From UK-Analyst.com: Thursday 10th January 2013
The Markets The quantitative easing stimulus programme which has already injected 375 billion pounds into the financial system will not be extended by the Bank of England for the moment. One of the reasons for this is that credit availability is already being boosted by the Funding for Lending scheme, which has offered 60 billion pounds worth of relatively cheap loans to banks and building societies. Anna Leach from the Confederation of British Industry commented, "A change in monetary policy was unlikely this month, given the UK economy continues to send out mixed economic signals". On the continent, the unemployment rate for Greece has risen to 26.8%, the highest figure across the European Union. This latest Greek data pushes the country ahead of Spain in terms of unemployment as it continues to grapple with widespread austerity measures. Many analysts believe that the economy will continue to deteriorate in the face of austerity, with the unemployment rate expected to hit a peak of 30%. Encouraging trade data has been released in China, showing that exports rose by 14% in December on the previous year - well ahead of the 4% rise which analysts predicted. In addition, imports rose by 6% suggesting stronger domestic demand as well as a much improved level of external demand. Dariusz Kowalczyk, a senior economist at Credit Agricole-CIB in Hong Kong said, "A slowdown in global demand had been one of the biggest concerns for China and this does help alleviate some of those fears".
At the London close the Dow Jones was up by 4.02 points at 13,394.53 and the Nasdaq fell by 2.56 points to 2,725.09. In London the FTSE 100 increased by 2.86 points to 6,101.51; the FTSE 250 finished 21.72 points up at 12,730.78; the FTSE All-Share gained 0.17 points to 3196.09; and the FTSE AIM Index crept up by 4.14 points to 734.67.  Broker Notes Canaccord Genuity reiterated its "buy" recommendation on Pace (PIC) with a target price of 233p. The broker is impressed with the satellite TV company's post-close trading update in which revenues were reported to be above market expectations. Additionally, Canaccord is excited about the diversification of the business the group is currently undertaking, with the agreement of some significant new software contracts shifting the group's focus away from its traditional and ageing hardware revenue base. The shares climbed by 8p to 200.8p. Seymour Pierce maintained its "buy" stance on recruitment form Hays (HAS) with an increase in target price from 90p to 100p. The broker is encouraged by the firm's recent trading statement which revealed a 14% increase in activity in Germany, helping to offset worsening conditions in Australia. Although the broker acknowledges that the economic climate remains fragile at present it believes that Hays's relatively high exposure to temporary staffing markets should give it the edge over its competitors. The shares grew by 4.55p to 90.05p. N+1 Singer retained its "buy" recommendation on Sinclair IS Pharma (SPH) with a target price of 41p. The broker notes the 18% like-for-like increase in revenues generated from international operations and believes the overall like-for-like increase in revenues of 4% for the group would have been higher had it not been for some poor performances in non-core sectors of the business. In addition, the broker praises the recent 23.6 million credit facility agreed with Clydesdale Bank and believes this could provide significant acquisition firepower in the short term. The shares slipped by 0.25p to 27.625p. Blue-Chips Supermarket Tesco (TSCO) posted a 1.8% increase in sales in the UK in the 6 weeks ended 5th January 2012 and cited improving offers for customers as a main driver. The group's "finest" and "everyday" ranges performed particularly well and outperformed the rest of the business. Internationally, sales grew at 3.4% (2.6% at realised exchanged rates) with the business in Asia exhibiting the most growth, generating a 8.1% hike in sales, reflecting a very strong performance in Thailand. The shares were up by 6.25p at 355.4p. Retailer Marks and Spencer (MKS) posted a 3.8% like-for-like fall in General Merchandise sales for the 13 weeks ended 29th December in a worse than expected drop in performance. Analysts blame a distinct lack of promotions over the period for the fall, with M&S trying to protect its gross margins. One ray of light for the company came in the shape of a 2.7% increase in its UK food business, which outperformed the rest of the market by 4%. The shares were down by 2.2p at 368.8p. 
Distribution group Bunzl (BNZL) has acquired Visca Brasil Equipmentos de Protecao, a Brazilian firm which is engaged in the sale of personal protection equipment throughout the country. The acquired company is expected to have made 10 million dollars (6.2 million pounds) of revenues in 2012. Visca is the group's fifth acquisition in Brazil as it looks to establish a market leading position in this rapidly growing market. Bunzl also announced three further acquisitions in South America and the US, including Vicsa Safety SA in Chile, Schwarz Paper Company and Destiny Packaging, both in the US. The shares jumped by 34p to 1,049p. Mid Caps Branded sportswear retailer JD Sports Fashion (JD.) posted a 3.2% increase in like-for-like sales for the 7 week period ended 5th January 2012, which represented a record Christmas for the group. However, the firm also reported that its recently acquired outdoor wear businesses Blacks and Millets had a "disappointing" Christmas and blamed the previous management team for these shortcomings. Additionally, its Bank and Scotts business exhibited poor results, with a 7.9% decline in like-for-like sales. The shares fell by 0.5p to 674.5p. Rank Group (RNK), the European gaming business, announced that it is to undertake a review of its Blue Square Bet business as it is currently generating operating losses in the highly competitive online gaming market. Rank wishes to now focus on developing its Grosvenor Casino and Mecca business, turning them into multi-channel brands which operate in physical entertainment venues as well as the rapidly growing online gaming environment. The shares increased by 1.4p to 148.4p. 
Building product distributor SIG (SHI) revealed a 4% decline in revenues to 2,365 million pounds for the 12 months ended 31st December 2012. The company went on to warn that due to a lack of any clear sign of improvement in the economic situation this year, profits are likely to decline at the same rate again during 2013. The group went on to confirm that it has sold its Czech and Slovak business, shifting its attention in Central Europe to the more lucrative Poland. The shares were up 8p to 135p. Small Caps & AIM Corporate service provider Avesco* (AVS) announced a 14% increase in revenues to 143.5 million pounds and a 196% rise in operating profit to 4.5 million pounds for the year ended 30th September. The group acknowledged that the staging of the London 2012 Olympic and Paralympic Games has undoubtedly been beneficial but stressed that the underlying growth in revenues has also been substantial at 9%. Current trading is markedly slower as major corporations have used much of the 2012 events budget on the Olympics. The shares lost 1.5p to 171.5p. Advanced Power Components (APC) announced that its subsidiary, Minmise, has secured a contract with a major UK retailer for energy efficient LED lights, worth an initial 2 million pounds. The agreement covers preliminary product procurement and store survey costs for up to 80 store locations. The final order value will then be confirmed after the store surveys are complete, a milestone which should not be too far away. The shares fell by 0.01p to 1.72p. Green technology firm The TEG Group (TEG) processed a record volume of waste during the 12 month period ended 31st December and both revenues and profitability increased significantly. Highlights of the period included reaching financial closure on a 15 year, 16 million pounds contract for operations at the Dagenham facility and the successful commissioning its Perth AD Plant. The shares soared 0.86p to 5.36p. 
Net Dimensions (NETD), the provider of learning management systems, revealed a 10% rise in revenues to 13.5 million dollars for 2012. However, the company stressed that because of its substantial investment in global sales expansion it expects to report a loss on a fully disclosed IFRS basis. Because of the pick up in sales and general positive performance the firm has been approved as an independent software partner by IBM. The shares dropped 7.2p to 48.3p. Operator of 5-a-aside tootball pitches Goal Soccer Centres (GOAL) posted a 6% increase in sales to 32 million pounds for 2012, driven by significant marketing campaigns in February and September last year. In 2013 the company intends to markedly increase its profile using social media and has made extensive plans to this end and has already embarked on a big advertising campaign with radio station talkSPORT. The shares slipped by 2.09p to 122.91p Mining exploration company Jubilee Platinum* (JLP) announced that its South African subsidiary Power Alt Limited achieved its target sales level of 5.1MW of generated power into the South African national electricity grid for 2012. Additionally, an option has been granted to Power Alt which enables it to increase the future amount of energy it sells to 10MW, potentially increasing annual revenues from 4 million pounds to 7 million pounds. The shares shot up by 0.875p to 9.125p. * Avesco and Jubilee Platinum are corporate clients of Rivington Street Holdings, the ultimate owner of UK-Analyst. | 
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