After a roller coaster week, equities have started the day flat. Click here to find out The Trader Nicole Elliott makes of the markets.
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Construction specialist Kier (KIE) reports that it has been retained by public sector works body Scape Group as sole contractor for up to £1.5bn worth of construction and maintenance work over the next four years. The minor works framework covers small works with a value of £50,000 to £4m. We keep our buy rating.
Restaurant Group (RTN) has seen like for like sales rise by 2.5 per cent in the six months to 28 June with overall revenues growing 8 per cent to £334m as it continued to expand its restaurant portfolio. Pre-tax profits rose 10 per cent to £36.9m. The company opened 12 new sites in the first half and has already opened another nine since the end of June as it moves towards its target of up to 48 new sites during 2015. We maintain our buy rating.
Land development and property business Henry Boot (BHY) accompanied solid half year figures with news that chairman John Brown is stepping down from the board and will be replaced by current chief executive Jamie Boot at the year end with his role being filled by finance director John Sutcliffe. The half year figures showed a 7.4 per cent uplift in net asset value per share and a 4.5 per cent improvement in profits. Buy.
Professional services business Charles Taylor (CTR) has posted buoyant half year figures which showed revenues rising by 21.7 per cent to £69.1m and profits up 28 per cent at £5.3m. The half year saw significant activity including a fundraising, the launch of a Lloyd’s managing agency and acquisitions and investments in complementary businesses. Buy.
The improving UK economy has benefited landscaping products business Marshalls (MSLH) where revenues rose by 11 per cent in the first half of the year and profits by almost half to £20.8m. We reiterate our recent buy recommendation.
Infrastructure and support services specialist Stobart (STOB) reports that passenger numbers through Southend Airport dipped during the first half due to changes in routes by easyJet as it seeks to optimise its capacity on various routes. Meanwhile contracts signed with biomass customers should allow it to meet its target of delivering 2m tonnes of biomass a year by 2017/18. Elsewhere, the rail division is trading well. Buy.
Closed book life assurer Chesnara (CSN) grew first half profits from £27.4m to £30.4m, allowing for a 3 per cent uplift in the interim dividend. Future performance will be boosted by the acquisition of Dutch closed book business Waard Group, completed in May. We keep our buy rating.
Sell recommendation Exova (EXO) has announced the departure of its chairman and chief financial officer alongside its half year results. During the period the laboratory testing group posted reported revenue growth of 5.7 per cent and organic growth of 2.8 per cent at constant currencies with cash earnings up 1.4 per cent at £21.4m after a slight reduction in margins.
Revenues were flat for the first half at IT infrastructure and services business Computacenter (CCC) but prudent management and a number of one-off gains meant that adjusted profits rose by almost 14 per cent and full year figures will likely be ‘slightly ahead’ of expectations. Buy.
German property company Phoenix Spree (PSDL) grew profits by 87 per cent year on year in the first half of 2015 while its portfolio gained in value by 5.3 per cent. The company reports that conditions in its markets remain buoyant with German residential property market transaction activity at record levels. We repeat our recent buy recommendation.
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The three online gaming companies at the centre of a tug of love all report results today. Bwin.Party (BPTY), which is being pursued by both GVC (GVC) and 888 (888), saw revenues dip without the World Cup effect of last year but managed to edged its cash earnings up by 2 per cent to €47.3m. Recent trading has been tougher with EU VAT also hurting and daily net revenue has been 9 per cent lower in the past eight weeks. GVC, which is still in discussions with Bwin about rivalling 888’s offer, reported that wagers rose by 18.6 per cent in the first half with cash earnings 14 per cent higher – it reports current trading to be ‘strong’. Meanwhile 888, which has had its offer for Bwin recommended, grew like for like revenues by 9 per cent but saw its B2B revenues dip and reported a 10 per cent dip in adjusted profits, hampered by UK point of consumption tax and EU VAT.
Posh shoes business Jimmy Choo (CHOO) managed to grow net revenues by 6.5 per cent in the first half despite tougher industry conditions. Within this, retail sales grew by more than 9 per cent but wholesale revenues dipped by 5 per cent. The company remains on track to renovate or relocate up to 15 stores over the year with a further 10-15 new stores to be opened.
Engineer Rotork (ROR) has announced the acquisition of Bifold Group, an engineer of pneumatic and hydraulic instrument valves and components, for £125m.
Communications and public relations specialist Huntsworth (HNT) continues with a programme to restructure some of its businesses, which is reflected in flat revenues for the first half and reduced operating profits.
