2nd Mar 2016 10:40
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 - WINNERS
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Schroders, up 1.8%. Michael Dobson is set to step down as the chief executive of blue-chip fund manager this week after more than 14 years running the business, the Financial Times reported. Peter Harrison, the head of investment at Schroders, will take over from Dobson, according to people familiar with the matter. He had been widely-tipped as Dobson's heir after being appointed to the board in 2014, the FT said. Dobson's departure is expected to be announced on Thursday alongside Schroders' 2015 results.
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FTSE 100 - LOSERS
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Intertek Group, down 3.9%. The inspection and certification services company booked a big impairment charge in its 2015 results related to the weakness of the oil and gas industry, causing the company to swing to a significant loss. Intertek said its pretax loss for the year to the end of December was GBP307.7 million, swung from a GBP252.2 million profit a year earlier. The loss was driven by a GBP577.0 million non-cash impairment charge Intertek booked on past acquisitions as a result of the continued difficulties facing its oil and gas-related businesses. Intertek said it will pay a final dividend of 35.3 pence per share, up from 33.1p in 2014, taking its total dividend for 2015 up to 52.3p from 49.1p.
Pearson, down 2.0%. Goldman Sachs downgraded the education and media company to Sell from Neutral.
ITV, down 3.1% at 241.80 pence. The broadcaster's shares fell despite expecting "another good year" in 2016, after it reported a rise in pretax profit for 2015, increased its regular dividend, and announced a bigger special dividend as well. ITV proposed a final dividend of 4.1 pence per share, taking its total dividend for 2015 to 6.0p, up from 4.7p in 2014. Additionally, it plans a 10.0p per share special dividend, ahead of the 6.25p special dividend it paid in 2014, which ITV said reflects its strong cash generation and confidence in its business. ITV reported a pretax profit of GBP641 million in 2015, up from GBP605 million the year before, on revenue of GBP2.97 billion, up from GBP2.59 billion. The stock recovered some ground after an intial sell-off, having touched a low of 240.50p shortly after the open, a level it hasn't seen since mid-February.
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FTSE 250 - WINNERS
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Virgin Money Holdings, up 8.3%. The midcap lender said pretax profit surged in 2015 as it performed ahead of the wider market on core mortgages, savings and credit card growth. In it first set of full-year results since floating in late 2014, the group said its pretax profit for the year to the end of December increased to GBP138.0 million from GBP34.0 million a year earlier, helped by higher income and one-off costs it booked the year prior on its listing in London and the acquisition of mortgage lender Northern Rock. Virgin Money will pay a final dividend of 3.1 pence per share, taking its total dividend payout to 4.5p. Investec analyst Ian Gordon heaped praise on Virgin Money saying: "Today’s Virgin Money results (once again) represent material outperformance versus consensus expectations and, in our view, offer clear evidence of an under-appreciated and sustainable growth story."
Amec Foster Wheeler, up 4.8%. The engineering services company said it has completed the refinancing of its main debt facilities. Amec said the new facility, agreed with a syndicate of 20 banks, comprises three tranches overall. This includes a three-year GBP650.0 million term loan, a five-year GBP650.0 million term loan and a GBP400.0 million revolving credit facility. Amec said the interest cover covenant on the facility remains the same and no capital repayments will be required until 2019.
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FTSE 250 - LOSERS
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Entertainment One, down 12%. The film and television content producer said trading was in line with expectations in the first nine months of its financial year. The company said underlying earnings before interest, tax, depreciation and amortisation was 15% higher in the nine months to December 31, year-on-year, reflecting a strong performance in Television and from acquisitions, partly offset by weaker trading in Film. Group revenue, however, was down 3% in the period, as 39% growth in Television was offset by a 14% decline in Film.
Dignity, down 4.1%. The funeral services provider swung to a pretax profit in 2015 due to financing costs not repeating, though its revenue and underlying results were robust without the one-off boost. Pretax profit for the FTSE 250-listed company was GBP69.0 million, compared to a GBP67.7 million loss a year earlier when Dignity booked significant costs related to its refinancing. Underlying pretax profit, stripping out one-offs, rose to GBP72.2 million from GBP58.5 million. Revenue increased to GBP305.3 million from GBP268.9 million, up 14%, as deaths in the UK rose 7.0% year-on-year to 588,000, the largest growth in the country's death rate for 60 years. However, Dignity said it expects the number of deaths in 2016 to revert to levels seen in 2014.
Poundland Group, down 2.7%. The discount retailer named Kevin O'Byrne as chief executive to succeed current CEO Jim McCarthy, who is retiring. O'Byrne will begin his role as chief executive designate on April 4 and will then become CEO on July 1. He was previously a director at electronics retailer Dixons Retail, now Dixons Carphone, and at DIY retailer Kingfisher, where he was CEO of B&Q UK and Ireland. McCarthy has been CEO of Poundland since 2006.
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MAIN MARKET AND AIM - WINNERS
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James Fisher & Sons, up 11%. The marine engineering services company posted a dip in annual pretax profit in line with a fall in revenue, but said it had managed to mitigate the decline in oil and gas sector activity with cost cuts. The group said its pretax profit for the year to the end of December fell to GBP46.2 million, down from GBP49.2 million a year earlier, as revenue declined to GBP437.9 million from GBP444.8 million. James Fisher said its Specialist Technical, Marine Support and Tankships divisions all performed well, but the decline in activity from its oil and gas sector clients dragged on revenue. The company said, however, it managed to preserve its gross margins somewhat through swift cost reduction plans. The company hiked its final dividend to 16.0 pence from 14.9p, meaning its total payout rises 8.0% year-on-year to 23.8p from 22.0p.
Darty, up 9.4% at 126.22 pence. The electrical retailer confirmed it has received a competing takeover proposal to one it agreed with French electronics retailer Groupe Fnac SA late last year, from household goods retailer Conforama Investissement SNC. Conforama operates in Europe and is owned by South African-based furniture chain Steinhoff International Holdings NV Group. It has proposed to acquire the electrical goods retailer at an offer of 125p per share in cash.
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MAIN MARKET AND AIM - LOSERS
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Pathfinder Minerals, off 36%. The miner said it remains unable to provide visibility on when the court case involving its mining licences in Mozambique will be concluded and said it was in talks about raising financing. The company said it continues to await information from local authorities in Mozambique on pending judgements involving its 760C and 4632C licences in the Zambezia Province. It said no visibility on any judgement has yet been provided. Pathfinder is attempting to regain control of the licences after they were illegally seized by General Veloso, a board member of Pathfinder subsidiary IM Minerals. Pathfinder also said its directors are in talks which could lead to placing new shares to provide the company with additional working capital to cover it for the next three months, during which time it will seek to raise more funding.
Madagascar Oil, down 22% at 0.745p. The oil and gas company said said it has entered into a framework agreement with its lenders to secure new financing which would involve it delisting from AIM. Madagascar said its lenders, comprising Outrider Master Fund, BMK Resources and the John Paul Dejoria Family Trust, have agreed to provide financing to the company through a two-tranche equity placing. The first would involve raising USD2.0 million through a placing at 1.0 pence per share, with the second tranche seeking to raise USD2.0 million to USD4.0 million at 0.75p per share. In order to secure the financing, Madagascar said it will propose a de-listing from AIM, which will be put to shareholders at an upcoming meeting.
Litebulb Group, down 27%. The branded product developer said it has sold Go Entertainment Group and its subsidiaries for a nominal GBP1 to Eclipse Media. Eclipse Media is controlled by members of Go Entertainment's senior management team. Go Entertainment develops and manufactures DVD, books, magazines and gift products. LiteBulb bought Go Entertainment in 2014, since which the division has suffered a significant decline in its core markets, resulting in a shortfall in its expected contribution to the company. LiteBulb added that it remains in active discussions to secure additional financing of GBP2.0 million through an equity fundraising, noting that its current cash position "remains tight".
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By Arvind Bhunjun; [email protected]; @ArvindBhunjun
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