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From UK-Analyst.com: Wednesday 28th November 2012
The Markets Just over 10% of workers in the UK are officially "under" employed according to a study from the Office for National Statistics (ONS). Over 3 million of the 29.41 million workers want to work more hours each week, a figure which has shot up by 980,000 in the four years since the start of the economic recession in 2008. The ONS said "During this period many workers moved from full-time roles to part-time roles and many of those returning to work after a period of unemployment could only find part-time work." In Europe, the Spanish government plans to restructure four troubled banks, namely Bankia, Banco de Valencia, NCG and Catalunya after they have experienced heavy losses on loans to homebuyers and property developers. Three of the banks were told to cut the total size of their loans and investments by 60% over the next five years by the European Competition Commission. Joaquin Almunia, a member of the commission, said "Our objective is to restore the viability of banks receiving aid so they are able to function without public support in the future". Over in the US, billionaire investor Warren Buffet has stated his belief that the US fiscal cliff may be solved by January rather than December. Mr Buffett's comments are regarding the 31st December deadline Congress has to work within on deciding whether to terminate existing economic stimulus measures and therebyautomatically bringing spending cuts into effect. The world-famous investor is of the belief that politicians may miss the deadline but a deal could follow shortly after and said "D-day is here but that doesn't mean that we'll get the fiscal cliff solved by December 31- I hope we do- but it may go over to January. " At the London close the Dow Jones was up by 22.17 points at 12,900.30 and the Nasdaq gained 0.44 points to 2,641.86. In London the FTSE 100 increased by 2.23 points to 5,801.94; the FTSE 250 finished 2.6 points down at 11,864.58; the FTSE All-Share gained 0.77 points to 3030.24; and the FTSE AIM Index slipped down by 2.84 to 685.94.  Broker Notes Seymour Pierce reiterated its "buy" recommendation on Belvoir Lettings (BLV) with a target price of 113p. The reiteration comes after the company issued a trading update confirming the continued expansion of its network with the acquisition of four company owned stores, including that of Aldine Honey & Company, an estate agency operating in Belgravia, Chelsea and Kensington. The broker sees this as a shrewd move in terms of bolstering revenues. Seymour Pierce also notes that the underlying market strength for lettings in the UK is strong, with average yields on residential property at 5.4%, and uses this as further justification for its stance. The shares gained 1.5p to 104.5p. Panmure Gordon maintained its "buy" stance on Gable Holdings (GAH) with an unchanged target price of 48p. The broker believes that two recent contract wins, expected to deliver in excess of 10 million pounds in annualised gross written premiums, further cements its 2013 forecasts for the company. The broker also acknowledges that the share price has rallied since the recent positive interim results but still believes that the shares are very undervalued, pointing to an "unwarranted" P/E multiple of 3.9x. The shares fell by 1p to 37.75p.. N+1 Singer issued a "sell" recommendation on Topps Tiles (TPT) with a target price of 30p. The broker points to an 8% decrease in pre-tax profits to 12.8 million pounds as indicative of the challenging environment the company is operating in. The research body go on to state its belief that there will be no immediate pick up in consumer confidence and that Topps Tiles market share will be further squeezed by rival B&Q, which has improved its ranges and service levels. The shares were up by 2.25p at 49.5p. 
Blue-Chips Water and sewage services group United Utilities (UU.) announced a 3% rise in underlying pre-tax profits to 190 million pounds for the 6 months ended 30th September, which was slightly higher than the analyst consensus for 188 million pounds. The company attributed this to a lower inflation rate compared with the corresponding period last year. Turnover increased by 3.8% to 823 million pounds but this was lower than the 835 million pounds consensus forecast. Alongside these results the firm increased its interim dividend payment by 7.4% to 11.44p. The shares climbed by 17.5p to 686.5p. Medical Technology business Smith & Nephew (SN.) has come to an agreement over the acquisition of biotheraputic company Healthpoint in a deal worth 782 million dollars (488.7 million pounds) in cash. The company has entered into the deal in order to position itself strongly in the bioactive industry, which is the fastest growing area of advanced wound management. Healthpoint is forecast to generate 190 million dollars (118.7 million pounds) in sales in 2012, primarily driven by its SANTYL product - a bioactive ointment for the removal of dead tissue in wounds. The shares lost 8p to 651p. Petroleum Giant BP (BP.) has agreed to sell its interests in numerous oil and gas fields in the central portion of the North Sea to TAQA, in a deal worth an initial 1.058 billion dollars (661 million pounds), plus future payments dependent on the oil price which are expected to exceed 250 million dollars (156.2 million pounds). The sale is part of the company's policy to focus on a smaller number of higher value assets with long-term growth potential. The shares were down by 1.85p at 429.4p. 
Mid Caps Mining and exploration company Kenmare Resources (KMR) announced that production at its Moma Mine in Mozambique is likely to be down 10% on previous expectations. The company blamed this on the impact of upgrades on Mozambique's national electricity transmission grid which, although ultimately beneficial, are likely to cause power disruptions to the mine for the rest of the year. The company also acknowledged that there is a slight softening in demand for ileminite at present, which has caused modest price reductions for the mineral. The company downplayed the impact of this and expects demand to return to a strong level in the second quarter of 2013. The shares were down by 2.56p at 30.9p. Metals producer Talvivaara Mining (TALV) has downgraded its nickel production projections for the fourth quarter after the stoppage of its metals recovery plant between 4th and 21st November due to a pond leakage. In its quarter three results earlier in the month the company stated that it anticipated fourth quarter production to be more than 4,030 tonnes of nickel but has now downgraded this figure to 2,500 tonnes. The company plans to announce its production guidance for next year in early 2013 and the forecast is highly dependent on the success of measures put in place to reverse the effects of the leakage. The shares decreased by 4.9p to 94.5p. Property Group Great Portland Estates (GPOR) revealed that its 50-50 joint venture with Scottish Widows Investment partnership has pre-let 40,000 sq ft to Financial consultants Lane Clark and Peacock LLP (LCP) in its development at 95 Wigmore Street London W1. The deal compromises of a fifteen year lease, with LCP paying a total of 3,100,000 per annum equating to £77.50 per sq ft. This deal comes after recent pre-let deals the company has conducted with UBM and Savills in the West End area of London. The shares were up by 3.3p at 460.4p 
Small Caps & AIM Healthcare software firm Advanced Computer Software (ASW) announced a 20% increase in group revenues to 56.8 million pounds and a climb in pre tax profits of 45% to 4.5 million pounds for the 6 months ended 31st August. This success was driven by good progress with its inurse and iconnect packages in which sales were up by 54% to over 20,000 signed users and a 59% increase in revenues to 16.2 million pounds. The firm, run by technology industry superwoman Vin Murria, intends to declare a maiden dividend for the full year. The shares grew by 2.5p to 66.5p. Software Radio Technology (SRT) announced that its new AToN product has received EU type approval and initial shipments to contracted customers have commenced. AtoN is a product which is designed for use on buoys and enables the electronic mapping of these sites and has the ability to broadcast this data to authorities. Now that approval has been received the pre-production phase with volume commercial deliveries is expected to commence during the first quarter of SRT's next financial year. The potential market for the company is thought to be high, with many millions of buoys around the world and a growing trend for them to be monitored electronically. In a phone call with UK-Analyst yesterday CEO Simon Tucker was his usual bullish self. The shares gained 0.25p to 18.5p. GW Pharmaceuticals (GWP) posted an 11.8% increase in revenues to 33.12 million pounds and a 53% fall in operating profits to for the year ended 30th September. The company, which is developing cannabis-derived treatments for cancer sufferers, experienced a boost in income after its Savitex drug exceeded targets. Savitex is a cannabinoid-based medicine taken via an oral mouth spray for the treatment of multiple sclerosis and the company are now exploring the possibility of using this medication to treat cancer pain. The fall in profits, however, was attributed to an increase in research spending. The shares lost 1.25p to 62.5p. 
Engineering firm Avingtrans (AVG) has signed a 10 year deal with Rolls-Royce to supply rigid pipe assemblies and precision components in an agreement that is worth 80 million pounds over the duration of the deal. This contract win comes after the recent disposal of its Jena Tec business for 13.45 million pounds and subsequent acquisition of Aerotech Tubes, as the company continues to build on its position in the Aerospace, energy and medical markets. The shares increased by 5.5p to 104p. Environmental Recycling Technologies (ENRT) has granted an exclusive license to 2k Manufacturing Limited which allows the sale of flat board products within the British Isles. The company is in the business of developing patented rights for power impression moulding (PIM), a process capable of converting mixed waste plastics into commercially viable products. Under this new license agreement, ENRT will receive 1,708,333 pounds over a 5 year period plus royalties based on sales volume. The shares crept up by 0.1p to 1.88p. Oil and gas field services company Enteq Upstream (NTQ) reported revenues of 5.3 million dollars (3.3 million pounds) for the 6 months ended 30th September. The company made a 3.5 million dollar loss in the period as it has continued with its policy of investments and acquisitions as part of its strategy to develop a broad and more international business. The shares remained flat at 98.5p. | 
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