Investors in London are holding their fire as they try to assess the latest news in Turkey's growing row with the US. Click here for The Trader Nicole Elliott's latest thoughts on the markets.
IC TIP UPDATES:
There’s not too much investors could have asked from Hochschild Mining (HOC) in the first half of 2018. Production and costs is trending within their guided range, gold and silver output is up and exploration is even starting to add announces to the reserve pile. On the financial side, net debt is down, the interim dividend is up and earnings (before bond redemption charges) are improved. Unfortunately, silver and gold prices tell a different story, and explain why the stock is again down today. Under review.
Shares in Lookers (LOOK) held up on the release of interim numbers from the motor retailer as sentiment about the British car industry improves. Thanks to the timely disposal of a property for £7.6m, the group reported a 2 per cent improvement in pre-tax profits, on sales which rose 5 per cent to £2.58bn. That left statutory EPS up 7 per cent to 9.71p, allowing for a steady 5 per cent hike in the interim dividend to 1.48p. We remain buyers.
KEY STORIES:
A focus on margins and quality of earnings helped to push Balfour Beatty’s (BBY) pre-tax profit from £20m to £50m compared with the same half-year period of 2017. This was despite the fact that revenue fell more than £300m year on year from £3.54bn to £3.22bn, which left the group with a pre-tax margin of 1.6 per cent. The dividend rose from 1.2p a share to 1.6p and the infrastructure heavyweight paid down $45m of US loans and redeemed £39m of its bonds.
OTHER COMPANY NEWS:
Telit Communications (TCM) announced late yesterday morning that it has appointed Paolo Dal Pino as independent non-executive chairman, effective 1 September this year – subject to routine due diligence. He was previously chief executive of Prometeon Tyre Group, and has over 25 years’ experience in the technology media and telecom (TMT) sector. Telit’s interim chairman Simon Duffy – who was appointed as such on 25 June 2018 – will step down and return to his role as senior independent non-executive director. Meanwhile, Miriam Greenwood – who re-joined the board on an interim basis on 25 June – will step down as planned on 1 September.
After market-close yesterday, Ion announced its compulsory acquisition of those Fidessa (FDSA) shares held by shareholders who have not yet accepted its offer. These shares will be acquired compulsorily on 26 September 2018, under the same terms as the offer. This is unless any remaining Fidessa shareholders who haven’t accepted the offer apply to the court and the court orders otherwise. Back on 3 August, Ion announced that its offer had been declared unconditional in all respects.
EVR Holdings (EVRH) – the creator of virtual reality music content – has announced an exclusive multi-year partnership with Alexandra Palace, a venue hosting live music, sport and other events.
Gem Diamonds (GEMD) has made its twelfth 100-plus carat diamond recovery of 2018. The find, a 138 carat, top white colour Type IIa diamond, further burnishes the credentials of the Letšeng mine in Lesotho, which Gem says has the “highest dollar per carat kimberlite” in the world. The shares are up 3 per cent this morning, and 63 per cent up in 2018.
Savannah Petroleum (SAVP) has been similarly successful in its excavation activities this year. Today the West African-focused oil and gas driller announced its fourth consecutive discovery in its exploration programme in the R3 Agadem Rift basin in East Niger. The shares are unmoved.
