News & Tips: Bellway, Standard Life, Moss Bros, LLoyds Banking & more

March 26, 2014 by  
Filed under Solar Energy Tips

Equities are up marginally in early trading, building on yesterday’s bounce, which The Trader Dominic Picarda thinks signals the resumption of the rally.


Sell recommendationCarpetright (CPR) has issued yet another profit warning after continued poor trading in its Netherlands division and a stalling in the progress seen in UK sales in the third quarter which suggests the housing market bounce is not yet filtering through to a pick up in sales. Underlying pre-tax profit for the year to 26 April is expected to be in the region of £3.5m-£5.5m.

In contrast, house builder Bellway (BWY) goes from strength to strength with half year results showing a 25 per cent uplift in houses sold at average prices 13 per cent higher than last year with profits rising by 73 per cent to £103.8m. The forward order book at 9 March stood at £829.5m, up by 63.5 per cent on a year ago. We keep our buy rating.

Standard Life (SL.) has announced an agreement to buy Ignis Asset Management from Phoenix for £390m, adding £59bn of assets under management. Buy.

Simon Thompson recommendationMoss Bros (MOSB) enjoyed a 4.2 per cent rise in like for like sales in the year to 25 January, resulting in a pre-tax profit of £4.4m. The annual dividend is 5p, up sharply from 0.9p a year ago. Retail sales performed strongly, mitigating weaker hire sales with online revenues picking up rapidly after the launch of a new e-commerce platform.

Tui Travel (TT.) says that its winter trading was good with almost all programmes fully sold and summer sales are performing in line with expectations, which means management is confident of hitting full year operating profit growth targets of 7-10 per cent. We keep our buy rating.

Tip of the year Wincanton (WIN) has won a contract with oil refining and energy business Phillips 66 to deliver more than 1bn litres of petrol a year across the Midlands and North East. Buy.

A pre-close trading statement from Entertainment One (ETO) indicates that trading is in line with expectations, with revenues and profits boosted by the acquisition of Alliance Films last January but underlying pro forma also higher, primarily due to strong performance from the television division. We keep our buy recommendation.

Broadcast technology specialist Vislink (VLK) posted a 4.7 per cent improvement in revenues for 2013 with adjusted operating profits rising by 40.3 per cent. Meanwhile a 20 per cent uplift in order intake bodes well for 2014. Buy.

Simon Thompson recommendation 32Red (TTR) has responded to a weak share price performance of late by confirming that recent trading has been strong with gross gaming revenues up by 24 per cent in March alone, and by 8 per cent year to date.


The government has offloaded another chunk of its holding in Lloyds Banking Group (LLOY), selling just short of 7.8 per cent of the company at 75.5p a share in an accelerated book build worth £4.2bn. Accordingly, the government stake is now reduced to 24.9 per cent.

Scottish Southern Energy (SSE) has pledged to freeze its energy prices out to 2016, a move which will be partly funded by £100m of cost savings, including 500 job cuts, and a scaling back of its renewable energy development programme.

Legal General (LGEN) has won its largest ever bulk annuity contract with the ICI pension fund which covers £3bn of its liabilities.

Alongside final results, APR Energy (APR) has announced its largest ever industrial contract for a 60MW power installation on behalf of a mining customer in the South Pacific. Full year results showed a 16 per cent rise in adjusted revenues and a similar rise in operating profits to $69m following a year of record contract wins worth 740MW and 298MW of contract extensions.


Full year results from oil and gas engineering services business Lamprell (LAM) showed a return to profitability in 2013 but the group also warned that lower recent order intake means revenues for 2014 and 2015 and likely to be lower than the past 12 months.

John Laing Environmental Assets has announced the successful raising of £160m for investment in renewable energy and waste assets.

Stockbroker Cenkos (CNKS) enjoyed the stronger equity market conditions in 2013 which helped it post a 19 per cent rise in revenues and a 53 per cent uplift in profits from continuing operations to £10.7m.


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