BTG Share News (BTG)

LONDON (Alliance News) - The main London stock indices have started the new quarter lower, but Evraz and FirstGroup are the early best-performing stocks in the FTSE 250 after results and trading outlooks were well received.

There's been a large amount of merger and acquisition news in the mid- and small-cap sectors, with Senior adding to its precision machining operations, PZ Cussons buying Glanbia out of their Nigerian joint venture, and US private equity giant Carlyle swooping in to buy AIM-listed auto repairer Nationwide Accident Repair Services.

Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: down 0.1% at 6,767.60
FTSE 250: down 0.3% at 17,046.92
AIM ALL-SHARE: flat at 716.13
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Hang Seng: up 0.6% at 25,038.74
Nikkei 225: closed down 0.9% at 19,034.84
DJIA: closed down 1.1% at 17,776.12
S&P 500: closed down 0.9% at 2,067.89
Nasdaq Composite: closed down 0.9% at 4,900.88
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GBP-USD: up at USD1.4839
EUR-USD: up at USD1.0756

GOLD: up at USD1,185.07 per ounce
OIL (Brent): down at USD54.68 a barrel

(changes since end of previous GMT day)
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ECONOMICS AND GENERAL
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Wednesday's Key Economic Events still to come
(all times in GMT)

08:45 Italy Markit Manufacturing PMI
08:50 France Markit Manufacturing PMI
08:55 Germany Markit Manufacturing PMI
09:00 EU Markit Manufacturing PMI
09:30 UK Markit Manufacturing PMI
12:00 US MBA Mortgage Applications
13:15 US ADP Employment Change
14:00 US FOMC Member Williams speech
14:45 US Markit Manufacturing PMI
15:00 US Construction Spending
15:00 US ISM Manufacturing PMI
15:30 US EIA Crude Oil Stocks change
15:30 US Fed's Lockhart speech
18:30 US Total Vehicle Sales
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China's manufacturing sector slipped into contraction in March, the latest report from HSBC showed on Wednesday, with a PMI score of 49.6. That was higher than the preliminary reading of 49.2, although it was down from 50.7 in February. It also moved below the boom-or-bust line of 50 that separates expansion from contraction. "The latest data indicate that domestic and foreign demand remains subdued amid weaker market conditions, which dampened output growth as a result. Meanwhile, company downsizing policies contributed to a further decline in manufacturing employment, with the pace of job shedding the strongest since last summer," said Annabel Fiddes, Markit economist.
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Japan's manufacturing sector decelerated in March but continued to expand, the latest survey from Markit Economics showed on Wednesday, with a PMI score of 50.3. That's down from 51.6 in February, although it remains barely above the boom-or-bust line of 50 that separates expansion from contraction. The March reading also represents a 10-month low score. "Latest data signaled a weaker improvement of operating conditions in the Japanese manufacturing sector. Manufacturers reduced their workforce numbers for the first time since September 2014 in March, albeit at a fractional rate," said Markit economist Amy Brownbill.
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Greece failed to reach a deal with the European Union and International Monetary Fund to unlock further financial aid on Tuesday, after the creditors dismissed the package of reforms tabled by Athens as ideas rather than a concrete plan, Reuters reports. The lack of a deal will raise the pressure on Greece's government, which is facing the prospect of running out of money in a few weeks though if fail to convince its creditors to give it more. Athens said it remains keen on striking a deal based on its long-held demand that any measures it is asked to implement in exchange for the further funding will not hamper its economic growth. It added that lenders are to intensify their efforts to collect data in Athens.
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Diplomatic talks between Iran and world powers to secure a landmark nuclear deal carried on past their scheduled deadline on Tuesday, as negotiators battle to salvage the terms of an accord following nearly a week of discussions, the Financial Times reports. The talks in Lausanne, Switzerland carried past midnight on Tuesday as it became clear no sweeping deal would be in the offing. Marie Harf, spokesperson for the US State Department, said enough progress had been made in the talks to merit carrying on into Wednesday, but said there were "several difficult issues still remaining", according to the FT.
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BROKER RATING CHANGES
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UBS RAISES CAIRN ENERGY TO 'BUY' ('NEUTRAL') - TARGET 195 PENCE
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JEFFERIES RAISES LLOYDS TO 'HOLD' ('UNDERPERFORM') - PRICE TARGET 88 (69) PENCE
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COMPANIES - FTSE 100
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Royal Dutch Shell has moved a step closer to returning to oil and gas exploration in the Arctic after the US government upheld a 2008 lease sale, Reuters reports. The US Interior Department upheld a 2008 lease sale in the Chukchi Sea off Alaska, meaning Shell has moved closer to returning to exploration work in the region since it lost control of the Kulluk oil rig in 2012. The Interior's Bureau of Ocean Energy Management will now consider Shell's exploration plan and will perform an environmental assessment of it, which would take at least 30 days. But Shell, in anticipation of returning to the region, has already moved rigs to Alaska, Reuters said.
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COMPANIES - FTSE 250
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Evraz will return USD375 million to its shareholders through a tender offer even though its pretax loss widened in 2014 on the back of a USD1.0 billion foreign exchange loss caused by the devaluation of the rouble, saying it has "improved business prospects" in 2015. The FTSE 250-listed steel miner reported a pretax loss of USD1.08 billion in 2014, compared with a USD637 million loss in 2013, on the back of the substantial foreign exchange loss and an impairment charge. However, earnings before interest, tax, depreciation and amortization rose 28% to USD2.32 billion, from USD1.82 billion, as Evraz opitmised its assets and cut costs. The figure was also given a lift as expenses in dollar terms fell at its at Russian and Ukrainian subsidiaries due to drop in the local currencies.
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FirstGroup said its trading in the fourth quarter and whole of the financial year that ended on Tuesday was in line with its expectations, with good performances in its UK bus and rail operations. The company said its UK bus business is delivering volume growth and achieving a positive yield, and it has made progress on cutting costs within the division. Its UK rail business is outperforming on the back of strong passenger demand, and the company noted it has recently signed franchise agreements for both the First Great Western and First TransPennine Express services.
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Senior has bought Lymington Precision Engineering Ltd for an initial GBP45.8 million in cash, a deal it expects to boost its earnings even though the newly acquired company is set to be hit by the steep drop in oil prices. Senior could pay up to GBP31.7 million more for Lymington depending on the acquired company's performance in the next 12 months. Lymington makes precision-machined components, fabrications, assemblies and kit sets for the oil and gas, telecommunications, aerospace, defence, land and sea systems, nuclear and marine industries. It will be integrated into Senior's Flexonics Division and its current management team is staying with the business.
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PZ Cussons has bought Glanbia out of their Nigerian joint venture for GBP21 million in cash, and has signed a long-term deal with the Irish ingredients company for the supply of milk-based products to the venture. PZ Cussons said the deal to take full control of Nigerian evaporated milk and milk powder venture Nutricima will boost its earnings in its next financial year. Nutricima made revenue of GBP74.4 million in the year to May 31, 2014, and a pretax profit of GBP1.3 million. Its gross assets were GBP57.9 million at that date.
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Interdealer broker ICAP said its ICAP Shipping business has signed a joint venture agreement with ship-broking group Howe Robinson Group Pte Ltd. ICAP will take a 35% stake in the joint venture, called Howe Robinson Partners, which will house ICAP Shipping's India, Dubai and US operations. No financial details on the deal were disclosed.
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Healthcare company BTG has started selling its DC Bead and Bead Block drug-diluting bead and embolisation products directly to physicians in 11 countries in Europe. FTSE 250-listed BTG said it has recently expanded its European sales team in order to back the expansion of its product sales.
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Unite Group has reported like-for-like increases in both of its property portfolios in the first quarter of 2015. Unite said its Unite UK Student Accommodation Fund was independently valued at GBP1.64 billion at the end of March, a like-for-like increase of 4.3% during the quarter. Its London Student Accommodation Joint Venture was valued at GBP606 million at the end of March, a 6.8% like-for-like increase in the quarter.
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COMPANIES - LONDON MAIN MARKET AND AIM
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ASOS reported an increase in revenue for the first half of its financial year after a "record Christmas season", but a drop in profit as its gross margin took a hit from price investments it is having to make. The online fashion retailer reported a 10% drop in pretax profit for the six months to February 28 to GBP18 million from GBP20 million the year before, while revenue was up 14% to GBP550.5 million from GBP481.7 million. It said that its gross margin fell by 230 basis points to 48.2% from 50.5% due to the launch of its zonal pricing strategy and planned investment in international prices, which together with increased investment in building its global distribution capacity led to a reduction in profit.
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US private equity firm Carlyle Group has reached an agreed deal to acquire AIM-listed Nationwide Accident Repair Services for approximately GBP43.2 million, coming on the same day Nationwide said it has completed the acquisition of a bodyshop chain. Carlyle, which will acquire Nationwide through the Canaveral Bidco Ltd vehicle, said it would pay 100 pence per share for Nationwide, a 45% premium to the volume-weighted average price of Nationwide shares in the three months before March 31. It is a 13% premium to the closing price of Nationwide shares of 88.5 pence on March 31.
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Daily Internet shares surged at the open after the company said it expects to beat market expectations for the year and said it has won a new contract with an unnamed insurance company. The hosting and cloud infrastructure company said its expects its results for the year to the end of March be a significant improvement year-on-year. It expects revenue to be ahead of market expectations and expects earnings before interest, taxation, depreciation and amortisation to be "materially ahead" of market forecasts.
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Shanta Gold said Toby Bradbury has replaced Mike Houston as chief executive of the company with immediate effect. In December, Houston announced his decision to step down from his role and has now been replaced by Bradbury, the company's existing chief operating officer.
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COMPANIES - INTERNATIONAL
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Enel Green Power SpA, through its subsidiary Enel Green Power North America Inc, reached an agreement with General Electric Unit GE Energy Financial Services for the sale of a 49% stake in a newly created company, EGPNA Renewable Energy Partners, LLC, for a total consideration of about USD440 million. Enel Green Power North America will continue to own 51% of the partnership interests, thereby fully consolidating the partnership in its accounts, and will continue to be responsible for the daily administration, operation and maintenance activities of Enel Green Power North America assets.
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Helen of Troy Ltd has acquired the Vicks VapoSteam US liquid inhalant business from The Procter & Gamble Co, which includes a fully paid-up license to the Vicks VapoSteam trademarks. The Company has also acquired a fully paid-up license of P&G's Vicks VapoPad trademarks for scent pads in the US. The vast majority of Vicks VapoSteam and VapoPads are used in Vicks humidifiers, vaporizers and other health care devices already marketed by Helen of Troy.
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Wednesday's Scheduled AGMs/EGMs

Advance Developing Markets Fund
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