Equities have started the day rather flat after last week’s positive showing.
IC TIP UPDATES:
Tip of the year Anglo American (AAL) has announced plans to sell its share of its tarmac joint venture to partner Lafarge for a minimum £885m with the proceeds being used to pay down debt. We maintain our buy recommendation.
Sell rating SABMiller (SAB) is planning to sell its near-40 per cent stake in South African hotels and entertainment business Tsogo Sun Holdings through a combination of a placing with investors and a buy back by Tsogo. The stake is valued at around $1bn.
Faroe Petroleum’s (FPM) Butch South West exploration well has failed to find hydrocarbons, with the company now planning to focus on the core Butch Main discovery. Nonetheless, we retain our buy rating.
Property business Segro (SGRO) is selling the Pegasus Park office park near Brussels airport for €83.4m. Buy.
Reinsurance specialist Amlin (AML) has announced plans to increase its equity interest in insurance-linked investment specialist Leadenhall Capital Partners from 40 per cent to 75 per cent. We repeat our recent sell recommendation.
KEY STORIES:
House builder Taylor Wimpey (TW.) is enjoying the buoyant housing market conditions with margins, selling prices and volumes all ahead of last year in the first half of 2014. Completions rose by 11 per cent to 5,766 homes with private sale prices 9 per cent higher at £224,000. The forward order book is standing at £1.58bn, up from £1.26bn.
Recruiter Robert Walters (RWA) grew group gross profits by 12 per cent to £53.9m in the second quarter with the UK a stand out performer with a 21 per cent rise. Europe showed the slowest growth but still expanded by 6 per cent.
Private hospitals specialist Spire Healthcare has announced the pricing range for its forthcoming IPO today which at the mid point of the 210p-300p a share range values the company at £955m. Final pricing is expected on 18 July.
OTHER COMPANY NEWS:
Alkane Energy (ALK) reports a reduced electricity output from its coal bed methane and stand-by supply operations during the first half of the year after its Maltby site was taken offline for much of the period due to the closure of the colliery. This is now back up and running and second half production is expected to be ‘substantially’ ahead of the first half.
Cambridge-based biotech company Abzena will start trading on Aim later this week after raising £20m from investors.
