Member Info for jange

Negative Points: Meggitt said it had identified a raw material supply issue relating to one product type dating back to 2012. A solution is in place however the cost of this issue is uncertain but the group is making a £20 million provision to account for the expected total financial exposure over the coming years. The civil aerospace industry has historically proved volatile. Major customers such as Boeing and Airbus are dependent on the highly competitive and cyclical airline industry. Currency movements provide potential to generate major headwinds. The outlook within military remains uncertain, reported the company, due to lack of clarity on US defence spending. Meggitt has relied on acquisitions to drive growth. This strategy carries with it the risks of overpaying for acquisitions or failing to integrate acquired companies which could impact on shareholder value.

Interim management statement: In today's announcement that spanned the third quarter to 31 October, the global engineer lowered its full-year revenue guidance after several setbacks including production problems in the United States hit third quarter trade, sending its shares down sharply by 9% in mid-morning trade. Specifically, this was due to short term production difficulties at Meggitt Sensing Systems and the timing of contract wins and project milestones in one of its energy businesses. Civil aftermarket revenues however continued their gradual recovery, up 2% year-on-year in the period although the outlook within military remains uncertain due to the lack of clarity over US defence spending. As a result of the above, and reflecting also the strengthening of sterling against the US dollar in the second half, the Group now expects a 2013 revenue growth rate in the low single digits.

You having a laugh....think you suffer from paranoia mate...........

ECR have had a bad time of it for a while,but as you say theres money in the black stuff.

True legends in our time imho.?

Indeed, food products are Unilever's weakness. Their performance lags that of the fast-growing home and personal care (HPC) segments, and the gap seems to be widening. Unilever "owns the world's fastest-growing major HPC business," adds Mr Deboo, "and its slowest-growing foods one". But, with the slowdown in emerging markets exposing Unilever's weakness in foods, which accounts for 28 per cent of group turnover, analysts think Unilever will focus more sharply on rationalising these operations.but as always dyor and good luck. Meanwhile, the London-listed shares in Unilever plc trade on 18 times forecast earnings for 2014. That's a steep multiple for shares in a company that's never going to grow fast, and there is no getting away from it. One solution is to focus on the solidity of Unilever's growth - it may not be that quick, but it sure is heavy. Another solution is to look beyond accounting earnings and focus on the fact that Unilever is growing faster than global rivals Nestle and Danone, according to figures from Berenberg, and produces a superior return on capital.

Indeed, food products are Unilever's weakness. Their performance lags that of the fast-growing home and personal care (HPC) segments, and the gap seems to be widening. Unilever "owns the world's fastest-growing major HPC business," adds Mr Deboo, "and its slowest-growing foods one". But, with the slowdown in emerging markets exposing Unilever's weakness in foods, which accounts for 28 per cent of group turnover, analysts think Unilever will focus more sharply on rationalising these operations. Meanwhile, the London-listed shares in Unilever plc trade on 18 times forecast earnings for 2014. That's a steep multiple for shares in a company that's never going to grow fast, and there is no getting away from it. One solution is to focus on the solidity of Unilever's growth - it may not be that quick, but it sure is heavy. Another solution is to look beyond accounting earnings and focus on the fact that Unilever is growing faster than global rivals Nestle and Danone, according to figures from Berenberg, and produces a superior return on capital.

Unilever's long-term growth story remains intact. First, its strong position in emerging markets is a key asset enabling long-term growth, despite the occasional hiccup. Analysts at Berenberg agree, arguing that the third-quarter slowdown doesn't suggest any structural weakness in the business. They point out that the reported sales slump and subsequent earnings downgrades were almost entirely due to currency movements. Besides, Unilever's slowdown in growth from emerging markets - from 10 per cent in the first half to 6 per cent in the third quarter - followed several quarters of double-digit growth. Management had already flagged that such a pace was unsustainable anyway. And, even if times are tougher, Unilever is still growing faster than its markets, delivering higher volumes and price increases across most product categories. So the group is on track to meet its full-year targets and expects to post underlying sales growth of 4.2 per cent, improved operating margin and strong cash flow. Unilever's ability to improve margins through product mix, pricing and cost savings is another advantage. A focus on fewer, bigger products that have the potential to generate wider profit margins is paying off and cutting the time it takes to get new products to market helps, too. This year, City analysts expect an operating margin improvement of up to 0.4 of a percentage point, aided by a strong innovation pipeline, cost control and productivity savings. Martin Deboo, an analyst at broker Investec Securities, says decent margin progression could "propel high single-digit EPS growth on a 12-month view, with potential for a re-rating if earnings quality can be improved through foods disposals".

Consistent growth in emerging economies - until recently almost taken for granted - now looks less certain. That has put pressure on Anglo-Dutch food and household goods giant Unilever (ULVR), which derives roughly 57 per cent of its sales from the developing world, and its share price dipped 20 per cent in next to no time some weeks ago. But we believe the dip in the share price presents an opportunity to buy into the long-term investment case of a global blue chip with a consistent track record of market-beating growth, heavy exposure to faster-growing developing economies and scope to expand profit margins, create new products and cut costs. Additionally, the lower share price offers the chance to pick up the shares at a higher-than-average yield - 3.3 per cent on 2014's forecast payout. Markets reacted badly when Unilever, which makes household brands such as Ben & Jerry's ice cream, Dove soaps and Flora spreads, reported first-half results for 2013 that slightly missed EPS forecasts. The shares were dealt a further blow when underlying sales growth in the third quarter fell short of City forecasts, driven by a slowdown in emerging markets. Although the shares have reclaimed some lost ground, they're still 13 per cent off 12-month highs in May.

So it comes down to the share rating and, with a forward PE ratio of only 11 times Numis' earnings forecasts for 2013-14, Mitchells & Butlers has the second lowest multiple in the sector, and well below the average of 14. So investors should get their reward for showing patience with a riskier-than-average investment.........As always dyor and good luck.

The state of the company's pension fund could also be set to improve. Although the fund's deficit (as defined by accounting standards) has nearly doubled year-on-year to £100m, the trend is for deficits to narrow as equity markets recover and interest rates on government bonds rise. If the pension hole closes faster than previously predicted, that could free up some of the £40m-a-year contributions that Mitchells is making to that end. In addition, it would bring a restoration of dividends closer. City analysts expect the resumption of payouts next year (see table), which could boost the share price. The persistent bear point with M&B is that the company has had its share of boardroom strife over the past few years, with big investors - in particular ex-currency trader Joe Lewis - willing to push their weight around. On the bright side, the past year has seen an outbreak of boardroom peace and new chief executive Alistair Darby has been left to run the business without distractions in his first year. Obviously, the debt issue hasn't disappeared, but Mitchells is unlikely to need a re-financing until 2017, and its repayment schedule stretches out to 2030.

Pub companies have had a well-documented hangover after years of over-expansion and too much borrowing. However, it would be a shame to allow the sector's past woes to get in the way of buying potential bargains, and the often strife-torn Mitchells & Butlers (MAB) pubco is such an opportunity if it can maintain its operational improvements. Mitchells does not need that much to go right for its own performance to improve. For example, its programme of operational improvements - including streamlining IT, refurbishing pubs and managing its menus better - has kept earnings growing, despite forecasts that like-for-like sales in 2013 will remain flat. The best that analysts at stockbroker Numis Securities can come up with is that like-for-like sales will nudge up by around 0.4 per cent. However, the process of gradually improving its pubs estate, rather than going hell for leather for growth, could contribute to a 9 per cent increase in Mitchells' earnings, the broker believes. That's impressive given the unpromising backdrop to trade and suggests that Mitchells has significant potential for operational gearing to boost profits as its improvement programme gathers momentum. Although M&B has been adding pubs to its portfolio - it aims to open 30 next year - it is restrained by its debt burden. At least this is stable - it has remained steady at £1.8bn for the past 12 months, and City analysts assume that whatever expansion occurs from now on will be financed from Mitchells' cash flow, rather than new debt. The company plans a roll-out of around 50 pubs in 2015 and the plan seems to be to use moderate expansion to drive profits, rather than aggressive pricing or marketing to push up like-for-like sales. This is sensible, but it does mean that Mitchells will continue to lag the better performing pubs operators for some while

Qinetiq would love to sell the US division, and a clutch of potential buyers will definitely want a look. Both price and timescale are less obvious, but £200m for a business turning over approaching £450m a year will appear cheap to a US rival better equipped to make it work. If it happens, Qinetiq becomes a tantalising break-up story. JPMorgan puts the odds at 50:50. Given a forward PE ratio of just 11.7 net of cash

Edward Stacey, an analyst at broker Espirito Santo, is more bullish. Even without a disposal, he thinks the shares are worth 235p, based on an adjusted EPS estimate of 16.2p in 2014-15. Selling US Services for £300m and using the proceeds plus any net cash (an estimated £216m by March 2015) to buy in shares increases EPS by 23 per cent to 20p, says Mr Stacey. Apply the current forward multiple to that level of earnings brings a price target of 250p. For any of this to happen, there needs to be a willing buyer. US companies ManTech (US: MANT) and Science Applications International Corporation (US: SAIC) are the obvious candidates. They both know Qinetiq well. Duane Andrews, who ran Qinetiq’s North American business for seven years, spent 13 years at SAIC. And ManTech has done business with Qinetiq before, paying $60m (£37m) for its security and intelligence business three years ago. US private equity may have a crack, too.

Airlifting troops out of Afghanistan and savage cuts to the US military budgets have had a major impact on Qinetiq (QQ.). The US government is responsible for almost half the group's sales, but the defence company's US Services division generated just 13 per cent of underlying operating profit last year. Management is looking at how to get "maximum value" out of the business, but a sale now looks odds on. That would unlock value, spark a massive return of cash to shareholders and put the rest of Qinetiq in the shop window. There's little doubt in the City about Qinetiq's intentions. "I'm pretty sure they'll try and sell it," says Chris Dyett, an analyst at broker Investec Securities. The Sunday Times recently reported that sale documents have been sent to potential suitors, and that the bidding could reach £400m. Mr Dyett thinks it will be "closer to £200m", far less than what Qinetiq paid for its US interests on its wild acquisition spree between 2007 and 2009. Even at that figure, getting a struggling business off the books would be a huge relief to shareholders. Management would be left running a growing and highly cash generative UK business where long-term contracts provide stable, predictable revenues. Even the short-cycle global products division is packed with earnings potential. The likelihood of a break-up would increase dramatically, but what's the group worth? The figure could be depressed by low profits at US Services, which is also hit by sterling's strength - Investec forecasts just £18.7m this year versus £53m in 2010. Even so, analysts at investment bank JPMorgan guess at 247p, based on take-out multiples for similar defence companies.

BSkyB's robust first-quarter performance has boosted the shares - the price jumped about 7 per cent on the day the figures appeared. But the shares trade on about 16 times Numis's estimate for 2013-14’s adjusted earnings, falling to 14 times for 2014-15. That’s not pricey for the media sector, where the average current-year rating is nearer 22 times. Moreover, they are only rated a tad higher than those of BT, whose new sports offering isn't having the impact on BSkyB that had been feared. True, always lurking in the background are issues related to the Murdoch family’s influence on the company, yet BSkyB’s ability to find new customers and generate more revenue from existing ones make the shares are sound growth stock

Those longer-term prospects reflect the reviving health of the UK’s housing market. The ITEM Club, an economic forecasting consultancy, for instance, anticipates "well over a million" housing transactions this year, a 12 per cent increase. "We believe a key time for households to consider their TV and communications providers is when they move house and accordingly an increase in housing transactions should be a positive for Sky," reckons analyst Paul Richards of Numis. Related to this is an improving economic backdrop which, when added to more housing transactions, leaves Mr Richards anticipating "scope for an acceleration in customer acquisition" by BSkyB. BSkyB’s shares offer decent income characteristics, too. There is a prospective yield of well over 3.3 per cent based on Numis’s forecast payout for 2013-14, which is better than the media sector’s average yield of around 2.6 per cent. In addition, management has been returning capital through share buy-backs. Back in 2011-12 BSkyB bought in £750m-worth of its shares and a further £500m in 2012-13. Now management is seeking approval at next month’s annual meeting to buy back another £500m-worth. True, this is adding to BSkyB’s debt, though that’s hardly an issue - interest paid was covered almost 15 times by operating cash flow in 2012-13.

In the summer it seemed that pay-TV provider British Sky Broadcasting (BSY), or BSkyB, was facing a serious competitive threat. That reflected the launch by BT Group (BT.A) in August of a new sports TV channel, showing free Premier League football to its existing broadband customers. But after BSkyB revealed impressive first-quarter growth this month, it may be that BT’s offering isn't the threat that had been feared. Moreover, BSkyB's - still depressed by what we could label the ‘Murdoch’ discount - are undemandingly rated and generate a reasonable income. Strong demand meant the BSkyB sold an extra 800,000 products in the first quarter and across its range of TV, broadband and telephony products now sell over 32m of them to almost 15m customers. The home communications business performed especially well, with the addition of 111,000 net broadband customers in the period - 9 per cent more than in last year’s first quarter. BSkyB now has over 5m broadband customers and is catching up with BT’s 6.8m total. Total customer numbers rose 11 per cent in the quarter and, more important, average revenue per user rose by £17 on the year to £559. True, the costs of Premier League football and investment spending meant that adjusted operating profit fell 8 per cent in the quarter to £285m. Those factors - along with integration costs from March’s acquisition of Telefónica UK's broadband unit - help explain why broker Numis Securities expects adjusted earnings for the year to end-June 2014 to fall around 2 per cent. But those costs, which had been well flagged at the full-year stage, are no reflection on the group’s longer-term growth profile. The broker expects adjusted earnings to jump 17 per cent in the year to end-June 2015, and by 14 per cent in 2015-16

What a roller coaster of a day here lol

"This involves balancing the allocation of funds to continue progressing the Bullabulling Gold Project definitive feasibility study (DFS), with the maintenance of a strong cash position to avoid a requirement for raising capital on terms that could be unfavorable for shareholders. "The company's efforts in this regard are being aided by continuing improvement in the availability and cost of services in the Western Australian resources sector," it added. The firm said it expects these improved operating conditions, relative to last year, to continue for at least the short to medium term, which is favourable for advancing the project towards production. The gold price rose from US$1,192 per ounce at the end of June to US$1,326 at the end of September, the firm highlighted. Bullabulling shares dipped to 2.75p.