FTSE 100 movers: CRH leads the way; Royal Mail returned to sender

CRH shares led the risers on the Footsie on Wednesday as the company posted positive 2016 results with continued profit growth, and margins and returns ahead in all divisions.

The firm reported “strong” cash generation, with its de-leveraging target exceeded and the balance sheet restored while the dividend was increased.

Sales revenue stood at €27.1bn, 15% ahead of 2015 and up 4% on a proforma basis. EBITDA improved 41% to €3.1bn, which was ahead of November guidance, while proforma EBITDA was up 10%.

ITV shares were also popular, as the broadcaster reported a sizeable slowdown in revenues in the second half of 2016 and warned that advertising revenues would fall in the early months of 2017.

With broadcast and online revenue down 1% over the year, total turnover rose 4% to £3.5bn thanks to 13% growth from the smaller ITV Studios television production arm, which was less than half the growth rate in the first half of the year.

Underlying profit before tax was just above flat at £847m and adjusted earnings per share up 3% to 17p.

Retailer Next got a boost on Wednesday as Redburn double-upgraded the stock to 'buy' from 'sell', saying the drop in the shares represents a good buying opportunity.

When it downgraded the stock to 'sell' in July 2013, it was worried about peak margins and the diminishing range of opportunities to deploy new capital.

Management were able to push back maturity, first via hitting fashion trends and then expanding lending, Redburn said.

On the red side of the equation, miner Fresnillo fell victim to profit taking after more than doubling its profits in 2016 as revenues surged due to record gold and silver production, high precious metals prices and the devaluation of the Mexican peso against the dollar.

Royal Mail shares fell as Ofcom tightened some of the rules governing the company's role in the parcels and letters market, and warned the postal group that if it continues to miss its targets it could face "significant fines".

The regulator also acknowledged that while Royal Mail has made efficiency improvements in recent years, there was "scope for it to go beyond those currently planned".

Following its year-long review of the market, Ofcom decided not to impose any new controls on Royal Mail’s wholesale or retail prices, saying the FTSE 100 company "already has strong commercial incentives to improve its efficiency".

Market Movers

FTSE 100 (UKX) 7,357.03 1.29%
FTSE 250 (MCX) 18,912.97 0.76%
techMARK (TASX) 3,419.76 0.61%

FTSE 100 - Risers

CRH (CRH) 2,875.00p 5.66%
Next (NXT) 4,010.00p 4.60%
Ashtead Group (AHT) 1,729.00p 4.53%
Persimmon (PSN) 2,149.00p 4.22%
ITV (ITV) 210.60p 3.95%
Glencore (GLEN) 333.70p 3.45%
BHP Billiton (BLT) 1,343.00p 3.28%
Convatec Group (CTEC) 243.70p 3.26%
Taylor Wimpey (TW.) 185.50p 3.00%
Standard Chartered (STAN) 742.30p 2.92%

FTSE 100 - Fallers

Fresnillo (FRES) 1,457.00p -2.15%
Randgold Resources Ltd. (RRS) 7,400.00p -1.40%
Royal Mail (RMG) 410.50p -1.21%
Croda International (CRDA) 3,466.00p -1.14%
Babcock International Group (BAB) 938.50p -1.00%
United Utilities Group (UU.) 969.00p -0.97%
Severn Trent (SVT) 2,319.00p -0.81%
Centrica (CNA) 225.20p -0.75%
National Grid (NG.) 971.60p -0.58%
SSE (SSE) 1,533.00p -0.52%