| From UK-Analyst.com: Wednesday 27th 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 down by 34.65 at 14,525.00 and the Nasdaq was up by 1.51 at 2,808.01. In London the FTSE 100 finished down by 11.81 points at 6,387.56; the FTSE 250 finished 125.78 points lower at 13,862.36; the FTSE All-Share lost 9.55 points to 3,367.33; and the FTSE AIM Index fell by 1.17 points to 728.31. 
Blue-Chips Shares in TUI Travel (TT.) finished 12.4p higher at 322.8p after the holiday seller announced a positive trading update for the half year to March. The firm reported that the Winter programmes across its Mainstream markets are almost fully sold, with higher average selling prices and margins being seen. In addition, "very strong" trading momentum has continued into the Summer 2013 season. Tui expects to be towards the top end of its guidance for between 7-10% underlying operating profit growth for the 2013 financial year. Broker Shore Capital has a "buy" stance on the shares, citing a prospective earnings multiple of 11 times and a dividend yield of 4.2% as being attractive given the long-term growth opportunities. Russian steel giant Evraz (EVR) has signed a non-binding agreement to sell its 85% stake in EVRAZ Highveld Steel and Vanadium to Nemascore black economic empowerment consortium, for approximately $320 million. The company, 63% owned by oligarch Roman Abramovich, will use the proceeds for general corporate purposes. Evraz shares edged up by 0.7p to 219.9p after falling earlier in the week following false rumours that Abramovich had been arrested in the United States. Energy services firm John Wood Group (WG.) saw its shares gain 7p to 863.5p after it revealed its second contract extension of the week. The firm has bagged a three year contract extension from CNR International U.K. to provide project management, engineering, construction and general commissioning services on CNRI's Murchison, Tiffany, Ninian North, Central and South platforms in the North Sea. Subsidiary Wood Group PSN has held this contract since 2005 and the extension is effective immediately. No value was put on the deal but Wood Group said that it would secure employment for 200 offshore personnel and 250 onshore employees. Mid Caps Shares in interdealer broker ICAP (IAP) lost 20.3p to 302.3p after the firm re-iterated that it has been experiencing extremely challenging trading conditions. As a result, revenues for the year to 31st March 2013 are expected to be down by 13%, with pre-tax profits expected to be at the lower end of guidance at around 280 million pounds. A cost savings programme initiated by ICAP remains on track to deliver at least 60 million pounds worth of annualised savings by the year end, with investment in new platforms and products expected to drive growth in the coming years. Transport group National Express (NEX) saw its shares lose 1.6p to 206.1p despite the firm announcing two new deals. In the UK the firm will begin running dedicated services between London Luton Airport and London Victoria Coach Station, from 1st May. These are expected to deliver a minimum of 6 million pounds worth of annual revenues, with the deal lasting seven years. Over in the US the firm's North American Transit business, National Express Transit, has been selected to provide operations and maintenance for Solano County Transit, located in Vallejo, California. The deal is worth $8 million of revenues in the first year, has potential total revenues of $60 million, and is for an initial five year term with an option to extend by up to two years. Troubled miner Centamin (CEY) reported on a tough 2012, which saw operations suspended at its flagship Sukari project in Egypt due to a lack of fuel supplies. Nevertheless, full year production was up by 30% at 262,828 ounces, which helped to deliver record EBITDA of $233.3 million, up 10%. The firm remained debt-free and unhedged with cash, bullion on hand, gold sales receivable and available-for-sale financial assets of $219.4 million as at 31st December 2012. The shares slipped by 2.6p to 53.65p. Vesuvius (VSVS), the metal flow engineering business which recently demerged from Cookson, has entered into an agreement to sell its Precious Metals Processing Division to Heimerle + Meule for 56.8 million euros in cash. Completion of the deal is expected by the end of the first half of 2013 subject to conditions including approval by the European Commission and by the Supervisory Board of Possehl, Heimerle + Meule's parent company. Vesuvius shares flowed down by 11.4p to 353.2p.
Small Caps & AIM 2D-to-3D conversion software specialist DDD (DDD) has licensed its TriDef 3D Mobile content solutions to Chinese manufacturer Qingyuan Gadmei Electronics Technology for its new glasses-free 3D tablets. Gadmei's tablets will use the TriDef 3D video SDK to convert 2D videos into 3D and will provide 3D viewing without the need to wear glasses. They are expected to launch in the second quarter of 2013. DDD will receive quarterly royalty revenues from Gadmei, based on the volume of 3D tablets shipped. DDD shares sharpened by 0.75p to 23.25p.
Sirius Minerals (SXX) has received further requests for information from the North York Moors National Park Authority (NYMNPA) in relation to the determination of the York Potash project planning application. Both parties are said to be keen to have the application determined in a timely fashion, and Sirius has committed to providing all additional information to the NYMNPA by 21st April 2013 at the latest. Sirius emphasised that the overall project timeline remains unchanged at this time and it is anticipated that, subject to onshore mining approval, early site works would begin before the end of the year. Sirius shares climbed by 1.25p to 20.75p.
Support services firms Costain (COST) and May Gurney (MAYG) have agreed an all-share merger. May Gurney shareholders will receive 0.8275 New Costain Shares, resulting in Costain shareholders owning 53% of the enlarged entity. Costain has irrevocable undertakings or a letter of intent representing 32.5% of May Gurney's issued share capital. Irrecovables from Costain shareholders total 42.7%. Merger synergies are estimated at 10 million pounds. The deal is expected to create a significantly larger, more diverse business with a stronger skill set and combined revenues of c.1.6 billion pounds and an order book of c.3.9 billion pounds. Following completion the new business will imaginatively be re-named Costain May Gurney. Although May Gurney shares jumped by 65.5p to 250p on the news, broker N+1 Singer believes that "the overall repair and maintenance focus (a key May Gurney attraction) will be diluted and exposure will also be increased to lower margin revenue streams" over the longer term. Costain investors disliked the deal, with the shares falling by 23p to 280p.
Clean energy products company Acta (ACTA) has signed a distribution agreement with MVS Energy Solutions, a sub-division of India's largest supplier of industrial gas equipment and services, for the distribution of Acta's electrolysers in India. MVS Energy Solutions was formed to address the growing need in the Indian market for back-up power, especially in the telecoms market where there are 65,000 base stations being installed annually (19% of which are with renewables or hybrid). The objective of the partnership is to allow the introduction of on-grid and off-grid integrated fuel cell back-up power solution based on on-site hydrogen generation. MVS predicts 2013 will see sales of Acta's electrolysers in excess of 100 units and the forecast for 2014 is that the interest and adoption of this technology will increase substantially from this level. Acta shares slipped by 0.5p to 7.125p. Shares in set-top box maker Amino Technologies (AMO) edged 0.75p higher to 81.5p after it announced the receipt of a rebate in respect of duties paid on previously recognised international product sales amounting to 950,000 pounds. The Cambridge-based firm said that this sum will be recognised as an exceptional profit item within the company's income statement for the 2013 financial year. It added that it has submitted a further retrospective claim in respect of other duties paid by the company, but at this time there can be no certainty over the amount, timing or likelihood of such a rebate. | 
No comments:
Post a Comment