FTSE 100 movers: Sage leads market back into the black

After a turbulent day, the FTSE 100 was up 12.72 points (0.22%) by mid-afternoon Wednesday to 5,924.18.

Sage led the market after posting an increase in first quarter revenues, driven by strong software subscription revenue.

It saw group organic revenue for the three months to 31 December rise 6.6%. Organic recurring revenue grew by 10.4%, with a 35.7% rise in software subscription revenue. However, software and software related services revenue dropped by 5.3%, reflecting the move to subscription services. Organic processing revenue also increased by 5.4%, which included Sage Payroll Solutions, acquired at the start of the last financial year. The company said it remains on track to deliver at least 6% organic revenue growth and 27% operating margin for the full year.

Shares in Dixons Carphone were also up after Investec upgraded the retailer from ‘add’ to ‘buy’ as the company’s core businesses improve and gain market share. The investment bank on Wednesday said that should drive medium term profit growth despite continued softness in the Nordics.

“Ongoing self-help and market share gains characterise the near-term story at a time when DC faces a slower electricals market,” it said. “Significant downsizing of its portfolio will help strengthen the underlying proposition & UK margins in our view (INVe: +25bps).” Investec said the company’s valuation doesn’t reflect the attractive investment case given. “1) EPS growth from ongoing restructuring & market share gains (INVe: 12% EPS CAGR CY15-17e vs. 9% for the sector); 2) better visibility on CWS’ growth, scale and contribution to group profits; and 3) attention turning to uses of cash as FCF generation should improve markedly in FY18e.”

On the other side of the coin, Royal Bank of Scotland shares were faring poorly after the bank announced a large clean up in its fourth quarter and confirmed it will make a loss for 2015.

The clean up includes £500m of PPI provisions, $2.2bn (£1.5bn) for US residential mortgage-backed securities probes, and £4.2bn poured into its pension fund. The combined charges will amount to a £2.5bn hit to profits in 2015. In the unscheduled trading update, chief executive Ross McEwan said: "I am determined to put the issues of the past behind us and make sure RBS is a stronger, safer bank. We will now continue to move further and faster in 2016 to clean-up the bank and improve our core businesses." He later confirmed on a conference call that the bank will make a loss for 2015, which was widely expected.

Antofagasta also took a hit after it revealed the group’s copper production for the full year was down by 10.6% to 630,300 tonnes, which the company blamed mainly on lower production overall at Los Pelambres and Centinela.

Gold production for the year was also down to 213,900 ounces, from 270,900 ounces in 2014, which the company said mainly reflected lower grades at Centinela in the second half of the year. However it did see a rise in copper production for the final quarter of 8.2% to 169,900 tonnes, as well as a 21.8% rise in gold production on the previous quarter. "Whilst we have finished the year on a good note, 2015 has been undeniably difficult", said Antofagasta CEO Diego Hernandez. "The continued deterioration of the macro-environment and associated falling commodity prices combined with several operational setbacks resulted in copper production declining 11% year-on-year and cash costs before by-product credits declining by 1% to $1.81/lb (£1.26/lb)."

FTSE 100 - Risers

Sage Group (SGE) 607.50p 7.05%
Glencore (GLEN) 91.05p 4.54%
Compass Group (CPG) 1,160.00p 3.02%
Carnival (CCL) 3,664.00p 2.69%
Relx plc (REL) 1,194.00p 1.79%
Next (NXT) 6,930.00p 1.76%
Dixons Carphone (DC.) 464.50p 1.75%
Admiral Group (ADM) 1,725.00p 1.65%
ITV (ITV) 264.00p 1.54%
Persimmon (PSN) 1,984.00p 1.54%

FTSE 100 - Fallers

Royal Bank of Scotland Group (RBS) 251.90p -3.45%
Anglo American (AAL) 245.45p -3.12%
Capita (CPI) 1,138.00p -2.49%
BHP Billiton (BLT) 649.00p -2.48%
Antofagasta (ANTO) 369.20p -2.33%
Sports Direct International (SPD) 408.40p -2.18%
Standard Chartered (STAN) 467.80p -1.99%
ARM Holdings (ARM) 995.00p -1.97%
Barclays (BARC) 179.45p -1.94%
GKN (GKN) 276.20p -1.92%