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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
Sports Direct offers Debenhams 12-month 0% unsecured £150m funding (£40m to repay bridge loan, £110m for working capital), in return for Mike Ashley becoming CEO and 5% new shares, raising his stake to 35%. Also increased stake in Game Digital to 28.43% (from 25.75%).
Balfour Beatty selected as preferred bidder for Network Rail’s £1.5 billion Central Track Alliance contract. Gets 80% of contract (Atkins: 10%, TSO: 10%).
OneSavings Bank and Charter Court Financial Services agree all-share merger; CCFS s’holders to get 0.8253 new OSB shares; 45% stake in new group.
Capita 2018 adj. revenue -5%, adj. pre-tax profit -26%, free cash flow -209%, order book -13.4% after loss of Prudential and local govt business. Sees FY’19 pre-tax profit from -6% to +4.5% and net debt/EBITDA ratio in top half of 1.0-2.0 range. Reiterates 2020 cost savings, cash flow and margin targets. Will consider dividend payments when generating sustainable cash flow.
Just Group announced 9.99% rights issue and sale of £300m+ debt. FY gross written premiums +14.9%, total revenue -3.6%, adj. op. pre-tax profit -5% (new business +44%, in-force +1%). Solvency ratio -30bps to 136%. Expects to reinstate rebased dividend later this year.
Cineworld 2018 pro-forma admissions +2.6% (adj. for Regal acquisition), revenue +7.2%, adj. EBITDA +9.4%. Final div $0.10. Regal integration benefits better better than expected, to deliver $150m FY’19 synergies. Gem Diamonds sells pink 13.33 ct diamond for $8.75m.
Savills 2018 revenues +10%, underlying profit +2% (statutory -3%), final div +3.3%; solid start to 2019 but year ahead overshadowed by macro/political uncertainties; difficult to predict; see transaction declines in a number of markets; reiterates guidance.
(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 |
| WM MORRISON | MRW | 0.5% | 2.0% | -1.3% |
| HIKMA PHARMACEUTICALS | HIK | -5.5% | -0.9% | -8.2% |
| STANDARD LIFE ABERDEEN | SLA | 2.5% | 4.3% | 1.5% |
| DIXONS CARPHONE | DC/ | 3.3% | 3.4% | 1.4% |
| PROVIDENT FINANCIAL | PFG | -2.7% | 3.0% | -3.1% |
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Prepared by Michael van Dulken, Head of Research