Join our community of smart investors

News & Tips: Hammerson, Quindell, BP & more

Equities are holding on to yesterday's gains
April 23, 2014

Equities have consolidated yesterday’s solid gains in early trading in London.

IC TIP UPDATES:

Rolls Royce (RR.) has won a small service contract worth $39m with the US Air Corps for servicing engines on V-22 aircraft. Buy.

Hammerson (HMSO) reports that increased confidence in the UK economic recovery is benefiting its retail property portfolio here with footfall and sales in its UK shopping centres up by 0.6 per cent and 0.5 per cent respectively. Meanwhile, its new shopping centre in Marseille, which opens next months, is 96 per cent let. We keep our buy recommendation.

Development Securities (DSC) has completed the sale of four investment assets to Kames Capital for £21m. Buy.

Simon Thompson recommendation Sanderson (SND) has reported a strong trading period in the six months to 31 March with revenue up by more than 20 per cent with recurring revenues now representing 55 per cent of the total. Strong recent order intake also bodes well for the full year.

KEY STORIES:

Shares in insurance outsourcing services business Quindell (QPP) have rebounded a little after a savage sell off yesterday triggered by a lengthy and highly critical document published by Gotham City Research questioning the value of the business. Quindell has issued an immediate riposte and is promising a fuller response within the week. The company is only weeks away from a proposed move to the Main Market.

For our latest update on Quindell's full response, click here.

BP (BP.) is selling off its interests in four assets on Alaska’s North Slope to allow it to concentrate on its Prudhoe Bay project.

Semiconductor specialist ARM Holdings (ARM) enjoyed a 16 per cent rise in revenues in dollar terms in the opening quarter of its financial year with pre-tax profits up by 9 per cent to £97.1m. The company describes its licensing opportunities for the second quarter and rest of the year as ‘promising’.

Associated British Foods (ABF) has announced plans to push its Primark clothing retail brand into the US, starting with a store in Boston, alongside its half year results. The figures showed a relatively flat performance as group revenues dipped 2 per cent and adjusted profits edged up by 4 per cent. The food businesses were held back by weak sugar prices which offset 26 per cent growth in Primark’s operating profits.

Sports Direct (SPD) has grown group sales by 10.3 per cent in the nine weeks to 30 March with strong trading in sports retail and brands offsetting a flat performance in the premium lifestyle business.

Moneysupermarket (MONY) says that revenues and earnings for its first quarter were ahead by 8 per cent and 5 per cent respectively with a flat performance seen in the early weeks of the second quarter.

OTHER COMPANY NEWS:

Petra Diamonds (PDL) grew production by 15 per cent in its third quarter to 743,424 carats with production over the first nine months of its financial year up by 26 per cent, leaving it on track to meet its full year production target of 3m carats. Revenues rose by 55 per cent in the third quarter and recent diamond prices are 10 per cent higher than the previous year.

Kentz (KENZ) has won a five year $125m contract in Kuwait with Fluor Kuwait.

4Imprint (FOUR) enjoyed a 16 per cent uplift in revenues in the first quarter of 2014, with both its US and UK businesses performing well.