FTSE 100 movers: WPP rallies on results, Relx retreats on contract loss
London's FTSE 100 was up 0.5% to 7,109.19 in afternoon trade on Friday, with WPP pacing the advance after well-received results.
Recovering media giant WPP was the top gainer as its revenue slipped less than feared last year but the company said 2019 will be challenging after a spate of client losses.
Revenue of £15.6bn for 2018 was down 2.6% year-on-year or 0.4% lower on a like-for-like basis, with a 0.1% decline in the fourth quarter. Analysts had on average expected a decline of 0.6% for the year and 1.5% for the fourth quarter.
George Salmon, equity analyst at Hargreaves Lansdown, said: "Stronger momentum in Europe and emerging markets provides some welcome relief after a torrid 2018.
"WPP is undergoing a transformation that’ll hopefully see it shed significant levels of debt, and dispose of several non-core divisions, meaning it emerges as a simpler business with a stronger balance sheet. "
On the downside, shares in Relx took a hit after the University of California cancelled its subscriptions with the company's Elsevier academic journals arm.
"Despite months of contract negotiations, Elsevier was unwilling to meet UC’s key goal: securing universal open access to UC research while containing the rapidly escalating costs associated with for-profit journals," the university said.
"This is big news," said analyst Ian Whittaker at Liberum, adding "the fact this has happened when Elsevier is having disputes with other universities will raise questions".
Rightmove was on the back foot even as it posted an in-line set of results, with 2018 pre-tax profit up 11% and revenue and traffic both higher as the company said the UK online property advertising market is set to continue growing.
Precious metals miner Fresnillo lost its shine as Macquarie downgraded its stance on the stock to 'underperform' and British Gas owner Centrica was weaker as Jefferies cut its price target to 110p from 125p.
FTSE 100 - Risers
WPP (WPP) 884.48p 7.11%
ITV (ITV) 136.20p 3.89%
London Stock Exchange Group (LSE) 4,667.00p 3.55%
British American Tobacco (BATS) 2,847.50p 3.23%
easyJet (EZJ) 1,266.00p 3.14%
Wood Group (John) (WG.) 536.60p 3.11%
Mondi (MNDI) 1,780.00p 2.98%
Burberry Group (BRBY) 1,944.00p 2.88%
RSA Insurance Group (RSA) 525.20p 2.78%
Melrose Industries (MRO) 178.45p 2.62%
FTSE 100 - Fallers
Relx plc (REL) 1,625.00p -6.02%
Rolls-Royce Holdings (RR.) 923.20p -3.33%
Rightmove (RMV) 466.95p -3.14%
Fresnillo (FRES) 835.80p -2.81%
Centrica (CNA) 123.55p -0.76%
SEGRO (SGRO) 656.60p -0.67%
Unilever (ULVR) 3,984.00p -0.60%
Barclays (BARC) 163.24p -0.56%
Lloyds Banking Group (LLOY) 63.35p -0.30%
British Land Company (BLND) 602.80p -0.23%