Equities have bounced back a little from yesterday’s sharp sell off, which could have had as much to do with end of quarter balancing of books as with wider geopolitical concerns which seem to be permanently bubbling under.
IC TIP UPDATES:
Carlyle Group has made a recommended cash offer of 100p a share for Simon Thompson recommendation Nationwide Accident Repair Service (NARS) which values the company at £43.2m. The offer is a 45 per cent premium to the average weighted price of NARS shares over the past three months.
Specialist aerospace engineer Senior (SNR) has announced the acquisition of defence engineering business Lymington Precision for an initial £45.8m with a further earn out of up to £31.7m to be potentially paid. We keep our buy recommendation on Senior.
Logistics specialist Wincanton (WIN), an IC Tip of the Year for 2014, has reported that trading remains in line with expectations. Buy.
Specialist financing business Arrow Global (ARW) has announced a new strategic partnership with existing Portuguese partner CarVal and the acquisition of Whitestar Asset Solutions, a servicer of secured and unsecured loans in Portugal for €47.8m, paid over two years. Arrow will also buy Gesphone, a servicer of non-performing loans, for €8.7m and another portfolio of €565.5m worth of loans for €37m. We keep our buy rating.
Begbies Traynor (BEG) has agreed to buy the trade and assets of Yorkshire based insolvency practice Broadbents Business Recovery Services for an initial £200,000 with a further contingent consideration of up to £350,000. Buy.
Accsys Technologies (AXS) says it has signed a memorandum of understanding with a major unnamed chemicals group to replace current partner Ineos on its Tricoya Technologies venture. This aims to commercialise the Tricoya MDF panels product the company has developed. We maintain our buy recommendation.
Oil recycling specialist Hydrodec (HYR) has agreed to acquire UK waste oil collector and recycled industrial fuel oil supplier Eco-Oil for £2.39m. Buy.
Sirius Real Estate (SRE), which has a portfolio focused on German industrial property, says it has increased occupancy to 78 per cent and the rental income of its entire portfolio to €50m as it continues to invest in its assets, returning more un-lettable stock to the market. We keep our buy.
KEY STORIES:
Interim results from online retailer Asos (ASC) reflected tougher trading conditions in overseas markets. Overall group sales rose by 14 per cent, driven by 27 per cent growth in the UK with international growth of just 5 per cent, a 2.7 per cent dip in retail margins hit profits, which ended 10 per cent lower at £18m.
Challenger bank Shawbrook (SHAW) has announced the pricing of its flotation with a 290p a share price tag valuing the company at £725m.
Russian steel giant Evraz (EVR) has announced plans to return $375m to investors through a tender offer at $3.10 a share. Meanwhile, consolidated income for the year to December fell by 9 per cent with foreign exchange losses and impairment charges against assets resulting in a loss of $1.28bn.
Transport specialist FirstGroup (FGP) says trading is in line with expectations for the year to March although it is expecting a cash outflow of £100m associated with the end of the First Capital Connect franchise.
OTHER COMPANY NEWS:
International exhibitions group ITE (ITE) says trading is in line with expectations with issues in Russia and Ukraine continuing and trading in Asia going well. Revenues for the six months to March are expected to be £56m, against £71m a year ago.
Recently floated John Laing Group (JLG) has sold off three renewable energy assets for a combined £42.5m.
