Equities are down in early trading as investors digest the confirmation of the removal of the final tranche of QE support for the US economy. Click here for the Trader Nicole Elliott’s thoughts.
IC TIP UPDATES:
Barclays (BARC) has issued a trading statement detailing improved trading at its retail and corporate business, although the investment banking operations have been less rosy of late. Overall, adjusted profits before tax increased by 5 per cent to £4.9bn for the nine months to end September with adjusted operating expenses down by 7 per cent over last year, following a 7,800 headcount reduction. We maintain our buy rating.
Royal Dutch Shell (RDSB) has posted third quarter earnings, at current cost of supplies, of $5.3bn, up from $4.2bn a year ago, bolstered by improved performance in both its upstream and downstream operations. Buy.
Spirit Group (SPRT) has said it remains willing to recommend Greene King’s takeover offer having rejected a rival bid from Irish cider maker C&C, accordingly, the deadline for a takeover offer has been extended to 5pm on 4 November.
Half year results from BT Group (BT.A) showed revenues dipped slightly to £8.7bn but adjusted profits jumped by 10 per cent to £1.3bn. The interim dividend is raised 15 per cent to 3.9p. We maintain our buy rating.
Financial services specialist St James Place (STJ) has reported total new single investments of £1.8bn for the third quarter and a net inflow of funds under management of £1.27bn, up 23 per cent. Funds under management stand at £49.1bn, up 17 per cent over a year ago. We keep our buy rating.
Gulf Keystone Petroleum (GKP) says that the field development plan for the Akri-Bijeel prospect, in which it has a 20 per cent interest, has been granted approval. Buy.
National Express(NEX) has posted third quarter operating profits nearly 15 per cent higher than last year’s after revenues increased in all its divisions. Buy.
Energy and environmental consultancy RPS Group (RPS) says it is on track for ‘good growth’ in the full year on a constant currency basis although it noted that ‘current volatility, as well as uncertainty affecting the oil and gas sector, make it difficult to anticipate the full year outturn with precision’. But management has shown its confidence by committing to another 15 per cent rise in its dividend payout. We keep our buy rating.
Technology group Cohort (CHRT) has won another contract, worth £9m, to provide Electronic Warfare Operational Support to an export customer. Buy.
KEY STORIES:
Third quarter figures from Aviva (AV.) suggest its turnaround remains on track with year to date net asset value up 10 per cent, value of new business 15 per cent higher and its general insurance combined ratio at a profitable level of 95.9 per cent.
Henderson Group (HGG) grew assets under management by 2.5 per cent to £76.6bn in the three months to 30 September, with this further bolstered to £79.9bn with the completion of the acquisition of Geneva Capital Management on 1 October. The company has cautioned that current market conditions ‘are proving challenging’.
Oil explorer Afren (AFR), which recently dismissed its chief executive, chief operating officer and two other senior management team members for receiving illegal payments, has posted third quarter results. Net production in the opening nine months was 31,377 barrels of oil per day, leaving the company on course for hitting the lower end of full year guidance of 32,000-36,000 after new wells have come on stream recently. Post-tax profits for the quarter were $167m, up from $129m last year.
Property services and estate agency Countrywide (CWD) enjoyed a 22 per cent rise in third quarter group income at £188.4m with cash earnings up 38 per cent to £40.2m. The only blip on otherwise strong results was a downturn in London house exchanges, down 9 per cent to 1,704, with the London market confirmed to be cooling.
OTHER COMPANY NEWS:
Clipper Logistics (CLG) has won a ‘breakthrough’ contract in Germany for its ‘Boomerang’ service to manage the European wholesale and retail returns management system for German retailer s.Oliver.
Oil and gas marine equipment specialist Gulf Marine Services (GMS) has won a four year contract, of which the first two years are firm with two one year options to follow, to supply a Large Class vessel in the Dutch sector of the North Sea.
Energy efficiency products supplier entu (ENTU) has begun trading on Aim this morning.
The non-executive chairman of Rangers Football Club (RFC), David Somers, has agreed to become executive chairman with immediate effect after the departure of chief executive Graham Wallace and fellow director Philip Nash after shareholder Mike Ashley agitated for their removal from the board.
