| From UK-Analyst.com: Wednesday 4th September 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 The UK service sector recorded its fastest growth rate in over six years in August, in the latest sign that the UK economy is gaining significant momentum. The Markit/CIPS UK services purchasing managers' index rose to 60.5 in August, up from 60.2 in July, which represents the highest reading since December 2006. The figures come after the Organisation for Economic Co-operation and Development increased its forecasts for UK growth in 2013 from 0.8% to 1.5%. The service sector - which makes up around 75% of the UK economy - benefitted from an increase in order books from banks and restaurants in particular. Howard Archer, an Economist at IHS Global Insight, commented, "Robust service sector activity played a key role in the UK's developing recovery through the first half of the year, and the very strong purchasing managers survey for August suggests that the services sector is on course to make an even larger contribution to GDP growth in the third quarter." At the London close the Dow Jones was up by 83.23 points at 14,917.19 and the Nasdaq was up by 27.35 points at 3,119.11. ADVERTISEMENT Get free trading guides from Evil Knievil (How to successfully short stocks), Zak Mir (Top AIM market picks for 2013) and other top financial commentators by CLICKING HERE 
In London the FTSE 100 was closed up by 6.33 points at 6,474.74 and the FTSE 250 fell by 9.93 points to 14,851.53 The FTSE All-Share was up by 1.66 points at 3,445.22 while the FTSE AIM Index was up by 0.79 points at 760.51.  Broker Notes Beaufort Securities downgraded its "buy" recommendation to "hold" on property group Great Portland Estates (GPOR). The broker notes that the company has now completely rented out its office space on Wigmore Street within just six weeks of completion. Beaufort also acknowledges that the first quarter performance of the company was buoyed by pre-letting successes, robust investor demand and rental value growth. However, Beaufort insists that these positives are already captured in the value of the stock. The shares were down by 3.5p at 527p. Panmure Gordon stuck with its "buy" recommendation on restaurant operator The Restaurant Group (RTN) with a target price of 600p. The broker notes that management intends to roll out an extra 137 sites before 2014-2015 and feels that this move has the potential to materially increase earnings. It predicts that every 15 new restaurants will add 5% to group earnings once mature. The shares were up by 4p at 560p. Shore Capital retained its "buy" recommendation on recruiters Staffline (STAF) on the back of interims which were in line with the broker's forecasts. Shore expects the shares to move sideways in the short-term but feels that the moderate improvement in underlying macro-economic climate will trigger forecast upgrades in the short-medium term. The shares grew by 17.5p to 532.5p. 
Blue Chips Investment manager Hargreaves Lansdown (HL.) announced a 22% increase in revenues to 292.4 million pounds for the 6 months ended 30th June, while pre-tax profits swelled by 28% to 195.2 million pounds. The firm admitted that it benefitted from an industry shakeup which saw the outlaw of commission-based selling hit its competitors hard over the period. As a result of its success, Hargreaves Lansdown upped its full year dividend by 31% to 29.59p per share. The shares slipped by 17p to 1,014p. Oil and gas services group Wood Group (WG.) claimed that its activities to support oil & gas production from shale fields in the US are growing and now produce annualised revenues of $500 million (320 million pounds). Because of this growing presence in US onshore shale projects, Wood Group now employs around 2,500 personnel on these types of activities. Yesterday, Deutsche Bank re-iterated its "buy" recommendation and 980p target price on the shares, which were down by 11.5p at 792p. Land owner British Land (BLND) announced that it has agreed to purchase 50% of the SouthGate retail complex in Bath from Multi Southgate (LP) Limited for 101 million pounds. Southgate is a new retail scheme next to Bath Spa railway station which forms the south east quadrant of Bath city centre. British Land argues that the site's strong fundamentals, lack of out of town competition and increasing levels of footfall make it a standout investment proposition. The shares slid by 2.5p to 550p. Mid Caps Equipment hire group Ashtead Group (AHT) posted a 24% increase in revenues to 410.5 million pounds for the three months ended 31st July as pre-tax profits almost trebled to 97.4 million pounds. The improvement was driven by a good performance from within its US rental division as well as increased operational efficiency and lower financing costs. Looking ahead, the group expects these positive trends to continue and now envisages that full-year results will exceed original market expectations. The shares fell by 36.5p to 651p. Bookmaker Ladbrokes (LAD) has agreed to acquire Gaming Investments Pty Ltd, an online sports business in Australia, for an initial fee of around 13 million pounds. This figure is subject to an additional payment payable at the end of 3 years which is based on the EBITDA performance of Ladbrokes Australia for the year ending 30th June 2016. Management explained that the transaction was in line with its strategy of entering the regulated and growing Australian market at a relatively low cost. The shares finished 0.1p down at 189.7p. Construction group Galliford Try (GFRD) has been awarded two new contracts with a combined value of 48 million pounds. Firstly, it has been tasked with building the new Birmingham Dental Hospital, in a deal worth 34 million pounds. Secondly, Galliford has secured a contract to extend the engineering and science Library at Nottingham University which will see a 7,300 sqm extension be built over the existing four storey building. This deal is projected to generate 14 million pounds worth of revenues to Galliford. The shares slid by 6p to 978.5p. Small Caps Drinks brand owner Blavod Wines and Spirits (BES) saw its turnover drop from 4,58 million pounds to 3.79 million pounds over the year ended 31st March, pushing up its losses from 433,000 pounds to 619,000 pounds. Blavod blamed its ongoing transition to a lower fixed cost business model and the teething problems associated with shifting its focus on to higher margin brands for its downfall. However, despite this underperformance, Blavod feels it remains well positioned to exploit the gap in the market for "well positioned, high quality new brands". The shares dropped by 0.125p to 1p. Software testing group SQS Quality Software (SQS) announced a 36% increase in adjusted pre-tax profits to 4.5 million euros (3.8 million pounds) as revenues were up by 4.9% to 107.8 million euros (91 million pounds). In a meeting with management today, CEO Diedrik Vos stressed that the company was making progress as it looks to shift its business model to one in which generates higher margin contracts. It was also clear that the group intends to increase its presence in the US and other lucrative markets in Europe and India. The shares jumped by 8.5p to 387.5p. Oil exploration firm Sound Oil (SOU) released details of a positive well test at its onshore Nerversa discovery in Northern Italy. The well test achieved a stabilised total gas flow rate of 2.7 MMscfd from multiple sandstone intervals in the Upper Miocene San Dona Formation. As a result of these promising results, Sound Oil will continue to apply for a production concession with a view to achieving first gas sales at Nervesa in 2015. The shares fell by 1.37p to 11.38p. 
Rare Earth Minerals (REM), the mineral exploration firm, said its joint-venture partner Bacanora Minerals Ltd has secured additional concessions that have increased its area of mineral rights around the Fleur-El Sauz Lithium Project in northern Mexico by 60% to 5,325 hectares. The group stressed the importance of this move as it restricts access by potential competitors to the general project area. In recent weeks, the share price has soared from 0.06p as prospects surrounding the Fleur-El Sauz Lithium Project have become more exciting. The shares closed the day up by 0.055p at 0.94p. @UK* (ATUK), the eCommerce marketplace operator, revealed that Tungsten Corporation has signed a five year agreement to license @UK's Spend Analysis software. The deal - which has a maximum value to @UK of 3.4 million pounds - is still subject to Tungsten listing on AIM, a development which is expected to be finalised next month. The update comes a day after broker Westhouse Securities maintained its "buy" recommendation and 50p target price on the company. The shares swelled by 6p to 35.25p. Italian restaurant chain Prezzo (PRZ) revealed a 17% increase in revenues to 79.7 million pounds for the first 6 months of the year, while pre-tax profits ticked upwards from 7.5 million pounds to 8.2 million pounds. The group - which also owns Mexican chain Chimichanga - now plans to open up 30 restaurants over the second half of the year as it looks to capitalise on customers continued desire to eat out at "affordable prices". The shares were up by 4.375p at 128.25p. * @UK is a corporate client of a subsidiary of Rivington Street Holdings, the ultimate owner of UK-Analyst. | 
No comments:
Post a Comment