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BAB - Babcock International News Story

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Sector
Industrials
Size
Mid Cap
Market Cap £1.08bn
Enterprise Value £2.87bn
Revenue £4.45bn
Position in Universe 357th / 1807

Britain's FTSE steady as miners outweigh GKN, Babcock gains

Tue 28th February, 2017 10:17am
(ADVISORY- Follow European and UK stock markets in real time on 
the Reuters Live Markets blog on Eikon, see cpurl://apps.cp./cms/?pageId=livemarkets) 
    * FTSE 100 flat 
    * Miners weigh as metals prices slip 
    * GKN leads FTSE after results 
    * Defence companies lead 
    * Mid-caps Meggitt, IWG top STOXX gainers 
    * Go-Ahead Group slumps on GTR rail concerns 
 
    By Helen Reid 
    LONDON, Feb 28 (Reuters) - Britain's main share index edged 
up on Tuesday, despite being weighed by mining stocks and wealth 
manager St James Place. 
    The FTSE  .FTSE  was 0.1 percent higher, as gains by GKN and 
Pearson outweighed losses from basic resources stocks. 
    Engineering group GKN  GKN.L  was top of the FTSE after it 
reported a 12 percent rise in profit for 2016, and sales up 22 
percent, ahead of forecasts.  urn:newsml:reuters.com:*:nL5N1GD1QP 
    Education services giant Pearson  PSON.L  was a top gainer, 
up 3.2 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 a top gainer after saying it remained on track 
to achieve its full-year targets, and had a 30.8 billion pound 
pipeline.  urn:newsml:reuters.com:*:nL5N1GD1VM 
    Wealth manager St James Place  SJP.L  was a top faller, 
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 
Croft. urn:newsml:reuters.com:*:nL5N1GD1XE 
    "We view the internal hand over as being the best possible 
result for SJP," said Panmure Gordon analyst Barrie Cornes in a 
note. 
    Miners were top fallers, tracking the pan-European basic 
resources index  .SXPP  lower. Randgold Resources, Fresnillo, 
BHP Billiton, Anglo American and Rio Tinto were all down 1.2 to 
2.9 percent.  
    Metals prices had slipped as investors took profit ahead of 
U.S. President Donald Trump's speech on Tuesday.  urn:newsml:reuters.com:*:nL3N1GD1EB 
    Fresnillo  FRES.L  reported a six-fold increase in profit 
for 2016 on higher commodities prices and a weak Mexican peso. 
 urn:newsml:reuters.com:*: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 
profile." 
    Retailers Marks & Spencer's and Next were among top gainers, 
up 1.8 percent. Jefferies analysts upgraded M&S from 
'underperform' to 'buy', saying it has closed the gap with Next 
for quality of website content. 
    British mid-caps bookended the pan-European index as well, 
with aerospace engineer Meggitt top gainer and Moneysupermarket 
the top faller.  
    Defence equipment company Meggitt  MGGT.L , a peer of GKN, 
was up 10.7 percent and headed for its best daily gains in a 
year after it posted a 13 percent rise in profit for 2016.  
    Transport operator Go-Ahead Group  GOG.L  was the top faller 
on the mid-cap index, down 13.8 percent and set for 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; Editing by Janet Lawrence) 
 ((Helen.Reid@thomsonreuters.com; +44 20 7542 7748;)) 
  
((  
For related prices, Reuters users may click on - *  
 UK stock report      .L      
 FTSE index:          0#.FTS6   
 techMARK 100 index:  .FTT1X          FTSE futures:      0#FFI:   
 Gilt futures:        0#FLG:          Smallcap index:     .FTSC   
 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   
  
  
 * For related news, click on - * 
 UK hot stocks:      [HOT and GB]     Wall Street:           .N  
 Gilts report:        GB/             Euro bond report  GVD/EUR  
 Pan European stock report:  .EU  
 Tokyo stocks:        .T              HK stocks:            .HK  
 Sterling report:     GBP/            Dollar report:       USD/  
  
  
 * For company prices, click on - * 
 Company directory:   UKEQ           By sector:           FTAX   
  
  
 * For pan-European market data, click on - * 
 European Equities speed guide................  EUR/EQUITY   
 FTSE Eurotop 300 index...........................  .FTEU3   
 DJ STOXX index...................................  .STOXX   
 Top 10 STOXX sectors........................  .PGL.STOXXS   
 Top 10 EUROSTOXX sectors...................  .PGL.STOXXES   
 Top 10 Eurotop 300 sectors..................  .PGL.FTEU3S   
 Top 25 European pct gainers....................  .PG.PEUR   
 Top 25 European pct losers.....................  .PL.PEUR )) 
 
Keywords: BRITAIN STOCKS/
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