Equities are off the boil this morning as we continue into the drifting weeks of summer and The Trader Nicole Elliott is questioning how long we can hold our current levels.
IC TIP UPDATES:
Personal goods giant Unilever (ULVR) has issued solid half year results with underlying turnover rising 3.7 per cent and emerging markets sales up 6.6 per cent. Headline turnover slipped 5.5 per cent to €24.1bn, but this was hampered by currency moves. Net profits were 12 per cent higher at €3bn, boosted by disposals. We keep our buy.
Budget airline easyJet (EZJ) has issued third quarter results which were boosted by a late Easter. Overall revenues rose by 8.6 per cent to £1.24bn with passengers carried up 9.4 per cent to 17.9 million. Costs per seat dipped by 1.3 per cent, which was better than expected and revenue per seat rose by 1.7 per cent on the same basis. Buy.
British Land (BLND) has sealed another letting at its Leadenhall Building in London’s City, with insurer Rothesay taking on a whole level. We maintain our buy recommendation.
Pubs group Mitchells & Butlers (MAB) saw total sales growth of 3.8 per cent in the third quarter, taking the nine month figure to 2.9 per cent although the market took a dip during the world cup period, which led to a small reversal in like for like drink figures for the third quarter with food sales only up 0.5 per cent on a like for like basis. Nonetheless, we keep our buy rating.
Fellow pubs group Marston’s (MARS) says the impact of the world cup on its performance was ‘broadly neutral’ with higher drinks sales in their pubs offsetting weaker food and off-trade sales doing well. Like for like sales in destination and premium pubs are up 4.1 per cent for the nine months to 19 July with taverns up 3 per cent and net profits in leased pubs also up by 3 per cent. Buy.
A third pubs group, Fuller, Smith & Turner (FSTA) says its London and South East focused pubs have performed well with like for like sales in its managed pubs up 7 per cent in the 16 weeks to 19 July, tenanted pubs up by 3 per cent and beer volumes for the Fuller’s beer company up by 7 per cent. We keep our buy rating.
Simon Thompson recommendation Manx Telecom (MANX) says trading is in line with expectations and has confirmed plans to pay out a maiden interim dividend with a view to achieving a full year dividend yield of 7 per cent based on the price of its shares at float, which was 142p.
Property group Hammerson (HMSO) posted a 4.6 per cent rise in net rental income for the six months to June with profits surging from £80.8m to £362.9m, aided by revaluations. Net asset value per share is up 6.8 per cent to £6.12. Buy.
Alternative finance specialist Paragon Group (PAG) says trading has remained strong in the first nine months of its financial year with operating profits coming in at £88.3m, up 16.6 per cent. We keep our buy recommendation.
Simon Thompson recommendation Jarvis Securities (JIM) has posted a 7.3 per cent uplift in revenues, a 10.3 per cent improvement in profits and a dividend hike of 23 per cent for its opening six months of the year.
KEY STORIES:
Carillion (CLLN) has signed three contracts with the Defence Infrastructure Organisation for its Next Generation Estates programme which could be worth up to £2.8bn.
DIY specialist Kingfisher (KGF) has posted marginal total sales growth of 0.8 per cent in the 10 weeks to 12 July with like for like sales down by 1.8 per cent for the group as the French business continues to be a drag.
Howden Joinery (HWDN) is making the most of the housing market revival according to half year results which showed an 11.6 per cent rise in revenues and profits up from £41.6m to £57.6m.
Publisher Reed Elsevier (REL) has posted 4 per cent revenue growth in the first half and underlying operating profits 5 per cent higher at £860m.
West End property specialist Shaftesbury (SHB) has completed lettings and renewals worth £19.1m in rental value in the first half of the year. It is also refurbishing around 8 per cent of its portfolio and has spent £107.7m on new additions to the portfolio.
OTHER COMPANY NEWS:
Health and environmental consultancy Halma (HLMA) says trading continues to be mixed and currency movements are creating a headwind. On a constant currency basis organic revenues have grown.
Industrial power hire business Northbridge Industrial Services (NBI) says trading has been in line with expectations and contract wins give it good visibility for the second half.
Microchip specialist CSR (CSR) is continuing to migrate its business towards more profitable areas and a 70 per cent reduction in sales in its legacy business meant second quarter revenues came in 26 per cent below last year’s.
