Equities have begun trading on Thursday with a sharp upwards push, in line with The Trader Dominic Picarda’s call.
IC TIP UPDATES:
Rolls Royce (RR.) has announced that it will commit £1bn to a share buy back once the sale of its gas turbines business to Siemens is completed later this year. We keep our buy recommendation.
Costain (COST) has been named as a partner on a £184 contract with the Highways Agency to convert a stretch of the Manchester orbital M60 motorway into an ‘smart’ motorway using better signalling to respond to traffic flows. Costain is one of four contractors including Balfour Beatty (BBY) and Carillion (CLLN) who will undertake the job. We maintain our buy rating on Costain.
Kier Group (KIE) has won a £140m contract to provide maintenance works to Genesis Housing Association, which has 33,000 residences across London and the South East. Buy.
Software business Micro Focus (MCRO) posted a 6.4 per cent rise in full year revenues at constant currencies with underlying adjusted earnings up by 9.7 per cent to $196.4m but reported pre-tax profit dipped by 2.4 per cent, hampered by the shift in the sterling-dollar exchange rate. Performance improved over the second half with like for like revenues growing by 2.2 per cent and licence fees up 5.4 per cent. We maintain our buy rating.
Simon Thompson recommendation Greenko (GKO) enjoyed a strong uplift in revenues and profits in the year to March as its expanding portfolio of renewable energy production in India contributed to improved performance. Reported revenues rose by 38.2 per cent to €53m and profits by 66 per cent to €40.9m. Meanwhile it has also commissioned a further 50MW of wind generating capability, taking its portfolio to 661MW, up from 244MW last March.
KEY STORIES:
Ahead of its expected debut on the London market tomorrow, the Financial Times is reporting that Lloyds is likely to achieve a price in the middle of a 250p-270p a share range for TSB, valuing the challenger bank at around £1.3bn. Investor appetite for the offer appears to have been keen with the order book ‘well covered’.
Newly floated online ‘flash sale’ retailer MySale (MYSL) has been boosted by news today that Sports Direct (SPD) has taken a 4.8 per cent stake in the business.
Insurance services specialist Quindell (QPP) has announced the appointment of insider Robert Fielding as chief executive with founder Rob Terry remaining as chairman. Meanwhile the company has also updated on trading with a number of new contracts coming through which should result in run rate revenues rising from £650m a year to £950m a year during the second half of the year.
Transport operator Go-Ahead Group (GOG) reports that trading is going well with its bus division expected to meet expectations for the full year and the rail division likely to deliver operating profits ahead of expectations.
French electricals retailer Darty (DRTY) saw like for like revenues rise by 1.7 per cent group-wide and 2.4 per cent in France during the year to April with group retail profit 11 per cent higher at €73.4m.
Investment in its business held back profit growth at Charles Stanley (CAY) in the year to March with underlying profits unchanged at £13.5m. But total funds rose by 14 per cent to £20.1bn and revenues were 17 per cent higher at £149m.
Renewable power company Infinis (INFI) delivered a dividend of 6.63p for the year to March, in line with projections at the time of its float last year and it intends paying out £55m in dividends during the year to March 2015 and growing them at least in line with inflation thereafter. Overall revenues rose by 7.3 per cent to £242.5m and earnings before operating exceptional items by 18.3 per cent to £148.4m although, on a reported basis, losses were £11.8m.
OTHER COMPANY NEWS:
Colombian oil and gas company Amerisur Resources (AMER) has drilled another successful well on its Platanillo licence, the 14th success there. Meanwhile, the company has now completed seismic surveying of interests in Paraguay.
