Egypt-focused gold miner Centamin (CEY) yesterday unveiled a better than forecast increase in production which - if sustained - could see the company beat its own guidance for the year. Unfortunately, it continues to be dogged by legal squabbles in the North-African country and a judicial process which is on the slow side of things. That is key as some claimants would like to see the company stripped of its only producing asset, the Sukari mine. As if that were not enough, over the last five months the price of gold has almost entered what some would describe as 'bear market' territory, as it is termed when an asset falls by more than 20 per cent. Nevertheless, at just 3 times next year's forecast earnings the shares are cheap but, of course, that reflects the uncertainty over the political and legal machinations in Egypt. Even so, The Telegraph's Questor says hold (Last IC rating: Hold, 28 Mar).
The latest industry figures show more cautious hiring on the part of British employers, yet Robert Walters seems unaffected. That would seem to show that there is a two tier market in place, with high unemployment but a shortage of skilled staff. Be that as it may, the company has decided to hold off on opening new offices for the moment. Despite this, there are long-term profit growth drivers in place, but after this year's run higher - and trading as they do at 30 times' this year's earnings - "that looks high enough, unless there are clearer signs of an improvement in the market," says The Times' Tempus (Last IC rating: Sell, 26 Feb).
Lonrho (LONR), the conglomerate, is not expensive, but it has yet to deliver on its promises to shareholders. Further, in recent times - at least - it has shown a tendency to constantly go to shareholders 'cap in hand' to meet shortfalls in its working capital requirements. Yes, the company should do well if it can execute, given its high 'operational gearing,' but that same characteristic can also result in just the opposite should things turn out otherwise. Critically, in any case, it remains to be seen whether the company is on the cusp of finally delivering. Based on a current year earning multiple of 12.3, falling to 10.8 next year and just 5 in 2015, the rating is hold, Questor in The Telegraph writes (Last IC rating: Hold, 28 Mar).
Business press headlines:
According to The Independent, around 700 jobs are at risk at supermarket group Morrisons (MRW) after the firm launched an automated cash-handling technology in back offices in an effort to improve competitiveness. The group has started consultations with cash office managers.
Billionaire investor George Soros has said that the Eurozone's prospects would be better if its most dominant member, Germany, was not part of region, reports The Guardian.
Pensions & Investment Research Consultants, a shareholder advisory group, has said that the pay packet for Aggreko's (AGK) Chief Executive Officer is "excessive", The Scotsman reports. Rupert Soames received shares worth £7.1m under a long-term incentive plan, taking his total pay for 2012 to just over £8.0m.
Sir James Crosby, the former head of bailed out lender HBOS yesterday offered to give up his knighthood and reduce his pension following a report that blamed him for the £20.5bn rescue, writes The Times.
The UK has signed a tax agreement with finance ministers in France, Germany Italy and Spain in an attempt to crack down on tax evasion, says The Telegraph. "Under the agreement, banks in the G5 will be forced to reveal financial details of foreign clients which will then be handed on to the tax domicile to be checked for evasion," the paper writes.
The Financial Times says that Chinese trade with the States jumped 10.8 per cent year-on-year in the first quarter but fell 1.9 per cent with Europe "in further evidence of an uneven recovery in the global economy".
Business Secretary Vince Cable has warned Britain's largest companies to appoint more female boardroom members or the government may force them to by law, according to The Independent. This follows a survey which found that 27 per cent of FTSE 250 firms still had male-only boards.
According to the Financial Times, Dell's largest outside shareholder, Southeastern Asset Management, has said that the buyout offer for the tech company from Michael Dell and Silver Lake Partner is "unfair", giving shareholders no opportunity to participate in any turnaround.
