Shares in London fell in early trading as concerns about the Greek economy returned. Click here for The Trader Nicole Elliott's latest thoughts on the markets.
IC TIP UPDATES:
Buy tip Unite (UTG) is planning to dispose of 13 student properties to a fund managed by Brookfield Asset Management for £295m. Unite’s share of the proceeds will be £102m. The portfolio includes student properties in Aberdeen, York and Liverpool and is part of Unite’s plan to recycle £150 to £200m in assets this year to reinvest in university locations. Buy.
Good news for AstraZeneca (AZN) this morning. The pharma giant’s trial of Lynparza in breast cancer patients has proved successful in a phase three trial. The results showed patients treated with Lynparza tablets showed a “statistically-significant” and “clinically-meaningful” improvement compared with those who received more standard forms of chemotherapy. They are also the first positive data for this kind of treatment beyond ovarian cancer. A spokesperson for the company said AstraZeneca would be working with regulators to make Lynparza available to patients with this type of breast cancer. Buy.
Hotel group Millennium & Copthorne (MLC) has blamed the Brexit-induced slump in sterling for poor results this morning. Revenue per available room (RevPAR) fell 2.3 per cent at constant currencies, whilst pre-tax profits fell as much as 13 per cent. But even at reported currencies, profits still fell flat. Chairman Kwek Leng Beng said revenues and profits had come under pressure in most major cities, with “significant” underperformance in New York and Singapore. Sell.
KEY STORIES:
Essentra’s (ESNT) full-year figures came up short of the lower end of profit guidance provided at the end of November, Essentra’s second downward steer of 2016. The plastic and fibre products group revealed adjusted operating profits of £132m for the year to the end of December – 23 per cent down at the going exchange rate and 29 per cent lower at constant currencies. The group has launched a strategic review to look at ways to turn the business around with many of the current difficulties traceable to ongoing integration issues with a specialist packaging division acquired from Clondalkin Group. Hold.
OTHER COMPANY NEWS:
Building materials company Kingspan (KGP) also has full-year numbers out this morning. Revenues grew 12 per cent last year to 3.1bn, boosted largely by acquisitions which contributed around 11 per cent to that number. Trading profits rose by a third, with the group crediting strong performances in the UK, and a clear recovery evident in much of Western Europe. That said, bosses there did admit the US was more “subdued” in the second half.
