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It is a similar story in France, which accounts for 17 per cent of revenue, where challenges in 2012 were caused by an acquisition and business relocation. But these factors should help performance in 2013. Meanwhile, the UK business, which accounts for 39 per cent of sales, has been trading strongly and has a good pipeline of services work. Demand for the group's services is cyclical, so reviving economic confidence could help bolster performance this year. That said, long-term technological changes are likely to slow the sales of PCs, which is potentially a drag for the supply chain operation.

True, there is no certainty that a special dividend will be paid, but the fact that it is viewed as a real possibility highlights the attractions of a company with this level of cash. What's more, the liquid assets add to a broader recovery story. While 2012 will not be a great year for Computacenter - in fact, it will break the group's record of six years of double-digit profit growth - it is likely to prove just a hiccup. The company issued a profits warning last year due to higher-than-expected start-up costs of new German contracts. But trading in the region, which accounted for 43 per cent of 2011's sales, looks like it is getting back on track. In January management said "performance (in Germany) in the fourth quarter significantly improved". Further progress is hoped for in 2013.

The cash certainly seems to be there to support Panmure's argument, even taking into account the fact that Computacenter has to carry a lot of working capital to fund around 500m of receivables due from customers. At the end of 2012 net cash, excluding customer financing, had risen to 150m - a 13.2m increase in the year and up from 4.6m five years ago. And Panmure, which does not think Computacenter will find a suitable acquisition to spend the money on, forecasts that Computacenter will end 2013 with 90m net cash even after its predicted special dividend payment.

Recovery potential, predictions of a 50p special dividend and an unchallenging share rating make shares in Computacenter an alluring prospect ahead of full-year results that should confirm strong trading in the fourth quarter. January's year-end update from the computer services provider was encouraging on the trading front and particularly impressive from the perspective of cash generation. Indeed, following the news, broker Panmure Gordon described Computacenter (CCC) as "awash with cash". And the bulging coffers have prompted the broker to conclude that 2013 could be one of the "infrequent" years when Computacenter pays a special dividend - the last time was through a B-share issue in 2006. The broker forecasts a 50p-a-share payout. Along with the regular dividend payment, that would mean an income yield of over 13 per cent for 2012.

That does not rule out the possibility of some capital returns, but the share price tends to give up the gains it acquires early in the year as another year passes without buybacks. In addition, Smith & Nephew's record with acquisitions leads us to be wary that the gains made since the Healthpoint deal will be sustained. So it would be no surprise if the share price fell about 10 per cent in the coming months.........but as always dyor gl

Then there is a longstanding debate about whether Smith & Nephew will gear up its balance sheet (net debt is just 7 per cent of shareholders' funds) to boost shareholders' returns by buying in shares. Some analysts think it could afford to buy in 20 per cent of its equity, but there was no sign of such a move at the last results. Besides, analysts at investment bank JPMorgan think Smith & Nephew has a choice between expansion and diversification and handing back cash to shareholders, but it cannot do both decisively and this could become a source of discontent.

While HP802-247 is an opportunity to boost medium-term sales, the risks are also high, if precedent is a guide. Pharmaceuticals specialist Shire failed last year with Dermagraft in venous leg ulcers - Dermagraft had once belonged to Smith & Nephew - and its share price suffered accordingly. Treating the condition with compression bandages is successful in 70 per cent of cases and HP802-247 will need to show a higher success rate in a shorter length of time to convince payers to fund its use. Santyl is a successful product and its sales have grown over the past few years, primarily after the US drugs regulator withdrew the marketing licence for its principal competing product. However, that situation could change should another competitor come along. In short, given the price paid, Healthpoint is not a sure-fire winner, yet Smith & Nephew's share price has risen over 8 per cent since the deal was announced.

And all the while Smith & Nephew must grapple with the increasing strain on healthcare budgets in the developed world. This means that, although ageing populations generate higher demand for its hips and knees, the public purse and healthcare insurers struggle to meet the costs of treatment. It is difficult to see how this situation will improve much, so Smith & Nephew must continue to rely on cost savings to underpin its healthy profit margins. But it is doubtful that continual cost savings can translate into a successful long-term plan. To offset this problem, acquisitions are likely to play a greater role, with the buyout of US company Healthpoint looking an adventurous move. Its acquisition in November for $782m (�488m) surprised many observers both by its timing and by the fact that Smith & Nephew paid more than 70 times Healthpoint's cash profits. The company specialises in treating difficult-to-heal wounds by developing medical products that remove dead tissue. One product, Santyl, accounts for 75 per cent of Healthpoint's sales. However, the real promise in Healthpoint is its experimental treatment for venous leg ulcers, HP802-247, which is in late-stage clinical trials.

The past few months have been eventful for replacement hip and knee specialist Smith & Nephew, as its new bosses plunge into the acquisitions market to help diversify group revenues. The aim is to reduce Smith & Nephew's reliance on global demand for medical devices by boosting the woundcare side of the group. City analysts agree that the logic is sound. The trouble is that the plan carries risks that could undermine the share price. Assuming that the share price follows its familiar pattern early in the year, the shares are a trading sell. Smith & Nephew's results for 2012 were clear about the state of the market for replacement joints in Europe and North America. Revenues showed some underlying growth - up 2 per cent to $4.13bn - and profits were boosted by cost savings, rising 6 per cent to $965m (�618.80m). However, the market is still tough and analysts expect only slow growth in the first three quarters of 2013. True, new products have been launched, but it will take some time for them to translate into faster sales growth.

Independent News & Media (INM) is seeking the removal of Brett Chenoweth as Director and Chief Executive Officer of APN News & Media, in which INM holds a 28.95 per cent shareholding. A release issued by INM reported that INM had "lost confidence in Mr Chenoweth's ability to implement the strategic initiatives necessary to reposition APN for the more challenged media landscape that has emerged in Australiasia." The company added: "Notwithstanding its market leading positions APN has underperformed as evidenced by a near-halving of APN's interim profits in the period from H1 [the first half] 2010 to H1 2012, the most recent earnings report." Independent News & Media publishes newspapers in Ireland, Northern Ireland and South Africa. APN has a portfolio of media asserts across Australia and New Zealand.

Cautious optimism Despite the gloomy 2012 results, the company's outlook statement was a little more upbeat, as Carroll highlighted "a degree of renewed optimism to the economic prospects". She said that while economies in Europe and Japan remain weak, "recent policy changes ought to stimulate growth in 2013". "Alongside a continuing recovery in the US, we expect robust growth in the major emerging economies - especially China and India - as they benefit from continuing urbanisation. Rising living standards and an expanding middle class should support demand for our products across our diversified mix." The company raised its final dividend per share (DPS) by 15% to 53 cents, bringing the total DPS to 85 cents, also up 15% year-on-year.

"The first phase of the project will begin its ramp-up at the end of 2014, with operating costs expected to be highly competitive in the first quartile of the FOB cash cost curve, generating significant free cashflow for many decades to come." On an underlying basis, group earnings dropped by 54% from $6,120m to $2,839m. Underlying earnings per share fell from $5.06 to $2.26. Meanwhile, revenues decreased by 10% from $36,548m to $32,785m as the company said that there was a decline in realised prices across the majority of commodities it produced.

Anglo American was whacked by a 4.6bn dollars of impairments in 2012, while underlying earnings took a hit from falling commodity prices, ongoing cost pressures and a loss-making platinum business. The company swung into the red in the 12 months to December 31st, recording a loss before tax of $239m, compared with a profit of $10,782m the year before. The firm recorded impairments worth $4.6bn (post-tax) in relation to its Brazilian Minas-Rio project - which was found to need $8.8bn more in capital expenditure - and a number of platinum projects that were said to be "uneconomical". In relation to the Minas-Rio project, Chief Executive Cynthia Carroll said: "Despite the difficulties we have faced that have caused a significant increase in capital expenditure, we continue to be confident of the medium and long term attractiveness and strategic positioning of Minas-Rio and we remain committed to the project.

Following on from the rhetorical question; whether the market would reward a withdrawal from the North Sea, he answered: "For the right price, we believe so. We optimistically forecast BG's net UK production at approximately 106,000 barrels of oil equivalent per day (boepd) in 2013 - up from 96,000 boepd in 2012-supported by the late Jasmine field ramp-up in the fuorth quarter of fiscal year 2013 and return of Elgin Franklin High Pressure and High Temperature volumes."

CFO successor being sought The group reported that the succession process would comprise both an examination of potential internal candidates and an external search. Chris Finlayson will continue as Chairman of the Investment Committee for this interim period. Analyst view on BG Group prospectsCommenting two days ago on BG Group's performance, Brendan Warn, an equity analyst at Jefferies, said: "We believe shareholders will ultimately benefit from the company focusing on core value creative activities including LNG [Liquified Natural Gas] and exploration." He gave the company a "buy" rating and a price target of 1,700.00p. Commenting on whether the group's projects in the North Sea would be a "problem child" or a "cash cow", the analyst added: "The UK North Sea has been a substantial contributor of net cashflows, while on the other hand, the ageing facilities and HPHT [High Pressure and High Temperature] assets can be tied to most of BG's production guidance misses. We question the need for BG to remain in the North Sea long term."

Commenting on Barbosa's appointment, BG Group Chairman Andrew Gould said: "I would like to express on behalf of BG Group's board our sincere thanks to Fabio for all his excellent work as Chief Financial Officer over the last two years. "His efforts in the execution of the portfolio rationalisation programme and in diversifying and broadening our funding options and sources have been instrumental in materially strengthening our balance sheet position, helping underpin investment in, and the delivery of, our key global growth opportunities. As Chairman of BG South America, Fabio's wealth of experience will prove important in realising the huge value inherent in our substantial interests in the region." Den Jones, BG Group Financial Controller, who acted as Barbosa's alternate director during Fabio's leave of absence, has today been appointed a director of BG Group. As a director, Den will continue to fulfil the role of BG Group Interim Chief Financial Officer pending the conclusion of a succession process for the role of Chief Financial Officer.

Natural gas provider BG Group has reported a major management change with Chief Financial Officer Fabio Barbosa stepping down from his dual role as Chief Financial Officer and Executive Director and becoming Chairman of BG South America. As Chairman of BG South America, Barbosa will report to Chief Executive Chris Finlayson. He will be based in Rio de Janeiro and will provide senior counsel and advice to the BG teams in Bolivia, Chile, Uruguay and Brazil. Barbosa has also stepped down from being a member of BG Group's Group Executive Committee and other committee. A statement issued by BG Group reported that Barbosa's decision to step down from these roles was "for personal reasons".

Ultra Electronics has confirmed that its new Group Finance Director, Mary Waldner, will take up the role on July 1st of this year. The appointment was announced on January 24th.

Speciality chemicals group Johnson Matthey has agreed an extension of its metal supply deal with Anglo American Platinum and entered into a new contract, under which it will provide Anglo Platinum with platinum group metal market research services. The new agreement will result in a change to fourth quarter revenue, meaning the full year impact on the group will be a loss of commission income of �35m. The likely cost savings associated with any restructuring are expected to be relatively modest. Neil Carson, Chief Executive of Johnson Matthey, said: "Whilst we are disappointed to lose commission income, we are pleased that we are able to extend our long relationship with Anglo Platinum and secure an extension to our metal supply agreement. This will enable us to continue to service our customers with confidence."

Engineering giant Weir has appointed Charles Berry, the Chairman of power station firm Drax Group, as a Non-Executive Director. Berry, who is also the Non-Executive Chairman of Senior and previously held board positions at Scottish Power, will join the board on March 1st. He will become a member of both the audit and remuneration committees. "The Weir board is delighted to welcome Charles Berry as a Non-Executive Director. Charles brings great experience of the industry and we are looking forward to benefitting from his contribution in the future," said Weir's Chairman, Lord Smith of Kelvin.