Equities in London have started the week flat despite a stronger showing from Asian markets overnight as the summer lull kicks in. Read The Trader Nicole Elliott’s latest thoughts on the markets.
IC TIP UPDATES:
Energy Assets Group (EAS) reports that trading has been strong in the past quarter with total revenues up by 53 per cent on last year with recurring revenues up by 45 per cent and now accounting for 65 per cent of the total. Following last week’s long term deal with British Gas, we retain our buy recommendation.
Simon Thompson recommendation Air Partner (AIP) has taken a dip this morning after the company said that a lack of sizable ad hoc contracts in the difficult to predict commercial jet space will dampen results for the half year to July when profits are likely to be £1.1m.
Another Simon Thompson recommendation, Tristel (TSTL), continues to trade strongly with second half revenues up by 9 per cent on last year and full year revenues 27.7 per cent better. The strength of its second half performance had led to a fifth profit upgrade this year with management now expecting to beat forecasts which were only adjusted last month.
KEY STORIES:
National Grid (NG.) says that trading continues in line with expectations and that it expects to deliver ‘another year of solid operational and financial performance’.
Mothercare (MTC) has issued a statement welcoming the decision of US rival Destination Maternity to confirm it is no longer seeking a takeover of the business.
Reckitt Benckiser (RB.) has reported solid full year results despite what it describes as ‘challenging’ markets. Like for like net revenues at constant exchange rates rose by 3 per cent with adjusted operating profits up by the same margin at £1.08bn. Meanwhile, management has confirmed that it is now planning to demerge its RB Pharmaceuticals business via an initial public offering in the UK.
Great Portland Estates (GPOR) saw the value of its portfolio rise by 3.8 per cent in its first quarter to 30 June, which means it is up by 18.3 per cent over the past year. The company is actively developing its portfolio, which is central London-focused, with 2.3m square feet, or 54 per cent of the portfolio, currently covered by development plans.
Set top box maker Pace (PIC) posted a 13.6 per cent decline in revenues for the six months to June, which was in line with management’s expectations, and pre-tax profit growth of 9.3 per cent to $55.4m. The company is expecting second half performance to pick up with new product launches to come across various markets.
Budget retailer B&M European Value (BME) says group sales in the 13 weeks to 28 June rose by 31.9 per cent with the UK business up by 22.6 per cent or 6 per cent in a like for like basis.
Assets under management at Aberdeen Asset Management (ADN) took a hit during the nine months to June as a single client withdrew £4bn of assets under management from its Asia Pacific and global equities strategies. Overall assets under management have dipped by 0.6 per cent to £322.5bn since 31 March.
OTHER COMPANY NEWS:
Cranswick (CWK) says that revenue in the three months to 30 June was up 5 per cent on the previous year with operating margins at a similar level to last year.
Two solar power investment funds have announced acquisitions in the UK. The Bluefield Solar Income Fund (BSIF) has bought two wind farms in Devon and Somerset with a total capacity of 14.5MW for a total consideration of £15m. Meanwhile, the Next Energy Solar Fund (NESF) has spent £18m on a single 14.9MW solar project in Suffolk.
