Equities started the day by giving up any gains from the post-Scottish referendum rise on Friday as concerns over the Chinese economy weighed on investors minds. For the Trader Nicole Elliott’s thoughts on the markets, click here.
IC TIP UPDATES:
British Land (BLND) has announced the sale of 18 apartments at its ‘super-prime’ Clarges Mayfair development in London for £210m. The limited release was well received with buyer paying what British Land says are record prices for Mayfair. We keep our buy rating.
Simon Thompson recommendation Moss Bros (MOSB) has enjoyed a strong opening half to the year with group like for like sales up by 6.4 per cent and total sales up 4.6 per cent at £55.8m but pre-tax profits were slightly lower at £2m due to the closure and refitting of stores. The retail business has performed strongly, with like for like sales up 8.5 per cent and the nascent e-commerce business doubling sales. Like for like sales for the seven weeks to 13 September are running 6 per cent ahead.
Macau Property Opportunities (MPO), another Simon Thompson recommendation, announced a 30.7 per cent rise in net asset value to $4.89 during the year to June, during which time total return including distributions was 40 per cent.
Finsbury Food Group (FIF) grew continuing profits by 18 per cent in the year to 28 June despite revenues being broadly flat. We maintain our buy recommendation.
Software specialist Tribal Group (TRB) has won a renewed contract with Deakin University in Australia for its student management systems. The deal is worth A$8.4m (£4.6m). Buy.
Simon Thompson recommendation 1pm (OPM) has issued strong full year results alongside details of a £4m fundraising in a placing and open offer. The small and medium sized company financing specialist grew revenues by 35.6 per cent in the year to May, producing profit growth of 73 per cent to £1.3m.
KEY STORIES:
Grocery giant Tesco (TSCO) has further tested investor patience by admitting that its most recent trading statement overstated profit expectations to the tune of £250m. Management is pushing back the publication of its interim results as an independent investigation into the matter takes place.
Dairy Crest Group (DCG) says that trading conditions remain challenging, particularly in dairy where the company has announced further restructuring plans today with consultation underway on the closure of a bottling plant at Hanworth, West London and a cream potting facility at Chard in Somerset. The two sites employ 260 people and their closure could produced £20m of annual cost savings and the sale of property assets at both could mitigate the initial £15m estimated cost of closure.
OTHER COMPANY NEWS:
Faroe Petroleum (FPM) has sold off its 10 per cent interest in the undeveloped West of Shetland Glenlivet field for £10m.
Strong auction results helped Gemfields (GEM) to produce a strong uplift in annual performance figures with total sales up from $48.4m to $160.1m in the year to June with net profits of $16.3m compared with a loss of $22.8m the previous year.
Laundry technology specialist Xeros Group (XSG) reports that its cleaning systems have now either been installed or are contracted for installation with four of the top five hotel brands in the world.
