Equities have begun the day with decent gains as traders look to claw back some of last week’s reverses, a tale of woe highlighted in our new Trader Nicole Elliot’s first morning outlook column today.
IC TIP UPDATES:
EasyJet (EZJ) announces that it has selected CFM as the engine supplier to power its order of 35 Airbus A320 aircraft and any of the future 100 aircraft which the company has purchase rights over. We keep our buy rating.
Rolls Royce (RR.) announces that Airbus has selected its new Trent7000 engine as the exclusive engine for the new Airbus A330neo. We maintain our buy recommendation.
Plastics Capital (PLA) has converted a ‘major design project’ with a tier one automotive manufacturer into a firm contract which is likely to be worth £500,000 a year from next year for seven to ten years in duration. Buy.
KEY STORIES:
Shire (SHP) has indicated that it is now willing to recommend rival AbbVie’s increased indicative offer of £53.20 per Shire share in a mixture of cash and paper. The latest offer is for £24.44 in cash and 0.896 AbbVie shares per Shire share.
Sports Direct (SPD) is to collaborate with flash sale specialist MySale (MYSL) to launch the Sports Direct brand into the Australasian market. The online ‘flash sale’ fashion retailer will host Sports Direct’s e-commerce operations in the region after launching its website there later this year. Meanwhile, Sports Direct will also open up three stores in Australia and one in New Zealand this year within which MySale’s OzSale.com.au brand will have a presence.
Insurance services business Quindell (QPP) says its revenue totalled £355m in the opening half of the year, up by 117 per cent on last year and adjusted cash earnings were 187 per cent higher at £155m. Management says it is being selective and is turning away business but still expects to meet its full year forecasts on revenues of £800m-£900m.
OTHER COMPANY NEWS:
Property company Helical Bar (HLCL) has sold three assets for an aggregate £37m, a 6.9 per cent premium to book value. It sold The Guineas shopping centre in Newmarket, a 53 per cent stake in a research and development centre near Fordham in Suffolk and a 50 per cent stake in an office building in Milton Keynes.
Bargain Booze owner Conviviality Retail (CVR) enjoyed a 31.5 per cent rise in profits before exceptional items to £9.3m for the year to 27 April. Like for like retail sales growth was flat but the business managed to grow like for like sales at the acquired Wine Rack business by 1.4 per cent during the period of its ownership.
