Today’s market overview
Equities have leapt out of the blocks this morning as they continue their Jekyll and Hyde performance but The Trader Dominic Picarda has picked up on the fact that Wall St looks like it might be turning bullish again.
IC TIP UPDATES:
Clothing brand owner and retailer Super Group (SGP) enjoyed a strong trading period in the 13 weeks to 28 July with sales rising by 25.7 per cent to £75m. Both retail and wholesale sales rose with the latter up by 50.8 per cent, although this is inflated by the timing of dispatches. Forward orders for autumn/winter are 26 per cent ahead. Buy.
The sunny weather has benefited Spirit Pub Company (SPRT), allowing it to outperform the market in its fourth quarter. Managed pubs grew like for like net sales by 4.1 per cent and leased pubs grew like for like net turnover by 2.2 per cent and saw net income improve too. We keep our buy recommendation.
Simon Thompson recommendation Entertainment One (ETO) has signed a three year television distribution deal with AMC Networks. Buy.
Mobile payments technology specialist Monitise (MONI) has reported a doubling in revenues for the fourth consecutive year as its mobile payments solutions gain in traction. Losses amounted to £19.3m. The company has also appointed non-executive, and former head of Visa Europe, Peter Ayliffe, as chairman and announced the acquisition of mobile design agency Grapple in an all-share deal. We maintain our buy rating.
Specialist engineer Hayward Tyler (HAYT) has entered into a strategic relationship with Eureka Pumps, a Norwegian pump supplier to the oil and has markets, after the two companies jointly won orders for 14 subsea pumps across two North Sea projects. The orders are worth £3.5m to Hayward Tyler. We reiterate our buy recommendation.
Dixons Retail (DXNS) continues to trade well, gaining market share on the UK high street with like for like sales up by 6 per cent in the UK and Ireland in the three months to the end of July. Northern Europe saw sales rise by 5 per cent but southern Europe continues to struggle with like for like declines of 12 per cent. The rationalisation of the business continues apace too with the deals agreed for the sales of Pixmania in France and Electroworld in Turkey announced today too.
Transport operator Go-Ahead Group (GOG) has posted results ‘slightly ahead’ of management expectations after reporting record passenger levels in both rail and bus divisions. The bus division posted profits of £78.2m as it aims for £100m of operating profits by 2016 but the rail division is finding life tougher.
Budget airline easyJet (EZJ) has been under pressure after rival Ryanair issued a profit warning yesterday but performance appears to have been solid enough in August when passenger numbers rose by 3.9 per cent and load factor by 1.1 per cent.
Betfair (BET) saw revenues dip by 13 per cent in the three months to July although this was expected due to a lack of a major sporting tournament and also management’s decision to concentrate on sustainable markets.
Communisis (CMS) is using a mixture of cash and paper to fund the £7.1m acquisition of Editions Publishing, a financial services focused marketing agency.
OTHER COMPANY NEWS:
Lettings specialist Belvoir (BLV) enjoyed a 35 per cent increase in revenues in the first half of the year to £2.5m with profits rising 26.6 per cent to £560,000. The company is also launching a trial of a sales service.
The number, and size, of potential new issues appears to be picking up. After the announcement of an intention to raise £160m and float by Tungsten yesterday, today brought an intention to float from the Foresight Solar fund, which wants to raise £200m.
- Dixons to sell loss-making Pixmania (bbc.co.uk)
- Monitise posts loss after deal and investments push up operating cost (uk.reuters.com)
- MARKET REPORT: It could pay to watch Monitise (dailymail.co.uk)
- Week ahead in business and economics: September 2-6 (telegraph.co.uk)
- The Week Ahead: Berkeley building on London’s boom (independent.co.uk)
- IT News Updates: Cisco Systems, Inc. (CSCO) on Log Management, Hewlett-Packard Company (HPQ)’s New Contract, International Business Machines Corp. (IBM)’s Engagements (insidermonkey.com)
- Dixons agrees PIXmania, Turkish disposals (worldbulletin.net)
- Monitise will provide mobile money solutions to credit unions (mobile-ent.biz)
- Monitise sees revenues surge as mobile banking takes off (walesonline.co.uk)
- Dixons Retail pays £58m to sell loss-making online retailer Pixmania (theguardian.com)