Shares have rebounded in early trading after yesterday's brief sell off.
IC TIP UPDATES:
BT Group (BT.A) has announced solid third quarter results with profits up by 7 per cent to £675m despite a 6 per cent reversal in revenues. We keep our buy rating.
Sell recommendation De La Rue (DLAR) says trading conditions in the bank note printing industry continue to remain difficult. Performance has been in line with expectations and some delays to orders which were reported in November have now come through but others have still not been confirmed.
Electronics distributor Electrocomponents (ECM) continues to see flat trading conditions with underlying sales growth over the four months to 31 January up by 1 per cent. Margins are improving but remain below the level of the previous year. We keep our sell rating.
Retailer Darty (DRTY) has announced the appointment of Regis Shultz as chief executive, he joins from French furniture and DIY retailer BUT. We retain our sell recommendation.
Randall & Quilter Investment (RQIH) says full year performance is expected to be in line with forecasts. Buy.
KEY STORIES:
Tate & Lyle (TATE) will report profits for the October to December quarter below the level of those achieved in the previous year after higher costs incurred in its business transformation programme. Speciality food ingredients sales enjoyed good growth but sales of sweetener sucralose are now expected to be below last year’s.
Telecoms provider Kcom (KCOM) says market conditions remain challenging but it has won a number of contract renewals.
Pinewood Shepperton (PWS) has announced its intention to submit new plans for the expansion of its studios. A previous attempt at winning planning permission failed.
OTHER COMPANY NEWS:
Animal feeds business Anpario (ANP) says that trading is in line with expectations.
Sub-sea miner Nautilus Minerals (NUS), which was recently the subject of a speculative bid approach, has announced its intention to cancel its Aim market listing.
Sound Oil (SOU) has confirmed plans to sell off non-core assets to concentrate on its portfolio of oil and gas prospects in Italy. It is also in talks with Italian authorities to accelerate the development of the Laura gas discovery, which could bring its development forward by a year. Sound Oil has also received a farm-in offer in relation to its Badile exploration well in Lombardy.
New World Oil & Gas (NEW) has announced that the Bale Creek 2 well in Belize failed to find sufficient hydrocarbons. Shares have shed around a quarter of their value.
