Equities are off only marginally in early trading as markets await US job figures later today. Click here for The Trader Nicole Elliott’s latest take on the markets.
IC TIP UPDATES:
Gulf Keystone Petroleum (GKP) shares have dipped after the company said it was suspending export of oil from its Kurdistan fields due to a lack of resolution in its talks with the regional government over outstanding payments and establishing a steady income from exports. Sales into the local market with recommence. Our recommendation is under review.
Capita (CPI) has been approved by NHS England to join the Lead Provider Framework for Commissioning Services under which around £3bn-£5bn of support services will be procured by April 2016. Buy.
KEY STORIES:
Shares in Tate & Lyle (TATE) have been sold off after the company issued another profit warning due to continued weak trading in its bulk ingredients business where it suffered from lower US sweetener volumes and weakening US sugar prices. Group profits for the full year are now expected to be modestly below the £230m-£245m range previously indicated.
Property company Shaftesbury (SHB) reports that visitor numbers in its West End London-focused property were strong over Christmas and the New Year and vacancy rates remain steady.
Polling specialist YouGov (YOU) says that trading has been line with expectations and its new media planning agency has had a positive launch.
Poundland (PLND) is proposing to acquire the 99p Stores business for £55m in mix of cash and shares. This would add 251 stores to its network and the 99p Stores had turnover of £370m in the year to 1 February 2014. The deal will be subject to scrutiny from the Competition and Markets Authority.
OTHER COMPANY NEWS:
Business process outsourcing, procurement and technology services business Xchanging (XCH) is to spend $11.5m on the acquisition of Spikes Cavell, a spend analytics company which offers tools to UK public sector and US education bodies.
Neil Woodford’s asset management business is proposing to launch the Woodford Patient Capital investment trust through a £200m placing and offer for subscription. The fund will contain a mix of investments in high conviction blue chips and early stage and early growth companies.
Meanwhile, furniture retailer DFS has also announced its intention to float with a view to raising around £105m. The float will be available to retail investors through intermediaries.
