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BAB - Babcock International News Story

225p 9.7  4.5%

Last Trade - 23/09/20

Mid Cap
Market Cap £1.14bn
Enterprise Value £2.92bn
Revenue £4.45bn
Position in Universe 355th / 1807

Britain's FTSE edges up as Babcock, GKN gain

Tue 28th February, 2017 5:57pm
* FTSE 100 ends up 0.1 pct 
    * Defence companies lead; miners weigh 
    * Babcock, GKN, Meggitt top gainers after updates 
    * Go-Ahead slumps on GTR rail concerns 
 (Adds details, closing prices) 
    By Helen Reid 
    LONDON, Feb 28 (Reuters) - Britain's main share index edged 
up on Tuesday, despite being held back by mining stocks and 
wealth manager St James Place. 
    The FTSE  .FTSE  ended 0.1 percent higher, as gains by GKN 
and Pearson outweighed losses from basic resources stocks. 
    Engineering group GKN  GKN.L  rose 4.9 percent after it 
reported a 12 percent rise in profit for 2016, and sales up 22 
percent, ahead of forecasts.*:nL5N1GD1QP 
    Education services giant Pearson  PSON.L  was a top gainer, 
up 2.2 percent. The company posted results on Friday, promising 
to further cut costs.  
    "We see this as a false hope," said Liberum analysts, who 
rate the stock a 'sell'. "The shares are not factoring in the 
structural risks from what seems like a similar story to what 
happened in other challenged sectors such as newspapers." 
    Babcock Intl  BAB.L , the engineering support and 
outsourcing company whose biggest client is Britain's Ministry 
of Defence, was the top FTSE gainer, up 7.1 percent, after 
saying it remained on track to achieve its full-year targets, 
and had a 30.8 billion pound pipeline.*:nL5N1GD1VM 
    Wealth manager St James Place  SJP.L  fell 3 percent after 
it posted higher costs weighing on cash earnings, and said Chief 
Executive David Bellamy would step down at the end of the year, 
to be replaced by current Chief Financial Officer Andrew 
    "We view the internal hand over as being the best possible 
result for SJP," said Panmure Gordon analyst Barrie Cornes in a 
    Miners were top fallers, tracking the pan-European basic 
resources index  .SXPP  lower. Fresnillo  FRES.L  ended flat, 
outperforming the sector after it reported a six-fold increase 
in profit for 2016 on higher commodities prices and a weak 
Mexican peso.*:nL3N1GD2YF 
    "The move to a net cash position prompted a larger than 
expected final dividend of USc21.5/share," said UBS analysts. 
"In our view FRES operational performance is improving and we 
like its low cost core assets and industry leading growth 
    Retailers Marks & Spencer  MKS.L  and Next  NXT.L  rose 1.8 
and 0.5 percent respectively. Jefferies analysts upgraded M&S 
from 'underperform' to 'buy', saying it has closed the gap with 
Next for quality of website content. 
    Defence equipment company Meggitt  MGGT.L , a peer of GKN, 
rose 13.1 percent after it posted a 13 percent rise in profit 
for 2016.  
    Shares in Burberry  BRBY.L  rose as much as 5 percent to a 
1-1/2 year high in a late-day volume spike after activist 
investor GBL disclosed a 3 percent stake in the luxury goods 
    Berenberg analysts said the news was a positive for Burberry 
shares, noting the sharp rally in Adidas  ADSGn.DE  after GBL 
disclosed a 3 percent stake in the German sportswear maker in 
    Transport operator Go-Ahead Group  GOG.L  was the top faller 
on the mid-cap index, down 13.8 percent, its worst day in 8 1/2 
months, after the company cut its full-year expectations due to 
its GTR rail franchise, which had been beset by strikes.  
    "We expect consensus estimates to come under pressure, and 
the uncertainty surrounding GTR is likely to also weigh on the 
shares," said Liberum analysts. 
 (Reporting by Helen Reid; additional reporting by Danilo Masoni 
and Vikram Subhedar; Editing by Mark Trevelyan) 
 ((; +44 20 7542 7748;)) 
For related prices, Reuters users may click on - *  
 UK stock report      .L      
 FTSE index:          0#.FTS6   
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 FTSE 250 index:      .FTMC           FTSE 350 index:     .FTLC   
 Market digest:       .AD.L           Top 10 by vol:      .AV.L   
 Top price gainers:   .NG.L           Top % gainers:      .PG.L   
 Top price losers:    .NL.L           Top % losers:       .PL.L   
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