Maybe its the 'sell in May' mantra, but the first trading session of the month started with a sell off in London. Click here to find out what The Trader Nicole Elliott thinks of the markets.
IC TIP UPDATES:
A good trading performance from Regus (RGU) in the first quarter with revenues up 14.5 per cent at constant currency rates, while underlying cash more than doubled year-on-year. Net debt also reduced to £183m from £191m at the 2015 year end. Overall, expected full year results are in line with management's expectations. Buy.
Interserve (IRV) has been awarded a £46m contract by Northumbrian Water to upgrade the Horsley water treatment works in the Tyne Valley. The 30-month project will see Interserve and process engineering firm Doosan Enpure build new treatment facilities alongside the current plant. Buy.
Shares in sell tip Aberdeen Asset Management (ADN) fell 8 per cent after the emerging markets-focused asset manager reported net outflows of £9.8bn during the first half of the year. However, outflows have slowed, compared with the £12.4bn recorded during the second half of last year. As a result pre-tax profits almost halved to £99m. The interim dividend was flat on the previous year at 7.5p. Sell.
After a number of queries from the Competition and Markets Authority, IC tip of the year Penna Consulting (PNA) has confirmed that its takeover by Swiss resourcing giant Adecco has been given the final green light. Shares in the outplacement specialist will effectively stop trading on Friday, ahead of the completion of the transaction next Tuesday. Await documents.
KEY STORIES:
HSBC (HSBA) has reported a 14 per cent decline in pre-tax profits to $6.1bn during the first quarter of the year, as loan impairment charges increased almost $0.7n to $1.1bn via loans made to companies in the commodities sectors. Adjusted revenue was also down $13.9bn, mainly due to a weaker performance in global banking and markets and retail banking and wealth management.
OTHER COMPANY NEWS:
Bargain booze owner Conviviality (CVR) is raising more money - this time £32m - to complete another acquisition justs months after it bought drinks wholesaler Matthew Clark for £200m. The latest acquisition comes in the form of alcohol wholesaler Bibendum PLB and will cost Conviviality £60m in total.
Online takeaway group Just Eat (JE.) has upgraded its expectations for the current financial year following an exceptionally strong first quarter. Total orders rose a whopping 57 per cent during the opening period, or 41 per cent on a like-for-like basis. An additional one percentage point increase in commission rates for UK restaurants also means revenues should exceed current expectations, with underlying cash profits in the region of £102m-£104m compared to £98-£100m previously.
