Shares in London started the day positively but had given up what gains they had made by late morning. Click here for The Trader Nicole Elliott's latest thoughts on the markets.
IC TIP UPDATES:
In an update out today, North African driller SDX Energy (SDX) has provided an overview of its 2018 successful drilling programme. In Egypt, discoveries have demonstrated recoverable resources which could generate plateau production of 55-60 million cubic feet of gas and 500-600 barrels of condensate per day. In Morocco, sixty new leads have been found, and the company has said it is evaluating 12 drill-ready prospects for 2019. We remain buyers.
KEY STORIES:
Saga (SAGA) reported a 1 per cent rise in sales of its branded retail insurance products during the four months to the end of May, with motor and home new policies growing 30 per cent and 14 per cent, respectively. However, overall retail insurance policies were flat, following the closure of the Direct Choice brand. Tour bookings were also flat year on year, although bookings for new cruise ship, Spirit of Discovery, are now over 55 per cent of the sales target for the first 9 months from June 2019.
Given how much Dixons Carphone (DC.) has endured over the last few months - a profit warning and a data breach included - it’s a relief to see these final results don’t reveal any further surprises. In fact, despite a 24 per cent plunge in pre-tax profits, shares actually rose in early trading. Like-for-like sales across the UK rose by 2 per cent over the last year, but that compared to a 4 per cent growth rate the year before. And on an underlying basis, domestic growth was actually flat as UK margins continued to come under pressure at the hands of a sluggish mobile market and a shift in the sales mix towards electronics and white goods.
Defence contractor Chemring (CHG) reported a 5 per cent rise in profits due to increased defence spending by the Pentagon. Underlying operating profits increased to £18.1m at the half-year mark, representing a 5.2 per cent rise on the 2017 interim. A weakening US dollar meant the group's order book at the end of April was £442m, down from £556m a year earlier, though analysts at Peel Hunt reckon “the underlying business is performing well with a better underlying trading environment overlaid with self-help initiatives that have driven much improved margins and lower net debt”.
