UK WINNERS & LOSERS SUMMARY: Diploma Raises Funds For Windy City Buy

(Alliance News) - The following stocks are the leading risers and fallers within the main London ...

Alliance News 23 September, 2020 | 10:32AM
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(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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International Consolidated Airlines, up 5.9%. The British Airways parent was continuing its rebound after a fall of 15% on Friday and 12% on Monday. The stock is still 19% lower compared to a week ago.

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FTSE 100 - LOSERS

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Fresnillo, down 3.1%, and Polymetal International, down 0.9%. The gold miners tracked the price of the precious metal lower as the dollar fell and equity markets bounce. The safe haven asset was quoted at USD1,886.70, down from USD1,904.86 Tuesday afternoon.

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FTSE 250 - WINNERS

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Diploma, up 26%. The medical diagnostic instruments, seals and cables manufacturer has raised GBP194 million through a previously announced share placing, subscription and retail offer. The company on Tuesday had announced the equity raise to fund the proposed GBP357 million acquisition of Chicago-based Windy City Wire Cable & Technology Products. Diploma placed 11.1 million new ordinary shares at 1,711 pence per share, raising GBP190 million. Diploma said each of its directors subscribed 15,484 shares in total under a subscription agreement, raising GBP265,000. In addition, retail investors subscribed 222,200 shares, raising GBP4 million. In total, the placing, subscription and retail offer comprised 11.3 million new ordinary shares and the share issue price is equal to the closing share price of 1,711p on Tuesday. In addition, JPMorgan raised the stock to Overweight from Neutral.

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SSP, up 13%. The travel concessions owner guided to a sharp fall in sales for the second half of the year, though said it has seen improving trends. Current weekly sales are running at approximately 76% below last year, the travel concessions owner said, representing an improvement from the third quarter, when sales were 95% lower in April and May and 90% lower in June. This improvement has been driven by continental Europe, where weekly sales are 66% lower, while in the UK, North America and Rest of the World, sales remain around 80% to 85% down. SSP has reopened just over a third of its units, ahead of previous expectations. Overall sales in the second half of the year are expected to be down 86%, resulting in a reduction in revenue of around GBP1.3 billion compared to the second half of 2019. "Encouragingly, the extensive management action to reduce the cost base, notably rent, overhead and labour, means that despite the weaker sales the underlying Ebitda and operating loss (on an IAS 17 basis) are expected to fall broadly in the middle of the ranges set out in the Interim results in June," said SSP.

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FTSE 250 - LOSERS

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PZ Cussons, down 4.1%. The personal care products maker said profit fell in its most recent financial year as revenue from its Africa and Asia Pacific regions declined while costs and expenses crept higher. Pretax profit for its financial year ended May 31 fell 33% to GBP29.3 million from GBP43.6 million the year before. Revenue fell 2.4% to GBP587.2 million from GBP603.0 million. This was explained as resulting from "growth in the Europe & the Americas region offset by reductions in both the Africa and Asia Pacific regions." Separately, PZ Cussons issued a trading statement for its first quarter ended August 31. It said that revenue was up 19% in the quarter on a reported basis with its Focus Brands growth experiencing 37% growth at constant rates of exchange compared to the previous year. Although there was cause for optimism, Chief Executive Jonathan Myers cautioned that: "The operating landscape remains highly volatile with many of the economies we operate in moving into recession, the continuing uncertainty of the Covid-19 pandemic and categories remaining highly competitive with pressure on discounting and cost. While it remains very difficult to forecast and give guidance we expect some adverse headwinds for the rest of the year following this good start."

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OTHER MAIN MARKET AND AIM - LOSERS

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AA, down 14%. Neither Platinum Equity nor Centerbridge Partners Europe intend to make a takeover offer for roadside rescue firm AA, the two said in separate statements. Both said talks between them and AA were mutually terminated. In early August, AA confirmed that several parties had made takeover proposals. Each of the three parties had until September 1 to lodge a firm intention to buy AA or make it known it was no longer interested in pursing a deal. The date was then extended to September 29. The three parties were Centerbridge Partners and TowerBrook Capital Partners UK, acting jointly, and Platinum Equity Advisors and Warburg Pincus International, acting individually. However, Centerbridge Partners on Wednesday confirmed that TowerBrook Capital is continuing to mull making an offer for AA.

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By Lucy Heming; lucyheming@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
AA PLC 25.30 GBX 0.40 -
Diploma PLC 2,302.00 GBX 0.44 -
SSP Group PLC 194.50 GBX 3.18 -
Fresnillo PLC 1,218.50 GBX -0.81 -
PZ Cussons PLC 242.50 GBX -0.61 -
Polymetal International PLC 1,760.00 GBX -0.85 -
International Consolidated Airlines Group SA 109.00 GBX 3.96 -

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