pipeline remains robust and order intake for the period also showed solid growth on the prior year, Spirent noted. Looking forward, Spirent said it expects a weighting to the second half of 2019, with the usual uptick in the final quarter of the year.----------Ferrexpo, up 1.5%. Liberum raised the iron pellet producer to Buy from Hold. ----------FTSE 250 - LOSERS----------Sirius Minerals, down 7.0% at 16.21p. The fertiliser firm raised more than originally envisaged, though shares were offered at a sharp discount. Sirius on Tuesday announced a USD3.8 million funding package to develop its Woodsmith polyhalite mine in Yorkshire, and this included a placing, firm placing, and open offer, worth up to USD400 million, at between 15 pence and 18p a share. Sirius has managed to raise USD425 million, due to high demand, with shares placed at 15p. This is a 32% discount to Sirius' closing price on Monday in London, and the 1.96 billion new shares represent some 28% of its share capital. A further 218.0 million shares were placed in the open offer at the same price. Under the open offer, Sirius will hand over one new share per every 22 existing shares held. ----------OTHER MAIN MARKET AND AIM - WINNERS----------Bushveld Minerals, up 17%. The miner announced a USD68 million deal for vanadium and ferrovanadium assets in South Africa. Bushveld is buying the Vanchem plant, 200 kilometres away from its existing Mokopane vanadium project in Limpopo province, from Vanchem Vanadium Products, which is a subsidiary of Duferco Vanadium Investment Holding. It is also buying ferrovanadium assets from South African Japan Vanadium, a subsidiary of Vanchem Vanadium. Further, Bushveld is buying Ivanti Resources, a subsidiary of Duferco Participations Holding. Ivanti has rights to some secondary vanadium units treated in the Vanchem plant. The entire deal, plus capital expenditure of around USD20 million, will be funded from existing cash, future cash flow, and debt if needed, which is currently being negotiated.----------OTHER MAIN MARKET AND AIM - LOSERS----------Redhall Group, down 33%. The manufacturing and services firm said it expects its annual performance to be "materially" below expectations amid key contract delays. Redhall explained in early March that its expectations for the year ending September were based on a number of expected new contracts being won by its subsidiaries Jordan Manufacturing and Booth Industries. These new contracts were expected to "drive a strong trading performance" in the second half of the financial year. On Wednesday, Redhall said a number of these projects have been delayed and a contract won by Jordan on an associated major nuclear infrastructure programme saw its value reduced amid design changes. As a result, Redhall now expects full-year performance to be "materially below its previous expectations." The firm also cautioned that its annual results "remain uncertain" as it is still dependent on securing a "number of key prospects".----------