Equities are relatively flat in early trading after the sell off at the end of last week, something which The Trader Dominic Picarda is not overly concerned about.
IC TIP UPDATES:
Simon Thompson recommendation Thalassa Holdings (THAL) says that Statoil’s first permanent reservoir monitoring survey, which is being carried out by its WGP Group subsidiary, has mobilised on the Snorre field offshore Norway.
Project consultancy wyg (WYG) has been appointed to a framework agreement with the Ministry of Defence which will see it provide advisory services over optimising the Ministry of Defence’s 230,000 hectare estate. We keep our buy rating.
Sirius Real Estate (SRE) has reported full year results which management say indicate the completion of its turnaround plan. Recurring profits rose by one third to €11.3m and overall pre-tax profit was €28.9m, compared with a loss of €30.3m last year although this was aided by positive shift in valuations. The company has also returned to the dividend list with a €0.30 payout and commitment to pay out 65 per cent of recurring profits in future. We maintain our buy recommendation.
Ubisense (UBI) has received orders worth €1.7m for its real time location systems from a major European telecoms operator. Buy.
KEY STORIES:
Vodafone (VOD) is to acquire automotive security and telematics business Cobra Automotive Technologies in a deal worth €145m. Cobra is based in Italy but operates globally and fits into Vodafone’s strategy of growing its ‘machine to machine’ capabilities.
Majestic Wine (MJW) posted a marginal increase in profits to £23.8m after a 1.4 per cent rise in total sales to £278.2m for the year to March. Like for like retail sales dipped by 0.1 per cent. The company opened 13 new stores during the year and also invested in its infrastructure including a new iteration of its website, improved customer relationship systems and a new distribution centre.
Ultra Electronics (ULE) is acquiring radiation measurement systems specialist Lab Impex Systems for £3.2m.
African engineering and construction specialist Mota-Engil Africa has announced its intention to float on the main market in London. The company operates primarily in the sub-Saharan region and posted turnover of €1bn and earnings of €243m for 2013.
OTHER COMPANY NEWS:
In other flotation news, budget airline Wizz Air has pulled plans to list in London due to uncertain market conditions.
And Abzena, a biopharmaceuticals business in which Imperial Innovations (IVO) holds a 26 per cent stake, has announced its intention to seek a listing on Aim.
