Equities have started the day in positive fashion despite a slew of downbeat economic data yesterday. Click here for the Trader Nicole Elliott’s latest take on the equity markets.
IC TIP UPDATES:
Gaming technology specialist Playtech (PTEC) has agreed a €10.5m bolt on acquisition of Aristocrat Lotteries of Stockholm, adding video lottery terminal gaming and casino capabilities and contracts in Norway and Italy. We keep our buy rating.
Development Securities (DSC) has announced the final two lettings at its Hammersmith Grove development to Fox and Philip Morris. Buy.
Simon Thompson recommendation Vislink (VLK) has announced flat first half results, in line with expectations as good progress in software sales has been offset by tougher conditions in the hardware markets. Meanwhile, the company has formed a strategic partnership with Harmonic in the US for wireless products in the broadcast markets which sees Harmonic place an initial £2m order and subscribe for 4m shares in Vislink.
Smart metering specialist Energy Assets (EAS) reports that trading has continued to be positive in recent months with the company now holding an asset portfolio of 327,000 meter and data assets compared with 163,500 as recent as March. This figure has been boosted by the acquisition of Bglobal Metering in April. We keep our buy.
McKay Securities (MCKS) has acquired Station Plaza, a property adjacent to the railway station at Theale, near Reading. The three office buildings are let out and cost £8.46m, which represents an initial yield of 10.1 per cent. McKay has now spent £63m of the £87m it raised earlier this year to invest in property in London and the South East. We maintain our buy recommendation.
KEY STORIES:
House builder Redrow (RDW) has posted record results for the year to June including a 43 per cent hike in revenues and a 91 per cent leap in pre-tax profits to £132.6m. The value of private reservations at the period end was £1.02bn, up 53 per cent on last year.
Wealth manager Mattioli Woods (MTW) enjoyed a 25.4 per cent rise in revenues in the year to 31 May, with recurring revenues accounting for 78 per cent of the total. Adjusted earnings rose 14 per cent to £6.8m and the dividend is hiked by almost one third to 9.1p. The year ended with client assets up by 27 per cent to £4.6bn.
Quindell (QPP) says it has agreed with partner RAC to restructure their joint investment in the Connected Car Solutions business just a few months after they set up the business to be a distributor for the two companies’ combined capabilities in the area. Having decided that a roll out of free telematics was not the best strategy, Quindell will not buy out RAC’s interest and take 100 per cent control of the business which will cost Quindell £3.5m but also reduce its future capital expenditure requirements.
OTHER COMPANY NEWS:
The Wressle-1 well in Lincolnshire, which is partly owned by Egdon Resources (EDR), Union Jack Oil (UJO), Europa Oil & Gas (EOG) and Celtique Energie has returned some positive indications from exploratory drilling and will now be put on a well test later this year.
