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News & Tips: Rockhopper, Meggitt, Carillion & more...

European stocks dipped on early trading as the mining sector was hit in the wake of disappointing economic data from China.
August 10, 2015

China’s economy started the second half of the year with disappointing trade and factory-price data on pressure from slack demand at home and abroad. Exports in July slid 8.3 per cent from a year earlier, reversing the revious month's gains.

IC TIP UPDATES:

Rockhopper Exploration (RKH) announced that the Italian Government has announced that the Environmental Impact Assessment for the Ombrina Mare field development project has now been approved by the Minister for the Environment and countersigned by the Ministry of Cultural Heritage. In a separate announcement, the driller has agreed an asset purchase deal with Beach Energy that will give it a number of assets in Egypt for $22m.

Capita(CPI) today announces it has agreed the sale of National Dental Plan to Unum Group for a cash consideration of £31.7m on a cash free, debt free basis, subject to regulatory approval.

Shares in Dixons Carphone (DC.), the group behind Carphone Warehouse, admitted it had been targeted in a "sophisticated" cyber attack which left 2.4m customers' payment details vulnerable. The group’s shares duly back-tracked on Monday.

Carillion (CLLN) has won a new government outsourcing contract that could be worth up to £4.1bn. The FTSE100-listed business has been selected as part of a new “facilities management services agreement”, which will run until 2019.

KEY STORIES:

Meggitt (MGGT) has agreed to pay $200m for Cobham’s (COB) composites arm in a deal that boosts its exposure to both military and commercial aerospace markets. The Cobham unit has annual sales of $81m, specializes in engine components, radar domes and structures used in air-to-air refuelling systems.

Tethys Petroleum (TPL) announces that the multi-million dollar financing with AGR Energy Holdings and related clawback of shares by Pope Asset Management will no longer proceed. The Board of Tethys has separately received another approach from Nostrum Oil & Gas regarding a possible offer for the entire issued share capital of Tethys.

Tough conditions in the motor insurance market continued to drag on Esure (ESUR). Its combined operating ratio of claims to income declined to 95.8 per cent from 90.9 per cent in the first half of 2014, as a result of higher claims, lower reserve releases and a competitive rating environment. Underling profit before tax was down 21 per cent at £47m.

Transport company Rotala (ROL) posted a fall in interim pretax profits, due to one-off costs and on the back of declining revenue from its contracted services business, which was partially offset by better commercial revenue. Profits to the end of June came in at £894,000, down from £900,000 a year earlier, primarily due to exceptional administrative costs.

Software and services firm Gresham Computing (GHT) posted an 11 per cent hike in revenues at the first half of this year. The revenue boost was led by software revenues, up 38 per cent to £4.7m from £3.4m. Pretax profit was up by 8 per cent to £0.65m from £0.60m in the same six months last year.

OTHER COMPANY NEWS:

Shares in Fitbug Holdings (FITB) fell sharply after the company said it has raised a total of £1.67m through a placing, share subscription and the issue of a convertible loan note. Fitbug raised £665,000 through the placing of 26.6m shares at 2.5p per share and £350,000 via a share subscription for 14m new shares at the same price by NW1 Investments.

Alibaba Group will invest 28.3bn yuan (£2.92bn_ in Suning Commerce Group Co Ltd, clinching a cross-investment deal that allies China’s leading e-commerce firm with one of the country's largest standard retail chains.