Equities have slipped again this morning as confidence drains away from investors in the face of further geopolitical worries and concerns over slowing growth worldwide. Click here for the Trader Nicole Elliott’s latest views on the world’s indices.
IC TIP UPDATES:
Gulf Keystone Petroleum (GKP) says production from its Shaikan field in Kurdistan has averaged 23,000 barrels of oil per day during September, aided by the return of a full workforce after non-essential employees were withdrawn due to the advance of Isis in the region. Sales have continued to the international market via truck to a port in Turkey although talks are ongoing over the payment cycle for exports. Around 30 per cent of production is being sold into the local market. Gross revenues since 28 August have been $9.4m. We keep our buy rating.
Engineering consultancy WS Atkins (ATK) has announced the acquisition of offshore oil and gas engineering business Houston Offshore Engineering for $73m. Buy.
Canary Wharf owner Songbird Estates (SBD) has sold its property at 50 Bank Street for £153.5m with the proceeds to be recycled into the group’s development pipeline. We maintain our buy recommendation.
Pressure Technologies (PRES) is spending up to £10.3m on the acquisition of precision engineering business Quadscot, which will become part of its Engineered Products division. The initial consideration is £7.3m. Meanwhile, Pressure Technologies has agreed a new £15m revolving credit facility with its banks. We keep our buy rating.
Simon Thompson recommendation Treatt (TET) says trading remains in line with expectations and the order book for next year looks solid, although material prices are likely to remain high, putting pressure on margins.
McKay Secturies (MCKS) has agreed to buy The Planets, a mixed use building in the centre of Woking from St Modwen Properties (SMP) for £8.75m on an initial yield of 6.9 per cent with an RPI linked rent uplift to come next year. McKay already owns an adjacent building in Woking town centre. Buy.
KEY STORIES:
A trading statement from supermarket Sainsbury (SBRY) illustrates the pressure the grocery sector is under right now. Its like for like retail sales dipped by 2.8 per cent in the 16 weeks to 27 September with total retail sales coming in flat, excluding fuel sales. Bright spots were convenience stores and online, where growth remained strong, but management admitted that food price deflation is hurting as is the fiercely competitive nature of the market and second half like for like sales are not expected to show much, if any, improvement.
Broker Numis (NMS) has updated on performance for the year to September which saw revenues surge by 19 per cent despite a weaker second half as volumes came under pressure. The company completed 44 transactions in the year including 16 IPOs.
In contrast, shares in smaller broker Daniel Stewart (DAN) have been suspended from trading this morning after the company failed to file its accounts in time.
OTHER COMPANY NEWS:
Luxury furnishings and wallcoverings business Walker Greenbank (WGB) enjoyed a 5.4 per cent uplift in sales in the first half with adjusted profits up 7.1 per cent at £3.28m.
Retailer Findel (FDL) says its first half to 26 September saw a ‘substantial’ improvement in operating profits and margins, producing a positive first half profit figure for the first time in six years. The Express Gifts and Kitbag businesses performed strongly but the Education Supplies and Kleeneze operations continued to struggle.
LondonMetric Property (LMP) has acquired a Dixons retail distribution centre in Newark for £68.5m.
Helical Bar (HLCL) has forward sold an office development at Clifton Street in London’s Shoreditch area to the UBS Triton property fund for £38.25m. Helical agreed to buy the completed building from the developer in November 2013 for £21m, and had paid a £1m deposit which has now been refunded.
