Equities in London are off slightly at the end of a difficult week. Click here for The Trader Nicole Elliott's latest thoughts on the markets.
KEY STORIES:
Shares in engineer Smiths Group (SMIN) rose to an all time high in response to half year results which trumped expectations. The company is enjoying strong demand in its security businesses which is mitigated some tougher trading conditions elsewhere. Overall headline reported revenues rose by 18 per cent with profits on the same basis up by 31 per cent.
Despite a concerted effort, Acacia Mining (ACA) has failed to change the Tanzanian government’s decision to ban exports of gold and copper concentrate, which came into effect 3 March. The gold producer also told the market today that its Bulyanhulu and Buzwagi mines, which have been hit by the directive, have sufficient capacity to place concentrate into containers on site beyond April, though “other measures may be necessary” if the ban continues into 2017.
The one bright spot in a predictably terrible set of full-year accounts for Lamprell (LAM) was the year-end cash balance, which came in at $275m. Aside from that, 2016 proved to be very tough. Cash profit margins more than halved, meaning post-tax profit was essentially at break-even, even before deducting for exceptional items. Unfortunately, these came in at $181m, owing to a goodwill impairment of Maritime Industrial Services, acquired in 2011. This year, the outlook remains very challenging, with full-year revenue expected to be between $400m and $450m in the absence of large projects.
OTHER COMPANY NEWS:
Shares in CPP Group (CPP) fell 12 per cent this morning after the group announced the departure of its chief financial officer, Michael Corcoran. He will leave the assistance services provider on April 30th and the search for his replacement is underway.
