Equities are firmly in correction mode now with another lurch downwards today. Click here for the Trader Nicole Elliott’s latest views on the markets.
IC TIP UPDATES:
Ophir Energy (OPHR) reports a gas discovery at the Kamba-1 well offshore Tanzania, in which it has a 20 per cent interest. The latest discovery could potentially contain more than 1 trillion cubic feet of gas and represents the 16th consecutive discovery in the area. We maintain our buy rating.
Our recommendation is under review at ceramic printing specialist Xaar (XAR) which has warned once again after trading conditions in China worsened further. Management now expects full year revenues to come in 5-10 per cent lower than its previously revised forecasts of £115m-£125m and next year’s revenues to be lower than £100m. A cost cutting exercise is underway which could see 20 per cent of the workforce removed.
Galliford Try (GFRD) continues its recent run of contract wins with the appointment as a panel member for the Greenwich, Lewisham and Croydon Priority School Building Programme which could be worth more than £45m to the company. We keep our buy.
Costain (COST) has won an £86m contract to build the Shieldhall waste water tunnel in Glasgow. Buy.
Tui Travel (TT.) says trading has been good over the summer season with most of its programmes almost fully sold. Full year operating profits are expected to rise by around 9 per cent, at the upper end of earlier guidance for 7-10 per cent growth. Winter holiday mainstream bookings are currently up 2 per cent and summer 2015 bookings are 11 per cent ahead of this time last year.
KEY STORIES:
Ted Baker’s (TED) trading continues to be strong with group revenue up 17.4 per cent in the 28 weeks to 9 August with pre-tax profits up by a third to £15.6m. The company reported sales growth in the mid-teens in all its regions and 48.9 per cent growth in online sales.
Sales at Domino’s Pizza (DOM) for the 13 weeks to 28 September were strong in the UK with Ireland and Switzerland also growing positively while German sales reversed while the company changes its strategy there. UK sales rose 17.6 per cent, Irish sales by 5.3 per cent and Swiss growth was 14.9 per cent. More than 70 per cent of UK sales were placed online with half of them from mobile devices.
Balfour Beatty (BBY) has announced the sale of its 50 per cent interest in the Pinderfield and Pontefract Hospitals PPP contract for £61.5m. It has also won construction contracts for student accommodation projects in the US and Australia and reached financial close on a housing project in Florida.
Carillion (CLLN) says trading remains in line with expectations.
Virgin Money, the retail bank which snapped up the ‘good bank’ assets of Northern Rock from the government, has announced plans to list at least 25 per cent of its equity in London, with a view to raising £150m. The funds will allow investment in its business and for it to fulfil the terms of its deal with the UK government to pay it £50m should it achieve a public listing.
