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News & Tips: Sirius Minerals, Ricardo, Serco & more

Equities are ticking up again
April 17, 2015

Equities have steadied themselves after yesterday’s lower close. Click here to find out what The Trader Nicole Elliott thinks of the markets.

IC TIP UPDATES:

Sirius Minerals (SXX) reports that an application to Scarborough Borough Council for extension of park and ride facilities to allow use by members of the potential workforce of its North York Moors potash project has been conditionally approved but the North York Moors National Park Authority has deferred its decision pending determination of the main project application. We retain our sell rating.

Engineer Ricardo (RCDO) has agreed to acquire international rail consultancy Lloyd's Register Rail for £42.5m and will combine it with its existing rail business. Ricardo expects the deal to be immediately earnings enhancing. Buy.

Simon Thompson recommendation Avation (AVAP) has completed the sale of one of its ATR 72-600 aircraft with a second sale expected to complete in the next two months.

Another Simon Thompson recommendation, Stadium Group (SDM), says that trading is in line with expectations for the first three months of its financial year.

KEY STORIES:

Serco (SRP) has confirmed that its fully underwritten 1 for 1 rights issue was taken up by 94.7 per cent of shareholders.

The Competition and Martkets Authority has provisionally decided that there are no reasons why its original decision to require Ryanair (RYA) to sell down its 29.8 per cent stake in Aer Lingus to 5 per cent should be altered following a request by Ryanair that the decision be reviewed.

OTHER COMPANY NEWS:

Well head technology group Plexus Holdings (POS) has announced its first contract in South America. The $800,000 deal will see it supply equipment to the Cardon IV gas project in Venezuela.

Electronics supplier Acal (ACL) reports that despite an 8 per cent foreign exchange headwind it still expects to meet forecasts for the year ended 31 March after group sales growth of 28 per cent.