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Thursday preview: Hikma, PV Crystalox, retail sales

Wed, 15th Aug 2012 17:57

Acquisitions are set to put a gloss on the interim results of pharmaceuticals firm Hikma on Thursday.Peel Hunt is expecting the group to report sales of more than $500m, up 25% on the first half of last year when, admittedly, results had been negatively affected by the so-called Arab Spring.Sales will be down slightly over the $523m achieved in the second half of last year, the broker predicts, "with the problems in US generics (FDA-enforced shut down) offsetting the additional pro-forma sales from the Moroccan acquisition, which made only a three-month contribution last year"One thing to watch out for is the EBITA [earnings before interest, tax and amortisation] margin, which Peel Hunt thinks will likely take a hit from a competitive pricing environment for generic drugs in the US and continued wage pressure in the Middle East & North Africa (MENA) region. Peel Hunt has pencilled in a margin decline of six-tenths to eight-tenths of a percentage point. "We expect margins (and the tax rate) to benefit further as more Generics manufacturing is transferred to Jordan (up to 50% is still targeted). Hikma's net debt to EBITDA [EBITA + depreciation] stands well within covenants and further bolt-on acquisitions remain possible, with Turkey high up management ambitions. Furthermore, acceleration of product development and a move into higher-value treatments for chronic diseases remain key to organic growth across MENA," Peel Hunt said. Interim results from struggling solar panel maker PV Crystalox could reveal whether the company is going to stick or twist in terms of holding on for an upturn in average selling prices.The group has received a €90m one-off payment in compensation for a contract cancellation, which should ensure it makes a first half profit, probably somewhere in the €70m region.As to what to do with the cash windfall, the group is expected to reveal whether it will essentially run the business for cash from now on.UK retail sales data for July will cover a period between the end of the Queens Jubilee celebration and Euro 2012 and the start of the Olympics, so analysis of underlying trends may be easier than of late - notwithstanding the weather effect, of course.Economists at Credit Suisse think UK Retail Sales, excluding vehicle fuel, will rise 0.3% after advancing 0.2% in June, to a level 2.2% higher than in July 2011.In contrast, Charles Stanley's weekly preview note has July retail sales excluding fuel down 0.2% in July, and up 1.7% year-on-year, so confusion - like the British weather - still reigns.NTERIMS BATM Advanced Communications Ltd., Cineworld Group, Hikma Pharmaceuticals, PV Crystalox Solar, Talvivaara Mining Company, Xaar INTERNATIONAL ECONOMIC ANNOUNCEMENTS Bloomberg Consumer Confidence (US) (14:45) Building Permits (US) (13:30) Consumer Price Index (EU) (10:00) Continuing Claims (US) (13:30) Harmonised Index of Consumer Prices (EU) (10:00) Housing Starts (US) (13:30) Initial Jobless Claims (US) (13:30) Philadelphia Fed Index (US) (15:00) Q2 Talvivaara Mining Company GMS Aegis Group, Energy Technique IMSS Micro Focus International AGMS IGas Energy, Triad Group UK ECONOMIC ANNOUNCEMENTS Internet Retail Sales (09:30) Retail Sales (09:30) FINAL DIVIDEND PAYMENT DATE F&C Global Smaller Companies, Moss Bros Group, MS InternationalJH
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PV Crysatolx Solar Rises As It Proceeds With Share Consolidation

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PV Crystalox Solar Continuing To Conserve Cash, Shares Up 5%

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19 Nov 2012 08:48

PV Crystalox Solar to return cash to shareholders

PV Crystalox Solar saw shares rise strongly on Monday morning following news that is to return some of its cash pile to shareholders. In an interim management statement, the manufacturer of components for solar power cells, announced: "The group has a strong net cash balance and the board is contin

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16 Aug 2012 08:48

Dark ages continue for PV Crystalox

Cash conservation remains the name of the game at solar power systems component maker PV Crystalox Solar, dashing the hopes of those shareholders hoping the company would distribute some of its cash pile. At the end of June the company was sitting on €122.4m of cash, up from €22.6m at the end of 20

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12 Aug 2012 16:01

Sunday share tips: Genel, Barclays, Crystalox

Genel, the oil investment vehicle headed by Tony Hayward, the former chief executive of BP, has been unloved by the stock market. Genel had 1.8bn dollars (1.15bn pounds) of cash when it gave its last trading update. Last week it spent 240m dollars buying an additional 21 per cent interest in a Kurdi

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18 May 2012 16:53

London close: Footsie battered again

Footsie finished not far off its low for the day after a lunch-time rally fizzled out. With speculation rife in Spain that a ban on short-selling stocks might be reintroduced, holders of stock in UK banks Lloyds, Royal Bank of Scotland and Barclays could be forgiven that might not be such a bad id

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18 May 2012 13:18

PV Crystalox Solar soars on cash settlement

Shares in PV Crystalox Solar, a solar wafers supplier, rocketed after the firm reached a cash settlement relating to a terminated wafer supply contract that exceeded its market cap. The €90m sum will be recognised as income for the first half of 2012 by the company, which has seen its market capit

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28 Mar 2012 10:34

Crystalox Solar sees tough 2012 ahead

Solar wafers supplier PV Crystalox Solar warned of tough times ahead but said it remained committed to the solar industry after experiencing a difficult 2011. The company blames its woes on a dramatic increase in worldwide production capacity in the photo voltaic (PV) industry, driven by companies

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22 Sep 2011 14:30

Sector movers: Commodity prices drop, miners unwanted

Mining stocks led the sell-off on Thursday as the US Federal Reserve yesterday painted a gloomy picture of the state of the US economy, dampening sentiment across global stock markets. "Information received since the Federal Open Market Committee met in August indicates that economic growth remains

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19 Aug 2011 06:47

Friday tips round-up: Savills, Soco, Sage...

The last time we looked at the Savills, we opted to buy, reasoning that its international reach, coupled with exposure to the resilient upper end of the UK market, gave it an edge. Yesterday's half-yearly results confirmed our confidence. The group said revenues in the six months to the end of June

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18 Aug 2011 12:20

Broker tips: Henderson, Cineworld, PV Crystalox

UBS scaled back its numbers for fund manager Henderson Group on Thursday as a consequence of "lower market levels and lower flows." "Given the cautious outlook for the retail segment, we are now looking for modest outflows in [the second half] from this segment, versus healthy net flows of circa £4

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18 Aug 2011 12:18

Broker snap: Merchant Securities upgrades PV Crystalox to hold

Merchant Securities has upgraded its rating on PV Crystalox Solar, the solar power wafers manufacturer, from sell to hold after the stock's recent underperformance. Revenue was up from $59.6m to $78.7m in the six months to 30 June, while adjusted pre-tax profit (excluding a currency impact) rose fr

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18 Aug 2011 08:31

PV Crystalox Solar still in the shade

Despite a significant rise in pre-tax profit for the six months to 30 June, PV Crystalox Solar has decided not to declare a dividend because of "challenging market conditions". The solar power wafers manufacturer's pre-tax profit was up $14.5m to $15.9m after exploration write-off before tax of $6

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