Equities have started the day in positive fashion but The Trader Dominic Picarda is concerned that continued weakness on Wall Street may affect European equities before too long.
IC TIP UPDATES:
Defence contractor Qinetiq (QQ.) says that it is on course to meet expectations for the full year with better than expected performance outside the US making up for uncertainties brought about by the scaling back of the US presence in Afghanistan. We keep our buy rating.
Life assurer Chesnara (CSN) enjoyed a more than trebling of pre-tax profits in 2013 to £60.6m. Meanwhile management is still looking for acquisitions in the £50m-£200m bracket. Buy.
Simon Thompson recommendation Stanley Gibbons (SGI) grew sales by 16 per cent it the six months to December with trading profits up by 9 per cent as the company continued to invest in its online offering. Online revenues now represent 9 per cent of the total.
Construction and support services specialist Renew Holdings (RNWH) says trading remains strong and is ‘well ahead’ of the comparable period last year. We maintain our buy rating.
Oil and gas explorer Parkmead Group (PMG) posted its maiden profit in the six months to December after a ramp up in production, primarily due to the acquisition of a further 20 per cent of the Athena field. The company recently raised £40m to accelerate its exploration programme. We keep our buy.
Simon Thompson recommendation Global Energy Development (GED) virtually doubled its operating profit from continuing operations to $6.1m in the year to December despite lower oil prices and a slight dip in the volume produced.
KEY STORIES:
Brit Insurance (BRIT) has announced its offer price of 240p ahead of the start of conditional dealings this morning, valuing the company at £960m.
Aviva (AV.) has announced the sale of US equity manager business River Road.
Regional press specialist Johnston Press (JPR) has announced a modest 2.5 per cent uplift in operating profits, its first increase in seven years. Advertising revenues have continued on their long term downward trend, but the business grew its digital revenues by 19 per cent. Management has also managed to further reduce net debt, down to £302m.
Exhibitions business ITE (ITE) has announced that revenues for the six months to March are likely to be £72m, up from £69m a year ago and like for like revenues are up 10 per cent on a constant currency basis but down 2 per cent at actual exchange rates. The company has strong links with Russia and Ukraine and thus far has been able to continue with business in Kiev although sales so far have taken a £2m hit due to the crisis.
OTHER COMPANY NEWS:
The board of weapons manufacturer Manroy (MAN) has announced it has approved an 85p a share takeover offer from Herstal alongside full year results today.
Avon Rubber (AVON) continues to trade well and not expects to report full year figures towards the top end of the range of expectations in the market.
