News & Tips: Chemring, Petra Diamonds, Henry Boot, Aviva & more

January 25, 2014 by  
Filed under Solar Energy Tips

A quiet start to trading in London this morning and The Trader Dominic Picarda is still waiting for the breakout to happen.

IC TIP UPDATES:

Counter measures specialist Chemring (CHG) endured a difficult year in 2013, illustrated by results today which showed a 15.6 per cent fall in revenues and a 25 per cent reversal in underlying pre-tax profits. But a new chief executive has been brought in to turn the business around and has already steadied the ship. It remains a turnaround buy for us.

Petra Diamonds (PDL) continues to perform solidly. A half year trading update today detailed a 31 per cent rise in production to 1.64m carats and a 19 per cent rise in revenues. Management says it is on track to meet a production target of 3m ounces for the full year. Buy.

Land sales specialist Henry Boot (BHY) say as that a number of sales which came in before the end of the year means it now expects to beat forecasts for its full year performance. Despite some revenue being brought forward from 2014, management is still comfortable with expectations for the full year. We keep our buy recommendation.

Buy to let finance specialist Paragon Group of Companies (PAG) is closing its retail bond offer early, at 10am this morning, after raising £125m.

KEY STORIES:

Aviva‘s (AV.) chief financial officer Pat Regan is to leave the business in June to move to QBE in Australia.

SSE (SSE) says it is on track to meet its objectives of real dividend growth and growth in revenues and profits for the year.

EasyJet (EZJ) has started it’s financial year strongly, reporting passenger growth of 4.2 per cent to 14.3 million for the three months to December. First half bookings are in line with last year which means the business is expected to book a loss of £70m to £90m for the first half, affected by the late Easter falling into the second half of the year.

Drinks business AG Barr (BAG) continues to trade well with fourth quarter sales up by 5.5 per cent and full year revenues expected to come in 6.1 per cent ahead at £252m.

Investors Chronicle owner Pearson (PSON) has updated on trading for a tough year in 2013 due to a cyclical downturn in its key US education markets. Operating profits will come in at £865m before restructuring costs of £130m.

Oil services specialist Kentz (KENZ) says earnings per share growth for 2013 should show a double digit improvement on the previous year and the company ended the year with a backlog worth $3.1bn, up 19 per cent from 12 months earlier. Combined with the very recent acquisition of Valerus, the backlog will stand at $3.5bn.

Wealth manager St James Place (STJ) enjoyed a strong end to 2013 with record single investments of £7.2bn and strong retention pushing total funds under management up 27 per cent on the previous year to £44.3bn.

OTHER COMPANY NEWS:

Renewable power fund Greencoat UK Wind (UKW) reported net asset value of 102.9p per share at 31 December and affirmed its intention to pay an interim dividend of 3p a share.

Sticking with the renewables sector, Next Energy Solar Fund has announced its intention to float and is looking to raise £150m to invest in UK solar assets. The company wants to begin trading on the Main Market in March and is intending paying a first year dividend of 4p a share, rising to 6p a share in the second year, based on a 100p offer price.

Shale gas explorer San Leon Energy (SLE) says that the fracking of the Lewino-1G2 well on its Gdansk concession has led to sustained gas production of 45,000-60,000 standard cubic feet of gas a day before a full clean up of fracking fluid. Post-clean up this could rise as high as 400,000 standard cubic feet a day. The company now plans to spud its first horizontal well and multi-stage frack at the site.

READ MORE…

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