Equities have regained some of yesterday’s losses in early trading but there is a lack of conviction about the markets this morning. Click here for the Trader Nicole Elliott’s latest views on the equity markets.
IC TIP UPDATES:
Life assurance specialist Chesnara (CSN) has issued strong half year results showing a near-26 per cent improvement in pre-tax profits to £27.4m. The interim dividend is increased by 2.7 per cent to 6.42p. Buy.
Sell recommendation SABMiller (SAB) has completed the sale of its stake in Tsogo Sun, raising $1bn in the process.
Gaming operator Bwin.Party Digital (BPTY) has reported mixed trading in the first half of the year with gains in sports betting being offset by declines in revenue from casino and poker. Group revenues dipped from €342.5m to €317.1m, partly as a result of a conscious move ‘from volume to value’ and cash profits declined from €67.4m to €46.4m. Recent trading has seen daily revenues down by 4 per cent due to a later start to the European football leagues. We retain our sell rating.
Powered access rental specialist Lavendon (LVD) has enjoyed strong growth in its UK and Middle Eastern markets, helping group revenues rise by 3 per cent despite currency headwinds. Pre-tax profits rose by 11 per cent to £12.3m. Buy.
Asian Plantations (PALM) says it has received an offer of 220p a share, which values the company at £102.9m. The offer, which is only a marginal premium to yesterday’s closing price, has received indications of acceptance from shareholders representing 59.9 per cent of the company.
KEY STORIES:
Tesco’s (TSCO) woes have continued with the company issuing another disappointing trading statement this morning compounded with news of a 75 per cent cut to its interim dividend, ‘reflecting…our current expectations for future performance’. Meanwhile, new chief executive Dave Lewis is being parachuted in a month earlier than anticipated and will take over from Philip Clarke on Monday.
Restaurant Group (RTN) has continued to trade strongly over the opening six months of 2014 with revenues up by 10 per cent at £308m and like for like sales 2.5 per cent higher. Pre-tax profit rose by 12.3 per cent to £33.7m and the interim dividend is increased by 16 per cent to 6.1p. A total of 17 new sites were opened in the first half with the target for the full year at 38-43 new sites. Trading has continued to be strong with like for like sales for the first 34 weeks of the year 3.5 per cent ahead of last year.
IT services business Computacenter (CCC) enjoyed a solid first half with revenues up by 2.2 per cent and adjusted profits 6.8 per cent better at £28m.
