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AIM-listed technology-led engineering group Corac has published a trading update for the year end, indicating that its financial results are likely to exceed board expectations. The group, which serves the oil, gas and defence markets, reported that its financial performance would be "ahead of market expectations" adding that cash and cash equivalents were also better than forecasts at 6.6m at the year-end compared to 6.8m on June 30th 2012. During 2012, the group integrated two acquired businesses which contributed revenues and profits to the overall result, whilst the gas compression development programmes was reported to be continuing to progress well. Corac reported that its three subsidiaries were performing well adding that management was pleased that the combined current order book placed the group in a good position for 2013 and beyond.

JKX Oil & Gas is restarting its in-field drilling and appraisal programme on the Novo-Nikolaevskoye Complex in the Ukraine, the company announced Tuesday. The group's Skytop rig will be used on licences at the complex including the Molchanovskoye, Elizavetovskoye and the Zaplavskoye fields. The rig will first be used at Molchanovskoye for a horizontal recompletion of the M-166 Devonian sandstone oil producing well before moving to the Elizavetovskoye licence to spud the first of a planned five-well development drilling programme. JKX also plans to drill this year on the Zaplavskoye licence after processing and interpreting the 2012 additional 3D seismic data. The rig is currently being used on a well for a Ukrainian operator which is expected to be completed this month. "We are pleased to recommence the in-fill drilling programme on our core Ukrainian production licences, the production from which currently underpins our Group cash flow," said Chief Executive, Dr Paul Davies.

Botswana Diamonds has secured an agreement with a private South African company to review 13 licences in the southwest of the Orapa region of Botswana. As part of a three-month deal with the private group - which holds an 85% stake in the licences - Botswana will evaluate the region before potentially making a bid to buy equity interest. The region contains the Ghaghoo Diamond mine, being developed by Gem Diamonds, and the X-36 diamond discovery made by Petra Diamonds. It also has 21 known kimberlites in the license area which covers a total of 6,518.40 sq km. John Teeling, Chairman, said: "This agreement represents another step forward in the development of our interests and gives us access to a prospective area of Botswana, which is new to the company. Our geologists will review all the available data and, given the right results, Botswana Diamonds will agree an earn-in arrangement on specific ground. "This agreement gives exclusivity to Botswana Diamonds and is in addition to the joint venture to the north/northeast of Orapa, which has applied for 12 exploration licences."

"The principal drivers of our healthcare business are performing to expectation with the number of new HealthRoster customers remaining strong; the continuing 100% close rate on HealthRoster renewals; the rapid growth of the Cloud business and the continued adoption of Allocate RealTime Patient Flow application within the HealthRoster customer base."

Allocate Software, supplier of workforce management tools, on Tuesday reported a drop in earnings for the half-year. The AIM listed company said adjusted earnings before interest, taxes, depreciation, and amortisation fell 62.5% to £0.6m in the six months to November 2012. A diluted adjusted loss of 0.1p earnings per share (EPS) was posted, compared to a 1.8p EPS in the comparative period. That despite a slight 0.62% increase in revenues to £16.1m, driven by strong trading of products and new subscriptions. Operating cash flows were also up 0.5% to £0.9m with a gross cash balance of £6.1m, up from £4.0m in the previous year. The firm's products including the HealthRoster roster system and the Allocate Clinical Staff Planning application helped drive revenues in the period along with business in Australia and Sweden. "I am pleased with the overall performance in the first half, particularly after such a slow start in the first quarter," said Ian Bowles, Chief Executive Officer of Allocate.

The company also guided higher on its quarterly license guidance, which was raised from $70m+or- to $75m +or-. Likewise tax guidance for 2013 was lowered from 24% to 20%. A net cash generation in the fourth quarter of �74.1m and for the full year of �520.2 million underpinned dividends to shareholders. Directors recommended a total dividend in respect of 2012 of 4.5p per share, a 29% rise compared to 2011. Management will present at Goldman Sachs Technology and Internet Conference in San Francisco on February 14.

Commenting on the figures, analysts at Investec added that: "fiscal year 2012 preliminaries highlighted many of the reasons why we are fans of ARM, but above 900p we feel many positives are factored in for now. Royalty growth is now seen 15-20% ahead of the industry versus previous management commentary of 10-15% - the prospect of this upside was a core driver of our previous positive stance." Full year revenue to be at least in-line, divi increase ARM Holdings enters this year with a robust opportunity pipeline for licensing a record order backlog with market share gains in the long term as partners introduce new chips based on ARM technology. While the macro-economic environment continues to be characterised by uncertainty and the prospect of low growth for some time and its influence on consumer and enterprise spending impacts semiconductor revenues and industry confidence, the group expects revenues for the full-year to be at least in line with current market expectations.

New licences holding near record levels The FTSE 100 company said the key driver was sales of the group's processor technology for smartphones, mobile computers, medical devices and micro-controllers. ARM saw 110 processor licences signed throughout the year, accelerated by 36 new licences in the fourth quarter. On this point, Peel Hunt highlights that the above amount was the second highest ever and that, crucially, 15 were for the higher value A class. Processor royalty also increased 21% year-on-year, buttressed by strong growth in in the group's Cortex-A and Mali-based chips, versus a 3% fall for the industry. "ARM has seen good revenue and earnings growth throughout 2012. Customers are developing products to meet the needs of the post PC era and are driving demand for ARM's most advanced technology," Chief Executive Officer, Warren East, said. "In [the fourth quarter] we again saw influential market-leaders demonstrating their commitment to ARM technology by licensing our latest products. Royalty revenue has also grown strongly during [the fourth quarter] underpinned by ARM's market share gains and an increased royalty percentage from Cortex-A class processors being deployed into smartphones and tablets.

ARM Holdings on Tuesday reported a 16 per cent rise in profit before tax for the fourth quarter, boosted by demand for the company's processor technology for smartphones and tablet devices. Revenues came to the tune of �164.2m, up 19% year-on-year, beating the �151m forecast by analysts at Jefferies International. Normalised pre-tax profits for the British semiconductor and software design firm came to �80m for the three months to December 2012, compared to �69m for the same period a year earlier. Earnings per share for the period rose 10% to 4.08p, slighting ahead of market expectations of 4.07p. The technology outfit also beat on most other metrics, while 'guiding higher' on some of those which are most watched by analysts, such as quarterly license guidance or forecast growth rates for its royalties. Nevertheless, ARM did shy away from 'factoring in' similar levels of growth in licences as those seen in the fourth quarter into its fiscal year 2013 estimates, and prudently so in the view of analysts at Investec. That means that these analysts saw nothing in the company's presentation today which would lead them to upgrade their long-term unit volumes/royalty rate forecasts, which is what they believe will be needed to take ARM to the next level. Hence their decision to maintain their recommendation to 'hold.'

Chief Executive Bill Oliver Modwen commented: "We have achieved some significant milestones across our portfolio and, in particular, on our major development projects. These achievements underline our growing presence in the London and the South East market while also proving that there are still opportunities in the regions for well-placed and well-priced product." He added: "We cannot ignore the current upsurge in investor appetite for development activity in London and the South East and the prospects arising across the UK from our residential portfolio. We will therefore focus our attention throughout the coming year on these specific areas in order to drive optimal returns, as well as advancing our larger schemes, including of course the New Covent Garden Market and Swansea University developments." The final dividend for the year has been increased by 10% to 2.42p per share, giving a total dividend of 3.63p for 2012.

Regeneration specialist St Modwen Properties reported a solid increase in annual net asset value and profit and issued an upbeat outlook for future developments. NAV increased 8% to 251p per share for the year ended November 30th 2012 while EPRA NAV gained 9% to 272p per share. St Modwen said it was on track to deliver its target of shareholder equity NAV of 300p per share by November 2015. Pre-tax profit for the year increased to 52.8m from 51.7m the same time a year earlier. Realised property profits were up 22% to 29m. Net rental income grew to 36.2m from 35.5m and it reported a 12% increase in net trading profit to 25.5m. Operational highlights during the period included the signing of a 2.0bn regeneration agreement for New Covent Garden Market and a 150m deal to develop Swansea University with work scheduled to commence in the first half of 2013.

Following the achievement of a net cash position at the half year, the group's balance sheet and cash generation remain strong. QinetiQ said the outlook for the year is unchanged from that set out in the half-year results in November 2012. "As previously indicated, visibility remains much lower than usual, particularly in the US. Despite this uncertainty, with the benefit of the strong first half performance the board believes the group as a whole will perform in line with its expectations for the year, absent any material change in customer requirements," it said in a company statement.

Defence firm QinetiQ said trading in the third quarter was as expected and the outlook for the year remains unchanged from previous guidance. The group said the performance of UK Services continues to benefit from a more competitive cost base and better project execution. Last week QinetiQ agreed conditions with the MOD for the latest contract term for the provision of test, evaluation and training support services through to March 2018. In the US, trading conditions remains difficult. Delays to contract awards continue to impact the performance of US Services and a significant number of bids remain outstanding, the group explained. QinetiQ said the division is continuing to plan and implement cost reductions to retain competitive rates in challenging market conditions. Meanwhile Global Products' performance for the year will be first half weighted following the delivery of two key orders for the Q-NetTM vehicle survivability product, plus additional spares orders, during the first six months of the year.

"We continued to deliver excellent performance in exploration and appraisal, with 18 successful wells out of 19 tests in the year, including a further four successes in Tanzania," he said. "Elsewhere, our risked exploration resources grew by more than 20% with new licences acquired in Uruguay, Egypt, India and Trinidad and Tobago." He said the group signed agreements which are expected to release $8.1bn of capital by the end of this year, exceeding targets 12 months ago. This year the group is focusing on exploration and production and natural gas as it reviews its long-term strategy, he added. "We have much to accomplish and clear milestones to deliver in 2013. We have seven projects coming onstream over the year. Our focus is squarely on safety and execution in both our growth projects and base assets. "In Egypt, BG Group continues to keep the business environment under careful review. We have sanctioned the next phase of development for the West Delta Deep field, subject to partner approval, which will come onstream in 2014. "...Our strategy will build on our distinctive strengths, which clearly differentiate us from the majors in the industry: world class exploration, a unique LNG model and our commercial agility."

Natural gas company BG Group on Tuesday posted a 29 per cent fall in fourth quarter earnings as the FTSE 100 company experienced a decline in cargo deliveries. Earnings for the last three months of 2012 came to $1.0bn, down from $1.4bn the previous year, primarily as a result of $277 million tax credit in 2011. The results were in line with a 12% drop to $1.8bn in total operating profit for the period. The group's earnings per share came to $0.30, a 29% decline from the year before, while dividend per share rose 10% to $0.14. BG Group's Chief Executive Officer, Chris Finlayson, said the quarter reflected fewer liquefied natural gas (LNG) cargo deliveries and lower spot prices which resulted in a "16% lower contribution from LNG Shipping & Marketing". However, full-year earnings still climbed 3% to 4.3bn, boosted by a 4% rise in total operating profit. Earnings per share for the year also increased 3% to $1.29 and dividend per share jumped 10% to $2.61. Finlayson, said the company made important progress on projects across the world, particularly in Brazil and in Australia. Last month a record 55 wells were drilled.

The value of portfolio income at investment management company 3i rose 28.3 per cent to 68m pounds in the period from October 1st to February 4th compared to the corresponding period in the previous year, an interim management statement from the company has disclosed. The FTSE 250 company, which focuses on infrastructure, private equity and debt management, further reported that its European portfolio had risen in value with income totalling �37m in the period. The valuation of the company's holding in 3i India Infrastructure Fund was influenced by a number of factors, including the movement in the share price of Adani Power Limited and foreign exchange fluctuations. 3i reported that over the period, Adani's share price increased by 6.7% and the Indian rupee appreciated by 1.7% against sterlinfg, resulting in foreign exchange gains for the company. Peter Sedgwick, Chairman of 3i Infrastructure, said: "The European portfolio continues to perform well operationally and financially and to generate good levels of income. The company accrued income for the first time from Elenia during the period."

UK Solid Waste also continued to experience tough end markets, especially in Scotland where, despite active cost reduction measures, increasing offtake costs will continue to put increased pressure on profitability, it explained. The Hazardous Waste division continued to trade in line with expectations, with its Reym industrial cleaning business performing strongly. Elsewhere its Organics Division performed steadily. It has secured a three year extension to its flagship contract with Albert Heijn in the Netherlands, for the conversion of food waste into electricity. Chief Executive Peter Dilnot commented: "The group has continued to trade robustly in end markets which remain very challenging, particularly in Solid Waste where we are making good progress with our cost reduction programme." "Despite the very challenging market conditions, which will impact the rate of growth in the next financial year, we remain confident in the group's medium term prospects."

Waste management group Shanks said it has continued to trade robustly in end markets which remain very challenging. The group, which sorts and reprocesses waste generated in industry, particularly construction, said notwithstanding the ongoing tough market conditions, it expects results for the year ending March 31st 2013 to be broadly in line with its current expectations. "Although the Board remains confident in the medium term prospects of the group, it is now expected that the further deterioration in core markets experienced over recent months will impact the rate of growth in the next financial year," it said in a company statement. Across its divisions, Shanks said Benelux Solid Waste continues to experience very tough end markets, with falling waste volumes resulting in severe price pressure across the industry and low recyclate prices also adding pressure to margins. Shanks is highly exposed to the Benelux region.

Further action has been taken to reduce costs and the group has decided to provide £11.2m for the impairment of assets after assessing the potential range of future cash flows within the Yarns business. Chairman Martin Flower said: "These are good results during a period of continued macroeconomic challenge, particularly within Europe, providing further evidence of the quality and resilience of our business and its growth prospects." "To enhance these growth prospects, the group has made significant investments in reorganising its activities, building capability and extending capacity in attractive segments and geographies." "These investments will begin to pay back in the coming year and further underpin the board's confidence in a continuation of cash generative, profitable growth. The year has started in line with our expectations."

Industrial fabric maker Low & Bonar reported profit growth in the last year, despite continued macroeconomic challenge, and said its new financial year had started in line with expectations. The maker and supplier of technical textiles said profit before tax, amortisation and non-recurring items from continuing operations increased by 4.7% to £24.5m and rose 10.7% on a constant currency underlying basis. Revenue on a constant currency basis rose 2.6% to £380.5m. Operating profits were 5.2% higher on an underlying basis. Operating margins edged up to 8% from 7.9% in 2011 while earnings per share rose by 5%. Underlying its confidence in future trading, Low & Bonar has increased its dividend payment to 2.4p, 14.3% from a year earlier. Low & Bonar said lower sales in the depressed artificial grass yarns market led to losses within its Yarns business, despite recent cost reduction actions.