Equities are ending a tough week with a minor push upwards. Click here for the Trader Nicole Elliott’s latest views on the markets.
IC TIP UPDATES:
Roll Royce (RR.) says that economic sanctions against Russia are starting to bite and have affected demand in its nuclear and energy business. Coupled with ongoing weakness in the defence business this means that management now expects underlying revenues for the year to be 3.5-4 per cent lower than last year, against previous predictions of flat revenues. Underlying profits are still expected to be flat as the company is making good progress on cost cutting. Our recommendation is under review.
Provident Financial (PFG) says that all its divisions are trading well with the UK-focused Vanquis Bank business seeing year on year customer growth of 17 per cent and the consumer credit business also making good progress. The newer Polish business is also developing to plan. We keep our buy rating.
Simon Thompson recommendation Record (REC) reports a slight dip in assets under management equivalents in its currency management business although this is partially explained by currency movements. Management reported that recent fluctuations in currency markets have increased interest in its hedging strategies.
Another Simon Thompson recommendation, online gaming specialist NetplayTV (NPT) grew new depositing players by 21 per cent in the third quarter, during which period active depositing player numbers were 22 per cent higher. But increased marketing spend by the company in response to an industry-wide surge in marketing spending means full year results will undershoot market expectations.
KEY STORIES:
Posh shoe company Jimmy Choo (CHOO) is pushing ahead with its Initial Public Offering despite the turbulent market conditions which have forced it to lower its offer price to 140p a share, valuing the company at £545.6m.
Oil services specialist Petrofac (PFC) says it is enjoying its most successful year for new contract wins having secured $9.4bn worth of new business so far this year. Meanwhile, full year profits are expected to be in the $580m-$600m range.
Builders merchants Travis Perkins (TPK) says trading has remained strong in the third quarter with like for like sales up by 5.7 per cent and total sales 6.9 per cent better. Year to date, group like for like sales are up 8.6 per cent.
OTHER COMPANY NEWS:
Young & Co Brewery (YNGA) is spending £10.8m on four pubs to add to its estate in London.
Telecoms and IT specialist Daisy Group (DAY) says that Toascafund, which indicated it was willing to make a 190p a share bid for the company in August has now scaled its offer back to 185p a share.
