Equties are off a little in early trading as geopolitical concerns remain to the fore, something the Trader Nicole Elliott brings up in her column today.
IC TIP UPDATES:
Ithaca Energy (IAE) announces that the Lupus exploration well in the Norwegian North Sea, which was operated by Tullow Oil, failed to find hydrocarbons. Ithaca has a 20 per cent interest in the well. Nonetheless we retain our buy recommendation.
Babcock International (BAB) says that its financial year since April has started well with activity levels remaining high and the acquisition of Avincis integrating well. The overall group order book is worth £13.5bn with a further bid pipeline of £16bn, of which £3bn worth of contracts are at preferred bidder stage and should transition over to the confirmed order book soon. We keep our buy rating.
Simon Thompson recommendation WH Ireland (WHI) has issued strong half year results, bolstered by good equity market conditions and decent growth in its wealth management business. Revenues increased by 12.6 per cent to £14.7m, producing profits of £203,000, up from £59,000 last year. The company has increased its corporate broking clients from 84 to 92 and grown funds under management by almost 10 per cent to £2.7bn.
Asset location systems specialist Ubisense (UBI) will report a 40 per cent uplift in revenues to £17m when it publishes its first half results and it closed the period with an order book worth £16m. Our recommendation remains buy.
Simon Thompson recommendation Netcall (NET) says it has continued to perform well in the second half of the year to June and that it expects to report results ‘comfortably in line’ with expectations.
Mobile payments specialist Monitise (MONI) says it is deepening and extending its global alliance with IBM. Buy.
KEY STORIES:
After several months of struggles, Tesco (TSCO) has decided to replace chief executive Philip Clarke with the surprise announcement that it has appointed former Unilever man Dave Lewis, who will take over the reins in October. The company also reported that current trading conditions are ‘more challenging’ than anticipated at the beginning of June which means that sales and profits are ‘somewhat below’ expectations.
Salamander Energy (SMDR) has completed the sale of its 40 per cent interest in the Greater Bualuang Area in the Gulf of Thailand for $280m and said that the company is no longer in any talks with regard to a sale of the wider business.
Vets business CVS Group (CVSG) says that group revenue for the year to June rose by 6.9 per cent on a like for like basis with particular success in its Animed Direct online dispensary. The group acquired 10 practices and a pet crematorium during the year and now trades from 262 practices, five laboratories and three crematoria.
Ultra Electronics (ULE) has won a £9.9m contract with the New Zealand Ministry of Defence for two torpedo defence systems.
OTHER COMPANY NEWS:
LED specialist Dialight (DIA) is trading well, especially in its industrial lighting business. It grew half year revenues and underlying profits by 18 per cent at actual exchange rates with lighting revenues up by 46 per cent.
Shanks Group (SKS) says trading is going well in three divisions; hazardous waste, organics and UK municipal but struggling in its Benelux waste business.
Chinese outdoor clothing specialist Fraspens has announced its intention to float on Aim this morning.
Sticking with China, lottery business DJI Holdings, has this morning been admitted to trading on Aim after raising £15m from investors.
