News & Tips: GlaxoSmithKline, Iofina, Telecom Plus, Bonmarche, Infinis & more

November 20, 2013 by  
Filed under Wind Energy Tips

Equities are drifting off a little again today, but the Trader Dominic Picarda is confident that this quiet period is a precursor to a further rally.

IC TIP UPDATES:

GlaxoSmithKline (GSK) has completed the partial sale of its holding in South African pharmaceuticals business Aspen, selling around 6 per cent of the company for net proceeds of £425m. GSK retains a 12.4 per cent holding in Aspen and says it is committed to maintaining its relationship with the business and will retain its seat on the board. We keep our buy rating on GSK.

Environmental consultancy Hyder Consulting (HYC) posted strong growth in its order book during the first half of the year, up 24 per cent to £438m but revenues for the period were flat at £150m with profits down marginally to £9.6m. Nonetheless, the outlook is strong and the interim dividend is increased by 13 per cent to reflect that. Buy.

Iodine production specialist Iofina (IOF) posted record monthly production in October and with news that the group’s third production plant has started producing, this record should be surpassed again in the near future. But the fourth and fifth wells have suffered slightly longer lead times on equipment which will push their completion into 2014. We maintain our buy.

KEY STORIES:

Niche retailer Bonmarche (BON) has made its debut on Aim today, floating at 200p a share to give the company a £200m valuation. Julia Bradshaw has analysed the company’s prospects here.

Renewable Energy business Infinis (INFI) also sees the start of unconditional trading on the main market today, with the shares up a little on the 260p IPO price.

Utilities business Telecom Plus (TEP) has agreed to buy Gas Plus Supply and Electricity Plus Supply from Npower in a ‘transformational deal’ worth £218m. The deal is accompanied by a 20 year energy supply deal with Npower. Telecom Plus is launching a £130m fundraising to help pay for the deal. Alongside this, the company also issued interim results showing a 17 per cent rise in revenues to £245.8m and a 10 per cent uplift in profits to £13.7m.

Half year revenues at UK Mail (UKM) rose by 7.9 per cent, driven by 21 per cent growth in the parcels business, with group profit surging 63 per cent to £11.9m. The company reiterated that it expects the year on year growth in the parcels business to slow during the second half.

Avon Rubber (AVON) has posted strong full year results featuring a 27 per cent growth in pre-tax profits to £27m. The dividend is increased by 20 per cent.

Oil services specialist Kentz (KENZ) has announced a $190m contract with Qatar Petroleum covering 775 wells across the Durkhan oilfield.

OTHER COMPANY NEWS:

Sierra Rutile (SRX) has signed a 50,000 tonne sales contract which means that 75 per cent of its forecast production for the first quarter of next year is already contracted.

Quadrise Fuels (QFI) has executed two contracts with AkzoNobel for the purchase of goods and services and continued joint development of its alternative fuel, which is being developed as a replacement for heavy oil based fuel. The contracts replace and update agreements first signed as long ago as 2004.

Applied Graphene Materials (AGM) commences trading on Aim today.

Rangers Football Club (RFC) has announced the appointment of former Manchester City executive Graham Wallace as its new chief executive.

 

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