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STOCKS NEWS UK-Norseman Gold down; cuts production forecast
Wed, 10th Mar 2010 11:50
STOCKS NEWS Reuters Results diary
Europe Real-time Equity News
UK Stocks on the move
UK smallcaps UK smallcaps news
11:34GMT 10Mar2010-Norseman Gold down; cuts production outlook
--------------------------------------------------------------
Shares in Norseman Gold fall 17 percent to a six month low after the miner cuts its full-year production outlook and Investec Securities reduces its price target on the stock to 52 pence from 80 pence.
The company lowers its production outlook for the year to June 2010 to 65,000 ounces from its previous forecast of 75,000 ounces to 80,000 ounces.
Investec Securities analyst Jonathan Guy says: 'If the operation costs are fixed and they produce less gold then the unit costs will move up.'
'We expect unit costs to remain high at around A$900 per ounce ($800/oz). This is far higher than the industry average of around $500 per ounce.'
For more please click on
Reuters messaging rm://juhi.arora.reuters.com@reuters.net
11:17GMT 10Mar2010-Tanfield up on bid for electric vehicle unit
---------------------------------------------------------------
Shares in Tanfield Group rise as much as 40 percent to make it the top small caps gainer after the British commercial electric vehicle maker receives a 37 million pounds cash offer for the assets of its electric vehicle division.
Tanfield, which also makes aerial platforms, says the non-binding, conditional offer from its associate company, Smith Electric, is equivalent to 50 pence per Tanfield share.
'This offer is significantly greater than the total market capital of Tanfield (21.1 million pounds), and essentially leaves Tanfield with the vertical access business,' Arbuthnot analyst Xavier Gunner says in a note.
For more, double click on
Reuters messaging rm://kumar.alagappan.reuters.com@reuters.net
10:52GMT 10March2010-Bglobal up on contract win, update
-------------------------------------------------------
Shares in Bglobal, the provider of smart meters to Britain's retail energy market, rise 3.9 percent as the firm announces a contract win and a bullish trading update, prompting Ambrian to repeat its 'buy' rating.
Bglobal announces it won an Npower contract valued at almost 7 million pounds over the next 12 months, and it says its installation programme continues to recover from disruption caused by freezing weather conditions.
'The order from NPower follows another significant order from British
Gas announced last month,' says Ambrian in a note. 'This is not only important from a financial point of view, but also in terms of providing visibility for 2011'.
Ambrian says given poor weather during December and January, Bglobal is likely to fall short of the its target of 50,000 meter installations for 2010.
'However, the positive performance in February gives us confidence that this was an extraordinary event and not an inherent issue for the company,' it adds.
For more double click on
Reuters Messaging rm://david.brett.reuters.com@reuters.net
09:59GMT 10March2010-Interserve gains after results
---------------------------------------------------
Shares in Interserve gain 4.8 percent, hitting a five-week high, after the building and maintenance firm posts full-year results, with KBC Peel Hunt upgrading its rating on the stock to 'buy' from 'hold'.
Interserve reports an 11.6 percent rise in full-year pretax profit, aided by a one-off gain related to disposal of property.
'Prelims are slightly ahead and the outlook remains robust. The forward order book of 6.5 billion pounds provides 80 percent visibility on FY 2010 revenues,' says KBC Peel Hunt in a note.
'Concerns about the balance sheet are overplayed and recent share price falls have generated a forward yield of 9 percent,' says the broker.
Separately, Interserve says it has won contracts worth more than 200 million pounds in the UK and through its Middle East associates.
Reuters Messaging rm://tricia.wright1.reuters.com@reuters.net
09:30GMT 10Mar2010-Chime Communications up after results
--------------------------------------------------------
Shares in Chime Communications put on 1.4 percent after the marketing services group posts a higher full-year profit, helped by improved margins resulting from cost controls, and raises its final dividend.
Numis Securities says in a note: 'Chime has reported excellent preliminary results, with normalised pretax profit of 18.8 million pounds well ahead of (our estimate) of 17 million pounds.'
The broker lifts its 2010 earnings per share forecast to 21.8 pence from 20.2, and notes that its 2011 EPS forecast is 24 pence. It moves its price target to 292 pence from 270, and repeats its 'buy' rating.
'Although Chime shares have performed very strongly over the past year in our view this reflects their chronic undervaluation at this point last year, and we continue to view them as undervalued,' Numis says.
KBC Peel Hunt, meanwhile, hikes its target price to 255 pence from 240, and repeats its 'buy' rating on the stock.
For more double click on
Reuters Messaging rm://tricia.wright1.reuters.com@reuters.net
09:14GMT 10Mar2010-Petrofac higher; RBS ups to 'buy'
----------------------------------------------------
Shares in oilfield services firm Petrofac gain 2.5 percent, extending Tuesday's post-results advance, supported by an upgrade in rating from RBS to 'buy' from 'hold'.
RBS, in a note, also raises its sum-of-the-parts-based target price for the firm to 1,230 pence, up from 1,025 pence, highlighting as well last week's news that Petrofac and Swedish explorer Lundin Petroleum will spin-off their UK assets in a new venture, EQuest.
'By spinning off the Don assets into EnQuest, Petrofac is effectively providing a distribution to shareholders of close to $600 million (based on our estimates),' the broker says.
RBS says the demerger of the Don assets removes $115 million from its 2010 net profit forecast and reduces Petrofac's net assets by about $400 million.
However, for the continuing businesses, the broker increases its 2010 net profit forecast by about $30 million, with the net result being a 19 percent reduction in its 2010 net profit estimates for Petrofac to $378 million.
RBS highlights the competitive environment in the exploration & construction sector but thinks Petrofac appears well placed, and it believes the firm can be selective and continue to secure work at attractive margins.
The broker estimates that Petrofac shares trade on a 2010 price earnings of 12.8 times, falling to 11.2 times in 2011, which it thinks is a harsh discount to its peers.
Reuters Messaging rm://jon.hopkins.reuters.com@reuters.net
09:01GMT 10Mar2010-Costain rises after result
---------------------------------------------
Shares in Costain Group rise more than 5 percent, hitting a five-week high, after the construction firm posts full-year results, with Panmure Gordon repeating its 'buy' rating on the stock.
The company posts a 22 percent fall in full-year pretax profit, hurt by higher pension interest charges, but raises its full-year dividend by 10 percent.
'These are solid FY results from Costain. Adjusted PTP was slightly ahead of consensus expectations, while the 10 percent increase in the DPS is an indication of confidence in its prospects,' Panmure says in a note.
'A strong infrastructure performance confirms why we recently went positive on the shares,' says the broker.
Reuters Messaging rm://tricia.wright1.reuters.com@reuters.net
08:58GMT 10Mar2010-Laird drops after year profit slumps
-------------------------------------------------------
Shares in Laird fall 8 percent, making them the top midcap faller, after the group reports a slump in 2009 profit and cuts its dividend.
KBC Peel Hunt says the outlook statement is more upbeat than at the end of last year, but highlights caution for its key handset division, which makes up around 50 percent of revenues.
'With it viewed as a year of transition for the division in 2010, any upturn in antennae and actuation mechanisms is only expected in H2,' analyst Jonathan Hurn writes, adding he is keeping his 2010 pretax profit forecast for the group at 43.2 million pounds.
For more, please click on
Reuters messaging rm://victoria.bryan.thomsonreuters.com@reuters.net
08:53GMT 10Mar2010-Gulf Keystone slips as it eyes fundraising
-------------------------------------------------------------
Shares in Gulf Keystone Petroleum fall 7.2 percent as the Iraq-focused oil explorer says it is will need to undertake 'a significant fundraising' to make payments to the Kurdistan Regional Government (KRG) after a default by its joint venture partner.
'They will have to raise more funding because they need to fund the entirety of the project, or at least what was a joint venture-share before,' says Fox-Davies Capital analyst Lionel Therond.
'The terms need to be approved by the KRG so there's a bit of uncertainty related to that.'
For more, click on
Reuters messaging rm://sarah.young.thomsonreuters.com@reuters.net
08:44GMT 10Mar2010-Melrose up on strong results, outlook
--------------------------------------------------------
Shares in Melrose Plc gain 8.5 percent, making them the top midcap gainer in London, after the manufacturing investor reports results ahead of expectations and says it is seeing recovery signs.
Altium Securities says it expects to upgrade its headline numbers by between 5 and 10 percent and will increase its target price by more than this.
'The outlook statement and figures are better than expected; the only uncertainty relates to the pending acquisition that the group is keen to make.'
For more, please click on
Reuters messaging rm://victoria.bryan.thomsonreuters.com@reuters.net
08:36GMT 10Mar2010-Inchcape reverses on cautious outlook
--------------------------------------------------------
Shares in Inchcape fall 6.3 percent, handing back some of their recent gains, after the multinational car dealer sticks to the view that its market won't recover until late this year despite reporting a smaller-than-expected fall in 2009 profit.
'The shares have had a strong run into these results (up 20 percent over the past week or so) and may ease today, given the caution expressed in the statement,' says Execution-Noble analyst Sanjay Vidyarthi.
He expects 2010 profit forecasts to move towards the top end of analysts' current consensus range, which he says is about 165 million pounds.
'We do not think there is enough in this statement to drive the top end (of that range) any higher ... Short term, Inchcape is exposed to the wrong emerging markets and we think that the pure-play UK motor retailers Lookers and Pendragon offer more upside,' the analyst says, pointing to their more optimistic comments recently on used-car margins and a recovery in premium cars.
For more double click on
Reuters Messaging: rm://mark.potter.reuters.com@reuters.net
08:28GMT 10Mar2010-UK small caps slip 0.1 pct early
---------------------------------------------------
The FTSE Small Cap index slips 0.1 percent in early trade, underperforming the blue chips, which are flat, and the midcaps, which put on 0.1 percent.
Norseman Gold falls 12.6 percent after the miner revises down its full-year production guidance, to 65,000 ounces compared to the previous forecast of between 75,000 and 80,000 ounces.
Costain Group rises more than 4 percent after the construction firm reports results. The firm posts a 22 percent fall in full-year pretax profit, hurt by higher pension interest charges, but raises its full-year dividend by 10 percent.
Reuters Messaging rm://tricia.wright1.reuters.com@reuters.net
COPYRIGHT
Copyright Thomson Reuters 2010. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Europe Real-time Equity News
UK Stocks on the move
UK smallcaps UK smallcaps news
11:34GMT 10Mar2010-Norseman Gold down; cuts production outlook
--------------------------------------------------------------
Shares in Norseman Gold fall 17 percent to a six month low after the miner cuts its full-year production outlook and Investec Securities reduces its price target on the stock to 52 pence from 80 pence.
The company lowers its production outlook for the year to June 2010 to 65,000 ounces from its previous forecast of 75,000 ounces to 80,000 ounces.
Investec Securities analyst Jonathan Guy says: 'If the operation costs are fixed and they produce less gold then the unit costs will move up.'
'We expect unit costs to remain high at around A$900 per ounce ($800/oz). This is far higher than the industry average of around $500 per ounce.'
For more please click on
Reuters messaging rm://juhi.arora.reuters.com@reuters.net
11:17GMT 10Mar2010-Tanfield up on bid for electric vehicle unit
---------------------------------------------------------------
Shares in Tanfield Group rise as much as 40 percent to make it the top small caps gainer after the British commercial electric vehicle maker receives a 37 million pounds cash offer for the assets of its electric vehicle division.
Tanfield, which also makes aerial platforms, says the non-binding, conditional offer from its associate company, Smith Electric, is equivalent to 50 pence per Tanfield share.
'This offer is significantly greater than the total market capital of Tanfield (21.1 million pounds), and essentially leaves Tanfield with the vertical access business,' Arbuthnot analyst Xavier Gunner says in a note.
For more, double click on
Reuters messaging rm://kumar.alagappan.reuters.com@reuters.net
10:52GMT 10March2010-Bglobal up on contract win, update
-------------------------------------------------------
Shares in Bglobal, the provider of smart meters to Britain's retail energy market, rise 3.9 percent as the firm announces a contract win and a bullish trading update, prompting Ambrian to repeat its 'buy' rating.
Bglobal announces it won an Npower contract valued at almost 7 million pounds over the next 12 months, and it says its installation programme continues to recover from disruption caused by freezing weather conditions.
'The order from NPower follows another significant order from British
Ambrian says given poor weather during December and January, Bglobal is likely to fall short of the its target of 50,000 meter installations for 2010.
'However, the positive performance in February gives us confidence that this was an extraordinary event and not an inherent issue for the company,' it adds.
For more double click on
Reuters Messaging rm://david.brett.reuters.com@reuters.net
09:59GMT 10March2010-Interserve gains after results
---------------------------------------------------
Shares in Interserve gain 4.8 percent, hitting a five-week high, after the building and maintenance firm posts full-year results, with KBC Peel Hunt upgrading its rating on the stock to 'buy' from 'hold'.
Interserve reports an 11.6 percent rise in full-year pretax profit, aided by a one-off gain related to disposal of property.
'Prelims are slightly ahead and the outlook remains robust. The forward order book of 6.5 billion pounds provides 80 percent visibility on FY 2010 revenues,' says KBC Peel Hunt in a note.
'Concerns about the balance sheet are overplayed and recent share price falls have generated a forward yield of 9 percent,' says the broker.
Separately, Interserve says it has won contracts worth more than 200 million pounds in the UK and through its Middle East associates.
Reuters Messaging rm://tricia.wright1.reuters.com@reuters.net
09:30GMT 10Mar2010-Chime Communications up after results
--------------------------------------------------------
Shares in Chime Communications put on 1.4 percent after the marketing services group posts a higher full-year profit, helped by improved margins resulting from cost controls, and raises its final dividend.
Numis Securities says in a note: 'Chime has reported excellent preliminary results, with normalised pretax profit of 18.8 million pounds well ahead of (our estimate) of 17 million pounds.'
The broker lifts its 2010 earnings per share forecast to 21.8 pence from 20.2, and notes that its 2011 EPS forecast is 24 pence. It moves its price target to 292 pence from 270, and repeats its 'buy' rating.
'Although Chime shares have performed very strongly over the past year in our view this reflects their chronic undervaluation at this point last year, and we continue to view them as undervalued,' Numis says.
KBC Peel Hunt, meanwhile, hikes its target price to 255 pence from 240, and repeats its 'buy' rating on the stock.
For more double click on
Reuters Messaging rm://tricia.wright1.reuters.com@reuters.net
09:14GMT 10Mar2010-Petrofac higher; RBS ups to 'buy'
----------------------------------------------------
Shares in oilfield services firm Petrofac gain 2.5 percent, extending Tuesday's post-results advance, supported by an upgrade in rating from RBS to 'buy' from 'hold'.
RBS, in a note, also raises its sum-of-the-parts-based target price for the firm to 1,230 pence, up from 1,025 pence, highlighting as well last week's news that Petrofac and Swedish explorer Lundin Petroleum will spin-off their UK assets in a new venture, EQuest.
'By spinning off the Don assets into EnQuest, Petrofac is effectively providing a distribution to shareholders of close to $600 million (based on our estimates),' the broker says.
RBS says the demerger of the Don assets removes $115 million from its 2010 net profit forecast and reduces Petrofac's net assets by about $400 million.
However, for the continuing businesses, the broker increases its 2010 net profit forecast by about $30 million, with the net result being a 19 percent reduction in its 2010 net profit estimates for Petrofac to $378 million.
RBS highlights the competitive environment in the exploration & construction sector but thinks Petrofac appears well placed, and it believes the firm can be selective and continue to secure work at attractive margins.
The broker estimates that Petrofac shares trade on a 2010 price earnings of 12.8 times, falling to 11.2 times in 2011, which it thinks is a harsh discount to its peers.
Reuters Messaging rm://jon.hopkins.reuters.com@reuters.net
09:01GMT 10Mar2010-Costain rises after result
---------------------------------------------
Shares in Costain Group rise more than 5 percent, hitting a five-week high, after the construction firm posts full-year results, with Panmure Gordon repeating its 'buy' rating on the stock.
The company posts a 22 percent fall in full-year pretax profit, hurt by higher pension interest charges, but raises its full-year dividend by 10 percent.
'These are solid FY results from Costain. Adjusted PTP was slightly ahead of consensus expectations, while the 10 percent increase in the DPS is an indication of confidence in its prospects,' Panmure says in a note.
'A strong infrastructure performance confirms why we recently went positive on the shares,' says the broker.
Reuters Messaging rm://tricia.wright1.reuters.com@reuters.net
08:58GMT 10Mar2010-Laird drops after year profit slumps
-------------------------------------------------------
Shares in Laird fall 8 percent, making them the top midcap faller, after the group reports a slump in 2009 profit and cuts its dividend.
KBC Peel Hunt says the outlook statement is more upbeat than at the end of last year, but highlights caution for its key handset division, which makes up around 50 percent of revenues.
'With it viewed as a year of transition for the division in 2010, any upturn in antennae and actuation mechanisms is only expected in H2,' analyst Jonathan Hurn writes, adding he is keeping his 2010 pretax profit forecast for the group at 43.2 million pounds.
For more, please click on
Reuters messaging rm://victoria.bryan.thomsonreuters.com@reuters.net
08:53GMT 10Mar2010-Gulf Keystone slips as it eyes fundraising
-------------------------------------------------------------
Shares in Gulf Keystone Petroleum fall 7.2 percent as the Iraq-focused oil explorer says it is will need to undertake 'a significant fundraising' to make payments to the Kurdistan Regional Government (KRG) after a default by its joint venture partner.
'They will have to raise more funding because they need to fund the entirety of the project, or at least what was a joint venture-share before,' says Fox-Davies Capital analyst Lionel Therond.
'The terms need to be approved by the KRG so there's a bit of uncertainty related to that.'
For more, click on
Reuters messaging rm://sarah.young.thomsonreuters.com@reuters.net
08:44GMT 10Mar2010-Melrose up on strong results, outlook
--------------------------------------------------------
Shares in Melrose Plc gain 8.5 percent, making them the top midcap gainer in London, after the manufacturing investor reports results ahead of expectations and says it is seeing recovery signs.
Altium Securities says it expects to upgrade its headline numbers by between 5 and 10 percent and will increase its target price by more than this.
'The outlook statement and figures are better than expected; the only uncertainty relates to the pending acquisition that the group is keen to make.'
For more, please click on
Reuters messaging rm://victoria.bryan.thomsonreuters.com@reuters.net
08:36GMT 10Mar2010-Inchcape reverses on cautious outlook
--------------------------------------------------------
Shares in Inchcape fall 6.3 percent, handing back some of their recent gains, after the multinational car dealer sticks to the view that its market won't recover until late this year despite reporting a smaller-than-expected fall in 2009 profit.
'The shares have had a strong run into these results (up 20 percent over the past week or so) and may ease today, given the caution expressed in the statement,' says Execution-Noble analyst Sanjay Vidyarthi.
He expects 2010 profit forecasts to move towards the top end of analysts' current consensus range, which he says is about 165 million pounds.
'We do not think there is enough in this statement to drive the top end (of that range) any higher ... Short term, Inchcape is exposed to the wrong emerging markets and we think that the pure-play UK motor retailers Lookers and Pendragon offer more upside,' the analyst says, pointing to their more optimistic comments recently on used-car margins and a recovery in premium cars.
For more double click on
Reuters Messaging: rm://mark.potter.reuters.com@reuters.net
08:28GMT 10Mar2010-UK small caps slip 0.1 pct early
---------------------------------------------------
The FTSE Small Cap index slips 0.1 percent in early trade, underperforming the blue chips, which are flat, and the midcaps, which put on 0.1 percent.
Norseman Gold falls 12.6 percent after the miner revises down its full-year production guidance, to 65,000 ounces compared to the previous forecast of between 75,000 and 80,000 ounces.
Costain Group rises more than 4 percent after the construction firm reports results. The firm posts a 22 percent fall in full-year pretax profit, hurt by higher pension interest charges, but raises its full-year dividend by 10 percent.
Reuters Messaging rm://tricia.wright1.reuters.com@reuters.net
COPYRIGHT
Copyright Thomson Reuters 2010. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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