Equities are down only marginally as focus turns to whether OPEC will manage to agree a production cut aimed at stemming the falling oil price. Click here for The Trader Nicole Elliott’s latest views.
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Plastics specialist RPC (RPC) has announced the acquisition of European plastics business Promens for €386m alongside strong half year results which showed a 12 per cent rise in revenues and adjusted profits up almost one third to £54.9. The acquisition is being part funded by a £200m rights issue. We keep our buy recommendation.
Travel food and drink operator SSP Group (SSPG) enjoyed a 21 per cent rise in operating profits for the year to September after a 4 per cent rise in revenues at constant currencies. Like for like sales grew by 3.3 per cent with good performance across Europe, North America and Asia. Buy.
Disposals and a shorter trading period meant underlying profits at pubs group Marston’s (MARS) dropped by 3.6 per cent in the year to 4 October. But like for like profits grew in the retained pubs estate and the brewing business grew revenues and profits. The company has opened 27 new sites this year, including its 100th new build pub and has continued converting its Taverns pubs to franchises, which now number 535. Trading in the early weeks of the current year has been positive. We maintain our buy recommendation.
Simon Thompson recommendation Netcall (NET) says that trading in the early weeks of its year has been positive with new customer wins coming through, leaving management confident of a successful outcome for the year.
Property investment business Palace Capital (PCA) has announced profits of £8.4m for the six months to September, up from a loss of £78,419 last year. Its investment properties were valued at £98.6m at the period end. Buy.
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Stagecoach (SGC) has, in joint venture with Virgin Trains, been awarded the East Coast Mainline franchise, starting next March. As part of the deal it could end up paying the government £2.3bn in real terms over the course of the eight year contract.
Legal & General (LGEN) has won a £2.5bn bulk annuity contract with the TRW Automotive pension scheme. The company has now written £8.3bn in annuity transactions in 2014.
Industrial hire company VP (VP.) grew revenues by 11 per cent to £101.3m in the six months to September with profits growing 27 per cent to £16.2m.
Poundland (PLND) has posted strong interim results showing a 15 per cent rise in total sales to £528.2m and underlying profits up 34 per cent to £12.6m. The company opened 28 new stores during the period and now has 556 in total including three in Spain.
Shaftesbury (SHB) has benefited from the continued growth in value in West End properties, boosting its net asset value by 25.7 per cent to 713p in the year to September.
Charles Stanley’s (CAY) funds under management edged ahead to £20.2bn in the six months to September with discretionary funds rising by £500m to £8.7bn but heavy investment in the business meant losses of £3.9m.
Shipping broker Clarkson (CKN) has received indications of acceptance from 92.6 per cent of the shareholders in target company Platou and has launched an accelerated placing to fund the proposed £281.2m acquisition.
