Equities are flat this morning after yesterday’s minor sell off and despite Wall Street setting new records overnight. Click here for The Trader Nicole Elliott’s latest views on the markets.
IC TIP UPDATES:
Buy to let specialist and Simon Thompson recommendation Paragon Group of Companies (PAG) has issued a strong set of full year results reflecting ongoing buoyant trading conditions. Pre-tax profits rose by 17.2 per cent to £122.8m, allowing management to increase the dividend by 25 per cent to 9p a share. Buy to let completions in the year rose by 82.5 per cent and the forward order book is up 79 per cent to £415m. During the period the group also launching its own banking products and attracted £60.1m in deposits between June and September.
Engineer Renold’s (RNO) self help strategic plan appears to be gaining traction with underlying adjusted profits up by 67 per cent in the six months to September despite relatively flat revenues. Margins improved as costs were taken out of the business, setting the group up for the ‘organic growth’ part of the recovery plan. We keep our buy recommendation.
The return of more volatile market conditions in October was a boon to IG Group (IGG) after what was a downbeat first quarter of the year. Now management expects second quarter figures to show revenues ahead of its previous record. Buy.
Topps Tiles (TPT) enjoyed the rebound in the housing market during its year to September as revenues rose by 9.8 per cent and margins edged ahead, giving adjusted profit growth of 31.5 per cent at £17.1m. The total dividend for the year is 50 per cent higher at 2.25p. Like for like sales in the current year so far are 6.7 per cent ahead. We maintain our buy rating.
Full year results from Renew Holdings (RNWH) showed significant progress with revenues up 64 per cent at £464.5m and adjusted profits 65 per cent better at £16.1m. Meanwhile the group’s order book ended the year 21 per cent higher than last year at £439m. Buy.
Industrial adhesives business Scapa (SCPA) says that strong half year results, in which trading profits rose almost 15 per cent on a 2.8 per cent uplift in revenues, and continued improvement in margins means that full year results are now expected to come in ahead of market forecasts. We keep our buy recommendation.
Medical property company Assura Group (AGR) has had a busy half year with a number of key acquisitions helping to boost the value of its property assets by 21 per cent to £809m and its rent roll by 17 per cent to £49m. Buy.
Retail software specialist and Simon Thompson recommendation Sanderson (SND) enjoyed a boost in revenues from £13.8m to £16.4m in the year to September with recurring revenues now higher than 50 per cent of the total. Operating profit rose from £2.2m to £2.8m.
Breedon Aggregates (BREE) says group sales for the first ten months of its financial year are up by 20 per cent to £226m and the company is on course to post full year figures ahead of expectations. Buy.
KEY STORIES:
Severn Trent (SVT) has posted solid half year results with revenues rising by 2.7 per cent and underlying group profits up 10 per cent. Management says that discussions with regulator Ofwat with regard to the next five year period, AMP6, are progressing well ahead final determination next month.
Mitchells & Butlers (MAB) posted 4 per cent revenue growth for the year to 27 September with like for like sales growth of 0.4 per cent. Like for like sales growth in the first eight weeks of the current year is 2.4 per cent ahead of last year.
Advanced Computer Software (ASW) has attracted an offer from Vista Equity Partners worth 140p a share or £725m. Advanced Computer Software’s board are recommending the offer.
Bank note printer De La Rue (DLAR) has reiterated its recent warning that full year profits will come in around £20m lower than last year due to difficult trading conditions. Half year results showed an 8 per cent decline in revenues and a 37 per cent fall in underlying profits.
Online appliances retailer AO World (AO.) grew first half revenues from its website by 38.6 per cent to £173.7m with group revenues up 25 per cent to £217.1m and adjusted cash earnings more than doubling to £7.3m.
Shipping broker Clarkson (CKN) has announced the details of its proposed acquisition of Platou for £281.1m.
Kingfisher (KGF) continues to suffer from weak conditions in the French market as well as currency movements which saw total sales there slip by 9.3 per cent while UK sales rose 4.8 per cent in the 13 weeks to 1 November. Group sales for the period fell 3.6 per cent with profits down 11.8 per cent.
Convenience food specialist Greencore (GNC) grew like for like revenues by 7.4 per cent and overall revenues by 6.4 per cent in the year to September with profits coming in 15.5 per cent higher at £68.7m on an adjusted basis.
OTHER COMPANY NEWS:
Recently floated property website business Zoopla (ZPLA) enjoyed a 24 per cent rise in sales for the year to September with adjusted cash earnings up 35 per cent at £39.6m.
Thalassa Holdings (THAL) has warned that contract slippage and potential issues with a deal in Russia, where it has been unable to resolve the thorny issue of whether it will be subject to sanctions, mean full year figures are likely to undershoot expectations.
