Equities have edged ahead again, but not convincingly. Click here to find out what the Trader Nicole Elliott thinks of the markets.
IC TIP UPDATES:
ITV (ITV) shares are attracting attention today after international cable company Liberty Global announced that its stake in the business has risen to 9.9 per cent. We maintain our buy recommendation.
KCOM (KCOM) has reported that its recent trading has remained ‘consistent with expectations’. Buy.
Alent (ALNT), which is the subject of a recommended offer from Platform Specialty Products, has announced a solid set of half year results in which both revenues and adjusted operating profits edged ahead of last year’s performance.
KEY STORIES:
International Consolidated Airlines (IAG) made second quarter operating profits of €530m against €380m last year after an 11 per cent uplift in revenues to just short of €5.7bn. Fuel costs during the period rose by 3 per cent at actual currencies as the weakening of the euro against the dollar hurt, at constant currency fuel cost was down 12 per cent. Meanwhile, the company has received acceptances from 62.5 per cent of Aer Lingus (AERL) shareholders for its offer and has waived the 90 per cent acceptance condition.
BG (BG.) grew production by 19 per cent during the second quarter of the year and has upgraded full year production guidance to the upper end of the 650,000-690,000 barrels equivalent per day but lower oil prices sent upstream earnings down by 39 per cent.
Chime Communications (CHW) has announced the recommended terms of the proposed acquisition of the company by WPP and Providence Equity. The offer is pitched at 365p a share with qualifying shareholders also entitled to a 2.53p a share dividend.
Balfour Beatty’s (BBY) joint venture with NG Bailey has been appointed preferred bidder on the £460m Hinckley Point C power station electrical package.
Moneysupermarket (MONY) shares have slipped after it was announced that shares equivalent to 2.4 per cent of the company had been sold by a combination of Martin Lewis, founder of Moneysavingexpert, and a charitable foundation to which he Mr Lewis donated shares.
Engineer IMI (IMI) posted interim results which reflected the ‘challenging’ environment in which it is operating with revenues down by 5 per cent and operating profits 15 per cent lower although the interim dividend is nudged up by 2 per cent. Second half performance is expected to be broadly similar to the first half.
Copper miner Antofagasta (ANTO) is to acquire a 50 per cent interest, and operatorship, of the Zaldivar copper mine in Northern Chile from Barrick Gold for a total of just north of $1bn.
Specialist molten metals engineering business Vesuvius (VSVS) has been impacted by the global slowdown in steel production. This is reflected in a 3.7 per cent year on year decline in revenues for the first half with trading profits down 1.1 per cent.
OTHER COMPANY NEWS:
Wealth manager Charles Stanley (CAY) reports that its managed funds have grown by 4.3 per cent to £12bn during the three months to June with total client funds standing at £20.8bn. Revenues from continuing activities grew by 4.9 per cent to £36.3m.
Media company UBM (UBM) reported on a first half which has been boosted by the acquisition of Advanstar with revenues rising 26 per cent although on an underlying basis revenues dipped by 4.1 per cent due to slower performance in events and the timing of its events. Group adjusted operating profits rose by 13 per cent to £98.8m.
Oil and gas explorer Parkmead Group (PMG) has been awarded three new exploration licences in the second tranche of awards under the UK’s 28th licensing round, adding to the six it was awarded in the first round.
