Equities are steady in the face of continued uncertainty over the intentions of the new Greek government. Click here for the Trader Nicole Elliott’s latest take on the markets.
IC TIP UPDATES:
EasyJet (EZJ) grew seats flown by 2.9 per cent in the final quarter of 2014 with the number of passengers carried up 4.1 per cent to 14.9 million and total revenues up by £34m to £931m. Some of the cost benefits from the falling oil price have been cancelled out by higher charges from airports, mainly in Germany and Italy. First half bookings for 2015 are similar to last year and losses are expected to be in the region of £10m-£30m, down from £53m last year. We maintain our buy rating.
PZ Cussons (PZC) has seen its sales and profits fall in the six months to November with the sale of business units, currency movements and disruption in the Nigerian economy weighing on results. Revenues fell by 10 per cent to £386.7m and statutory operating profits by 3.7 per cent to £42m. Our recommendation is under review.
British Land (BLND) has updated on strong performance in the first nine months of the year during which time it has sold £900m worth of assets and continued to progress its office lettings. In its retail portfolio, footfall has also shown positive growth. Buy.
Film and television specialist Entertainment One (ETO) says improved trading in its television business has more than compensated for weakness in film and means full year earnings will outstrip expectations. Of note, its Peppa Pig franchise is expected to deliver 100 per cent year on year growth. We maintain our buy recommendation.
Simon Thompson recommendation Greenko (GKO) grew power generation from its Indian renewables portfolio by 46 per cent in the nine months to December, which now represents its year end after a shift in accounting dates. Installed capacity increased by 154MW to 715MW during the period and projects under construction mean this should rise through the 1GW level during 2015.
Property company McKay Securities (MCKS) has commenced work on a 48,000 square foot speculative office development in Redhill, Surrey. We keep our buy.
KEY STORIES:
International Consolidated Airlines (IAG) says that the board of Aer Lingus (AERL) has indicated its willingness to recommend an offer of €2.50 a share plus a €0.05 dividend. IAG has indicated that it will continue to run Aer Lingus as a separate entity.
House builder Crest Nicholson (CRST) grew completions by 16 per cent in the year to October with open market selling prices up 15 per cent and margins expanding from 18.5 per cent to 20.1 per cent. Forward sales are up 21 per cent at £399.8m.
Carpetright (CPR) has seen a long awaiting improvement in performance in the 13 weeks to 24 January with UK like for like sales up 7.5 per cent, albeit at lower gross profit margins. Like for like sales in the rest of Europe rose by 1.7 per cent although total sales were hit by currency movements.
Irish building products group Kingspan (KGP) has confirmed its plan to buy Belgian insulated panels specialist Joris Ide for €315m.
United Utilities (UU.) has signalled its acceptance of the regulator Ofwat’s final determination on pricing for the 2015-2020 period and confirmed plans to increase its dividend by at least the level of retail price inflation through the period.
Drinks maker Britvic (BVIC) saw more challenging trading conditions in the three months to 24 December with revenues down by 0.4 per cent at £304m, driven by a 1.4 per cent decline in UK revenues while Irish and French revenues rose by 2.8 per cent and 2.3 per cent respectively and other international revenues down 3.6 per cent.
Pubs and brewing group Marston’s (MARS) enjoyed solid trading over Christmas with like for like sales up 2 per cent in its Destination and Premium business and by the same margin in the Taverns business. The Leased business saw profits rise 1 per cent and brewing volumes rose by 4 per cent.
OTHER COMPANY NEWS:
The slowdown in the London property market has hurt business at estate agency Foxtons (FOXT) where fourth quarter turnover dipped by 12.1 per cent after a 25.7 per cent fall in sales commission was partly offset by improved residential lettings performance.
Convenience food specialist Greencore (GNC) grew like for like revenues by 4.4 per cent in the 13 weeks to 26 December.
Rangers Football Club (RFC) has reached a deal with key shareholder Mike Ashley’s Sports Direct.com Retail to provide a £10m credit facility for the business which has been secured by a 26 per cent stake in Rangers Retail Limited and charges over certain assets, but not the Ibrox Stadium.
