Shares in London slipped into reverse on Friday morning. Click here for the latest thoughts of The Trader Nicole Elliott.
IC TIP UPDATES:
Verona Pharma’s (VRP) second phase trial into the efficacy of its drug - RPL554 - in cystic fibrosis patients has been successful. The news sent the group’s shares up 15 per cent in early trading. The drug has completed two further phase two trials in asthma patients and is expected to announce results of a further study into long term care for asthma patients within the next few months. Buy
Production from Amerisur Resources’ (AMER) two fields, Platanillo and Mariposa-1 averaged 6,749 barrels of oil a day in February, though exports from the OBA pipeline were short of that figure at an average of 5,424bopd. This morning, the Colombia-focused E&P also said that the OBA pipeline has now paid for itself, 15 months after coming into operation. Average transport costs are now just $4 a barrel, thereby reducing per-barrel operating expenditure to $15. We will revisit our buy call at full-year results.
KEY STORIES:
Spire Healthcare’s (SPI) full year results make for pretty dismal reading. Revenue is flat on the previous year and net profits dropped by a quarter, even after excluding the settlement costs relating to the activities of disgraced cancer doctor Ian Patterson and other exceptional charges. For investors, the big question is whether Spire’s shares - which fell to their 52 week low off the back of these results - have finished falling.
Markets and trade commissioners around the world have reacted uneasily to comments from Donald Trump that he intends to raise tariffs on imports of steel and aluminium, an event we previewed last week. Evraz (EVR), which has steelmaking operations in both Russia and North America, and which published stellar results yesterday, is off 3 per cent in early trading.
London Stock Exchange (LSE) reported a 17 per cent increase in sales last year to £1.77bn. That was driven by its information and post-trade services businesses. FTSE Russell continued to be a strong performer, with sales up almost a third. Management recommended an increase in the total dividend of almost a fifth.
OTHER COMPANY NEWS:
Mercia Technologies (MERC) has sold Science Warehouse, one of its leading direct investments, to Advanced Business Software and Solutions for £16.9m. Mercia is set to receive proceeds of £10.5m and see an immediate realised gain of £0.6m. The sale marks a 14.2 per cent return on Mercia’s investment cost of £9.2m.
