Tuesday's Stock Market Report from UK-Analyst: featuring Kingfisher, Bellway and Delcam

From UK-Analyst.com: Tuesday 26th March 2013 IMPORTANT: Are your UK-Analyst emails being delayed? Add UK-Analyst@news.t1ps.com to your safe senders/contact list to help resolve the problem The Markets At the London close the Dow Jones was up by 100.45 points at 14,548.20 and the Nasdaq was down by 14.56 at 2,804.01. In London the FTSE 100 finished up by 20.99 points at 6,399.37; the FTSE 250 finished 26.81 points higher at 13,988.14; the FTSE All-Share gained 10.50 points to 3,376.88; and the FTSE AIM Index fell by 2.83 points to 729.48. Blue-Chips Shares in Kingfisher (KGF) finished down by 0.3p at 283p after the DIY business blamed adverse summer weather for a poor performance in the UK in the year to January 2013. Pre-tax profits for the year fell by 13.3% to 691 million pounds, with the B&Q owner also suffering from 39 million pounds worth of adverse exchange rate movements and weak consumer confidence. Nevertheless, the firm ended the year with net cash of 38 million pounds and increased its full year dividend by 7% to 9.46p per share - the final dividend was flat at 6.37p. Broker Panmure Gordon has a "buy" stance and 350p target price on the shares but rival Cantor Fitzgerald has a "sell" stance and 240p target, citing pressure on margins for its bearish view on the stock. Compass Group (CPG), the contract caterer, revealed that it had a good first half and that expectations for the full year remain positive and unchanged. Organic revenue growth for the first half is expected to be towards 5%, driven by good levels of new business wins and high contract retention rates. Compass has spent 93 million pounds so far this year on a share buyback programme, with the full 400 million pound scheme expected to be completed by the end of 2013. The shares slipped by 11p to 824p. Plumbing products provider Wolseley (WOS) saw its shares lose 38p to 3,173p after posting statutory pre-tax profits down by 51 million pounds at 199 million for the six months to January 2013. While total revenues were up by 0.1% at 6.28 billion pounds a particularly poor performance in France (revenues down by 12.5% in the second quarter) hit profits. Nevertheless, trading in the core US business (51% of group revenues ) remained strong, with revenues up by 8.3% on a like-for-like basis. The firm increased its interim dividend by 10% to 22p per share. Mid Caps Shares in Bellway (BWY) rose by 35p to 1,227p after the house builder saw pre-tax profits surge by 47.5% to 59.9 million in the half year to 31st January. Investors also welcomed a 50% hike in the interim dividend to 9p per share. Bellway sold 2,597 homes in the period, up 5.8%, with average selling prices rising by 2.6% to 187,426 pounds. The firm also invested heavily in its future by spending 145 million on land and increasing its bank to 32,025 plots. 94% of current full year volume targets are currently reserved or legally completed. Transport firms FirstGroup (FGP), Go-Ahead (GOG) and Stagecoach (SGC) all commented on the Department for Transport's decision to publish a timetable for all UK rail franchise arrangements over the next eight years. FirstGroup is in discussions to extend its current First Capital Connect, First Great Western and First TransPennine Express franchises; Go-Ahead said it welcomed the opportunity to agree extended contract terms for London Midland and Southeastern; while Stagecoach said it will "consider closely" the InterCity East Coast franchise, which has been opened to private companies after being run by the public sector since 2009. Shares in Stagecoach slipped by 1.9p to 310p, those in Go-Ahead edged down by 1p to 1,444p and FirstGroup shares lost 0.5p to close at 197.7p. Small Caps & AIM Cloud computing and hosting specialist iomart (IOM) said it expects to show an adjusted EBITDA of not less than 16.4 million pounds for the year to March 2013 and adjusted profit before tax of approximately 10.6 million pounds - both ahead of market consensus. The group said it has delivered strong organic growth as well as good performances from its acquired businesses and sees that pattern continuing as further consolidation takes place. iomart shares finished 4p higher at 231.5p. Shares in identity management firm GB Group (GBG) jumped by 4.25p to 94.5p after the firm reported having achieved a strong set of results, ahead of market consensus, for the year to 31st March 2013. The group expects to show an adjusted operating profit of not less than 5.1 million pounds. Last year saw GB acquire TMG.tv, the UK's second largest Criminal Records Bureau umbrella organisation, for up 3 million pounds. This was seen as an important acquisition, enabling access to the market for online CRB disclosure checks. Meanwhile, the addition of China and Argentina to GB's ID3Global international hub brings the total number of geographies where it can offer identification verification services to 16. Gold explorer Stratex International (STI) has sealed a strategic alliance with a subsidiary of Centerra Gold, to explore for gold in central Turkey. Under the terms of the arrangement, Centerra will fund a programme to explore for new gold projects in central Turkey. This will include $500,000 in year one with an option each year to fund further work for at least $250,000 per annum. Centerra will have the option to earn to 51% of any designated project area by funding $1 million for exploration and development within two years of Centerra's election and Stratex will have the right to maintain a 49% interest by funding future exploration and development on a pro rata basis. Stratex shares finished flat at 4.375p. Niche pharmaceuticals business Clinigen (CLIN) announced the acquisition of Cardioxane (dexrazoxane) from Novartis for $33 million in cash, payable in two tranches. Under the terms of the agreement, Clinigen will assume responsibility for manufacturing, registration, distribution, and commercialization of the product in countries where current marketing authorisations exist. Cardioxane, an oncology support therapy, is a cardioprotective agent used to prevent the cardiotoxicity of anthracycline chemotherapy for patients with advanced and/or metastatic breast cancer. According to Clinigen, there is an opportunity to revitalize Cardioxane - which is said to have no direct licensed competition in the anthracycline therapy cardioprotection market - by utilising new commercialisation, market and indication strategies over the next five years. The group said that historic revenues for Cardioxane have been approximately $11-12 million per annum. Clinigen shares rallied by 15.5p to 252.5p on the news. Computer-aided design software specialist Delcam (DLC) posted its best-ever annual results, buoyed by strong sales across the US, Far East and Europe. Sales for 2012 came in at 47.1 million pounds, a 12% increase from the prior year, boosted by revenues from software licences which jumped 16% to 24.5 million pounds. Pre-tax profits jumped by 54% to 5.1 million pounds, and basic earnings per share climbed by 65% to 58.2p. The company - which services aerospace, automotive, footwear, medical and dental, toy and sports equipment sectors - proposed a final dividend of 7p per share, bringing the total for the year to 9.5p, a 36% increase. Delcam, shares in which rose by 5p to 1,467.5p, expects further progress in 2013 after seeing a strong start to the year.

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