Equities are flat after yesterday’s recovery bounce as weakness in Asian markets overnights cancelled out positivity from a US bounce. Click here to see what the Trader Nicole Elliot thinks of the markets.
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Kurdistan-focused oil explorer Gulf Keystone Petroleum (GKP) has confirmed that it has raised $40m through a placing of shares at 32p each to strengthen the company’s short term financial position. Meanwhile chairman Simon Murray has announced his intention to step down from the board. Our recommendation is under review.
Amec Foster Wheeler (AMFW) has won a contract from EDF Energy for project management services at its UK nuclear power stations. The contract is for five years with two, two-year options, and is worth £15m a year. Buy.
Plastic packaging specialist RPC (RPC) says that its self help project is now concluded and has helped drive organic growth which means adjusted operating profit will now be ‘significantly ahead’ of last year’s. We maintain our buy rating.
Simon Thompson recommendation Inland Homes (INL) posted strong results showing a quadrupling of revenues to £54.5m and profit growth of 68 per cent to £6.1m, allowing the company to declare a maiden dividend of 0.3p a share. The current land bank is at a high of 4,512 plots and the company has a forward sales pipeline worth £30m. Buy.
Ithaca Energy’s (IAE) 2014 results were skewed by the slump in the oil price in the second half of the year which led the company to record post-tax impairments of $173m due to lower oil price assumptions. Production in 2014 averaged 10947 barrels of oil and has risen to 12,500 in the first quarter. Our recommendation is under review.
Galliford Try (GFRD) has been appointed by Frasers Property for the next phase of its Riverside Quarter development in Wandsworth. The three phases included in the deal are worth £69m to Galliford. We keep our buy rating.
Quantum dot technology specialist Nanoco (NANO) has announced plans to raise £20m at 105p a share and also pursue a move to the Main Market of the London Stock Exchange. Buy.
Closed life book specialist Chesnara (CSN) published results for 2014 which reflected the slump in government bond yields over the year, which contributed to a reduction in profits from £60.6m to £28.8m. Cash generation at £42.6m remained ‘resilient’ and management has upped the dividend by 2.9 per cent. Buy.
Sell recommendation Shanks Group (SKS) reports that core markets in waste remain ‘challenging’ with pricing ‘tight’, driven by strong competition but management expects full year results to be in line with expectations. The company is also carrying out a simplification of its business structure.
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DIY specialist Kingfisher’s (KGF) new chief executive Veronique Laury is launching a ‘One Kingfisher’ initiative in a bid to improve profitability and focus in the business following the collapse of its potential deal to buy Mr Bricolage in France. Alongside results which showed a 7.5 per cent decline in adjusted profits, Ms Laury today announced a reduction in store space of 15 per cent, or around 60 stores, while also announcing plans for a £200m capital return during the coming financial year.
Wood Group (WG.) has been awarded a five year contract by Total to deliver engineering services to four offshore and two onshore production facilities in the UK.
Thomas Cook (TCG) says trading is in line with expectations with Winter almost fully sold and Summer sales going to plan although total bookings and average prices are both down marginally on last year, against tough comparatives.
Mitie (MTO) has warned that despite good trading in its facilities management business that tougher conditions in social housing and homecare, due to local authority budget cuts, mean that full year operating profits will undershoot expectations.
Floor coverings specialist James Halstead (JHD) grew revenues by 5.7 per cent in the six months to December with pre-tax profits up by 5.3 per cent at £21.4m, allowing an increase of 4.7 per cent in the dividend, a 40th consecutive year of increased dividends.
