Equities in London are taking a breather after sharp falls in China overnight. Click here to find out what The Trader Nicole Elliott makes of the current markets.
IC TIP UPDATES:
Lloyds Banking Group (LLOY) is reported to be cutting around 945 jobs as part of its cost-reduction programme. Compulsory redundancies would be a last resort, the bank said in a statement reported by Reuters. The group has been looking to reduce costs since its taxpayer bailout and fraught takeover of HBOS in 2008. We retain our buy advice.
Shares in South West Water-owner Pennon (PNN) rose 3 per cent after revealing pre-tax profit growth of 7 per cent during the first half of the year. However, this was primarily due to waste management business Viridor, which has been converting more of its sites to energy recovery facilities and participating less in landfill contracts. Buy.
Shares in NAHL (NAH) plunged 24 per cent on Thursday after the government said it would consider options to restrict compensation claims from minor whiplash victims next year, and transfer personal injury claims of up to £5,000 to small claims court, up from a £1,000 limit. The National Accident Helpline operator’s management expressed uncertainty over how any changes would affect the business, but stood by its short-term expectations. Buy.
Legal services firm Fairpoint Group (FRP) was also hit by the Spending Review announcement, falling 11 per cent in Thursday trading. In a bullish response issued today, Fairpoint said its acquisition of Colemans in August had effectively prepared it for changes to the small claims market, and could even allow it to benefit from a review of the market. We stay buyers.
The Mission Marketing Group (TMMG) acquired Chapter Agency for up to £5m, payable over the next few years. The marketing communications and advertising group’s management expects Chapter - whose clients include Nissan, Topps Tiles and Crowdcube - to strengthen its range of services. Buy.
OTHER COMPANY NEWS:
The market seemed to pass on another helping of Patisserie Holdings (CAKE), sending the share down 6 percent despite the introduction of a maiden dividend and a 40 per cent hike in pre-tax profit. The Patisserie Valerie cake shop owner is also fully funded by operating cash flows, which more than doubled operating in the year to September.
