This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
The below stocks have been identified as having potential to register bigger than normal share price moves (up or down) today based on the news cited
Babcock H1 underlying revenues -2.3%, pre-tax profit +2.5%, free cash flow +215%, net debt -12%, order book +3%, dividend +3.6%. Exceptional £120m charge after disposals, £10m net cash cost. FY outlook unchanged at low single digit revenue growth. Expects £250m lower revenue (£20m lower profits) in Magnox nuclear decommissioning JV vs. £100m prior guidance.
UK National Farmers’ Union (NFU) warned against the Sainsbury-Asda merger, saying it could squeeze farmers’ prices and affect shoppers’ choice.
Johnson Matthey H1 underlying constant FX sales +10% YoY, pre-tax profit +10%, dividend +7% after strong growth in Clean Air. Expects FY growth toward upper end of mid-high single digit guidance with £1-2m FX tailwind.
United Utilities H1 revenues +4.6%, underlying operating profit +6.9%, underlying net profit +23%; interim dividend growth almost doubles (3.9% vs 2.2% prev), in-line with “at least RPI” through 2020. Indivior responds to Federal Court Decision; will continue to defend IP and implement contingency plan; FY18 guidance still valid until generic Suboxone sublingual film enters market.
Sage FY18 organic revenues +6.8% just shy of 7% guidance, operating margin -20bp beats guidance of -100bp, cash conversion +100bp, div +7%; FY19 recurring revenues (79% of total) seen +8-9%, SSRS + Processing likely flat/decline mid-single digits. Organic growth may decrease in short term amid transition towards subscription (investing extra £60m), with margins lower.
(Sources: Company newswires, Bloomberg, CNBC, FT, Reuters, Wall Street Journal)
For more information on any of these individual news items, call into the trading floor
| Stock | Code | Close | High | Low |
| EASYJET | EZJ | -4.4% | 3.1% | -5.9% |
| IQE | IQE | 7.0% | 8.2% | 0.4% |
| CRH | CRH | -0.5% | 1.1% | -1.5% |
| CYBG | CYBG | -18.9% | -4.2% | -19.8% |
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Prepared by Michael van Dulken, Head of Research