Equities are on the up again this morning and The Trader Dominic Picarda is expecting more gains to come despite the rising geopolitical concerns.
IC TIP UPDATES:
Housebuilder Berkeley Group (BKG) has issued a predictably strong set of results for the year to April with revenues 18 per cent higher and profits up by almost 40 per cent to £292.9m. Forward sales total £2.27bn against £1.45bn this time last year. The company is paying out another 90p in dividends. We maintain our buy rating.
Retailer N Brown (BWNG) has seen like for like sales growth of 2.5 per cent in the 15 weeks to 14 June, in line with expectations with store like for like sales up by 20 per cent. Buy.
Marketing services and printing specialist St Ives (SIV) grew total sales by 7.5 per cent in the 17 weeks to 30 May through a combination of both organic and acquisition-led improvements. The marketing business saw significant growth on last year while sales in the printing business were lower due to the sale of a direct mail business last year. We keep our buy rating.
Simon Thompson recommendation SeaEnergy (SEA) has won a contract worth $1m with the Mexican national oil company Petroleos Mexicanos for the use of its R2S asset visualisation service.
Insurance investment business Randall & Quilter (RQIH) says it continues to trade ‘satisfactorily’ although it still expects all of its annual profits to come in the second half of the year. We maintain our buy recommendation.
Gemfields (GEM) enjoyed a successful inaugural auction of ruby and curundum I Singapore which yielded $33.5m in total revenues. We keep our buy rating.
Full year results from stem cell sciences company Reneuron (RENE) detailed continued progress in its various therapy programmes. The company ended the year with £20.9m in the bank following a successful fundraising last summer. Buy.
Simon Thompson recommendation KBC Advanced Technologies (KBC) has formed a strategic alliance with Oslo-listed Kongsberg Gruppen to collaborate in the upstream oil and gas industry.
KEY STORIES:
Property website Zoopla has announced that its initial public offering will be priced at 220p a share, valuing the company at just short of £920m at the time of its float and delivering a windfall for selling shareholders including Daily Mail & General Trust (DMGT), Countrywide (CWD) and LSL Property Services (LSL).
Serco (SRP) has announced the reorganisation of its Africa, Middle East, Asia and Australia (AMEAA) division in order to simplify operations and cut costs. Meanwhile, it has agreed with partner Abellio to ‘pursue separate paths’ when it comes to retendering for the Northern Rail franchise which they are currently contracted to run together until February 2016.
Premier Foods (PFD) says that subdued grocery markets mean that sales of its power brands for the second quarter will be below expectations and will fall into negative territory. Meanwhile, the company has formed a joint venture with Specialty Powders for its powdered drinks and desserts operations.
Balfour Beatty (BBY) has won a $156m contract to build the new headquarters for the US National Science Foundation in Arlington, Virginia.
OTHER COMPANY NEWS:
Card Factory (CARD) has reported ongoing like for like growth in sales for the four months to 31 May, during which time it has opened a further 29 stores.
