Shares in London appear to be in consolidation mode in early trading after yesterday’s healthy gains. Click here for the Trader Nicole Elliott’s latest views on the global markets.
IC TIP UPDATES:
Ophir Energy (OPHR) reports that a sidetrack well as its Mzia-3 gas discovery offshore Tanzania, which it co-owns with BG Group (BG.) has flowed at slightly better than expected rates, further cementing the commercial scale of the prospect. But an appraisal well offshore Equatorial Guinea, at Tonel North-1, encountered slightly less gas than expected, although this does not diminish the commercial potential for the discovery. We keep our buy rating.
Recent buy recommendation Cape (CIU) has posted subdued first half results, which reflect the completion of some major construction projects in 2013 and also continued weak trading conditions in some areas of Asia. Revenues from continuing operations dipped by 13 per cent and adjusted operating profit fell almost 12 per cent. But the order intake in the first half rose by 33 per cent to £317m. We maintain our buy recommendation.
Convenience store operator McColl’s (MCLS) has issued a trading statement for the 13 weeks to 24 August showing total sales growth of 4.3 per cent but a small reversal in like for like sales growth of -0.5 per cent due to strong comparatives from last summer. Buy.
Mobile payments specialist Monitise (MONI) has deepened its partnership with IBM into a global digital commerce and resourcing alliance which will see around 20 per cent of Monitise’s staff transfer to IBM. Buy.
KEY STORIES:
The Financial Conduct Authority has fined RBS (RBS) and Natwest just short of £14.5m for ‘serious failings’ in their advised mortgages business.
Balfour Beatty (BBY) has announced the revised valuation of its PPP portfolio as £1.05bn, up 46 per cent from its previous valuation in December 2013.
Temporary power business APR Energy (APR) has announced a boardroom reshuffle alongside solid interim results. Chairman Mike Fairey is stepping down from the board with immediate effect, to be replaced by chief executive John Campion with co-founder and president Laurence Anderson replacing him as chief executive. Half year results showed a 192 per cent rise in turnover to $254m, boosted by the acquisition of GE Power Rental, with pre-tax profits of $54.3m, up from a $16.1m loss a year previously.
Estate agency Foxtons (FOXT) has posted a 16.2 per cent rise in turnover and a 57.1 per cent uplift in profits to £23.1m in the six months to June although the company confirmed that it expects second half transaction volume growth to slow down due to government initiatives and the expectation of interest rate rises.
Record half year results from gaming business 888 Holdings (888) showed a 13 per cent rise in revenues to $225.1m and a 27 per cent improvement in adjusted earnings at $49m, although currency movements hit pre-tax profits, leaving them 4 per cent lower. Meanwhile, the company has announced that non-executive chairman Richard Kilsby will retire next year, with current chief executive Brian Mattingley taking his place.
OTHER COMPANY NEWS:
Marine services business James Fisher (FSJ) has posted an 8 per cent rise in half year revenues and a 13 per cent rise in underlying pre-tax profits to £21.9m. Meanwhile its Divex division has won its third major order since it was acquired in March 2013.
Industrial property specialist Hansteen’s (HSTN) half yearly report showed a 32.8 per cent rise in normalised income profit to £25.1m. The company has made 30 sales from its portfolio in the first half of this year worth £90.4m with £142.7m worth of properties acquired so far this year.
Recently floated lender OneSavingsBank (OSB) posted a fourfold increase in pre-tax profit in the opening six months of the year at £29.7m. Loans and advances in the first half rose by 13 per cent to £3.4bn, with particular strength in buy to let and loans to small and medium sized businesses.
