Traders in London remain in an uncertain mood with the FTSE100 down marginally in early trading while mid and small caps indices are showing small gains. Click here for The Trader Nicole Elliott's latest thoughts on the markets.
IC TIP UPDATES:
Oil and gas services specialist Hunting (HTG) has bought another offshore technology company, spending $33m (£26m) on Enpro Subsea, or 10 times 2019 cash profits. The new company develops technology focused on upping recoveries, outsourcing the actual manufacturing. Hunting has been hit hard by the onshore shale slowdown in the US, with spending falling in the last months of 2019. Last year, Hunting also bought fellow subsea technology company RTI Energy Systems last year for $12.5m. Sell.
KEY STORIES:
Pearson (PSON) posted flat underlying revenues for 2019, with declines in US Higher Education Courseware (HEC) offsetting growth elsewhere. Adjusted operating profits landed at £581m, up from £546m. Statutory profits came in at £275m, down from £553m. This decrease was largely because of reduced gains on disposals and higher intangible and restructuring charges. Pearson cited progress on its digital transformation, with a digital, digitally-enabled and non-digital revenue split of 36:30:34 (2018: 34:28:38) . The sale of Penguin Random House should close in the first half of 2020. Excluding this, Pearson anticipates full-year adjusted operating profits of £410m-490m. US HEC trends are expected to continue, with heavy declines in print partly offset by “modest growth” in digital. Other parts of Pearson are expected to see low single-digit sales growth.
OTHER COMPANY NEWS:
James Fisher (FSJ) has announced a four-year extension to its contract to supply the Royal Australian Navy with its submarine escape and rescue system. Running until December 2023, there is an option to further extend the contract to the end of 2024. The new contract is worth £35m. Shares are up 3 per cent.
Halma (HLMA) has acquired Maxtec, a Utah-based specialist in products for respiratory care, for $20m (£15.3m) in cash.
Oil and gas services specialist Hunting (HTG) has bought another offshore technology company, spending $33m (£26m) on Enpro Subsea, or 10 times 2019 cash profits. The new company develops technology focused on upping recoveries, outsourcing the actual manufacturing. Hunting has been hit hard by the onshore shale slowdown in the US, with spending falling in the last months of 2019. Last year, Hunting also bought fellow subsea technology company RTI Energy Systems last year for $12.5m. Sell.
KEY STORIES:
Pearson (PSON) posted flat underlying revenues for 2019, with declines in US Higher Education Courseware (HEC) offsetting growth elsewhere. Adjusted operating profits landed at £581m, up from £546m. Statutory profits came in at £275m, down from £553m. This decrease was largely because of reduced gains on disposals and higher intangible and restructuring charges. Pearson cited progress on its digital transformation, with a digital, digitally-enabled and non-digital revenue split of 36:30:34 (2018: 34:28:38) . The sale of Penguin Random House should close in the first half of 2020. Excluding this, Pearson anticipates full-year adjusted operating profits of £410m-490m. US HEC trends are expected to continue, with heavy declines in print partly offset by “modest growth” in digital. Other parts of Pearson are expected to see low single-digit sales growth.
OTHER COMPANY NEWS:
James Fisher (FSJ) has announced a four-year extension to its contract to supply the Royal Australian Navy with its submarine escape and rescue system. Running until December 2023, there is an option to further extend the contract to the end of 2024. The new contract is worth £35m. Shares are up 3 per cent.
Halma (HLMA) has acquired Maxtec, a Utah-based specialist in products for respiratory care, for $20m (£15.3m) in cash.
