Equities are up a little in early trading ahead of a European Central Bank meeting later today which will spell out the details of the forthcoming QE programme. Click here to find out what The Trader Nicole Elliott thinks of the markets.
IC TIP UPDATES:
Kurdistan-focused oil and gas business Genel Energy (GENL) enjoyed a 49 per cent uplift in revenues in 2014 to $519.7m with cash earnings seeing a similar rise to $411m. Production averaged 69,000 barrels of oil per day and is forecast to rise to 90-100,000 this year. Like other Kurdish producers, Genel has had issues with receiving payment for exports and has been offered a short term solution of a temporary domestic sales channel. Forecast revenues for 2015 are $350m-$400m at $50 a barrel. We maintain our buy rating.
Simon Thompson recommendation H&T (HAT) managed to grow its retail sales by 24 per cent during 2014 as it continued to transition its business in an attempt to make up for weaker pawnbroking and gold sales performance. Overall gross profits dipped by 8.4 per cent but debt was slashed by more than half to £9.7m and the dividend is maintained at 4.8p.
Another Simon Thompson recommendation, marketing services business Communisis (CMS), grew its revenues by 27 per cent in the year to December with overseas business accounting for 19 per cent of revenues. Adjusted operating profits rose by 21 per cent to £16m.
Online gaming specialist 32Red (TTR) enjoyed a strong performance during 2014 when revenues rose by 26 per cent, boosted by strong growth in its Italian business, and reported cash earnings rose by 41 per cent to £5.4m. The full year dividend is 33 per cent higher at 2.4p and the company finished the year with £7m in the bank. Trading in the first two months of the year has been running 35 per cent ahead of last year. Buy.
KEY STORIES:
Life assurer Aviva (AV.) has maintained its recovery path with annual results showing a 6 per cent rise in operating profits at £2.17bn and its value of new business up 15 per cent to a record £1bn.
London Stock Exchange (LSE) benefited from the decent equity market conditions in 2014 with total income rising 26 per cent to £1.38bn and adjusted operating profits on a constant currency basis up 8 per cent at £558m.
Aerospace engineering specialist Cobham (COB) posted 3 per cent growth in overall revenues for 2014 at £1.85bn, boosted by acquisitions. Group organic revenue dipped by 2 per cent although the second half showed sequential improvement and the order book increased to £2.51bn from £2.27bn over the previous year.
Admiral Group (ADM) has posted what chief executive Henry Engelhardt described as ‘the year of the Baked Alaska’ with improving profits in its emerging overseas businesses in Italy, Spain and France but a failure to post record group profits for the first time since going public. Group profits dipped by 4 per cent to £357m after a 3 per cent dip in turnover.
Energy services business Hunting (HTG) enjoyed 7 per cent revenue growth in 2014 but profits were hit by impairments, leaving reported profits down by a fifth at $108.5m.
Car dealer Vertu Motors (VTU) has reiterated its expectation that figures for the year to 28 February will likely show record revenues and profits after a 17.8 per cent uplift in revenues. The car market is expected to stabilise in the coming months after three years of strong growth.
Wealth manager Schroders (SDR) grew assets under management by 14 per cent to £300bn last year as profits before tax and exceptionals rose by 11 per cent to £565.2m.
Challenger bank Virgin Money (VM.) has produced strong maiden results as a public company following its float last year. Its mortgage balances grew by 11.8 per cent to £21.9bn with retail deposits up 6 per cent to £22.4bn and net lending of £2.3bn, which represents market share of 10 per cent. Underlying profits rose by 127 per cent to £121.2m.
Temporary power specialist Aggreko (AGK) grew underlying revenues by 9 per cent in the year to December although reported profits dipped by 13 per cent to £289m.
OTHER COMPANY NEWS:
Quindell (QPP) has sold off its entire stake in Nationwide Accident Repair Services at 65p a share, bringing in £7.1m. It has also settled litigation in the US over Navseeker, a subsidiary of its Himex subsidiary.
Irish global life sciences investment company Malin Corporation has announced its intention to float in London. The company is looking to acquire private life science companies and has been backed by Neil Woodford.
Another intention to float has been issued by Zegonia, a business set up by ex-Virgin Media executives to acquire assets in the European industry.
