STOCKS NEWS UK--ITE falls after trading update
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11:41GMT 30Sept2009-ITE falls after trading update
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Shares in ITE Group Plc (ITE.L) fall 3 percent after the exhibition and conference organiser forecasts full-year volume sales to be 18 percent below last year but profits to be slightly ahead of the market view driven by tight cost control and currency benefits.
"Exhibitions are late cycle, and 2009 exhibitions benefited from 'pre-crisis' bookings made in 2008. For 2010 we forecast a 10 percent decline in volumes," Numis Securities analyst Lorna Tilbian says in a research note.
Numis raises its price target on the stock to 150 pence from 136 pence but downgrades it to "add" rating from "buy" after its strong recent run.
To see ITE's statement please click on [ID:nRnsd8727Z]
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09:51GMT 30Sept2009-FirstGroup falls on in-line update
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Shares in FirstGroup (FGP.L) fall 2.6 percent after the transport operator's in-line first half trading update, with Arbuthnot saying it believes there is now a risk to forecasts on the downside.
"We believe there may be modest downside risk to consensus estimates," the broker says in a note.
Arbuthnot cites a slowdown in revenue growth in UK rail and bus divisions and a small reduction in contract retention rates in its North America contract business as factors that could lead to a shaving of estimates.
For more double click on [ID:nLU55233]
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09:30GMT 30Sep2009-Finsbury Food falls on outlook, div suspension
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Shares in Finsbury Food Group Plc (FIF.L) fall as much as 14 percent after the baker says trading conditions are unlikely to improve significantly in the short term and suspends its dividend for the year.
Further input cost inflation is likely this year, says Graham Jones at Panmure Gordon.
"With unemployment expected to continue to rise for many months to come, we don't see the focus from value and promotions easing soon, and while flour prices look more benign this year, other input costs such as sugar, butter and eggs are rising again," he says.
The broker trims its FY2010 pretax profit estimates on the company to 5.4 million pounds from 6.2 million pounds, but raises its price target to 36 pence from 30 pence and keeps a 'buy' rating.
To see Finsbury Food's statement please click on [ID:nRn1d9147Z]
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08:44GMT 30Sept2009-Harvey Nash falls following H1 results
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Shares in Harvey Nash (HARV.L) fall 4.6 percent after the recruitment and outsourcing firm posts an in-line drop in profit in its first half results with continued limited visibility and little sign of recovery in the U.S. market, though it sees an upturn in sentiment in the UK.
"Recovery in UK markets bodes very well, though we are wary of false dawns and Europe remains in decline with US showing no signs of a pick up," says analyst Paul Jones of Panmure Gordon.
The broker has a 'hold' rating on the stock and ups its price target to 49 pence.
To see Harvey Nash's statement please click on [ID:nRn1d9264Z]
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08:35GMT 30Sep2009-Renewable Energy Gen up on Canadian disposal
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Shares in Renewable Energy Generation (RERWE.L) soar almost 28 percent after the wind farm operator announces the sale of its Canadian division to International Power (IPR.L) for about 69 million pounds in cash.
The company says it will use the proceeds for its UK wind farm operations and to repay its loan facility with Bank of Scotland.
"Post the repayment of the facility, REG will have 50 million pounds of gross cash and zero debt. With a market cap of just 45 million, we expect the stock to significantly re-rate," write Piper Jaffray analysts in a note.
For more, please click on [ID:nBNG517776]
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08:08GMT 30Sep2009-FTSE Small Caps up 0.3 pct early on
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The FTSE Small Cap .FTSC index gains 0.3 percent in early trade, outperforming the blue chips .FTSE and mid caps .FTMC, both up 0.1 percent at the end of a strong third quarter.
Care U.K. (CUK.L) is the top small cap riser, up 18.5 percent as private equity firm Bridgepoint Capital confirms that it has held preliminary bid discussions with the health and social care provider's board. [ID:nWLA4565]
Hyder Consulting (HYC.L) is also a good gainer, up 10.8 percent following an upbeat trading statement [ID:nBNG531692], but telecoms carrier KCOM Group (KCOM.L) sheds 3.3 percent after its in-line trading update fails to inspire [ID:nWLA4545].
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07:52GMT 30Sep2009-Sage up on M.Stanley upgrade
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Shares in British software firm Sage Group (SGE.L) rise 3.2 percent after Morgan Stanley upgrades its stance on the stock to "overweight" from "equal weight" as it turns to stock picking in the sector for what it describes as the next leg of recovery.
The broker says Sage has a cheap valuation, reliable growth and that consensus estimates are too low given cost cutting. The broker also raises the stock's price target to 270 pence from 217 pence.
"Although Small and Medium Business markets are still weak, Sage has proven its reliability again and again," it says in a note.
It says Sage's average earnings per share growth is 24 percent since 1991 and sees an opportunity when markets improve to sell much more into the firm's installed base of more than 5 million customers.
The broker also raises its stance on Steria (TERI.PA), which is up 1.5 percent, to "overweight" from "equal weight", while also citing Logica (LOG.L), SAP (SAPG.F) and Capgemini (CAPP.PA) as key picks.
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07:33GMT 30Sep2009-Smiths up on post-results relief
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Shares in Smiths Group (SMIN.L) rise as much as 8 percent after the technology company, which makes products ranging from security scanners to medical equipment, reports full-year results showing a 21 percent fall in underlying pretax profit.
It also says its Detection unit has had a good start to the year.
"It's relief that the results weren't any worse," says analyst Nick Cunningham at Evolution Securities, adding the stock has underperformed recently.
For more, please click on [ID:LU606064]
Reuters messaging rm://victoria.bryan.thomsonreuters.com@reuters.net
07:33GMT 30Sep2009-M&S dips on profit taking, cost concerns
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Marks & Spencer (MKS.L) shares dip 1.4 percent with some analysts saying that better-than-expected sales and profit margins were factored into a recent rally in its shares, while a downgrade in its cost guidance was not.
"I'm not sure the consensus will move that much today after the upgrades we've already seen...and the increase in costs is a worry," says Pali International analyst Nick Bubb.
Singer Capital Markets analyst Matthew McEachran thinks better-than-expected sales and margins will add about 75 million pounds to full-year profit forecasts, while higher costs and slightly slower international growth will take off more than 30 million.
This leaves a net upgrade of about 6-7 percent to the current consensus forecast of about 535 million pounds, he says.
For more double click on [ID:nLT484259]
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