From UK-Analyst.com: Thursday 3rd January 2013
The Markets House prices in the UK fell by 1% in 2012 to an average of 162,262 pounds according to mortgage data from Nationwide. However, there was wide variation in price changes across the different regions, with Northern Ireland exhibiting an 8.2% average decrease, while London prices grew by 0.7%. Robert Gardner, Nationwide's chief economist commented "The uncertain outlook for the wider economy is also likely to have kept many potential buyers on the sidelines, unwilling to make a major financial commitment until they feel more optimistic about the future". Staying in the UK, British construction output contracted at the fastest rate in six months in December, driven by a steep reduction in house building. The Markit/CIPS Construction Purchasing Managers' Index fell to 48.7 last month from 49.3 in November, surprisingly dropping further below the 50 point mark which separates growth from contraction. The result was well below the average economist forecast of 49.5. Tim Moore, senior economist at Markit said "December rounded off a miserable year for the UK construction sector". Over in the US, credit rating agencies Moody's and Standard and Poor's have warned politicians that they must do more to tackle the budget deficit. This warning comes despite the agreement on a deal to avert the "fiscal cliff" of spending cuts and tax rises worth 370 billion pounds, with Moody's explicitly stating that law makers would need to take additional steps to lower the ballooning budget deficit. At the London close the Dow Jones was down by 0.18 points at 13,412.37 and the Nasdaq grew by 3.49 points to 2,749.96. In London the FTSE 100 increased by 19.97 points to 6,047.34; the FTSE 250 finished 39.40 points up at 12,651.25; the FTSE All-Share gained 10.61 points to 3170.26; and the FTSE AIM Index crept up by 0.29 points to 716.49.  Broker Notes Panmure Gordon reiterated its "sell" stance on supermarket Morrison's (MRW) with a target price of 240p. Panmure believes that Tesco has outperformed Morrison's for the last three quarters and expects this trend to have continued over the Christmas period. The broker also notes that Morrison's has no online food operation, which deflates its growth in like-for-like sales by around 1% against competitors. The shares increased by 1.9p to 259.3p. Canaccord Genuity maintained its "buy" recommendation on Cineworld (CINE) with a target price of 350p. Canaccord believes that the recent acquisition of independent cinema operation Picturehouse not only provides an additional brand by which it can target city locations but is also a means of diversifying the group's revenues away from blockbuster films, providing a greater degree of revenue visibility. The broker is positive about the new year for the cinema operator and sees online sales and the "unlimited card" as the key drivers for 2013. The shares were up by 11.75p at 274.25p. HB Markets maintained its "speculative buy" approach on hydrogen technology company ACTA (ACTA) with a target price of 5.25p-5.5p. The broker is impressed with the consistent month-on-month growth in enquiries and orders. In particular HB is excited by the fact that the company has received the first two orders for its hydrogen generator stack from Spain and Germany and sees this as a potential key product for the future. The shares remained flat at 0.05p. 
Blue-Chips Retailer Next (NXT) announced a 3.9% increase in sales in the period between January 1st and 24th December 2012 and an expected growth in pre-tax profits for the whole of 2012 to be in the region of 7.1% - 9.6% to 611 - 625 million pounds. The growth in profits was attributed to effective cost control measures and markdowns on sales levels which were in line with expectations. In its outlook the retailer warned that because of the continued squeeze on the real level of wages the retail environment in general will remain "subdued but steady". The shares climbed by 101p to 3,873p. Building materials group CRH (CRH) revealed that it spent almost 630 million euros (511 million pounds) on different acquisitions and investments in 2012. The firm announced that its US division agreed 12 acquisitions totalling 256 million euros (207.7 million pounds) in the period including the purchase of a majority stake in Trap Rock Industries, an asphalt business based in New Jersey. Meanwhile, the European division made six transactions worth 119 million euros (96.54 million pounds) including acquisitions in Finland and the Isle of Man. The shares fell by 17p to 1,266p. 
Mid Caps Housebuilding and construction group Galliford Try (GFRD) has been awarded four new contracts worth 55 million pounds in total. These deals relate to projects at Oxford University, Gloucester County Cricket Club, the five star Gainsborough hotel in Bath and the complete construction of a health centre in Staffordshire. The contracts are in line with the company's strategy to compete for work in different regions and sectors across the country. The shares lost 3p to 754.5p. NMC Health (NMC), the healthcare provider operating across the United Arab Emirates, announced in a trading update that both revenue and profit levels for the whole of 2012 are to be in line with expectations. Additionally, the group's net debt position and cash balance are as projected and capital expenditure remains as budgeted. This year the company plans to open three of its current four capital expenditure projects, including 2 hospitals and a day patient centre in an attempt to further heighten its presence in the UAE. The shares remained flat at 200p. Aviation and distribution firm Menzies (John) (MNZS) revealed in a trading update that full year results are to be in line with expectations. Additionally, the firm revealed that it is to close its cargo handling operations at Chicago Airport. As a result, the firm will incur an exceptional charge of 7 million pounds but the decision should improve EBIT in 2013 by around 1.4 million pounds. The shares were down by 7p at 626p. 
Small Caps & AIM Horticulture firm William Sinclair Holdings (SNCL) reported a loss before tax of 0.4 million pounds for the 12 months ended 30th September 2012, down from a pre-tax profit of 3.18 million pounds in the previous year. This turnaround in profitability was attributed to the highest ever recorded rainfall in the UK and general unfavourable gardening conditions. Nevertheless, retail demand is expected to grow by 15-20% on 2011 if 2013 enjoys an average weather pattern. The shares were down by 0.04p at 1.14p. Software provider Delcam (DLC) achieved a new one month record in December 2012 for orders of software licenses and maintenance contracts as sales levels surged by over 10% over the December 2011 figure. The growth in sales, according to the company, did not just come from its established markets in the automotive and aerospace industries but also came from newer markets such as the dental industry. The shares gained 0.05p to 10.325p. Vetenary services company Animalcare (ANCR) has resumed the sale of a pain relief product for cats and dogs. The York-based firm lost its last supplier of the Buprecare single dose ampoules product in July 2011 after a plant closure. However, it has now signed a contract with a German manufacturer to supply it with this market leading product and management remain confident that the new supply can achieve sales levels similar to those it previously achieved. The shares jumped by 4p to 137.5p. 
Bellzone Mining (BZM) shipped 26,000 tonnes of iron-ore on 26th December but its transhipping system "did not perform as well as expected". In the short-term, while work continues to redesign and re-engineer the transhipping system, chartered geared ships will be used. The company expects the re-engineering process to take 6 months and the use of geared ships in the interim is expected to increase shipping costs, further squeezing profits. The shares lost 1.25p to 15p. Oil and gas exploration company Regal Petroleum (RPT) announced an update on its operational activities at its 100% owned and operated MEX-GOL and SV gas fields in Ukraine. The firm averaged 201,002 metres cubed per day of gas and 45 metres cubed of condensate per day for the 3 months ended 31st December 2012. Regal continues to benefit from the relatively strong gas prices in Ukraine at present. The shares decreased by 2.5p to 33.75p. Oil development and production company Nighthawk Energy (HAWK) announced a drilling update for its 100% owned Smoky Hill and Jolly Ranch projects in Colorado. The firm reported a production level of 276 barrels a day for December, a record monthly figure for the projects. For the fourth quarter of the year, the projects yielded 192 barrels a day, a record quarterly production level. Oil production is expected to grow further next year as the company's Colorado drilling programme is progressed further. The shares dropped by 0.425p to 5p. | 
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