Equities have continued to sell off overnight as tensions rise on the Arabian peninsula, sending oil higher. Click here to see what the Trader Nicole Elliott thinks of the latest moves in the markets.
IC TIP UPDATES:
Royal Bank of Scotland (RBS) has confirmed the final pricing for its planned sale of 24.7 per cent of Citizens, the US bank. By selling 135m shares at $23.75 each, RBS should raise $3.2bn, or up to $3.7bn should an over allotment option be taken up. Post-sale RBS will still hold 45.6 per cent of Citizens but is on deadline to sell the remainder by the end of 2016. We maintain our buy recommendation.
Recently merged energy services specialist Amec Foster Wheeler (AMFW) has reported flat revenues for 2014 of just short of £4bn although adjusted trading profits dipped by 5 per cent and reported profits fell by more than a third as the weak oil price environment and currency movements hurt the business. The coming year is expected to see a continuation of difficult trading trends but the business should see a £150m currency benefit. We reiterate our recent buy rating.
Budget airline easyJet (EZJ) has updated its forecasts at the end of its first half with the company now expecting first half earnings to come in between a £5m loss and a £10m profit, against previous expectation of a loss of £10m-£30m and last year’s loss of £53m. Over the full year exchange rate movements are expected to go against the business, but fuel price benefits will be bigger than previously expected. Buy.
Retailer SuperGroup (SGP) is unveiling its new strategy today, part of which involves buying back its licence in the US, Canada and Mexico at a cost of £22.3m, the creation of a new premium line in collaboration with actor Idris Elba and plans to commence dividend payments next year. We keep our buy rating.
Project management and technical consultancy specialist WYG (WYG) reports that recent trading has remained positive which is likely to result in full year profits surpassing current market forecasts of £5.25m. Buy.
The strong property markets continue to benefit land developer and construction specialist Henry Boot (BHY) which has reported a 54 per cent uplift in full year profits to £28.3m for 2014 and a 9.8 per cent increase in the dividend to 5.6p. We retain our buy recommendation.
Simon Thompson recommendation Safestyle (SFE) grew its share of the replacement windows and doors market to 8.5 per cent in 2014, its 10th consecutive year of market share growth. Volumes of frames installed rose by 7 per cent to a record with average unit prices and order values both up, driving underlying profit growth of 11 per cent to £17.8m.
Another Simon Thompson recommendation, FirstProperty (FPO), reports that the partnership it set up with Towers Watson in 2013 to convert offices to residential has sold its last two properties, which will result in a profit payment of £2.5m for First Property. In total the partnership has sold eight properties for a net profit of £16m on an investment of £30m. First Property’s total profit share is £4.8m.
Northern telecoms specialist KCom (KCOM) reports that trading remains in line with expectations. We keep our buy rating.
The Mission Marketing Group (TMMG) grew operating income by 7 per cent and headline profits by 10 per cent to £7.7m in the year to December and management expects more of the same in the coming year. Buy.
KEY STORIES:
Furniture retailer DFS (DFS) has announced its maiden interim results following its recent float. Sales for the six months to 31 January grew by 10.5 per cent to £431.2m with adjusted earnings up 16.5 per cent at £27.6m. The company opened four new stores in the UK, one in Ireland and its first continental European store in Holland during the period, giving it 105 stores.
Another recent float, Wizz Air (WIZZ) has reported good trading through its final quarter which is expected to see full year figures come in line with expectations.
Daily Mail & General Trust (DMGT) says its revenue and profit outlook for the full year remain unchanged after a flat performance in the first half to March. Underlying revenues at the DMG media have dipped slightly, but this has been offset by a modest improvement in performance at the Events business.
Plastic piping specialist Polypipe (PLP) enjoyed a strong 2014 during which revenues rose by 9 per cent to £327m and profits before exceptionals surged 53 per cent to £37.6m. Management is recommending a final dividend of 3p a share, on top of the interim dividend of 1.5p.
