The London Stock Exchange uses cookies to improve its website. The cookies for analytical purposes have already been set. For more details and how to manage cookies, please see our privacy and cookies policy.

Alliance News Detail


WINNERS & LOSERS SUMMARY: Deja Vu As Cobham Tanks On Another Warning

[ 16 Feb 2017 10:36 ]

LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Thursday.
----------
FTSE 100 - WINNERS
----------
Coca-Cola HBC, up 1.2%. The soft drinks bottler said pretax profit grew in 2016 thanks to much lower operating costs in the business, though its net sales revenue dipped. The group said it made a pretax profit of EUR266.9 million in the year to the end of December, up from EUR192.4 million the year before, thanks to a reduction in operating expenses as part of the company's push to improve efficiency and cut costs across its operations. Net sales revenue was down 2.0% year-on-year to EUR6.22 billion from EUR6.35 billion the year before, but rose by 3.0% in constant currencies. Constant currency revenue grew in all of the group's regional operations, driven by price increases in emerging markets and by a better packaging and category mix in its sales. Coca-Cola HBC declared a total dividend for the year of EUR0.44 per share, up 10% from the prior year.
----------
FTSE 100 - LOSERS
----------
Royal Dutch Shell 'A', down 1.7%, Shell 'B', down 1.6%, BP, down 1.6%, AstraZeneca, down 0.6%, Imperial Brands, down 0.6%. The heavyweight blue-chip stocks went ex-dividend meaning new buyers no longer qualify for the latest dividend payouts.
----------
FTSE 250 - WINNERS
----------
Lancashire Holdings, up 8.8%. The specialist insurer said its profit and premiums written dropped in 2016 amid pressure on prices. Lancashire reported a pretax profit of USD150.4 million for 2016, down 12% from USD171.7 million the prior year. Lancashire's combined ratio, a measure of underwriting profitability, worsened to 76.5% from 72.1% in 2015. The further below 100% the ratio is, the more profitable the underwriting business. Lancashire declared a final dividend of USD0.10 per share, bringing its total dividend for the year to USD0.90 per share. This compares to a dividend of USD1.10 for 2015. Numis lifted its recommendation on Lancashire to Add from Hold and highlighted the company's performance in the fourth quarter. Pretax profit in the three months to end December rose to USD51.1 million, "materially ahead" of consensus forecast of USD31.0 million, Numis said.

OneSavings Bank, up 2.8%, Shawbrook Group, up 1.5%, Aldermore Group, up 1.1%. Panmure Gordon started coverage on the challenger banks with Buy ratings. Panmure highlighted that OneSavings is focused mainly on the UK mortgage market which has enabled it to leverage on unique low cost back office support operations in India. As such focus on professional landlords should provide continued strong loan growth for OSB. Moreover Shawbrook, which is Panmure's top pick in the sector, offers investors high returns for an attractive valuation. The broker also said Aldermore is a relatively low risk and diverse mix of mortgage and SME lending combined with a scalable digital operating platform and strong intermediary distribution channels.
----------
FTSE 250 - LOSERS
----------
Cobham, down 20%. The defence and aerospace engineer announced a further profit warning for 2016 and said meeting expectations in 2017 will be challenging, as it booked a series of new writedowns following a review of the business. Cobham had already in January warned on its 2016 results, its third downgrade for the year, and it added a fourth warning on Thursday. The engineer said its underlying trading profit will be around GBP225.0 million, compared to the GBP245.0 million to which it had already cut its guidance back in January. In addition, Cobham said it feels delivering a performance in 2017 in line with 2016 may prove "challenging". "Shareholders in Cobham must have thought it couldn't possibly get any worse when a January profits warning claimed the dividend. Five weeks on, however, the ever-struggling defence and aerospace engineer has managed to add insult to injury with yet another one at a time when patience is no better than wafer thin," said Mike van Dulken, head of research at Accendo Markets.

Drax Group, down 9.3%. The electricity supplier said earnings for 2016 met its guidance despite a decline and said it anticipates meeting expectations for 2017. Drax runs the biomass-fuelled Drax power station in North Yorkshire. It said it made earnings before interest, tax, depreciation and amortisation of GBP140.0 million in the year to the end of December, down from GBP169.0 million the year before. Drax had warned in December that its earnings before interest, tax, depreciation and amortisation for 2016 would be at the "bottom end of the range of current market forecasts" of GBP135.0 million to GBP169.0 million, and the number posted on Thursday was in line with that guidance. The group declared a dividend for the year of 2.50 pence, less than half the 5.70p paid a year before but in line with its policy to distribute half its underlying earnings.
----------
MAIN MARKET AND AIM - WINNERS
----------
EG Solutions, up 20%. The back-office software firm said it has won a GBP692,000 contract for its Operational Intelligence software platform from an unnamed public sector client. Around GBP500,000 of this revenue will be recognised by the firm in its current financial year, to the end of January. EG said the deal was won in partnership with GCI, the provider of EG's managed cloud service platform.

Huntsworth, up 13%. The public relations and integrated healthcare communications company said its results for 2016 will beat market expectations. The firm said trading in the fourth quarter was robust and, in addition to a boost from favourable exchange rate movements, it expects headline pretax profit to beat the market consensus range of GBP14.7 million to GBP15.0 million. In 2015, Huntsworth made a headline pretax profit of GBP13.3 million. The headline number excludes any one-off items. Huntsworth added the restructuring of its Grayling arm in the US has completed, and the unit is trading in line with expectations.

Versarien, up 6.8%. The advanced materials company said it has signed heads of terms for a distribution agreement with Lansdowne Chemicals for its recently-launched graphene brand Nanene. Versarien said Lansdowne, a member of Germany-based distribution company Overlack Group, will accelerate its route to market with Nanene by targeting new customers. The agreement will be for an initial six months, terminable on three months notice thereafter. No financial details of the agreement were disclosed.
----------
MAIN MARKET AND AIM - LOSERS
----------
Solo Oil, down 9.9% at 0.55 pence. The oil and gas company said it has raised GBP2.0 million via a placing to back work on the Ntorya discovery in Tanzania. The firm has issued 400.0 million shares at 0.50 pence a share to raise the money. The net proceeds will be used to cover Solo's share of the costs for the well testing programme due to start on the Ntorya-2 well in Tanzania. The site is operated by UK-listed Aminex.

Laura Ashley Holdings, down 6.8%. The women's fashion and homewares retailer said it believes its full-year results will miss market expectations amid continued challenges in its end markets. The company, which also runs a hotel, said total sales were down to GBP146.0 million in the first half of its financial year, the 26 weeks to the end of December from GB149.8 million a year before. Like-for-like sales fell 3.5% in the period. Pretax profit dropped 29% to GBP7.8 million from GBP11.0 million the year before, and Laura Ashley halved its interim dividend to 0.50 pence from 1.00p a year before. Chairman Tan Sri Dr Khoo Kay Peng said trading in the half year had been "challenging" and Laura Ashley thinks that, with little sign of an improvement on the horizon, it will miss market expectations for the year to the end of June.

SimiGon, down 6.2%. The simulation training products company said it once again expects its annual revenue to decline year-on-year, citing contract delays and additional client demands. The group said in preparing its final results for 2016, it has concluded it must recognise certain costs of meeting additional clients demands outside the scope of its USD6.7 million contract, first signed in 2013. Alongside this it has "not yet received" the necessary client confirmations to meet program revenue expectations, and has been "disappointed" with procedural delays in concluding its contract with the Israeli Air Force, meaning it has not recognised any related revenue to the deal in 2016. As such, SimiGon expects to report annual results below market expectations, with revenue of around USD6.0 million and adjusted net pretax profit of at least USD300,000. A year earlier, revenue came in at USD6.9 million and pretax profit was USD1.6 million.
----------
By Arvind Bhunjun; arvindbhunjun@alliancenews.com; @ArvindBhunjun

Copyright 2017 Alliance News Limited. All Rights Reserved.


WINNERS & LOSERS SUMMARY: Deja Vu As Cobham Tanks On Another Warning - Alliance News

The Exchange accepts no responsibility for the content of the website you are now accessing or for any reliance placed by you or any person on the information contained on it.

By allowing this link the Exchange does not intend in any country, directly or indirectly, to solicit business or offer any securities to any person.

You will be redirected in five seconds.

You are accessing the London Stock Exchange Annual Report Service powered by PrecisionIR.

The Exchange accepts no responsibility for the content of the reports you are now accessing or for any reliance placed by you or any person on the information contained therein.

By allowing this link the Exchange does not intend in any country, directly or indirectly, to solicit business or offer any securities to any person.

You will be redirected in five seconds