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News & Tips: Bwin.Party, API Group, KBC Advanced Technologies & more

Equities are up again
July 15, 2014

Equities have recovered from a small early reversal and are heading upwards again in a welcome move following last week’s sell off, click here for The Trader Nicole Elliott’s take on the latest moves.

IC TIP UPDATES:

Sell recommendation Bwin.Party Digital (BPTY) has announced a mixed trading update for the three months to June with an improved showing from its sports business being offset by softer gaming performance. Since then, the world cup has boosted sports performance. Nonetheless we retain our sell advice.

Simon Thompson recommendation API Group (API) has announced the departure of finance director Chris Smith alongside a trading update which indicated little change with the laminates and foils business in Europe performing well and holographics holding its break even position. The laminates business in the Americas has seen continued subdued trading due to industry destocking although there are signs this is coming to an end.

Another Simon Thompson recommendation, KBC Advanced Technologies (KBC) has won a $5.8m five year contract to expand and extend its refinery software provision for a ‘large South American based multinational energy company’.

NetPlay TV (NPT), which is another of Simon’s buy recommendations, has seen a 5 per cent uplift in revenues in the second quarter of the year after a 38 per cent rise in new depositing players, over half of whom have come through mobile channels. Revenues from its casino business slowed a little late in the period as the world cup kicked off. Meanwhile, the company is preparing for the forthcoming Point of Consumption tax on online gaming by taking some costs out of the business.

KEY STORIES:

Dairy Crest Group (DCG) has seen aggregate sales for its four key brands rise by 4 per cent in the second quarter with Cathedral City, Frijj and Country Life driving this performance while the Clover spread business has seen sales continued to fall. A cost reduction plan is ongoing and should remove £20m from costs this year while property sales are expected to deliver a £10m-£15m profit.

Utilities supplier Telecom Plus (TEP) added 16,739 customers during the second quarter taking the total number to 547,378, up from 474,404 this time last year with profits for the first half predicted to be significantly ahead of last year.

Dragon Oil (DGO) production averaged 73,440 barrels of oil per day in the first half, down marginally from last year although June production averaged 76,100 barrels per day.

Mail and logistics group DX (DX.) reports good trading and says that results for the year to June will come in line with expectations.

Bowleven (BLVN) has agreed to terminate its strategic alliance with Petrofac (PFC) at a cost of $9m, fulfilling one of the conditions of its recently announced farm in deal with LUKOIL.

OTHER COMPANY NEWS:

Building products specialist Epwin (EPWN) has announced that its shares will be priced at 100p when they float on Aim next week.

Irish property investment company Hibernia (HBRN) has acquired two office buildings in Dublin’s financial district for a total of €90.75m in cash.

Carr’s Milling Industries (CRM) says that trading is in line with expectations for the full year.