Equities bounced back after weak start on the back of Chinese data disappointment after German manufacturing data came in stronger than expected. Click here to see what the Trader Nicole Elliott thinks of the latest market moves.
IC TIP UPDATES:
Building supplies specialist Wolseley (WOS) continues to benefit from the upturn in the US economy, where it has significant exposure. Revenues from ongoing businesses in the six months to January rose by more than 10 per cent at constant exchange rates to £6.4bn with trading profit up 12 per cent at £340m on the same basis and the dividend is increased by 10 per cent to 30.25p. But the headline profit figure was reduced sharply by a £245m impairment charge relating to an acquisition in 2006. Nonetheless, we retain our buy rating.
Sell recommendation 888 (888) has posted record results for 2014 with revenues ahead by 14 per cent with business to business revenues surging by almost a third and adjusted profits up by 33 per cent to $101m. Management is recommending a special dividend of 7c a share on top of its final dividend of 4.5c, taking the full year dividends paid to 15c. Our recommendation is under review.
Logistics and biomass transport specialist Stobart (STOB) has won another biomass supply agreement with Tilbury Green Power to supply 270,000 tonnes of biomass to a new plant at Tilbury starting March 2017. This completes Stobart’s target of reaching 2m tonnes a year of biomass supply per annum by 2017/18. Buy.
Simon Thompson recommendation Vislink (VLK) returned to profit in 2014 with a pre-tax profit of £7.4m after a loss of £8.4m the previous year. Revenues rose by 3.4 per cent to £61.9m and the full year dividend is 20 per cent higher at 1.5p.
IT security and risk management specialist Accumuli (ACM) has attracted a recommended offer from NCC Group (NCC) worth 32.8p a share or £55m in a mixture of cash and shares, an offer which has already attracted acceptances from 57.3 per cent of Accumuli shareholders. We recommend investors now await documents.
Home credit and motor finance specialist S&U (SUS) grew profits by 34 per cent to £23.2m in the year to January after a 22 per cent uplift in revenues. The final dividend is increased to 30p, giving a total dividend of 66p, up from 54p last year. Once again, the motor finance business was the driver with profits up 42 per cent against the home credit’s 11 per cent rise in profits. We keep our buy recommendation.
Consumer marketing specialist NAHL (NAH), which operates under the National Accident Helpline brand enjoyed a 10 per cent rise in revenues in 2014 to £43.8m with underlying profits 29 per cent better at £12.7m. The final dividend is 10.7p, giving a full year dividend of 15.7p. Buy.
KEY STORIES:
Land Securities (LAND) has agreed to sell the Times Square building in the City of London for £268.4m to funds managed by Blackstone.
Retailer Game Digital (GMD) has agreed to pay out a £25m special dividend worth 14.7p a share on top of the maiden dividend of 7.35p a share for the six months to 25 January despite a 0.7 per cent dip in revenues and a 16 per cent fall in adjusted earnings to £43m. The company has also announced the departure of finance director Benedict Smith, who has been with the business since the beginning of 2013.
Drinks maker AG Barr (BAG) increased its profits by 10 per cent to £41.9m in the year to 25 January after a 2.7 per cent uplift in revenues to £260.9m. Management expects trading to remain challenging.
Specialist semiconductor maker IQE (IQE) posted full year revenues in line with expectations at £112m after second half revenues of £60m while adjusted operating profit rose by 21 per cent to £17.6m. Management says trading is in line with expectations after the opening three months of the year.
Property company New River Retail (NRR) has announced £23.8m of transactions with £18.3m of acquisitions and £5.5m of disposals.
Oil and gas vessel ship specialist Gulf Marine Services (GMS) grew revenues by 7 per cent and profits by 9 per cent in the year to December. The company reports a healthy backlog worth $707m at 1 March.
OTHER COMPANY NEWS:
Private hospital specialist Spire Healthcare (SPI) grew revenues by 12 per cent to £856m in 2014 with adjusted earnings up 6 per cent at £159.2m. The company invested £105m in facilities during the year and received planning consent for new hospitals in Nottingham and Manchester and a radiotherapy centre in Chelmsford.
Wellhead technology specialist Plexus (POS) posted 6 per cent growth in half year revenues and a 28 per cent leap in post-tax profits to £1.97m for the six months to December.
North Sea oil and gas specialist Faroe Petroleum (FPM) posted flat revenues of £129m for 2014 with losses of £55m after impairment charges of £38.5m and exploration write offs of £131.7m.
Materials specialist Low & Bonar (LWB) reports that volumes have been a little lower than expected in the period since November although raw material cost benefits mean that profits are in line with expectations.
