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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
AB Foods reports expected sales growth in all businesses except Sugar (expects a loss, in-line with guidance), earnings in-line with last year. Net cash +143%, capex flat. Primark like-for-like sales -2% (missing -1.6% consensus), constant FX sales +4% (missing +4.8% cons.). FY outlook unchanged.
Persimmon could lose its Help-to-Buy contract after claims of “poor standards and hidden charges”, according to The Times report.
Bunzl FY revenue at constant FX +9% (+4.3% organic), adj. pre-tax profit +6%, final dividend +9.3%. Notes 3% hit to revenue from FX headwinds. Acquired Liberty Glove & Safety (FY’18 rev. $93m) for an undisclosed sum and committed to further £183m in M&A
Hiscox FY gross written premiums +14.9%, pre-tax profit +246%, like-for-like group combined ratio -44bps to 94.4%. FX losses narrowed to £13.7m (-83%). Final dividend +5.2%. Expects to benefit from improved investment conditions in London, but US market could see less slower growth.
Provident Financial rejected a bid from Non-Standard finance, board advising shareholders not to take up the offer. Will explore alternative options. Notes trading in-line with expectations and to delay FY’18 results to 13 March in light of the takeover offer.
Hammerson FY net rental income -6.2%, adj. profit -2.4%, ERPA NAV/share -4.9%, portfolio value -5.9% after difficult operating conditions. Final dividend unchanged. Net debt -2.8%. Targeting £500m+ of disposals and forms a committee to bring net debt below £3bn this year (from £3.4bn).
Centamin FY revenue -10.7%, EBITDA -16.5% after a 13.2% decrease in gold production, free cash flow -56%. Unit costs +12%. Expects higher gold production next year, unit costs expected +1-7.5%
(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 |
| PEARSON | PSON | 1.2% | 3.5% | -2.8% |
| CENTRICA | CNA | -10.7% | -9.9% | -14.7% |
| DAIRY CREST | DCG | 22.1% | 22.1% | 17.9% |
| METRO BANK | MTRO | 9.0% | 9.0% | -0.1% |
| CYBG | CYBG | -0.5% | 1.3% | -2.3% |
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Prepared by Michael van Dulken, Head of Research