Equities have taken a hit this morning on renewed global growth fears after the World Bank downgraded forecasts. Click here for the Trader Nicole Elliott’s latest take on the markets.
IC TIP UPDATES:
Simon Thompson recommendation Barratt Developments (BDEV) has issued an upbeat first half trading update showing completions running 12.5 per cent ahead, with average prices up by 8.4 per cent. Forward sales at the end of the period were 17 per cent higher than this time last year at £1.68bn.
British Land (BLND) has secured more occupants for its flagship Leadenhall building in the City of London, signing up, among others, the architects who designed the building. A further five floors of the building are under discussion too. We keep our buy recommendation.
Retailer SuperGroup (SGP) enjoyed total sales growth of more than 17 per cent in the 11 weeks to 10 January with like for like sales up 12.4 per cent, albeit against soft comparatives. Colder weather in recent weeks has helped shift more outerwear and knitwear, areas in which the company struggled in the mild autumn. Management has reiterated its confidence in producing profits in the £60m-£65m range for the full year. Buy.
Cineworld (CINE) managed to outperform the wider cinema industry in the UK during 2014. UK box office revenues rose marginally by 0.1 per cent with a 3.7 per cent decline in admissions being offset by a 4 per cent rise in prices. Elsewhere, its Polish cinemas performed well, growing admissions by 6.8 per cent. Overall group pro forma revenues for the 53 weeks to 1 January rose by 5.2 per cent. A stronger roster of new releases this year promises a return to admissions growth. We maintain our buy recommendation.
Jupiter Fund Management (JUP) managed to edge assets under management up to £31.9bn in the three months to December with market movements making up for a £626m outflow in funds. Over the year, mutual funds contributed a net inflow of £1.4bn. Buy.
Retailer Shoe Zone (SHOE) posted maiden full year results since floating in May last year showing overall revenues down 10.8 per cent at £172.9m after the planned closure of some temporary stores. Profits more than doubled to £11.4m and the company is paying a maiden dividend of 3.4p. We keep our buy rating.
Games Workshop (GAW) posted a small reduction in revenues for the six months to November with exchange rate movements costing it £2.1m. Profits dipped from £7.7m to £6.3m. Our recommendation is under review.
Alternative lender Provident Financial (PFG) grew customers at its Vanquis Bank by 17.7 per cent over 2014, giving receivables growth of 31 per cent. Meanwhile, management has carried out a transition in its home credit business, reducing customer numbers by 29 per cent. Buy.
KEY STORIES:
Online grocer Ocado (OCDO) grew gross retail sales by 14.8 per cent in the month of December with the lead up to Christmas producing its best ever one day sales of £6m, up 15 per cent on last year.
Third quarter figures from Burberry (BRBY) showed retail revenues rose 15 per cent on an underlying basis to £604m with comparable sales up 8 per cent. Disruption in Hong Kong meant Asian revenue growth was reduced to single-digits but the rest of the business saw growth in double digits.
Premier Oil (PMO) has a likely $300m impairment charge required on some of its assets due to the falling oil price. For 2014, production rose 9.3 per cent to a record 63,600 barrels of oil per day, giving revenues of $1.6bn.
Gaming retailer Game Digital (GMD) has been punished by the market this morning after issuing a profit warning post market close yesterday evening. Earnings for the full year are only expected to match last year’s after the company had to engage in discounting activity to maintain sales in the run up to Christmas.
Engineer Fenner (FENR) has warned that 2015 figures are likely to undershoot expectations as conditions in its resource-dominated end markets have deteriorated.
Cider maker C&C (CCR) saw difficult trading conditions in its end markets in the period from 1 September to the end of the year with the Christmas period undershooting expectations.
Just Eat (JE.) grew total orders by 52 per cent in 2014 with like for like orders up by 50 per cent.
Salamander Energy (SMDR) averaged production of 14,200 barrels of oil per day in 2014 with the Bualuang and Sinpuphorm fields both producing at record levels. The scheme document relating to its takeover by Ophir Energy (OPHR) is being posted to shareholders today.
