Shares in London are ending the week on a slightly downbeat note. Click here for The Trader Nicole Elliott's latest thoughts.
IC TIP UPDATES:
Character Group (CCT) has extended its licence with DHX Brands to make Teletubbies toys for another three years, giving the Aim-listed company worldwide manufacturing rights with UK distribution. Character Group is planning to add new plush and plastic toys to the range inspired from new elements from season two, which launched earlier this year. It first began the partnership with DHX Brands in 2014 and re-launched the Teletubbies brand in 2016 and was the best-selling new toy property in the UK that year. Shares were up nearly 4 per cent in early trading. Buy.
EasyJet (EZJ) is not taking the uncertainty around Brexit lightly. The budget airline is well on its way to launching a new airline, dubbed easyJet Europe, which will be headquartered in Vienna and will allow easyJet to continue to fly across Europe after the UK has left the EU, regardless of the outcome of negotiations for a UK-EU aviation agreement. Earlier this year easyJet applied to Austro Control for an Air Operator Certificate and to Austria’s Federal Ministry for Transport, Innovation and Technology for an airline operating licence, and says the process is now “well advanced”. Shares were up nearly 2 per cent in early trading. Buy.
KEY STORIES:
Carillion (CLLN) has announced its appointment of HSBC as Joint Financial Adviser and Joint Corporate Broker. This follows a profit warning issued by the construction and support services company on Monday 10 July, along with the departure of chief executive Richard Howson, which sent shares in the company plummeting. Following the announcement about HSBC on Friday, shares were trading up 7 per cent.
Dixons Carphone (DC.) only announced results a couple of weeks ago, but the electricals retailer is back in the news this morning, announcing plans to sell its holdings in Spanish businesses The Phone House, Connected World Services Europe and Smarthouse to Global Dominion Access, a provider of technological services and solutions headquartered in Bilbao. The transaction will net Dixons around €55m (£48.4m), payable in two tranches. At this stage management says those proceeds will be reinvested into the business.
OTHER COMPANY NEWS:
Investors in Pantheon Resources (PANR) needed some good news, and were duly rewarded this morning after the Texan driller struck revised terms with Kinder Morgan to install and operate a 15mmcfd gas processing facility. Once online, potentially by mid-September, Pantheon expects to generate net cash flow of $1.5m a month. The shares are up 18 per cent this morning, though still down more than a quarter since the start of the year.
