Equities have begun the day with another upward move as a quiet confidence appears to be returning to the markets. Click here for the Trader Nicole Elliott’s latest take.
IC TIP UPDATES:
House builder Taylor Wimpey (TW.) has welcomed the return to more normal trading patterns in the housing market, chiming with recent updates from its peers. Margins have improved by around 4 per cent and sales in the year to date are 0.66 per outlet per week, up marginally on last year, although sales rates have slowed in recent months. The order book is 7,814 homes and is worth £1.7bn with the 2015 outlook 25 per cent sold already. We keep our buy rating.
Oil explorer Parkmead Group (PMG) has been awarded six new licences in the central and southern North Sea in the 28th UK licensing round. We maintain our buy recommendation.
Half year results from Speedy Hire (SDY) showed a 12 per cent pick up in revenues, with the international business growing strongly although losses in this division widened due to previously announced issues in its Middle Eastern operations. Adjusted profits more than doubled to £10.3m and the dividend is increased by 15 per cent to 0.3p. Our sell recommendation is under review.
Morgan Advanced Materials (MGAM) says trading has remained encouraging with the order book running 6 per cent ahead of last year on a constant currency basis. Management expects to see 3 per cent revenue growth in the second half. Buy.
Galliford Try (GFRD) has been appointed to the Highways Agency’s framework agreement for projects in the £25m-£100m bracket. It is one of six contractors expected to see an aggregate of £1.15bn of work over the five year term. We keep our buy rating.
Specialist engineer Hayward Tyler (HAYT) enjoyed a strong six months to September with revenues rising by 18 per cent to £24m on an actual currency basis and post tax profits up 62 per cent to £1.5m. Order intake during the half was up by 7 per cent to £27.6m. Buy.
Simon Thompson recommendation Trifast (TRI) has declared its ‘best trading period ever’ in the six months to September when revenues rose by 13 per cent to £74m and pre-tax profits by 13.8 per cent to £4.94m.
Circassia (CIR), the specialist biopharmaceutical company focused on allergies, says that it is progressing to track on a number of clinical programmes and has seen encouraging results from relatively early stage trials of both grass pollen and asthma products. We maintain our buy rating.
Energy Assets (EAS) posted a 43 per cent rise in revenues for the first half to £16.9m with recurring revenue now accounting for 65 per cent of the total. Profit before tax and exceptionals rose by 30 per cent to £3.9m. Buy.
Cleantech industrial oil refiner Hydrodec (HYR) has resolved its insurance claim for an incident at its Canton, Ohio, facility last December, resulting in a total payout of $20m. The company has already received $15.7m to date. We keep our buy.
KEY STORIES:
Vodafone’s (VOD) interim results showed an 8.9 per cent rise in group revenues to £20.8bn with organic service revenue down 2.8 per cent at £19.1bn. Group data traffic rose by 77 per cent year on year. Overall group cash profits rose by 5.5 per cent to £5.9bn but dipped 10 per cent on an organic basis.
Land Securities (LAND) enjoyed a valuation surplus of £880m on its portfolio during the first half of the year as it continues to transform its portfolio by selling off regional retail assets and investing heavily in construction and development in London. Net asset value per share rose by 10.7 per cent to 1,183p. The company sold assets worth £185.8m during the six months to September and has sold a further £468.9m worth since then. It acquired £697m worth of assets in the period and has since added another £137.5m worth. It combined portfolio is valued at £13.2bn.
Engineer Renishaw (RSW) says it continues to see good demand and now expects revenue for the full year to be in the £425m-£445m range with adjusted profits of £95m-£105m.
Full year results from Fenner (FNR) reflect tougher operating conditions in its end markets of mining with revenues dipping from £820.6m to £729.4m and profits more than halved to £29.2m. Nonetheless, management increased the full year dividend from 11.25p to 12p.
OTHER COMPANY NEWS:
Midlands-focused property group A&J Mucklow (MKLW) says its occupancy rate has edged up from 93.3 per cent to 93.8 per cent since July with rents also edging up and rental levels on secondary industrial property are now rising for the first time in 15 years in the region.
Half year results from Oxford Instruments (OXIG) showed the benefit of its acquisition of Andor Technology as well as continued decent trading. First half orders were 19.9 per cent higher at £201.5m and revenues rose by 7.3 per cent to £178.5m although adjusted operating profit dipped, hampered by currency movements.
TalkTalk (TALK) enjoyed 3.3 per cent growth in revenues in the six months to September with cash earnings up almost 45 per cent to £110m.
Temporary power specialist APR Energy (APR) has secured a renewal on 300MW worth of contracts in Uruguay.
The Mortgage Advice Bureau (MAB1) has announced the pricing for its initial public offering today with the shares to start trading at 160p a share. The offer raised £36.3m for selling shareholders.
