STOCKS NEWS UK SMALL-Segro up after rights announcement
STOCKS NEWS Reuters Results diary
Europe [STXNEWS/EU] Real-time Equity News [E] [GB/EQUITY]
UK [STXNEWS/UK] Stocks on the move [HOT-RTRS]
UK smallcaps [STX/UKSC]
12:28 GMT 04March2009-Segro up after rights announcement
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Shares in property company Segro Plc (SGRO.L) rise 7 percent after the company announces a larger-than-expected 524 million pound rights issue to pay down debt.
KBC Peel Hunt, which upgrades the stock to "buy" from "hold," says: "The low TERP (theoretical ex-rights price) following the issue (15.1 pence), versus our forecast low-point NAV 32 pence, suggests the stock is a fundamental buy."
The brokerage also points out that while "dilution of value is great at the issue price, Segro has managed to raise a substantial amount of capital and beaten its contemporary Brixton BXTN.L to the market".
For more double click on [ID:nL4182400]
Reuters Messaging rm://austin.lobo.thomsonreuters.com@reuters.net
12:04GMT 04March2009-UK small caps gain 1.1 percent midday
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The FTSE Small Cap index .FTSC gains 1.1 percent in midday trade, faring worse than both the blue chips .FTSE and the midcaps .FTMC, up 1.9 percent and 2.2 percent, respectively.
Avis Europe (AVE.L) rises 19.7 percent after the car rental company says it expects to make further progress in 2009 following a round of cost cutting.
Stadium Group (SDMS.L) slides over 30 percent after the provider of electronic manufacturing services says in its full-year results statement that it has experienced a significant weakening of customer demand since the start of the year.
For more on Avis double click on [ID:nL4582835]; for more on Stadium double click on [ID:nL4209278]
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11:52GMT 04Mar2009-Int'l Personal Finance up; brokers positive
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Shares in International Personal Finance (IPF.L) gain 5.1 percent after the emerging markets consumer lender posts a 40 percent rise in full-year pretax profits, with brokers Numis and Teathers repeating their "buy" recommendations.
Teathers says the results are inline with its expectations, while Numis is bullish that the company's fundamentals will see it through a tough period despite IPF's sobering outlook.
Numis says it expects a 42 percent EPS growth through to 2011, citing steps taken by the company to tighten credit lines and the short-term nature of the duration of its loans as reasons to be optimistic over IPF's performance prospects.
"In addition we expect asset margin expansion and good quality customer growth to support increased profitability," the broker says in a note.
For more double click on [ID:nL3885424]
Reuters Messaging rm://david.brett.reuters.com@reuters.net
11:34GMT 04Mar2009-Spirent up as UBS reiterates "buy"
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Shares in Spirent Communications (SPT.L) climb as much as 4 percent as UBS cuts its target price and reiterates its "buy" recommendation on the British telecoms testing firm.
"We believe Spirent is cheap at current levels ... Spirent remains a global telecom equipment top pick," the broker says in a note to clients.
It said it saw many reasons to buy Spirent including management driving cost savings, currency benefits, the defensiveness of Spirent's systems business and ongoing cash returns to shareholders.
Reuters messaging rm://ben.deighton.thomsonreuters.com@reuters.net
10:24GMT 04Mar2009-Elektron down; FY sales fall; outlook grim
------------------------------------------------------------- Shares in Elektron (EKT.L) fall 9.6 percent after the Aim-listed electronic components company reports sales on a like-for-like basis fell by 9 percent in its full-year trading update.
The company adds its outlook is extremely difficult to predict but it expects current year revenues to be down 15 percent year-on-year.
Finncap says, the update "reflects challenging markets and decreasing visibility".
"Whilst operating profit is expected to be above our forecasts, we note exceptional charges for full-year 2009 (it expects an exceptional charge of 1 million pounds from UK redundancies) and are reviewing our forecasts," says the broker in a note.
For more double click on [ID:nRnsD2639O]
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10:34GMT 04March2009-Hydro Intl up on solid results
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Shares of Hydro International Plc (HYD.L), which provides water treatment products, rise 7 percent after the company posts solid full-year results and raises its final dividend.
KBC Peel Hunt says although progress is seen slowing in 2009-10, the earnings are "well regulated" and the company is undervalued on a PE of under 8x.
The broker cites the strong performance of Eutek Systems in the U.S., which the company bought last year. "This specialist grit removal business has cemented the group's leadership in this specialist market," analyst Robin Hardy, who has a "buy" rating on the stock, says.
To see Hydro International's statement please click on [ID:nRnsD2671O]
Reuters Messaging rm://purwa.naveen.thomsonreuters.com@thomsonreuters.net
10:25GMT 04March2009-Stadium Group slides as customer demand drops
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Shares in Stadium Group (SDMS.L) slide over 30 percent after the provider of electronic manufacturing services says in its full-year results statement it has experienced a significant weakening of customer demand since the start of the year.
In a note to clients, Brewin Dolphin says it expects to reduce its 2009 forecasts by about 30 percent, and that its price target and recommendation are under review while acknowledging 2008 was a "good year" for the group, with results in line with expecations.
"The main issue at present appears to be one of visibility; it is unclear how much of the weakness is cautionary destocking at customers and how much is reflecting a new level of end market demand," says the broker.
Brewin Dolphin, however, remains positive about the long-term outlook for the group given the strength of its balance sheet and its financial headroom, and supportive of management given its track record.
For more double click on [ID:nRn1D2579O]
Reuters Messaging rm://tricia.wright.reuters.com@reuters.net
1002GMT 04March2009-Avis Europe up on cost cutting plans
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Shares in Avis Europe Plc (AVE.L) rise more than 15 percent after the car rental company says it expects to make further progress in 2009 following a round of cost cutting.
Broker Investec Securities initiates coverage on the stock with a "hold" recommendation and a price target of 4.25 pence.
"We are optimistic that the right actions are being taken to maximise cash generation and profitability in a difficult trading environment," the broker says in a note.
Investec says it is also optimistic that Avis Europe will remain within its key financial covenants.
For more please click on [ID:nBNG412763]
Reuters messaging rm://srikanth.srinivasa.reuters.com@reuters.net
09:51GMT 04Mar2009-Premier Foods jumps on fundraising report
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Shares in Premier Foods (PFD.L) jump as much as 13 percent to 28.25 pence after The Daily Telegraph says the group will on Thursday move to reduce its 1.78 billion pounds debt mountain with a 400 million pounds capital raising, underwritten by Warburg Pincus.
The newspaper says the fund raising will accompany the release of Premier Foods' full-year results.
Premier Foods was not immediately available to comment.
"In our view, a 400 million pounds raise ... would be the ideal raise taking net debt/EBITDA (earnings before interest, tax, depreciation and amortisation) down from around 4.5 times now to circa 3.3 times for 2009 [estimates]," say analysts at Panmure Gordon in a research note.
"Coupled with a relaxing of the banking covenants to, say, 4.5 times, would give the company a sensible level of headroom."
Reuters messaging rm://james.davey.reuters.com@reuters.net
09:19GMT 04March2009-Carillion higher as profit soars
----------------------------------------------------- Shares in Carillion (CLLN.L) gain over 9 percent after the building and support services group unveils a 55 percent increase in annual profit, driven by strong growth in public sector projects and in its Middle East businesses.
The group increases the full-year dividend by 18 percent to 13 pence.
"These are good results from Carillion, with profit and dividend growth ahead of expectations," Panmure Gordon says in a note.
"While some have concerns (over) Middle East market contagion, misjudged in our view, the recent slip in the share price provides another good buying opportunity," says the broker.
For more double click on [ID:nL4064717]
Reuters Messaging rm://tricia.wright.reuters.com@reuters.net
09:19GMT 04March2009-Sportingbet up; Q2 PBT doubles; Numis "buy"
---------------------------------------------------------------- Shares in Sportingbet (SBT.L) rise 5.3 percent after the online sports betting company reports a robust second-quarter trading update which sees pretax profit more than double and prompts Numis to repeat its "buy" rating.
Sportingbet says trading in the first four weeks of February was strong, with revenue up 17 percent on the same month last year, driven mainly by the strength in European sports betting.
Altium says Sportingbet is delivering underlying growth, increasing its net cash position and is likely to be a key participant in sector consolidation.
"We believe this growth is sustainable and the tailwind from currency (the company has benefitted from a strong euro) will continue into first-quarter, 2010," says Numis in a note, adding, "the shares are undervalued on a full-year 2009 estimated price earnings of 7.3 times".
For more double click on [ID:nBNG242302]
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08:49GMT 04March2009-FTSE Small Caps up 1 pct in early trade
------------------------------------------------------------ The FTSE Small Cap Index .FTSC is 1 percent higher in early trade as the UK market stages an early rally on the back of a positive performance in Asia overnight, with the FTSE 100 .FTSE up 1.5 percent and the FTSE 250 .FTMC up 1.4 percent but traders warn that confidence is still brittle.
Lavendon (LVD.L), the equipment rental company, rises 17 percent after posting in line full-year numbers, prompting Altium to repeat its core "buy" rating saying the results are "good" and "borrowings are well within covenants".
Reuters Messaging rm://david.brett.reuters.com@reuters.net
08:47GMT 04March2009-Restaurant Group higher after results
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Shares in Restaurant Group (RTN.L) gain over 10 percent after the company posts results which Altium Securities says are better than its expectations, with 2008 profit up by 13 percent
The group, which owns the Frankie and Benny's and Garfunkel's chains, increases the final dividend by 6 percent to 7.7 pence and says current trading is satisfactory with like-for-like sales down 2.5 percent for the nine weeks to March 1, 2009.
Altium says in a note that pretax profit, at 48.9 million pounds, comes in comfortably ahead of its cautious 44 million pounds forecast as a result of a much better job on margins.
"In terms of current trading, whilst it remains volatile week to week, the net position of -2.5 percent after the first nine weeks is a good result in our view and well within our FY forecast of -7 percent LFL sales for 2009," the broker says.
"Given the material upside from current levels the shares remain a "buy"," it adds. For more double click on [ID:nL4071910]
Reuters Messaging rm://tricia.wright.reuters.com@reuters.net
08:25GMT 04Mar2009-Informa up; Altium says "buy", FYs in line
------------------------------------------------------------- Shares in Informa (INF.L) rise 7.6 percent in early trade as the British publishing and events group posts its full-year results to Dec. 31, 2008, and says it is confident its covenants will not be breached, which prompts Altium Securities to repeat its core "buy" rating.
Altium says the results are in line with its forecasts at revenue and pretax profit level and indicates "a solid trading performance against a challenging backdrop".
Informa's shares fell after peer Centaur Media (CAU.L) issued a profit warning on Feb. 20, and Altium says "balance sheet issues are reflected in the group's current valuation" adding, "that a capital raising exercise would be desirable".
For more double click on [ID:nL4639360]
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