Equities have edged back from the all time highs above 7,000 which they set on Friday as some profit taking has set in amidst recurring concerns over Greece. Click here to see what the Trader Nicole Elliott thinks of the markets right now.
IC TIP UPDATES:
A joint venture in which Costain (COST) has a half share has been awarded a £750m contract to improve the M4 corridor around Newport including 24km of new motorway and a new river crossing. We keep our buy rating.
Dairy Crest Group’s (DCG) proposed sale of its dairies to Muller has been referred back to the UK competition authorities after consideration in Europe. Buy.
Water business Pennon (PNN) has announced that financial performance remains in line with expectations and this means management is able to confirm plans to increase dividends by 4 per cent above inflation. We keep our buy rating.
Gaming specialist GVC Holdings (GVC) is performing strongly with wagers up by 25 per cent to €1.46bn in 2014 and profit before tax more than trebled to €41.3m. Current trading is also strong with deposits up 20 per cent to €1.7m a day. Management has declared an additional 1.5c a share special dividend on top of the 14c a share final quarterly dividend. We maintain our buy recommendation.
Michelmersh Brick (MBH) enjoyed a 10 per cent rise in turnover in 2014 to £28.5m with operating profits doubling to £2.8m. The company has completed its capacity expansion, adding 20 per cent to its potential output. Management has also reinstated its final dividend with a 0.5p per share payout. Buy.
Simon Thompson recommendation Crystal Amber (CRS) saw its net asset value per share dip by 5 per cent over the six months to December but since the period end, share price appreciation in its portfolio plus a fundraising from investors has seen its total net asset value rise to £144m. Management has confirmed its plans to increase its dividend tenfold to a 5p a share annual payout by the end of this year.
Quantum dot technology specialist Nanoco (NANO) had cash and equivalent of £9.35m at the end of the six months to January as it continues to accelerate towards commercialisation of its technology. The world’s first large scale quantum dot manufacturing facility, built by partner Dow Chemicals, should be up and running in the middle of this year. Buy.
Industrial oil re-refining specialist Hydrodec (HYR) increased its total income by 36 per cent to $54.7m in the year to December, its tenth consecutive year of growth. Operating earnings were $1.6m, although this was boosted by income from the sale of assets. Our recommendation is under review.
KEY STORIES:
FirstGroup (FGP) has been awarded a new four year contract for the Great Western Franchise with the potential for a one year extension. It is planning a 16 per cent increase in the number of seats out of London’s Paddington station in peak periods.
Halfords (HFD) has announced the appointment of Jill McDonald, currently chief executive of McDonalds UK, as its new chief executive to replace Matt Davies who moved to Tesco recently.
Recently floated furniture retailer ScS (SCS) enjoyed total sales growth of 14.5 per cent to £132m in the six months to 24 January with online sales growing 27.6 per cent, albeit from a low base. First half losses were £3m. Current trading is in line with expectations with like for like sales orders up by 7.5 per cent and management has confirmed plans to pay an interim dividend of 2.8p a share.
Interserve (IRV) has reached financial close on a project worth £135m to build seven new secondary schools across Hertfordshire, Luton and Reading.
Finsbury Food’s (FIF) half year results showed a 24 per cent uplift in revenues to £107.6m and pre-tax profit growth of 95 per cent to £4.1m, or 77 per cent on a like for like basis.
OTHER COMPANY NEWS:
Troubled oil and gas explorer Afren (AFR) reports that an internal investigation as part of the conditions for further backing from bond holders has discovered some potential issues over the hire of one individual and ensuing travel and accommodation expenses.
