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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 considering all-cash offer for remaining 70.1% of Debenhams. Says proposed restructuring/refinancing has adverse outcomes for shareholders. Debenhams says will consider any full offer – deadline Apr 22 – but this must include a price, deal structure and debt repayment plan.
Crest Nicholson says forward sales encouraging (secured >50% of open market sales); revenues and volumes to be similar to last year, with improved cash generation; Still faces dampened demand from political and macro uncertainties which is likely to continue. Appointed Peter Truscott (ex-Galliford Try) as new CEO, effective Sept.
Ocado signs exclusive deal with Coles of Australia for 2 distribution centres; Currently sells £555m online (2.5% of sales). Expected earnings negative in 2019 with no fees recognised until operations start. Minimal additional capex in 2019; majority of additional capex in 18 months prior to openings.
United Utilities FY trading in-line, awarded “fast track” status by Ofwat for 2020-25 business plan. FY adj. revenue and adj. op. profit to grow, infrastructure expense in-line with H1. Weather, pension equalisation and restructuring to hit FY statutory op. profit by £52m. Net financing costs seen £45m lower due to fall in RPI inflation. Expects small increase in FY net debt vs. H1.
Ferguson cuts FY guidance to +3-5% organic rev. growth, at lower end of guidance after strong H1 revenue growth moderated recently and. H1 ongoing revenue +8.1% (+6.5% organic), ongoing trading profit +7.7%, Interim dividend +10%. To move tax domicile from Switzerland to the UK.
(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 |
| INMARSAT | ISAT | 8.8% | 8.8% | 5.9% |
| SPORTS DIRECT | SPD | -2.0% | 1.7% | -2.0% |
| PENNON | PNN | -2.8% | 0.6% | -3.3% |
| ASTRAZENECA | AZN | -2.3% | -2.2% | -3.1% |
| RIO TINTO | RIO | 0.4% | 0.5% | -2.2% |
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Prepared by Michael van Dulken, Head of Research