3rd Mar 2016 10:41
LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Thursday.
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FTSE 100 - WINNERS
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Admiral Group, up 7.4%. The motor insurer declared 2015 as "the year of the uncut diamond", as it lifted its dividend and reported higher profit. Pretax profit rose to GBP368.7 million in 2015, from GBP350.7 million the prior year, as net revenue increased to GBP904.8 million from GBP884.6 million and total expenses fell to GBP525.0 million from GBP529.3 million. Admiral lifted its total dividend for 2015 to 114.4 pence from 98.4p. "I would describe 2015 as: the year of the uncut diamond. When the year started many people thought it would turn out to be a lump of coal. But no, 2015 was no lumpy coal year," Chief Executive Officer Henry Engelhardt said.
Travis Perkins, up 3.7%. The builders' merchant posted lower pretax profit for 2015 despite a rise in revenue, driven by writedowns taken on two acquisitions due to weak market conditions. The group said pretax profit for the year to the end of December was GBP224.0 million, sinking 30% from the GBP321.0 million posted a year earlier. Revenue increased to GBP5.94 billion from GBP5.58 billion, but like-for-like revenue growth slowed to 3.8% from 7.3%. Travis will pay a final dividend of 29.25 pence per share, taking its total dividend up to 44.0p from 38.0p, a 16% year-on-year rise
CRH, up 4.9%. The Irish building materials group reported growth in pretax profit and revenue in 2015 driven by acquisitions and a strong US market. The company said its pretax profit for the year to the end of December was EUR1.03 billion, up from EUR761.0 million a year earlier, while revenue rose 25% to EUR23.64 billion from EUR18.91 billion thanks to the significant volume of acquisitions made in the year. CRH said it will pay a flat 44.0 cents final dividend, leaving its total dividend flat at 62.5 cents.
Schroders, up 2.0%. The asset manager confirmed that Michael Dobson will succeed Andrew Beeson as chairman, after handing over the role of chief executive to fellow board member and head of investment Peter Harrison. Schroders acknowledged that the UK Corporate Governance Code states that, ordinarily, the chief executive should not go on to be the chairman. But the asset manager said it has consulted its major shareholders to explain the reasoning behind the decision. The succession planning came as Schroders reported higher annual pretax profit in 2015 and raised its dividend. Pretax profit rose to GBP589.0 million in 2015, from GBP517.1 million in 2014, Schroders said, lifting the dividend for the year to 87.0p per share from 78.0p the prior year.
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FTSE 100 - LOSERS
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Inmarsat, down 5.3%. The satellite company proposed an increased dividend for 2015 as it reported a small fall in pretax profit for the year, and outlined expectations for revenue growth in the coming year. Inmarsat reported pretax profit of USD338.0 million, down slightly from USD342.3 million in 2014, as revenue slipped a little to USD1.27 billion from USD1.29 billion. On an adjusted basis, stripping out USD10.8 million in revenue in 2014 from energy-related assets that were sold, revenue was mostly flat. Inmarsat proposed a final dividend of 31.78 cents per share, taking its total dividend for the year to 51.39 cents, up 5% from 48.49 cents a year before.
Whitbread, down 2.8%. The hotel operator and Costa coffee chain parent reported growth in sales in both the 11 weeks and 50 weeks to February 11. Whitbread said it expects to report full-year profit in line with expectations. Analysts were disappointed by Whitbread's slowing, below-expectations like-for-like sales growth in the 11 weeks to February 11. The hotel and coffee shop owner said total sales in the 11-week period grew 7.7%, while like-for-like sales increased by 1.7%. This slowed from 3.5% increase in like-for-like sales and a 10.4% rise in total sales reported for the 13 weeks to November 26. Costa saw total sales increase by 11% in the 11 weeks and 14% in the 50 weeks, with like-for-likes up by 0.5% in the 11 weeks and by 3.0% in the 50 weeks. Whitbread said Costa's like-for-like sales were hurt be a decrease in footfall and an unusually warm winter. Panmure Gordon analyst Anna Barnfather said the Costa performance was "disappointing".
HSBC Holdings, down 2.6%. The banking stock went ex-dividend meaning new buyers no longer qualify for dividend payouts.
Imperial Brands, down 1.8%. The tobacco stock was downgraded to Neutral from Buy by Goldman Sachs.
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FTSE 250 - WINNERS
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Aggreko, up 9.7%. The temporary power company said its profit and revenue dipped in 2015 as it took a hit from the low oil price, a price reduction on a contract extension in Bangladesh, and slower payments in Venezuela and Yemen. Pretax profit fell to GBP226.0 million in 2015 from GBP289.0 million in 2014, in line with its expectations as it took a hit from lower demand from the oil and gas industry and pricing pressures which drove its trading margin down to 16% from 19%. Aggreko remains on track to deliver GBP80.0 million in annual savings by 2017 through restructuring actions and procurement practice changes.
Shawbrook Group, up 2.9%. The specialist lender said it expects its increasing profitability and capital generation to enable it to declare a "modest" 2016 final dividend, building progressively in 2017 and beyond. Pretax profit rose to GBP70.1 million in 2015, from GBP45.3 million the prior year, driven by a 44% increase in its loan book, to GBP3.36 billion. Its cost to income ratio improved to 48.3% from 50.5%.
BBA Aviation, up 2.3%. The aviation support and aftermarket services provider said it expects further good growth in 2016 and beyond, as it reported a fall in pretax profit for 2014, hit by exceptional costs and lower fuel prices and foreign exchange movements reducing revenue. The company reported a pretax profit of USD95.3 million, down from USD152.4 million in 2014, as revenue declined to USD2.13 billion from USD2.29 billion, compounded by USD15.1 million in restructuring costs and USD44.4 million in exceptional costs.
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FTSE 250 - LOSERS
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Cobham, down 9.3%. The aerospace group posted a pretax loss for the year after booking impairments and restructuring charges. Cobham reported a pretax loss of GBP39.8 million in 2014, swinging from a GBP24.3 million profit in 2014 despite experiencing a 12% lift in revenue to GBP2.07 billion from GBP1.85 billion and improving its trading margin. The loss was caused by finance costs rising to GBP57.0 million from only GBP39.7 million a year earlier, administrative costs increasing to GBP521.7 million from GBP403.7 million and higher selling and distribution costs of GBP130.1 million from GBP100.3 million last year.
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MAIN MARKET AND AIM - WINNERS
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Mytrah Energy, up 9.1%. The India-based independent, renewable energy power producer's shares rose despite reporting a fall in profit as higher finance costs offset a material rise in revenue during the year, but it said more projects are coming online this year to significantly boost its power generation capacity. The independent, renewable energy power producer in India said its pretax profit in 2015 dropped to USD461,505 from USD2.3 million in 2014 as higher financing costs offset a rise in revenue to USD74.7 million from USD69.6 million.
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MAIN MARKET AND AIM - LOSERS
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Chesnara, off 5.1%. The health and life insurer said it would fully co-operate with the UK's Financial Conduct Authority who said it will investigate six life insurers following a review of the treatment of closed-book customers. The six firms are Deutsche Bank's Abbey Life, Chesnara's Countrywide Assured, Old Mutual, Police Mutual, Prudential and Lloyds Banking Group's Scottish Widows. A total of 11 firms were included in the FCA's thematic review. No conclusion has been reached as to whether there have been any breaches of regulatory requirements, the regulator said, adding that the investigation will not necessarily result in disciplinary action. The investigation could be extended to other firms in the life insurance sector. Lloyds was up 0.2%, and Old Mutual was down 0.1%, and Prudential was up 0.8%.
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By Arvind Bhunjun; [email protected]; @ArvindBhunjun
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