The downbeat mood that has pervaded the markets this week continues.
IC TIP UPDATES:
Simon Thompson recommendation Barratt Developments (BDEV) says that completions are at a six year high as it continues to make the most of buoyant housing market conditions. Full year completions are up almost 9 per cent on last year with average selling prices 13 per cent ahead and profits are now forecast to come in at the top end of analyst expectations at £390m. The forward order book is up 45 per cent at £1.2bn.
Retailer SuperGroup (SGP) has come through what it describes as a year of transition when it has moved to a new distribution centre and renewed its IT systems with sales growth intact. Revenues rose 19.6 per cent to £430.9m and underlying profits by 19 per cent to £62m. We maintain our buy rating.
Ithaca Energy (IAE) saw pro-forma average production of 14,400 barrels of oil per day during the second quarter, in line with full year production guidance of 13,500 to 15,500 barrels of oil per day. Buy.
London-focused developer Telford Homes (TEF) continues to thrive, it has sold 79 out of 81 apartments at its Vibe development in Dalston, giving 275 open market sales since 1 April. The company has also acquired a site in Southwark for £19m which will be developed into primary school, sixth form academy, 148 open market homes and 10 affordable homes. Future revenues from its development pipeline now total £950m. We keep our buy recommendation.
Simon Thompson recommendation Bloomsbury Publishing (BMY) says that in the three months to 31 May revenues improved in its academic and professional and children’s and educational businesses but fell back in adult titles against strong comparatives from last year. Overall revenues are down 9 per cent on last year.
Powered access rental specialist Lavendon (LVD) says trading conditions are improving with strong revenue growth in the UK and Middle East compensating for a weaker showing in Europe. Overall rental revenues in the first half have increased by 7 per cent. Buy.
Galliford Try (GFRD) has announced the acquisition of Miller Construction, a UK-only construction business serving both public and private sectors, for £16.57m. Buy.
KEY STORIES:
SSP Group (SSPG), the travel food specialists run by former WH Smith boss Kate Swann, has listed in London this morning after pricing its IPO at 210p a share, the bottom of its indicative range. The shares rose around 6 per cent in early trading.
Trading figures for the first quarter from Burberry (BRBY) showed continued strong progress with underlying revenues up 17 per cent to £370m, although currency movements reduced this to 9 per cent at the reported level. Comparable sales were up 12 per cent with double digit growth in Asia Pacific and the Americas and low single digit growth in Europe, the Middle East, India and Africa.
Halfords (HFD) has enjoyed a boom in sales for cycles and associated equipment with its cycling business showing 21.3 per cent growth in the past three months. Overall group growth was 7.9 per cent with the retail business contributing 7.7 per cent growth and the auto centres enjoying a 9.4 per cent sales uplift.
Mothercare (MTC) has announced confirmation of the appointment of Mark Newton-Jones as its chief executive, a role he had held on an interim basis since March.
Poor trading conditions in Australia continue to dog recruiter Hays (HAS) with growth in the Asia Pacific region down 13 per cent in the three months to 30 June. Elsewhere, the UK and Ireland saw 11 per cent net fee growth and Europe and the Rest of the World grew net fees by 1 per cent.
OTHER COMPANY NEWS:
Building products specialist Epwin has announced its intention to float on Aim. The company made cash profits of £21m from revenues of £264m in the year to December.
Impax Asset Management (IPX) grew assets under management from £2.55bn to £2.76bn over the three months to June.
