Equities started the day on a positive note but the gains have quickly dissipated. Click here for the Trader Nicole Elliott’s latest take on the global indices.
IC TIP UPDATES:
Silver and gold miner Fresnillo (FRES) saw a 4.9 per cent uplift in silver production in 2014 to 45m ounces, ahead of guidance of 43m ounces with fourth quarter production proving strong against the prior year. The main reason for the increase is improved grades at its Saucito operation. Gold production over the year dipped slightly but ended the year strongly too. We keep our buy rating.
International Greetings (IGR), which specialises in greetings, packaging and play products, enjoyed a good Christmas trading period and is on track to meet full year expectations. We keep our buy rating.
The board of Petroceltic International (PCI) has received a requisition for an extraordinary general meeting at which shareholder Worldview Capital is seeking the removal of chief executive Brian O’Cathain and the appointment directors representing Worldview. Our recommendation is under review.
Capita (CPI) has been named successful bidder for Constructionline, the government procurement and supply chain management business for the construction industry for £35m. Buy.
KEY STORIES:
Canary Wharf owner Songbird Estates (SBD) has said that three major shareholders who hold more than 85 per cent of its equity have now indicated that they are willing to accept the 350p a share offer from Qatar Investment Authority and the deal now looks likely to go through despite management asserting once again that it undervalues the assets.
Antofagasta (ANTO) boosted copper production by 10.8 per cent in the final quarter of 2014 although full year production showed a 2.3 per cent decline over 2013 due to lower grades, an issue which also affected gold production. Management cut cash cost of production in the final quarter but they rose marginally over the year. Output for copper in 2015 is expected to be 710,000 tonnes with gold production of 250,000 ounces and 8,000 ounces of molybdenum.
Severn Trent (SVT) has accepted the terms of Ofwat’s final determination on water pricing for the 2015-2020 period and will rebase its dividend accordingly, reducing it by 5 per cent in 2015-16 to 80.66p then increasing it in line with retail price inflation.
Johnson Matthey (JMAT) says it is on course to deliver full year results slightly ahead of its prior year performance, which is in line with expectations. Third quarter group sales rose by 5 per cent and underlying pre-tax profit by 1 per cent to £96.5m.
Saga (SAGA) has agreed to acquire specialist motorbike insurance business Bennetts for a cash sum of £26.26m.
Drinks group AG Barr (BAG) says it traded well ahead of the market in the fourth quarter of 2014, when its sales rose by more than 5 per cent, an improvement after a slower third quarter. Full year revenues were 2 per cent better year on year at £259m.
Microwave products business Filtronic (FTC) says technical issues on a new product which will cause the delay of its release plus delays in other orders for its wireless business mean results will be substantially below expectations.
Recruiter Matchtech (MTEC) says recent trading has been strong. Meanwhile the company has agreed a deal to buy Networkers International (NWKI) in a deal worth £57.9m. Matchtech chief executive Adrian Gunn has also announced his intention to step down from the board with immediate effect.
Renew Holdings(RNWH) says trading has continued to be positive and the company has signed a two extension to its site works framework agreement at Sellafield. The order book was up 19 per cent at £449m at the end of 2014.
OTHER COMPANY NEWS:
Brewin Dolphin (BRW) saw core income rise by 1 per cent in the three months to 29 December as rising fee income offset a fall in commission income as volumes in equity market transactions dipped. Overall funds under management increased by 5 per cent in the period to £37.9bn.
Recruitment specialist Staffline (STAF) posted strong full year results showing a 20.9 per cent rise in revenues to £503.2m and a 48.8 per cent increase in adjusted pre-tx profits at £18.6m.
Shares in furniture and carpet retailer SCS Group (SCS) have started trading on London’s Main Market today.
