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From UK-Analyst.com: Tuesday 27th November 2012
The Markets Finance ministers and the International Monetary Fund have finally reached a deal on a bailout agreement for Greece after days of negotiations in Brussels. Both parties have agreed to slash Greece's debt by 32 billion pounds and have agreed in principle to pay the country 35.6 billion pounds in this installment of bailout loans. Greek Prime Minister Antonis Samaras praised the deal, saying "a new day begins for all Greeks". As a result the FTSE 100 opened up 0.8% at the start of trading, reversing losses from Monday. Elsewhere, the Organisation for Economic Co-operation and Development (OECD) has warned that decisive policy action is needed to ensure the world is not plunged back into recession. The group warned that the Eurozone recession could be deeper and more prolonged than anticipated and highlights the threat that the US fiscal cliff brings. Secretary General of the OECD, Angel Gurria said "The US fiscal cliff, if it materialises, could tip an already weak economy into recession, while failure to solve the Euro area debt crisis could lead to a major financial shock and global slowdown". Across the pond, early indications suggest that the US had its biggest ever online shopping day on Monday. Online-sales tracker IBM Benchmark reported an almost 27% rise in sales compared with the Monday after Thanksgiving last year. Smartphones and tablets did particularly well, as sales rose by 10.2%. Industry analysts Forrester Research said "The web is becoming a more significant part of the traditional brick-and-mortar holiday shopping season" as total consumer spending in the country reached 59.1 billion dollars (47.8 million pounds) over the holiday weekend. At the London close the Dow Jones was down by 36.73 points at 12,930.64 and the Nasdaq fell by 5.97 points to 2,645.70. In London the FTSE 100 increased by 12.99 points to 5,799.71; the FTSE 250 finished 23.58 points up at 11,867.18; the FTSE All-Share was up 6.58 points to 3029.47; and the FTSE AIM Index fell by 2.34 points to 688.78.  Broker Notes Seymour Pierce maintained its "buy" recommendation on real estate investment trust Shaftesbury (SHB) with a target price of 573p. The broker noted that the refurbishment of the firm's Shaftesbury Estate, with restaurants and new roads, has helped revenues to more than double. Seymour Pierce is impressed with the firm's plans to carry out similar work at its Lazenby House and Fouberts Place sites and sees potential for further revenue growth as a result. The broker is also of the persuasion that the investment spotlight brought about by the Olympics will boost the fundamentals of the company for some time to come. The shares gained 3p to 548p. FinnCap initiated coverage on Seeing Machines (SEE) with a "buy" recommendation and a target price of 3.5p. The broker believes the Canberra-based face and eye tracking technology company is at a turning point as new management have now had time to work their "fresh enthusiasm" into the company. FinnCap is certain that there is a growing requirement for the company's technology in many markets and point to the recent 2012 full year results in which revenues grew by 16% to 5 million Australian dollars (3.27 million pounds) as proof of the growing demand for the company's products. The shares climbed by 0.25p to 2p. Panmure Gordon reiterated its "buy" stance on beef producer Zambeef (ZAM), increasing its target price from 45p to 53p. The broker is impressed with the 94% increase in adjusted profit before tax to 255 million dollars (159.1 million pounds) illustrated in the 2012 financial year results. The broker goes on to state its belief that Zambeef is uniquely positioned, through its "vertically integrated businesses" model, to capture the anticipated strong demand growth for all major proteins in Zambia. The shares fell by 1.125p to 43.125p. 
Blue-Chips Mining business Xstrata (XTA) has commenced production of commercial grade copper from its Antapaccay copper mine in southern Peru and has delivered its first shipment to Matarani Port for delivery to customers around the world. The mine is expected to produce an average of 160,000 tonnes of copper in concentrate per annum and has a projected mine life of over 20 years. The shares dropped by 5p to 1,011.5p. Utilities giant Severn Trent (SVT) reported an 85.1% rise in profit before tax to 120.9 million pounds for the 6 months ended 30th September. However, underlying profit before interest and tax fell by 2.6% to 267.2 million pounds after the firm invested 239 million pounds in improving networks and customer service. Despite the drop, the firm said that it is in-line to deliver full year expectations. Severn Trent also raised the interim dividend by 8.2% to 30.34p per share. The shares were down by 2p at 1,544p. Telecoms giant Vodafone (VOD), announced that its M-Pesa service will be available to customers in Kenya from today. The M-Pesa service will give customers access to savings accounts and give them the capability to take out small loans. Vodafone worked on the project with the Commercial Bank of Africa, which offered its expertise in savings and loans, allowing customers to earn interest from their savings. The shares lost 0.75p to 156.9p. ________________________________________________________________________
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Mid Caps Soft drinks company Britvic (BVIC) announced a 0.8% drop in revenues to 1.256. billion pounds, driven by a costly recall of its Fruit Shoot product. The group reported a 19.7% drop in profit before tax to 84.4 million pounds, with this being blamed on negative macro-economic trends and a cold, wet summer across most of its markets. Earlier this month the company reported that it had agreed a 1.4 billion pounds merger with rival and Irn-Bru producer A.G Barr. The shares decreased by 4p to 396p. Communications provider KCOM Group (KCOM) reported a 4.7% drop in revenues to 188.7 million pounds but a 2.2% increase in profit before tax to 27.6 million pounds for the 6 months ended 30th September. The increase in profitability was boosted by a strong performance in the initial deployment of its super-fast broadband service in Hull and East Yorkshire. The firm intends to treble the number of homes it reaches with the next phase of fibre deployment. Over the period the company's net debt increased by 25.6% to 94.3 million pounds as it invested in rolling out its new broadband service. The shares tumbled by 1.85p to 69.45p. Military equipment producer Chemring (CHG) has branded its 2012 performance as "extremely disappointing" and that its trading has been in line with the downgraded expectations it issued earlier in the month. Chemring announced its second profits warning in less than 3 months, cutting its profits outlook by over a quarter after technical problems and delays to contracts, early in November. This uncertainty seems likely to continue for some time as the US defence market remains vulnerable to ongoing budget uncertainties. The shares grew by 8.2p to 238.2p.
Small Caps & AIM Sanderson Group* (SND), the software and I.T services business, reported a 12% increase in operating profit from continuing operations to 1.91 million pounds in the year ended 30th September, despite a 5% drop in revenues. This results saw a 40% increase in the order book in respect of continuing operations, as well as a 3% improvement in gross margin. A significant step forward for the company came earlier in the year when Sanderson disposed of its Sanderson RBS business, which left the company debt free. The shares were down by 0.25p to 45.75p despite a 60% increase in the total dividend to 1.2p per share. Broker Charles Stanley has a 56p target price. Energy company Fulcrum Utility Services (FCRM) reported a drop in losses from 3.8 million pounds to a near break-even position of a 0.1 million pound loss for the six months to September. The turnaround was boosted by an 11% increase in gross margin and a 35% increase in the order book to 20.7 million pounds after the business focused on its pricing policy and improving customer service. Shares in the company lost 3p to 14p. Engineering services group Renew Holdings (RNWH) announced a 4% fall in group revenues to 337.4 million pounds for the year ended 30th September yet posted a 22% increase in profit before tax to 10 million pounds. The company attributed growth to a 31% increase in its engineering services order book to 235 million pounds, a sector which accounts for over 90% of operating profit. As a result of these improvements the company is increasing the full year dividend by 5% to 3.15p. The shares rose by 6p to 88p. 
ACM Shipping Group (ACMG) reported a 7.8% fall in revenues to 12.2 million pounds, with profits down by 16% to 1.8 million pounds, for the 6 months ended 30th September. These figures came despite volumes rising, although lower rates more than offset these increases. Amid these difficult shipping markets, ACM has been forced to lower its expectations for the full year and does not expect revenues to pick up before the next financial year. Despite this, the interim dividend was maintained at 3.15p per share. ACM SHipping closed down by 12p at 136.5p. Cloud computing company Iomart (IOM) revealed revenue growth of 29% to 19.9 million pounds for the half year ended 30th September, coupled with a 66% rise in adjusted profit before tax to 4.9 million pounds. The company attributes its growth to the growing trend of businesses outsourcing more and more services into "the cloud" as a reason for its performance. The recent acquisitions of Skymarket, Global Gold and the Switch Media Group were particular highlights and helped the firm's Easyspace division grow revenues by 13%. The shares slipped down by 2.5p to 200p. Scapa Group (SCPA), the manufacturer of bonding materials and solutions announced a 5% increase in revenues to 103.2 million pounds and a 5.1% hike in profit before tax to 5.9 million pounds for the 6 months ended 30th September. The firm cited the expansion of its presence in higher value markets as a reason for its success. In particular, the geographic diversification of its industrial business has helped in navigating the current tough economic climate. The shares gained 1.13p to 64.75p. * Sanderson is a corporate client of Rivington Street Holdings, the ultimate owenr of UK-Analyst. | 
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