From UK-Analyst.com: Wednesday 6th February 2013
The Markets According to mortgage lender Halifax UK house prices slipped in January on a month by month basis but actually exhibited growth on an annual basis for the first time since 2010. Halifax revealed that prices in January dropped by 0.2% on December's figures, in a fall broadly in line with economists' forecasts. However, prices in the three months to January were actually up by 1.3% on the previous year in the first rise since late 2010, partially due to the Government's new Funding for Lending Scheme. Martin Eliss, Halifax Economist, said, "The funding for lending scheme has helped lenders to lower interest and improve availability in the past few months." A study by the Office for National Statistics revealed a 10% increase in the number of self employed people, to 367,000, since the start of the financial crisis in 2008. An increase in people working as taxi drivers, farmers and construction workers has led to self employed people accounting for 14% of the 29.4 million employed people in the UK. Frances O'Grady, secretary general of the Trades Union Congress said, "The recent rise in job levels is being driven by self-employed, part-time and temporary jobs, rather than the full-time, permanent work that many people want and need." The US budget deficit will fall below $1 trillion (639 billion pounds) this year for the first time under Barack Obama's leadership according to the U.S Congressional Budget Office (CBO). The CBO forecasts that the deficit will fall to $850 billion (543 billion pounds) due to a healthier economy, complemented by increased taxes being paid by the most well-off Americans. However, debt will rise again in the next decade according to the CBO and will breach the $1 trillion (639 billion pounds) mark again by 2023. The CBO report said, "Deficits are projected to increase later in the coming decade, however, because of the pressures of an aging population, rising health care costs, an expansion of federal subsidies for health insurance and growing interest payments on federal debt." 
At the London close the Dow Jones was down by 10.60 points at 13,968.70 and the Nasdaq fell by 0.50 points to 2,755.49. In London the FTSE 100 increased by 12.58 points to 6,295.34; the FTSE 250 finished 98.83 points up at 13,341.60; the FTSE All-Share gained 9.10 points to 3,306.27; and the FTSE AIM Index crept up by 1.44 points at 742.38.  Broker Notes Seymour Pierce reiterated its "buy" recommendation on alternative energy firm Clean Air Power (CAP) with a target price of 25p. The broker is encouraged by the 300 dual fuel systems (a product which underpins the broker's forecasts) which were sold in 2012 in a huge increase from the 70 it sold in 2011. Additionally, the broker noted that current trading is above market expectations and subsequently believes that the group will generate its first profit in 2013. The shares shot up by 2.125p to 8.875p. Daniel Stewart retained its "buy" recommendation on 3D services company DDD Group (DDD) on the back of an encouraging trading update. The broker is impressed with the expected 56% increase revenues to $8.6 million in 2012. Furthermore, Daniel Stewart sees growth possibilities in its 3D Smart TV app which is now available on both Samsung and LG Electronics' 3D TV platforms; an application which recently became available in the U.S. The shares were up by 1.625p to 25.25p. Westhouse Research reiterated its "buy" stance on oil exploration group Sound Oil (SOU). The broker acknowledges that government delays have had some impact on project timings and the share price recently but believes the company will begin to realise some potential this year. In particular Westhouse is excited about the up and coming "well funded" appraisal programme which it expects to yield exciting results. The shares inched up by 0.13p to 9p. 
Blue-Chips Financial services group Hargreaves Lansdown (HL.) posted a 24% increase in revenues to 140.3 million pounds for the 6 months ended 31st December 2012, with pre-tax profits growing by 30% to 152.8 million pounds. The asset manager partly attributed the encouraging results to innovative marketing which helped increase client numbers to its flagship Vantage platform by 21,000. Hargreaves also pointed to excellent retention of existing clients as a driver of the results. Additionally, the group stressed that its cost-cutting programme was proving successful as only a limited number of additional staff were required to service asset growth of 30%. The shares soared by 82.5p to 817p. Energy group SSE (SSE) has agreed to sell four of its wind farms with a total output capacity of 79.5MW to a new fund managed by Greencoat Capital for a cash consideration of 140 million pounds. SSE will then invest 43 million pounds of the proceeds into the new fund if it is not over subscribed. Under the transaction, which is due to be completed by late March, SSE will continue to fulfil its operation and maintenance contracts for the four wind farms in question. The shares slipped by 4p to 1,411p.
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Mid Caps International infrastructure group Balfour Beatty (BBY) revealed that BK Gulf LLC, its joint venture in Dubai, has secured a 64 million pound electrical engineering and mechanical contract for expansion work at Dubai International airport. The airport currently hosts between 60 and 75 million passengers each year but this figure is expected to reach 90 million by 2018 as projects such as this take effect. The shares crept upwards by 1.6p to 269.6p. Consultancy group WS Atkins (ATK) announced that trading since 1st October has been in line with expectations and that recovering market conditions have driven the recruitment of more staff. Geographically, trading in the United Kingdom was robust over the period, with significant contract wins including upgrade work on the M25 and planning of the controversial new High Speed 2 rail line. The shares remained flat at 820p. Residential property manager Grainger (GRI) posted a 3.5% increase in completed group sales to 64.6 million pounds for the 4 months ended 31st January 2013. However, this was offset by a 10% decline in rental income to 27.3 million pounds in a fall primarily driven by the disposal of its German assets to its joint-venture with Heitman. While the company is cautious over the short-term growth prospects of its sales division, Granger believes that it is well positioned to capitalise on increased demand in the high quality rental market as mortgage availability remains constrained. The shares were up by 2.8p at 133.9p. 
Small Caps & AIM Video surveillance firm Bluestar SecuTech (BSST) announced has received an 18.14 million RMB (1.81 million pounds) order from the Bank of China to supply surveillance equipment for its ATM machines throughout 12 provinces in China. The China based technology group has been providing equipment to the bank since 2007 and this order is already the second in 2013. The shares jumped by 1p to 3.75p. Media Corporation* (MDC) revealed that it has discovered a potential liability to HMRC in relation to unpaid national insurance. According to the firm, it is still unsure on the exact extent of the liability but feels it is a manageable amount given the group's current resources. Separately, the company announced that it sold its onthebox.com publishing asset for 75,000 pounds, claiming it needed further investment if it was to demonstrate growth. The shares fell by 0.01p to 0.04p Telecommunications group Coms (COMS) confirmed it has reached an agreement with Vonage UK to provide a phone service to small businesses in the UK. Under the agreement Coms will supply a system that will enable Vonage to sell a multi-line business telephony package to small businesses of up to 10 extensions. The shares jumped by 0.13p to 1p.
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Tandem Group (TND), the distributor of sports and leisure equipment, has acquired the freehold of its property in Castle Bromwich, Birmingham for a consideration of 2.6 million pounds. More significantly, the group confirmed in a trading update that profits for 2012 are expected to be ahead of the previous year. The increase in profitability is attributed to a solid performance in the group's sports, leisure & toys businesses which more than offset a weaker trading performance in the group's bicycles and accessories division. The shares gained 1p to 86p. The management of troubled recruiter Healthcare Locums (HLO) gave an update on the renewed strategy of the group, saying it will align its objectives with those of the NHS in order to become more efficient and effective. The health and social care recruiter also revealed it has received an indicative joint offer from its two largest shareholders to buy the remaining shares in the company. The offer from Toscafund Asset Management and Ares Capital, which already own a combined 72.5%, is at a price of 0.54p per share. The shares were up by 0.015p to 0.56p but are down from their 2010 highs of over 200p! Renewable Energy Holdings (REH) announced its intention to de-list from AIM in the first half of 2013 as it looks to keep overhead costs to a minimum. If de-listing is achieved the company said it will continue to operate as normal and with more freedom as it will have significantly lowered administrative costs. Separately, the company confirmed it has entered into a loan facility of 1.75 million pounds with Utilico, the group's largest shareholder. The shares remained flat at 1.875p.
*Media Corporation is a client of Rivington Street Holdings, the ultimate owner of UK-Analyst. | 
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