Equities are off marginally after yesterday’s pick up as traders prepare for the start of eurozone QE next week. Click here for the Trader Nicole Elliott’s verdict.
IC TIP UPDATES:
Construction specialist Kier (KIE) has announced a boardroom shake up with the appointment of three new board directors from within the business covering Construction and Infrastructure, Developments and Property Services and Strategy and Corporate Development while chief operating officer Steve Bowcott is leaving the business at the end of April. We keep our buy.
Aga Foodservice (AGA) enjoyed a 4.3 per cent uplift in revenues in 2014, with the second half showing a 5.1 per cent improvement and UK revenues particularly strong after growing 8.5 per cent. Operating profits rose by 17 per cent to £9.6m. The group’s Aga cooker business was a highlight with growth of 9 per cent while Rangemaster grew UK revenues by 9 per cent in the UK and 6 per cent overall. We maintain our buy recommendation.
Motor retailer Cambria (CAMB) reports continued strong trading conditions with new vehicle sales up by 17 per cent in the first five months of the financial year, or 9.9 per cent on a like for like basis. The wider car market is up 7.9 per cent in the same period. Second hand car sales are running 2.1 per cent ahead. Buy.
Simon Thompson recommendation GLI Finance (GLIF) has acquired a 21.6 per cent stake in US commercial solar investment business Open Energy Group for $1.5m while also extending a $5m revolving loan facility with which to underwrite solar project loans.
Exploration drilling has commenced on the Zebedee oil prospect offshore Falkland Islands, which is operated by Premier Oil (PMO) and part-owned by buy recommendation Rockhopper Exploration (RKH).
KEY STORIES:
Thomas Cook Group (TCG) has announced a strategic partnership with Chinese investment business Fosun which will initially see it invest £91.8m for a 5 per cent stake in Thomas Cook with a view to buying more shares up to a 10 per cent holding. The strategic partnership envisages accelerating Thomas Cook’s product strategy, in particular its Concept hotels and also explore collaboration with Fosun’s other investments such as Club Med while long term considering access to the Chinese market.
Furniture retailer DFS has announced that its initial public offering will be priced at 255p a share, towards the bottom end of its indicative range. The offer will value the company at £543m.
Building products business Marshalls (MSLH) posted 17 per cent revenue growth for 2014, with volumes up 13 per cent and margins up from 5.2 per cent to 7.1 per cent. Pre-tax profits surged 72 per cent to £22.4m. Meanwhile, trading in the first two months of the year has seen sales rise by 13 per cent.
APR Energy (APR) has said that it expects to take some impairments in its next results primarily due to the previously documented issues with contracts in Libya. Full year net incomes will be ‘significantly below current market expectations’.
