(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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RSA Insurance, up 3.9%. The insurer said it has reached an agreement to be sold in a deal with a two-headed consortium which values the London-listed firm at GBP7.2 billion. The deal, first announced earlier this month, will see the insurer divided between Canada's Intact Financial Corp and Scandinavian insurer Tryg AS. Under the deal, RSA shareholders will receive 685 pence in cash for each share, the same amount proposed earlier in November. In addition, RSA shareholders will be entitled to receive the insurer's interim dividend of 8p. The acquisition price represents a premium of 51% to November 4's closing price in London, being the day before the announcement of Intact and Tryg's possible offer. The deal will see Intact run RSA's Canadian, UK and international operations, while Tryg will take RSA's Swedish and Norwegian businesses. The two will co-own RSA's Danish business.
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SSE, up 3.4%. The electricity utility said its profit was sharply higher in the first half of its financial year after substantial exceptional gains, in large part relating to its asset disposal programme. Perth, Scotland-based SSE posted a GBP829.5 million profit for the six months ended September 30, multiplying from GBP128.9 million a year before. The big change, SSE said, reflects: "Pretax exceptional gains of GBP654.4 million recognised during the year mainly driven by a combination of progressing with the group's GBP2 billion plus non-core asset disposal programme and IFRS 9 remeasurements on operating derivatives." Adjusted pretax profit, which excludes exceptional items, fair value movements on financing derivates, and other factors, fell 26% to GBP193.9 million from GBP263.4 million. Revenue declined 7.5% to GBP2.82 billion from GBP3.05 billion.
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FTSE 100 - LOSERS
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Spirax-Sarco, down 4.8%. The Cheltenham, England-based manufacturer of steam management systems said it saw some slowing of the decline in sales in the second half of the year so far, but remains wary of the possible damage that Covid-19 resurgences could have on recovery. Spirax-Sarco said it saw some improvement in the third quarter of the year ended September 30, without providing specific figures. Overall organic sales decline in the four months to the end October eased compared to the first half of the year. Group operating profit margin was higher than in the first half of the year, supported by increased sales and continued cost containment actions, Spirax-Sarco said. In the 10 months to end October, operating profit was slightly lower than the year prior.
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FTSE 250 - WINNERS
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Micro Focus International, up 28%. The software and consultancy company said its profit margin had been at the upper end of management expectations in its 2020 financial year. Micro Focus said its adjusted earnings before interest, tax, depreciation, and amortisation margin for its 2020 financial year ended October 31 was approximately 39%, near the upper end of management expectations. This compares to an adjusted Ebitda margin of 40.7% in financial 2019. The company also expects to report revenue of around USD3.0 billion for financial 2020, down from USD3.35 billion in financial 2019, in line with management expectations and an approximately 10% decline on a constant currency basis from financial 2019. Chief Executive Stephen Murdoch said: "We are now nine months into our three year turnaround plan for the group and whilst there remains a great deal to do I am pleased with progress in both overall operational effectiveness and in the delivery of our key strategic objectives."
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Virgin Money UK, up 4.5%. Barclays double-upgraded the bank to Overweight from Underweight.
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FTSE 250 - LOSERS
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easyJet, down 3.9%. Berenberg cut the low-cost airline to Hold from Buy.
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OTHER MAIN MARKET AND AIM - WINNERS
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Europa Metals, up 7.7%. The Australian mine developer reported results from an independent preliminary economic study in respect of its wholly owned Toral lead, zinc and silver project, located in the region of Castilla y Leon, north-west Spain. Europa said the study has updated the economics from the previous scoping study undertaken by Addison Mining Services Ltd in late 2018. This study also incorporated positive findings generated from the workstreams conducted by Europa Metals and its consultants over the last 12 to 18 months. The company explained that the economic report proposed a significantly expanded potential mining operation at the Toral lead, zinc and silver project with a 700,000 tonnes per annum production rate over a 12-year mine life. With a mining grade of 7.6% zinc equivalent and as a potential high margin operator, the Toral project has the scope to generate over USD470 million earnings before interest, tax, depreciation and amortization and USD963 million of revenue over the life of mine.
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THG Holdings, up 2.7%. Morgan Stanley initiated the online retailing platform with an Overweight rating.
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By Lucy Heming; lucyheming@alliancenews.com
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