Equities are down a little this morning after OPEC’s inability to agree a curb on production sent the oil price sliding. Click here to see the latest views of the Trader Nicole Elliott.
IC TIP UPDATES:
Theme park operator Merlin Entertainments (MERL) has announced plans to open Legoland Korea in 2017 under its operated and leased model. Buy.
Strong trading in both its homes division and strategic land has led the MJ Gleeson (GLE) management to predict full year results will come in ahead of current expectations. In the period from July to October Gleeson Homes sold 206 units against 132 last year and had an order book for 360 homes. We keep our buy rating.
KEY STORIES:
Drax Group (DRX) has reached a settlement to pay £28m to Ofgem for a failure to comply with the government’s Community Energy Saving Programme, something which Drax argues was out of its hands as its obligations were passed to a third party. Meanwhile Ofgem has today laid out its plans, agreed with five out of six energy companies that run the UK’s electricity network which should see £17bn spent on the network over the next eight years.
The proposed takeover of New Britain Palm Oil (NBPO) by Sime Darby of Malaysia, is being held up slightly by the process of collating market data in Europe with regard to European Commission clearance for the takeover.
Quindell (QPP) has been forced to deny press speculation that it has lost a key contract with a large claims management business in the North of England.
Water and waste company Pennon (PNN) has posted half year revenue growth of 3.8 per cent but a profit dip of 9.8 per cent to £100m due to tariff freezes in its South West Water business and previously flagged issues at its Viridor waste business. But management are confident Viridor has reached an inflexion point in its turnaround.
Chinese oil and gas business Fortune Oil (FTO) grew its first half revenues for the business and its jointly controlled entities by 28.7 per cent to £582.5m but profits slid from £223.2m to £8.9m although last year’s included £214.9m of exceptional gains.
OTHER COMPANY NEWS:
Tritax Big Box Reit (BBOX) has completed an oversubscribed placing for £110m at 105p a share, meanwhile it has also today announced the exchange of contracts on a Tesco distribution warehouse in Middleton, Greater Manchester, for £22.45m.
