After running up quite strongly over the course of last week, London shares are off a little in early trading today. Click here for The Trader Nicole Elliott's latest thoughts.
IC TIP UPDATES:
Millennium & Copthorne (MLC) shareholders will be pleased to see the shares up 22 per cent this morning as news emerges of a generous takeover offer. City Developments - the group’s largest shareholder and indirectly under the ownership of MLC chairman Kwek Leng Beng - has made a 552.5p cash offer (which includes a 7.5p special dividend) for the remaining stake it doesn’t already own. Group directors have called the offer “fair and reasonable” although a firm offer does not have to be agreed until 6 November. Move to hold.
Shares in Plant Impact (PIM) rose 3 per cent in early trading, after the specialist in crop enhancement products reported 17 per cent revenue growth (2 per cent at constant currencies) and a 19 per cent rise in gross profit. Research and development costs also rose considerably, helped by a placing that raised £4m. The company’s Brazil Veritas division, which generates most of its sales, reduced the overall topline because of lower grower consumption. Recommendation under review.
Shares in Impax Asset Management (IPX) were boosted another 8 per cent after reporting a 61 per cent increase in assets under management during the 12 months to the end of September. In its pre-close update, the sustainable investment specialist announced a 9 per cent increase in assets under management during its fourth quarter to £7.3bn. The group gained £2.1bn in net inflows over the year. Buy.
Full year results from data products and market research company YouGov (YOU) have beaten previously ambitious broker expectations. Strong demand for the group’s BrandIndex and Profiles products sent like-for-like revenues up 9 per cent, while margin improvements across all operating divisions sparked a 24 per cent increase in adjusted pre-tax profits. With YouGov now holding such a dominant position in a fast growing market, we retain our buy recommendation.
KEY STORIES:
It looks like Oxford-based engineering specialist TI Fluid Systems is taking a second run at getting a London listing. The company, which turned over €3.1bn in its most recent financial year, is looking at raising north of €400m in an initial public offering a year after it pulled plans to float due to market conditions.
Trinity Mirror (TNI) continues to battle challenges of the print publishing world. The owner of the Daily Mirror and Sun titles reported a 9 per cent drop in print revenues although this was slightly offset by rising demand for digital advertising. The publisher also reminded investors of its continued merger talks with Northern and Shell.
OTHER COMPANY NEWS:
Shares in Earthport (EPO) rose just over 1 per cent in early trading, after the cross-border payments specialist announced that it has been appointed by Swiss Euro Clearing Bank (SECB) to provide SWIFT payment processing services. This marks Earthport’s first client win in Germany.
Angling Direct (ANG), the fishing tackle and equipment retailer, reported 39 per cent revenue growth in the six months to the end of July, with gross profits up 35 per cent to £4.7m. The net cash position also improved. The company listed on Aim in July this year.
