Equities have pushed on further today after yesterday’s rally and The Trader Dominic Picarda is enjoying the fun while it lasts.
IC TIP UPDATES:
House builder Persimmon (PSN) has reported on continued strong trading during the first six months of the year with revenues up by one third to £1.2bn with completions up by 28 per cent and prices up by 4 per cent. Meanwhile, forward sales of £1.8bn are 28 per cent ahead of this time last year. Buy.
Kier Group (KIE) says that trading remains in line with expectations with its construction business order book at £2.6bn, services at £3.6bn and a property pipeline in excess of £1bn. We keep our buy rating.
Full year results from International Greetings (IGR) showed a minor reduction in revenues at £224m after rationalisation of some operations in the UK and profits 4 per cent higher at £7.6m. Gross margin and earnings per share both rose and cash generation doubled. We repeat our buy recommendation.
Wealth manager Ashcourt Rowan (ARP) grew assets under management from £3.7bn to £4bn during the course of the year to March, which helped it post cash earnings of £3.8m, up from £2.8m a year earlier. Buy.
KEY STORIES:
Carillion (CLLN) says first half performance has been in line with expectations with revenues down marginally but expected to recover during the second half and new order intake of confirmed and probable orders hitting £2.7bn. Meanwhile, the company has also won a £75m contract to extend the main stand at Liverpool’s Anfield football ground.
Tullow Oil (TLW) has reiterated expectations for half year revenues and gross profits of $1.3bn and $650m respectively although mixed exploration results during the period will result in write offs of $415m. Production has averaged 78,100 barrels of oil equivalent with full year production guidance unchanged at 79,000-85,000 barrels.
Topps Tiles (TPT) has posted a 6.3 per cent rise in like for like sales for the 13 weeks to 28 June compared with a 1.5 per cent decline in the same period last year.
New River Retail (NRR) says that its assets under management have risen by 2 per cent in the first quarter of its financial year with occupancy rates stable at 95 per cent and rent roll up by 1 per cent.
Meanwhile, property investment company Urban Exposure has announced its intention to float this morning. The company wants to raise £500m to invest in loans to residential-led development projects, primarily in London and the south east and is targeting a 14 per cent internal blended rate of return.
Recruitment business Staffline (STAF) has announced the small bolt on acquisition of Softmist, which trades as Skillspoint, a government funded work based training agency in the Midlands.
Premier Oil’s (PMO) has produced the first gas under a domestic swap agreement from the Natuna Sea Block A offshore Indonesia.
OTHER COMPANY NEWS:
Mobile testing specialist Anite (AIE) posted weak full year results which reflected a tough start to the year but with signs of improvement in recent months. Full year revenues dipped from £113.1m to £109.2m and earnings fell from £35.5m to £24m as operating margins almost halved. The closing order book was 14 per cent higher at £30.9m and current trading is ahead of last year.
Sirius Minerals (SXX) has signed a memorandum of understanding with the government of Tanzania to collaborate on research on its polyhalite fertiliser product and promote its introduction into the country when Sirius begins production from its mine in North Yorkshire.
Graphene Nanochem (GRPH) has fulfilled its first commercial purchase order for its Platdrill offshore drilling chemicals under a framework agreement with Scomi Oiltools. The delivery is worth around £1m.
