European stocks fell back after a positive start to the session. Click here for The Trader Nicole Elliott's latest market view.
IC TIP UPDATES:
Playtech (PTEC) has announced total revenue of €134.9m in the first three months of the year, up from €102.7m in the first quarter of 2014. The company boosted its revenues from developed markets by 40 per cent in the quarter, compared to the 34 per cent growth in the same period a year before. We keep our buy recommendation.
Maeve Carton, group finance director at building materials company CRH (CRH), is to assume the role of group transformation director. The company said the role was intended to “drive improved shareholder returns by identifying further synergies, efficiencies and cash generation opportunities”. Buy.
Petroceltic (PCI) has awarded a rig contract for the Ain Tsila gas field in Algeria. The rig will drill up to 24 new development wells. Buy.
Royal Bank of Scotland (RBS) has sold another tranche of corporate loans to Mizuho Bank, making up $5.6bn of loan commitments. This portfolio of loans made a post-tax profit of $20m in the 2014 calendar year. The cash consideration of $500m genearates a disposal loss of around $30m, net of fees. Buy.
Tungsten (TUNG) is to establish a research and development partnership with Goldsmiths, University of London, creating a centre for data analytics. Buy.
KEY STORIES:
Premiership rugby club Wasps has offered 6.5 per cent secured bonds, maturing in 2022. The overall value of the offer will fall between £25m and £35m. The bonds will be partly secured against the club’s new Coventry-based Ricoh Arena.
Self-storage company Lok'nStore (LOK) has announced revenue of £7.63m in the six months to the end of January, compared to £6.71m in the same period a year before. This fed into pre-tax profits of £1.48m (2014: £920,000). The company is midway through a store development programme, and recently opened stores in Crawley, Maidenhead and Reading grew strongly over the period.
Recruiter Staffline (STAF) has announced the acquisition of skills trading provider A4e for £34.5m. The company hopes the deal will boost its employability division.
Sprue Aegis (SPRP) reported revenue up more than a third to £65.6m in the year to December 31. Operating profit was also at record highs, up 88 per cent at £9.6m.
Aviation (AVAP) is planning to develop a medium-term note programme. The programme will be in notes in various tranches up to $500m.
Redde (REDD) has announced current trading is exceeding expectations due to strong trading volumes for the third quarter of its financial year. Cash balances at the end of March stood at £62.8m compared to £48.8m a year before.
OTHER COMPANY STORIES:
Centrica (CNA) continues to trade in line with guidance, with increased commodity prices wiping out any outperformance from improved year-on-year profitability downstream.
Brady (BRY) remains on track to meet market expectations. Chairman Paul Fullagar will tell attendees at today’s annual general meeting that its energy business is gaining momentum, having signed two further deals for its energy data management services.
Jack Keenan is stepping down from his non-executive chairman role at Stock Spirits Group (STCK). Keenan has held the role since 2008. He will be replaced by David Maloney at the company’s AGM on 19 May.
Eckoh (ECK) grew its adjusted operating profit by more than half in the year to the end of March. This was driven by its UK business which has secured 20 new contracts during the year and successfully renewed every contract that came up for review.
LondonMetric Property (LMP) has announced that its joint venture with pension fund Universities Superannuation Scheme has sold its Lichfield retail park to Mayfair Capital for £13.3m. LondonMetric’s share of the deal represents £6.7m.
