Equities are still searching for direction but The Trader Dominic Picarda is expecting a Santa rally soon.
IC TIP UPDATES:
Royal Bank of Scotland (RBS) has confirmed the resignation of its finance director Nathan Bostock after just ten weeks in the role. He is believed to be departing for a role at Santander. We keep our sell recommendation.
Carillion (CLLN) reports that it continues to trade in line with expectations with the total value of orders plus probable orders steady at £18bn and the pipeline of contract opportunities standing at £37bn. The company also announced a contract extension today with BT for its 60:40 joint venture with Telent to deliver broadband over the next three and a half years, worth up to £500m. We maintain our buy rating.
Galliford Try (GFRD) has won a £34m contract to redevelop a high school in Edinburgh complete with a 25 year facilities management contract worth £10m. Buy.
KEY STORIES:
Transport business FirstGroup (FGP) confirms that it has received a proposal from Sandell Asset Management outlining plans for a break up of the group and the sale of assets. The board says it has engaged with Sandell but that its proposal is ‘not compelling and contains a number of structural flaws and inaccuracies’.
Fellow transport business Stagecoach (SGC) has issued half year results showing a marginal 2.8 per cent rise in earnings per share with a 11.5 per cent increase in the dividend.
Personal products group PZ Cussons (PZC) says that revenues rose by 4 per cent and operating profits by 6 per cent in the first half of its financial year with decent performance in Africa and Europe offsetting tougher conditions in Asia, where currency weakness has compounded weaker trading conditions.
A trading statement from distribution specialist Bunzl (BNZL) reports trading in line with expectations with revenues at constant exchange rates up by 12 per cent, made up of underlying growth of 2 per cent and contributions from acquisitions. The company has spent £250m on acquisitions this year, adding £245m of annualised revenues.
Speedy Hire (SDY) has received waivers from its banks after breaching banking covenants following the discovery of mis-statements in the accounts of its international businesses.
OTHER COMPANY NEWS:
Salamander Energy (SMDR) has signed a production sharing contract for its PM322 block offshore Malaysia and also updated on reserves in the Bualang field offshore Thailand, where standard oil in place has increased from 180m barrels to over 250m barrels.
Snoozebox (ZZZ) says that the turnaround strategy put in place by new management is proving successful and costs have reduced with revenues rising by 80 per cent to approximately £6.5m.
