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The Markets
Shares across Europe posted gains on news that Eurozone finance ministers have agreed to lend the Spanish banking sector 30 billion euros before the end of July. It had been anticipated earlier in the week that ministers would fail to reach an agreement on the terms of a loan, which would have delayed the release of funds. The payment will be the first installment of the 100 billion euro bailout package that the European Union and International Monetary Fund agreed in June. In the UK, the Office for National Statistics confirmed the nation's trade gap narrowed in May thanks to a significant boost in exports. The deficit fell from 4.1 billion pounds in April to 2.7 billion pounds last month as the goods deficit narrowed from 9.7 billion pounds to 8.4 billion pounds and services showed an unchanged surplus of 5.6 billion pounds. Meanwhile other data showed manufacturing output unexpectedly rose by 1.2% in May, although this was attributed primarily to an extra working day as a result of a postponed bank holiday. At the London close the Dow Jones was up by 13.85 points at 12,750.14 and the Nasdaq was down by 12.99 points at 2,597.32.
In London the FTSE 100 gained 47.81 points to 5,675.14; the FTSE 250 finished 94.12 points ahead at 11,077.46; the FTSE All-Share rose by 24.30 points to 2,942.46; and the FTSE AIM Index climbed by 4.60 points to 696.92. 
Broker Notes Daniel Stewart maintained its "buy" rating for Software Radio Technology (SRT) with a target price of 50p. The shares have been heavily impacted by delays to EU orders, with revenues for the year ended 31st March 2012 falling by 33% to 6.2 million pounds. However, the broker maintained that this impact will be reversed by the 2014 financial year, it forecasting revenues of 17.6 million pounds. Daniel Stewart added that the company is the market leader in maritime safety positioning communications and that the large scale nature of orders can lead to unpredictable timing. The shares were unchanged at 21.25p. Panmure Gordon reiterated its "buy" recommendation for Kingfisher (KGF) with a 350p target price. The broker previously expected the DIY specialist's B&Q business to report like-for-like sales growth of 4% in the second quarter, recovering from an 11.7% decline in the first. However, in light of the heavy rain, Panmure now forecasts growth of just 1%, noting that 40% of B&Q's sales are related to outdoor activities. However, the broker added that, despite these downgrades, the shares trade on a prospective multiple of just 11 times for 2013. Kingfisher shares advanced by 5.4p to 274.1p. 
Shore Capital retained its "sell" stance on Intercontinental Hotels Group (IHG), noting that the shares are trading at record highs and a prospective 2012 earnings multiple of 18 times. The broker said that the proceeds of the sale of the firm's New York Barclay hotel for 200 million pounds will be returned to shareholders. However, Shore believes that any value added to shareholders will be offset by the ensuing 10 million dollar (6.4 million pound) decline in annual profits. The shares grew by 16p to 1,564p. Blue-Chips Former chief executive of Barclays (BARC), Bob Diamond, has agreed to waive the rights to his deferred bonus awards and long term share incentives, believed to be worth some 20 million pounds. He has also opted out of his annual bonus, but will receive up to one year's salary, around 2 million pounds, as he "support[s] the transition to the new chief executive". Diamond was grilled by the Treasury Committee on Wednesday 4th July and today it was the turn of the banks' chairman Marcus Agius. Barclays shares rose by 4.15p to 167.55p. 
Marks & Spencer (MKS) reported a 0.7% year-on-year fall in revenues for the 13 weeks ended 30th June 2012 on a constant currency basis, but 3.5% lower at actual rates due to the weakening of the Euro. In the UK, the firm saw sales fall by 0.9%, with 2.9% growth from its food business wiped out by a 5.1% fall in general merchandise. The group attributed the decline to its exit from technology retail and a weak demand for big ticket items. However, M&S added that demand in India and China remained strong, with double digit growth. Brokers seem unsure what to do with M&S. Shore Capital rates the shares as a "buy", pointing to the strong balance sheet, with debt to EBITDA of 1.9 times and 5.5 times interest cover, and the appointment of Belinda Earl as style director, bringing her wealth of experience in the British clothing industry. Seymour Pierce has a "hold" rating on the firm, attracted by the 5% dividend yield, but noting that its peers offer better investment opportunities. Investec Securities finishes the spectrum with a "sell" recommendation, convinced that the decline of the higher margin clothing division will continue to outstrip gains made by food. The shares gained 6.8p to 327.8p. Mid-Caps Construction company Interserve (IRV) announced that it had secured 1 billion pounds of new work in 2012, including contracts with the Ministry of Justice and Highways Agency. The Construction division has performed in-line with the group's expectations, and it also noted strong growth from its equipment services division in the Middle East and Australasia. During the period, the firm disposed of its interest in the University College London Hospitals project, which will generate 35 million pounds of cash. Interserve shares jumped by 20.2p to 337.5p. Share in Bwin.party Digital Entertainment (BPTY) dropped by 2.9p to 104.9p after it warned that the Euro 2012 Championship delivered lower than expected margins due to a large number of games proving too predictable. The betting company also warned that additional gaming taxes in Germany are likely to impact EBITDA by between 5 and 10 million euros (3.96 and 7.92 million pounds) in the current year. Meanwhile, the group noted that its casino and bingo businesses remained strong and that it had achieved a top three market position in Spain. 
Big Yellow Group (BYG) reported a 183,000 square foot rise in occupancy during its first quarter, ended 30th June 2012, up from 162,000 square feet in 2011's comparable period. The self storage company achieved revenue growth of 10% to 16.9 million pounds from its 54 wholly owned stores, and 19% to 8.7 million pounds from its 12 partnership stores, with closing occupancy across all stores of 2,255,000 square feet, 65.7% of total capacity. The shares edged up by 1.1p to 294.9p. Small Caps, AIM and PLUS ASOS (ASC) shares surged by 199p to 1,843p as the online fashion retailer's results for the three months to June beat market expectations, with the company unveiling year-on-year revenue growth of 31% to 141 million pounds. UK retail sales grew by a modest 8% to 48.1 million pounds, a respectable result considering the state of the UK economy, while international sales surged by almost 50% to 88.8 million pounds. Despite being one of the firm's smallest markets to date, ASOS saw an 83% surge in US sales to 12.95 million pounds, with this market providing a promising future for the business. Seymour Pierce maintained its "hold" stance on the firm, believing there is limited upside for the shares due to their high rating, while Canaccord Genuity stuck with its "buy" recommendation, describing the figures as 'encouraging'. Sphere Medical Holdings (SPHR) has received the first order for its cardiopulmonary bypass monitors from one of Europe's largest medical technology firms, Sorin Group, deliverable in the final quarter of the year. The two companies signed a development and supply agreement in 2008 and this order represents the first sale of the monitors, which will initially be used by Sorin in market assessment studies. Satisfactory completion of the studies is expected to lead to a European launch of the cardiopulmonary bypass monitors during the first quarter of 2013. With Sorin being a market leader in the treatment of cardiovascular diseases, Sphere believes it is an ideal commercialisation partner to address this important market. Sphere Medical shares climbed 2.5p to 77p. Financial services and spreadbetting provider London Capital Group (LCG) warned investors that adjusted pre-tax profits for the six months to June would be down a third at 2 million pounds thanks to low market volatility and volumes. This excludes a provision of 1.9 million pounds relating to Financial Ombudsman Service claims. Despite this, the firm's retail spreadbetting and contracts for difference business continued to trade well with revenues climbing 10% over the period with client acquisitions growing by 4.2%. The group also noted it had recently added a number of significant new white label partners which were due to commence trading in the second half of the year. London Capital shares slipped by 7.5p to 65p. 
Eco Animal Health (EAH) has been awarded marketing authorisation in the US by the Centre of Veterinary Medicine of the Federal Drugs Administration for its Aivlosin 625mg/g water soluble granules for the treatment of swine. The approval is Eco's first in the US and follows a recent Canadian approval, with chairman Peter Lawrence commenting "we are delighted...this key milestone follows some 12 years of investment in product development and regulatory activity in North America". North America represents more than a third of the world market for Eco's products and will imminently benefit future profit growth. The firm's excitement radiated through to the market, with its shares jumping 37.5p to 260p. Tikit Group (TIK), the provider of software services to legal and accounting firms provided a pre-close update ahead of the release of its results for the six months to June, confirming that trading was in line with market expectations. While total revenue is expected to be similar to the comparable period in 2011, sales derived from the sale and support of Tikit-owned software, such as Template Management System, has continued to increase in line with its strategy. The company concluded by noting that cash generation over the first half was 'excellent' and that net cash at 30th June was significantly higher than the corresponding figure in 2011. The shares inched 2.5p higher to 320.5p. Biotechnology firm Silence Therapeutics (SLN) responded to recent press speculation regarding a potential fund raising by confirming that it remained in advanced discussions to raise additional funds. The group commented it hopes to secure sufficient funding to meet its research and development and marketing commitments through to the end of 2013. Silence shares closed 0.075p lower at 0.9p. | 
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