Markets started the week with a marginal gain as the summer lull goes on. Click here to find out what The Trader Nicole Elliott thinks of the current markets.
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Shares in tech giant Apple (APPL) look set to come under pressure when they open in the US later after the company was hit by a record-breaking bill of up to €13bn from the European Union for back taxes and interest after the European commission found that favourable tax arrangements from the Irish government effectively added up to state aid for the US company. Our recommendation is under review.
Centrica (CNA) has acquired water technology company FlowGem, which specialises in early detection of water leaks. The addition is part of the utility’s plan to spend £500m in its connected home operations by 2020. Ther shares are up 4 per cent on our buy tip but we think there’s further upside to come. Buy.
Investors pushed shares in Charles Taylor (CTR) upward in early trading after the insurance services group grew sales by 7 per cent in the first half of 2016, driving adjusted pre-tax profits up 4 per cent to £6m. The management services segment delivered good growth in revenues and profits, while the adjusting services division’s profits rose modestly as management improved efficiency. But profits dipped in the insurance support services business due to investment in new initiatives. Under review.
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Fresh food producer and distributor Total Produce (TOT) will be targeting the upper range of its full year earnings target after a ripe first half. The group said it would be likely to hit the top end of the 10.5-11.5 cents per share target laid out earlier in the year after a 10.4 per cent rise in revenue to €1.91bn (£1.62bn). Management continued its expansion in North America by acquiring 65 per cent of Progressive Produce, which is headquartered in Los Angeles. There was a strong performance from its non-eurozone division (Czech Republic, Poland, Scandinavia and UK) with turnover up nearly 6 per cent and adjusted cash profits up 5 per cent to €19.8m.
Bunzl (BNZL) grew both sales and pre-tax profits by 6 per cent during the first half of the year, as the support services group continued its buy and build strategy. The group - which supplies products ranging from hotel napkins to safety helmets - has made eight acquisitions so far in 2016, including reusable bad distributor Earthwise Bag Company in February.
Shares in Nostrum Oil & Gas (NOG) were flat this morning, after the explorer and producer posted results for the half-year to June. Operating expenditure fell 30 per cent in the period to just $3.3 per barrel of oil equivalent, which in turn softened the year-on-year cash profit decline from $153m to $101m, and kept margins at 62 per cent.
Amid some very challenging conditions, oil services group Petrofac (PFC) managed to increase revenue by 22 per cent in the first six months of 2016, returning to a net profit from a $133m loss in the same period last year. However, net working capital outflows of $124m, dividend payments and other investments meant net debt has expanded 28 per cent so far this year.
