Shares in Europe and Asia are up marginally today, while Wall Street looks set for further gains. Click here for The Trader Nicole Elliott's latest thoughts on the markets.
IC TIP UPDATES:
In spite of the distinctly chilly weather this week, Next (NXT) says the warmer start to autumn has weighed on high street sales. Third quarter retail sales fell by 8 per cent, although this was more than offset by a continually strong performance onlines, where sales rose by nearly 13 per cent. This left total full price sales (including interest income) up 2 per cent for the period, and 3.7 per cent year-to-date. As a result, management is hanging on to its current market guidance for the full-year, expecting total full price sales growth of 3 per cent, and pre-tax profits of £727m, equating to EPS growth of 5 per cent. We remain buyers.
Shares in Anglo Pacific Group (APF) are up 3.5 per cent this morning, after the commodities royalty group reported a 27 per cent increase in third-quarter revenues. Strong prices at Kestrel helped to power much of that rise, though tightness in the vanadium market also helped – as Maracás Menchen posted a 148 per cent increase in royalty income to £1.4m. We remain buyers.
Just Group (JUST) shares rose 5 per cent in early morning trading after the life assurer reported a 17 per cent rise in new business sales to £765m during the third quarter. Defined benefit derisking sales led the way, up more than a third to £363m. Lifetime mortgage sales also jumped a quarter to £170m. It awaits the outcome of the Prudential Regulatory Authority’s review into equity release mortgages. Buy.
Shares in ULS Technology (ULS) fell by nearly 20 per cent after the online conveyancing specialist indicated that transactional volumes in the secondary housing market remain weak. However, profits for the year to March 2019 are expected to be in line with management estimates, and revenue in the six months to September 2018 edged up by three per cent. The Brexit effect is clearly having an influence on volume, and second half revenue will come under pressure. However, the group’s longer-term prospects remain intact, and recent weakness provides an ideal buying opportunity. Buy.
William Hill (WMH) has made an offer to acquire online gambling business Mr Green & Co for £242m. The digital gaming business operates under brands including Mr Green and Redbet in 13 markets, and holds remote gambling licences in Denmark, Italy, Latvia, Malta, Great Britain, and Ireland, and expect to obtain licences in Sweden by year end. The deal is meant to increase William Hill’s proportion of revenue and profit from digital gambling and outside the UK. Shares were up 6 per cent in early trading. Buy.
KEY STORIES:
Shares in Standard Chartered (STAN) were up 5 per cent in early trading after the lender reported consensus-beating adjusted pre-tax profits for the third quarter of $1.1bn, which were up 31 per cent on the same time the prior year. That was primarily due to a better-than-expected performance on impairments, which were down more than half to $408m.
Property developer Watkin Jones (WJG) expects to see revenue and profits for the year to September 2018 ahead of previous estimates. A total of 10 student accommodation developments were completed during the year, and another four developments have been agreed on a forward funded basis. It also has a build-to-rent pipeline of around 1,500 apartments including a deal to build 315 apartments for M&G Real Estate. Buy
OTHER COMPANY NEWS:
Gem Diamonds’ (GEMD) Letšeng mine has hit a record for 100-plus carat recoveries in a calendar year, after the thirteenth such diamond was mined this month. Third quarter figures showed an increase in both tonnes treated and carats recovered, with the period ending on $57.9m of cash attributable to Gem.
Like-for-like sales at PPHE Hotel Group (PPH) increased by 4.5 per cent to £114m during the third quarter, with revenue per available room up across all the hotel group’s markets. Comparable average room rate increased 2.5 per cent to £128.70, with occupancy up 270 basis points to 86.6 per cent most notably in the UK and Germany. A £190m real estate investment programme is underway which includes new hotel developments and repositioning projects. Shares were up 1 per cent in early trading.
