Equities have bounced back in early trading on hopes of more stimulus in China following downbeat economic growth figures. Click here for the latest views of the Trader Nicole Elliott.
IC TIP UPDATES:
Engineer GKN (GKN) says trading in its main markets remains little changed with commercial aerospace still robust, automotive markets growing but agricultural market demand fell sharply and the military aerospace and construction sectors were flat. We retain our buy rating.
Ophir Energy (OPHR) reports that drill stem tests on its Fortuna-2 discovery offshore Equatorial Guinea have proved to be positive with flow rates only constrained by surface equipment. Buy.
Simon Thompson recommendation BP Marsh & Partners (BPM) saw the equity value of its portfolio of investments rise by 5 per cent in the six months to July with post tax profits up from £1.4m to £1.7m. The company’s net asset value per share was 205p at the end of the period, up from 195p a year earlier, meaning the business has delivered compound annual growth in net asset value of 11 per cent since 1990.
Another Simon Thompson recommendation, Macau Property Opportunities (MPO), has acquired a luxury private residence in the Penha Hill area of Macau for $23.5m with a view to combining it with an adjacent property.
KEY STORIES:
Online retailer Asos (ASC) has announced 27 per cent growth in revenues for the year to August but a combination of investment in the business, the launch in China, exchange rates and a fire at is Barnsley depot combined to produce a 14 per cent reduction in profits to £46.9m. Retail margins shrank by 2.1 per cent.
Strong trading continues at Whitbread (WTB) where half year revenues were 13 per cent higher at £1.29bn and underlying pre-tax profits 18.5 per cent higher at £256m. Profits at Costa Coffee rose by 20.5 per cent with hotels and restaurants profits up 15 per cent and Premier Inn sales up by 14.7 per cent.
Chip maker Arm Holdings (ARM) grew dollar revenues by 12 per cent in the third quarter, or 6 per cent in sterling terms with pre-tax profits up 9 per cent on the same basis. Nine month pre-tax profits are up 9 per cent at £292.5m.
Third quarter figures for Reckitt Benckiser (RB.) showed a seven per cent dip in net revenues at actual exchange rates, or a 2 per cent improvement at constant rates. Like for like growth excluding RB Pharmaceuticals was 2 per cent.
Bookmaker William Hill (WMH) has traded well in the period from 2 July to 20 October, helped significantly by improved sporting results as well as strong growth in its mobile channels. Group net revenues rose by 23 per cent and operating profits by 89 per cent.
OTHER COMPANY NEWS:
Quindell (QPP) has won a five year contract with a ‘top three’ insurer in Canada for its telematics services.
Go-Ahead Group (GOG) says first quarter trading has been ‘robust’ and full year expectations remain unchanged.
Meggitt (MGGT) has won a contract to supply braking systems to Gulfstream’s new G500 and G600 business jets.
