London shares started the day in uncertain mood but have begun to push northwards as the morning has gone by. Click here for The Trader Nicole Elliott's latest take on the markets.
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Bookie William Hill (WMH) is breaking away from the pack this morning and heading up the FTSE after it confirmed press speculation about a proposed merger with Canadian outfit Amaya. A deal appears to have been on the cards where Hill is concerned after it was left as the wallflower in the recent merger dance which saw several groups club together in a bid to upscale to better deal with tighter – and more expensive – regulations. The potential deal is being called a merger of equals, however, it would technically be a reverse takeover. Broker Davy said the deal would achieve Hill’s two strategic outcomes - to increase its geographic footprint and make digital revenue a larger slice of the pie. Buy.
Shares in Amino Technologies (AMO) jumped 7 per cent in early trading after the video-streaming specialist guided towards full-year revenues and cash profits ahead of market expectations. Management cited record orders in August and beneficial currency movements. We keep our buy rating.
Secure Trust Bank (STB) has published its prospectus for its move to the main market from Aim on Friday afternoon. The challenger bank also announced trading for the third quarter was in line with expectations, with strong demand for motor finance, retail finance and personal lending remaining strong. Management has continued to shift its real estate finance portfolio towards residential investment lending, while its asset finance division has focused on lower loan to value lending in light of any potential economic downturn. Buy.
Packaging and paper group Mondi (MNDI) has agreed to buy corrugated packaging maker Beepack for 2.9bn rubles (£36m) from a private investor. The Russian manufacturer, which makes trays and boxes to transport drinks, fruit and vegetables, turned over 2.8bn rubles in 2015. We keep our buy recommendation.
Developer Urban & Civic (UANC) has announced that Crest Nicholson has signed up to be the third housebuilder on its land at Rugby. It is likely to build 205 houses on a 12.5 acre site and takes the total up to 625 plots signed up over 45 acres. Urban & Civic has also sold off its interest in a Sainsbury store site in Herne Bay, Kent, at a £3.3m premium to its net asset value. Buy.
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Mitie (MTO) chief executive Ruby McGregor-Smith has announced she will be stepping down from the board in December. Former Cable and Wireless Communications chief Phil Bentley will be stepping into the role.
Miner Randgold Resources (RRS) enjoyed a rise in its share price on Monday morning despite the Malian government shutting its offices in the country’s capital, Bamako, as a tax dispute rumbles on. The company continues to defend its position, having been advised that a “large proportion” of the state’s tax claims are without foundation.
YouGov (YOU) grew sales by 17 per cent in the year to 31 July, driving adjusted operating profits up 27 per cent to £10.9m. Sales of data products and services leapt 32 per cent to £34.5m, reflecting strong demand for the group’s BrandIndex and Omnibus tools, while custom research revenues also rose 9 per cent.
