London shares have started the day positively and The Trader Dominic Picarda is expecting April to be a positive month for equities.
IC TIP UPDATES:
Babcock International (BAB) has been awarded a 21 year contract to manage the London Fire Brigade’s fleet and equipment after successfully delivering on an interim contract since November 2012. We keep our buy rating.
Jupiter Fund Management (JUP) has sold its private client and charities business to Rathbone Brothers (RAT) for £43m. Buy.
A subsidiary of Simon Thompson recommendation Thalassa Holdings (THAL), WGP Group, has won a surveying contract in the North Sea which will commence in April and will contribute to earnings this year.
Tethys Petroleum (TPL) grew revenues from continuing operations in oil and gas production by 10 per cent to $36.95m in 2013 which helped losses to halve to $10.5m although there was a further $7.1m writedown loss from its Uzbek operations. Meanwhile the company ended the year with $25.1m in cash although it has since bought some interests in Georgia for $9.6m. Our recommendation is under review.
KEY STORIES:
BHP Billiton (BLT) has responded to press speculation about a hiving off of some of its assets including the nickel, manganese and aluminium operations into a separate entity by saying that ‘the simplification of our portfolio is a priority’.
Aberdeen Asset Management (ADN) saw assets under management dip between December and February from £193.6bn to £186.5bn due to continuing weakness in emerging markets. During the same period it won new business worth £4bn but saw net outflows of £3.9bn, with a further £200m of outflows recorded in March. Meanwhile, the company is ramping up cost savings plans on top of those already identified from the Scottish Widows acquisitions.
Interdealer broker ICAP (IAP) says full year performance is expected to be in line with expectations. Revenue in the global broking division fell by 14 per cent in February and March.
Oil services business Wood Group (WG.) has bought a small Canadian pipeline engineering business, Sunstone Projects, for $14.5m.
Retailer Findel (FDL) grew sales by 5 per cent in the year to 28 March according to a trading update today with both operating profit and pre-tax profit well ahead of last year. The educational supplies and Express Gifts businesses both showed healthy growth although the smaller Kleeneze and Kitbag businesses saw sales dip.
OTHER COMPANY NEWS:
Final results from oil and gas engineering business Corac Group (CRA) showed a rise in revenues from £15.3m to £19.3m and loss before tax reducing from £6.1m to £4.3m. The year end order book was fairly flat at £14.2m.
Applied Graphene Materials (AGM) posted wider losses for its 2013 financial year but has made rapid progress since its Aim admission in November including six new customer collaborations signed in March. The company ended January with £9.9m in the bank.
