Hastings Group shares fall as UBS downgrades on lack of near term catalysts

By Loreta Juodagalvyte / March 06, 2018 / www.proactiveinvestors.co.uk / Article Link

Hastings Group Holdings PLC (LON:HSTG) was a weak spot in late afternoon trading, with its shares down 2.3% to 270p as the insurance group was downgraded to 'neutral' from 'buy' by Swiss bank UBS as it thinks the stock is 'lacking near term catalysts.'

The FTSE 250-listed firm also saw its target price cut to 290p from 350p.

The analysts at UBS said: "With near term newsflow likely to be negative and greater uncertainty about market discipline, we downgrade to neutral."

Meanwhile Travis Perkins (LON:TPK) saw its shares fall 1.9% to 1,276p as Jefferies International downgraded the building materials supplier to 'hold' from 'buy' and cut its price target to 1,380p from 1,800p following recent results.

In a note to clients, the US broker's analysts said: "FY17 results were broadly in-line but weaker guidance (challenging macro and continued cost inflation) has resulted in c.5%-7% downgrades to FY18 numbers.

"While we believe the investment in IT/Digital is necessary for longer-term growth, there can be no doubt it is depressing earnings in the short-term."

But Petrofac PLC (LON:PFC) shares gained 4.5% to 462p as Jefferies International upgrading its stance on the oil and gas services company to 'buy' from 'hold' also after recent numbers.

Jefferies described the FTSE 250-listed group as 'sound enough' saying more upfront payments and 'robust' margin expectations support the upgrade, although it was not the most resounding vote of confidence.

Analyst Mark Wilson noted that the Serious Fraud Office investigation is still an 'investment barrier'. He also highlighted other concerns and said it is the currently the depressed share price that provides the basis for Jefferies' seemingly bullish call.

1.30pm: Findel shares rise as it explores potential deal with Sports Direct

Findel PLC (LON:FDL) shares rose 5% to 225p in lunchtime trading as the online retailer and education firm said it is exploring the possibility of further developing the arrangements between its largest sUBSidiary  Express Gifts Limited and its largest shareholder Sports Direct International PLC (LON:SPD).

The FTSE SmallCap firm said the move follows successful recent pilot tests of SDI-licenced clothing brands on Express Gifts' website, which were designed to strengthen its product offer for the value conscious customer.

Findel and SDI have now agreed to explore ways to further develop these joint commercial opportunities.

But on the downside, Falanx Group Limited (LON:FLX) shares fell 6.7% to 4.85p as the cybersecurity provider said it intends to raise ?4.6mln via a placing of around 102.2mln shares at 4.5p each.

The AIM-listed company said the proceeds of the placing will be used to pay for the acquisition of the First Base Technologies.

And Rotork PLC (LON:ROR) shares shed 7.1% to 265.8p after the industrial flow control equipment manufacturer reported a fall in 2017 pre-tax profits and said it expects a 4%-5% currency headwind on both revenues and profits in 2018.

The FTSE 250-listed engineer said its 2017 pre-tax profits fell by 11.5% to ?80.6mln, down from ?91.1mln a year earlier, although revenue increased by 8.8% to ?642.2mln, up from ?590.1mln the year before.

11am: Luceco PLC shares dim as lighting company issues profit warning

Luceco PLC (LON:LUCE) shares slumped 30% to 54.8p as the LED lighting company cuts its profit estimates for 2017 and 2018 to reflect a 'weak consumer confidence and a weaker dollar.'

The FTSE SmallCap stock said it now expects to report 2017 profit after tax of ?11mln compared to the estimate of ?13.2mln given in December and anticipates reporting 2018 profit after tax in the range of ?12mln- ?14.5mln.

Luceco explained that the shortfall relates primarily to continued margin pressure and the treatment of certain costs which had been earmarked for capitalisation but are now being taken through the profit and loss account.

 Just Eat PLC (LON:JE.) saw its shares fall by 9.4% to 771.4p as the online food delivery firm announced it is to ramp-up its promotional and investment spending to offset growing competition from the likes of Deliveroo and Uber Eats.

Underlying profits rose by 42% to ?164mln in 2017, but Just Eat said that with the planned investments in brand, developing markets and delivery services, 2018's profits will between ?165-185mln on a similar basis.

Without the additional spending, underlying profits would be  ?215mln- ?235mln in 2018, implying the incremental costs might be as much as ?70mln.

Ashtead Group PLC (LON:AHT)  shares fell 3.8% at 1,951p. as the equipment rental company   said its finance director Suzanne Wood is stepping down as it reported an increase in quarterly revenues and profits.

Wood will leave at the end of March to spend more time in the US and will be replaced by deputy finance director Michael Pratt.

The news comes just three months after chairman Chris Cole announced he would leave at the annual general meeting in September of this year.

9:45am: Yu shares jump as full-year revenue almost trebles

Yu Group PLC (LON:YUG) was an early morning gainer, with its shares rising 12.2% to 1,375p after the energy supplier revealed that its full-year 2017/2018 revenue almost trebled to ?47mln from ?16.26mln a year earlier, with a rapid increase in profitability.

The AIM-listed group also said it expected its full-year 2018/2019 revenues to be significantly ahead of current expectations.

Bobby Kalar, group chief executive, said: "Having had an opportunity to re-evaluate the growth potential of the business going forward, the Board has resolved to accelerate the growth targets, particularly with higher volume mid-sized corporate clients and energy brokers."

Meanwhile, LoopUp Group PLC (LON:LOOP) shares rose 9.7% to 367.5p as the company said 2018 has started in encouraging fashion with some major recent customer wins set to roll out.

Full-year results from the remote meetings technology firm confirmed the numbers in last month's trading update, with a 36% rise in revenues in 2017 to ?17.5mln, while gross profits jumped 40% to ?13.4mln, as margins improved to 76.7%.

Flying Brands Ld (LON:FBDU) was also in demand, ahead 9.7% at 4.25p after it said its toneChecker Software sUBSidiary has signed an exclusive marketing and distributor arrangement with Korea Computer Motion ISG that will see its kidney stone analysis software distributed in South Korea.

And Amryt Pharma PLC (LON:AMYT) rose 7% to 20.4p as the drugmaker signed its fifth new distribution deal in approximately three months for Lojuxta, which is used to treat a rare life-threatening disease.

The agreement, covering Lebanon, Jordan and Syria, is with Pharaon Healthcare-Droguerie Mercury S.A.L , a full service distributor in pharmaceuticals.

Lojuxta is a therapy used to treat adult patients with HoFH, a genetic cholesterol disorder.

Other Proactive news headlines:

Sirius Minerals PLC (LON:SXX) expects to build on a year of "meaningful progress" with plans to significantly advance its fertiliser mine development through 2018. The operational and boardroom efforts are expected to culminate in the completion of the project's Stage 2 financing later this year, which once reached, would be the stand-out achievement of the year.

Tissue Regenix Group PLC (LON:TRX) announced that its subsidiary, CellRight Technologies has signed a long-term, multi-year distribution agreement with Arthrex Inc., a premier orthopaedic surgical solutions company.

Silence Therapeutics PLC (LON:SLN) remains confident a first human clinical trial will start by the end of the year.

Amryt Pharma PLC (LON:AMYT) has signed its fifth new distribution deal in approximately three months for Lojuxta, which is used to treat a rare life-threatening disease.

Shares in OptiBiotix Health plc (LON:OPTI) surged early doors after the human microbiome specialist announced a production and commercialisation agreement with Fine Foods & Pharmaceuticals.

Strategic Minerals Plc (LON:SML) has completed its acquisition of the Leigh Creek copper mine in South Australia, following the payment of A$1.5mln to the vendor, Resilience Mining. The project benefits from a 2016 feasibility study, and Strategic Minerals is regarding it as likely to provide near-term cash flow.

Kennedy Ventures PLC (LON:KENV) has confirmed its name will change soon to Kazera Global PLC, while its investment emphasis remains mining in Africa.

HemoGenyx Pharmaceuticals PLC (LON:HEMO), the biotechnology company developing novel therapies to transform bone marrow, or blood stem cell, transplantation for the treatment of blood diseases, announced that H. Michael Shepard has been appointed to the company's Scientific Advisory board. The group said Dr. Shepard is a pioneer in modern cancer research, his work has leading to the discovery and development of many successful cancer treatments including Herceptin/trastuzumab, an antibody used to treat breast cancer patients.

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