Equities are marginally down in early trading but should resume their upward march in due course, according to The Trader Dominic Picarda.
IC TIP UPDATES:
Mixed news from San Leon Energy (SLE) which confirms it is moving ahead with well development at Nowa Sol in Poland and should be up and running early next month, but drilling of two exploration wells at Czaslaw has been briefly held up by permitting delays. We keep our buy.
EKF Diagnostics (EKF) has issued results which were well flagged in its recent trading update. Revenues leapt by 71 per cent in the first half and margins also improved as management concentrated on higher margin sales which also produced headline earnings of £1.4m against £210,000 last year. We maintain our buy recommendation.
Chinese property business Macau Property Opportunities (MPO) grew its net asset value by 9.5 per cent in the year to June and net asset value per share was boosted by share buybacks, rising 10.4 per cent to $3.01 (191p) a share.
Waste treatment and shipping services business Nature Group (NGR) is sailing through tough economic conditions. First half revenues dipped slightly and profits halved from £2.03m to £1.01m.
KEY STORIES:
The inevitable has finally happened, JJB Sports (JJB) has been placed into administration and its shares suspended from trading on Aim. This actually makes the odds on a deal for part, or all, of the JJB business in the coming days higher, with the likes of Sports Direct (SPD) believed to be waiting in the wings.
Also suspended this morning was Bulgarian property developer Orchid Developments (OCH), which is trying to finalise a refinancing package which is vital for the future existence of the business.
Indonesian resources giant Bumi (BUMI) has run into trouble following allegations of financial irregularities at Indonesian operations, in particular PT Bumi Resources. The company has launched an internal investigation into the issues but investors are running scared, marking Bumi shares down by a third this morning.
Petra Diamonds (PDL) has issued solid full year results which reflect the expansionary phase the business is currently going through. Revenue rose by 44 per cent and profit from mining activity by 35 per cent to $103.3m, but unrealised foreign exchange losses and hefty capital spending on expansion ate into post tax figures which showed a small loss.
Irn-Bru maker AG Barr (BAG) performed solidly enough in the six months to July with revenues up by 4.9 per cent but profits dipping slightly. The company is still in talks over a potential merger with Britvic (BVIC).
Qinetiq’s (QQ.) first half of the year has been stronger than expected but the company cautions that second half visibility is worse than usual.
In contrast, Dairy Crest Group (DCG) has seen worse first half performance than expected but believes it will still meet full year expectations.
OTHER COMPANY NEWS:
Aberdeen Asset Management (ADN) grew assets under management marginally since the end of June, up from £182.7bn to £184.3bn and suffered a minimal £100,000 net outflow of funds.
Postal software specialist Escher Group (ESCH) has enjoyed a strong first half after a number of key business wins. Revenues rose by 34 per cent and earnings by 18 per cent to $1.87m.
Staffline (STAF) has made another small acquisition, this time a driving and logistics recruiter called Go New Recruitment.
Strong cake and bread sales boosted Finsbury Food (FIF) in the year to June as it posted adjusted profit growth of 11.6 per cent to £6.5m, from revenues of £207.4m.
