FTSE 250 movers: Direct Line, Renewi surge; Energean slips
By Frank Prenesti
Date: Thursday 28 Nov 2024
(Sharecast News) - FTSE 250 (MCX) 20,785.12 0.89%
Direct Line surged on Thursday after it rejected a £3.3bn takeover proposal from Aviva.
In a press release after the close on Wednesday, the insurer said Aviva had offered 112.5p per share in cash and 0.282 new Aviva share, valuing the group at 250p per share. This is a 59.7% premium to the closing Direct Line share price on 18 November, which was the day before the proposal was submitted.
Direct Line dismissed the offer as "highly opportunistic", saying that it "substantially undervalued the company".
"The board has considerable conviction in the capabilities of our newly established leadership team and stands firmly behind their delivery of our strategy," it said. "Under this strategy, the company continues to make early progress towards our financial targets, and expects to deliver attractive growth in profitability, capital generation and shareholder returns."
Renewi shares rocketed after the waste management company said it was minded to recommend a £700m takeover proposal from Australian investment firm Macquarie Asset Management, should a firm offer be made.
Responding to earlier press speculation, Renewi said Macquarie had offered 870p per share in cash. This is a premium of 57% to the closing share price on Wednesday.
Renewi noted that the final offer follows a number of approaches made by Macquarie.
In October 2023, Macquarie abandoned its pursuit of Renewi after the company rejected an offer at 810p a share.
Shares in Dr Martens took off on signs of "encouraging" trading since the start of the autumn/winter season despite the troubled footwear maker swinging to a loss for the half year as its woes in the US continued.
Outgoing chief executive Kenny Wilson said the company expected to make £25m of cost savings, at the top end of its guidance range. Around two thirds of this figure were job cuts with the majority of people made redundant leaving the business at the end of the first half.
"Our new marketing campaigns are showing encouraging early signs, with strong sales of new product, giving us confidence that we will return USA direct-to-consumer to positive growth in the second half," Wilson said.
Pre-tax losses came in at £28.7m for the six months to September, compared with a £25.8m profit a year earlier. Revenue fell 18% to £324.6m.
Shares in the iconic brand surged by as much as 14% in London but the stock has lost 85% since its floated on the London stock exchange in 2021.
Dr Martens, famed for its chunky-soled lace up boots, introduced a new line of footwear in an attempt to bolster flagging sales in the US, its key market. Sales in the Americas fell 22.3% to £115m driven by weaker footfall at its 60 stores in the region.
Energean called third-quarter trading "strong" on Thursday, with improved earnings and a jump in production, despite conflict in the Middle East.
Updating on trading for the nine months to 30 September, the Mediterranean-focused oil and gas firm said group production was 156,000 barrels of oil equivalent a day, a 31% jump on the previous year.
Adjusted earnings before interest, tax, depreciation, amortisation and exploration expenses from continuing operations was $706m, a 61% increase.
Mathios Rigas, chief executive, said: "We are pleased to announce another strong quarter.
"Our production in Israel remains unaffected by geopolitical events, recording a 39% year-on-year increase, and we welcome the announcement of the ceasefire in Lebanon."
However, looking to the full year, London-listed Energean said total production from continuing operations would likely come in between 110,000 and 115,000 boed, down on previous guidance for between 115,000 and 125,000 boed.
"The reduction is due to Israel," Energean said, "which reflects lower-than-expected sales in November owing to weather conditions and market dynamics and, for the lower end, an assumption of flat month-on-month sales for December."
Ithaca Energy fell as the stock traded without entitlement to the dividend.
Market Movers
FTSE 250 - Risers
Renewi (RWI) 803.00p 44.95%
Direct Line Insurance Group (DLG) 223.60p 40.89%
Dr. Martens (DOCS) 64.85p 12.20%
TI Fluid Systems (TIFS) 188.80p 5.47%
Auction Technology Group (ATG) 531.00p 4.73%
Raspberry PI Holdings (RPI) 346.30p 3.37%
OSB Group (OSB) 395.80p 3.29%
Vesuvius (VSVS) 421.00p 2.93%
Wizz Air Holdings (WIZZ) 1,317.00p 2.89%
Bluefield Solar Income Fund Limited (BSIF) 97.00p 2.86%
FTSE 250 - Fallers
Ithaca Energy (ITH) 104.70p -12.90%
Energean (ENOG) 1,029.00p -6.03%
Foresight Group Holdings Limited NPV (FSG) 438.00p -2.67%
Bellway (BWY) 2,476.00p -2.29%
PayPoint (PAY) 829.00p -1.89%
Fidelity Emerging Markets Limited Ptg NPV (FEML) 666.00p -1.62%
Foresight Solar Fund Limited (FSFL) 79.60p -1.61%
Volution Group (FAN) 562.00p -1.23%
BlackRock World Mining Trust (BRWM) 501.00p -1.18%
Target Healthcare Reit Ltd (THRL) 84.10p -1.18%
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