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News & Tips: Berkeley Group, Kier, Barclays & more

Equities started the month in subdued mood
September 1, 2014

Equities have started the month in downbeat mode although with US markets closed it was always likely to be a subdued start. Click here for the Trader Nicole Elliott’s latest views on the global markets.

IC TIP UPDATES:

House builder Berkeley Group (BKG) has told investors that market conditions since the start of its current financial year on 1 May have returned to more normal levels after last year’s exceptional performance and the forward order book has remained steady at £2.2bn. Meanwhile management has indicated that it remains on course to pay out another 180p in dividends before the deadline of September 2015, with a further 433p by September 2018. Buy.

Kier Group (KIE) has been appointed preferred bidder on a £50m residential tower project in Greenwich and also won a £25m per year services contract from the Canal & River Trust. We keep our buy rating.

Vertu Motors (VTU) says that trading is in line with expectations. We maintain our buy recommendation.

Recent buy tip XLMedia (XLM) has agreed to buy social gaming marketing company ExciteAd Digital Marketing for up to $19m in cash and shares. Buy.

Simon Thompson recommendation BP Marsh (BPM) says trading in its investee companies in the insurance space has proved to be positive of late and good market conditions are also throwing up more investment opportunities. A final dividend of 2.75p a share was paid in July and management intends maintaining this level of return for the next two years.

KEY STORIES:

Barclays (BARC) has continued to dispose of non-core assets with the sale of its retail, corporate and investment banking interests in Spain to CaixaBank for €800m although the bank will record a €500m loss on the deal. It is also selling its United Arab Emirates retail banking business to Abu Dhabi Islamic Bank for a pre-tax gain of £119m.

IGas Energy (IGAS) says production remains in line with expectations and that further seismic acquisition activity around its interests in north western England will continue over the coming months.

Hargreaves Services (HSP) has agreed to sell its subsidiary Imperial Tankers Limited for £26.9m.

OTHER COMPANY NEWS:

Recently floated logistics and e-fulfilment specialist Clipper Logistics (CLG) has won a contract with Philip Morris for the UK storage and distribution of its leading brand portfolio.