Member Info for jange

Negative Points: Accompanying management comments continue to highlight uncertainty regarding contracts and government defence spending budgets going forward. Group revenue fell by 8% on an organic and constant currency basis, largely reflecting continuing contract delays for its US Services business. QinetiQ operates in a highly competitive marketplace. The company has exposure to foreign exchange fluctuation.

Financial Highlights: Group revenue declined by 7% to £685.5 million. Statutory profit before tax rose by 9.1% to £80 million. Net cash of £21.5 million reported, against debt of £145.3 million last year. Half year dividend increased by 22% to 1.1 pence.

Half year results: QinetiQ achieves a net cash position. The announcement saw management highlighting "a strong first half performance", with the milestone of net cash (£21.5 million) on the balance sheet being achieved. An uplift in the profit margin for the group's UK Services and a change in the mix of Global Product sales helped drive the improvement in profits, although revenues continued to be impacted by continuing contract delays for its US Services business. As for the outlook, the group highlighted that visibility remained much lower than normal, particularly in the US. Nonetheless, with the benefit of the strong first half performance, the board believed that the group as a whole would perform in line with its expectations for the year, absent any material change in customer requirements. For now, with management initiatives weighed against an expected withdrawal from Afghanistan and ongoing government spending uncertainties,

Company overview QinetiQ Group Plc provides technical support, training, test and evaluation, and know-how to customers in the global defense, aerospace and security markets. The Company operates in three divisions: US Services, UK Services and Global Products. US Services involves aerospace operations, engineering management, information services, mission solutions/cyber and software and systems engineering. UK Services involves air engineering, test and evaluation, training and simulation, cyber security and programme and procurement support. Global Products involves survivability, unmanned systems, energy from waste and vehicle power management. Headquartered in Farnborough, QinetiQ is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.

Positive Points The Chief Executive noted that "Compass has continued to perform well." The board's outlook comments proved to be broadly positive in tone. Positive trading momentum for its North American and Emerging Market regions had continued. Its North American business reported organic revenue growth of 8.3%. Organic revenue growth in the Fast Growing and Emerging markets business of 11.8% was reported, with strong new business wins seen. In China, Compass won the food service contract with Caterpillar (Suzhou) and, in Hong Kong, it extended its contract with MTR Corporation. While trading, particularly in Southern Europe, had deteriorated, actions to try and counterbalance the decline were being taken. Group diversification continues to provide a key ingredient, with a 'balanced portfolio' of client industries – both cyclical and defensive – combined with a wide geographical spread playing a significant part in the group’s business model. Management retains a tight rein on costs, with the group's efficiency programme ongoing. Small bolt-on acquisitions are being pursued, while management also continues to push the group's services into non-food support services. From 2008 to 2010, it spent a total of £550 million on acquisitions. Investor returns continue to be increased. The existing £500 million share buyback remains on track, whilst a new £400 million buyback was announced for 2013. The full year dividend was increased by 10% to 21.3 pence.

Negative Points Management highlighted that economic conditions in many parts of Europe, particularly in Southern Europe, had worsened throughout the year. It had experienced a slight decline in organic revenue of 0.7%. This was due to increasingly negative like for like volume trends in Europe, with the fourth quarter showing minus 2-3%. The challenging conditions had also put some modest pressure on client retention. As previously flagged, a near £300 million exceptional charge was taken with regards to the restructuring of its Southern European operations. Trading conditions in Japan had substantially recovered following the earthquake and tsunami of 2011, although the ongoing power shortages continued to affect the supply chain. Food cost inflation was again highlighted by management. The printing of money by many Central Banks across the world has arguably pushed up soft and hard commodity prices across the board. Unseasonal weather is also creating volatility. Volatility in currency markets can work against the company. Competition across the global industry remains intense.

Financial Highlights: Group revenue increased by 8% to £16.9 billion. Organic revenue growth of 5.4%. Underlying or adjusted pre-tax profit rose by 7% to £1.09 billion. Reported pre-tax profit declined by 17.6% to £789 million. A new £400 million buy-back announced for 2013. Total dividend payment over the course of the year increased by 10.4%.

Full year results: Compass Group grinds out further progress. Compass continued to grind out progress, although difficulties in Europe did impact. Organisational desire to cut costs continues to fuel progress, with management's own ongoing efficiency programme still playing its part. On the downside, negative organic sales for its European and Japanese division were reported, with business closures in Southern Europe now pressuring client retention rates. Rising food costs continue to be battled, whilst the outlook for the Japanese economy remains uncertain. In all, Compass still provides investors with broad comfort. Defensive growth remains an appealing proposition. Strong cash flows continue to underpin shareholder returns. However, conditions clearly remain challenging for its Europe/Japan business, a segment generating over one third of group revenues, whilst the group's newly announced share buy-back scheme appeared to be light of some analyst expectations.

Company overview Compass Group is an international food and support services company. It operates in around 50 countries, employs over 470,000 people and serves over 4 billion meals every year. The Company specialises in providing food and a range of support services across the core sectors of Business & Industry, Defence, Offshore & Remote Site, Healthcare, Education, Sports & Leisure and Vending.

Positive Points: The group's Environmental Technologies Division, which comprises Emission Control Technologies, Process Technologies and Fuel Cells made positive progress in the first half of 2012/13. In particular, within ECT saw good growth in North America and Asia although sales were lower in Europe. The division's sales were up 3% at £918 million and underlying operating profit was 17% ahead at £106.6 million. Johnson Matthey would benefit from tightening emission legislation which is driving demand for auto catalysts and emission reduction technology. In October, Johnson Matthey acquired the Axeon Group for £40.6 million in cash. Axeon is a specialist in the design, development and manufacture of integrated battery modules and systems. Within the firm's Fine Chemicals Division, whilst sales were 2% down at £138 million, an increase in underlying operating profit by14% to £37.2 million. The division's return on sales in the half year increased from 23.0% to 26.9% due to an improvement in product mix, added the group.

Negative Points: The group's Precious Metal Products division's performance is dependent upon precious metal prices. Whilst prices have improved from a summer lull, Precious Metal Products Division's sales were down by 5% and operating profit was down 33%. Johnson Matthey's performance is closely linked to the automotive industry. A stalling of the recent recovery in the US and European autos volumes would negatively impact sales estimates. The group is exposed to foreign exchange fluctuation. The UK and Europe currently account for around 35% of group sales.

Financial Highlights: Profit before tax was recorded as £191.2 million from £203.0 million a year earlier, a fall of 6%. Environmental Technologies Division reported good progress with sales up 3% and underlying operating profit 17% ahead. Overall, revenues fell 17% to £4.89 billion. The company announced a 3% rise in its half-yearly dividend to 15.5 pence per share. Net debt at 30 September increased by £240.9 million to £695.1 million, partly as a result of a special dividend to shareholders of £212 million in August 2012.

Interim results: Johnson Matthey results broadly in line, outlook weaker. Set against a difficult market environment, Johnson Matthey reported a 6% decline in underlying pre-tax profits to £191.2 million, citing the impact of lower average precious metal prices as a contributory factor. Revenues slipped 17% to £4.89 billion from £ 5.90 billion a year earlier. Chief executive Neil Carson said: "Whilst precious metal prices have improved from their lows during the summer, largely due to the labour unrest in South Africa, the outlook in some of our other markets has weakened and visibility remains limited. We therefore expect that the group's performance in the second half will be similar to the first half of the year."

Company overview Headquartered in central London, Johnson Matthey is a specialist chemicals manufacturer whose activities are divided between three divisions: catalysts (manufacture of automotive catalytic converters, pollution control systems and components for fuel cells), manufacturer of pharmaceutical compounds and refiner and distributor of precious metals such as platinum and gold. Its stock is traded on the London Stock Exchange and is a constituent of the FTSE 100 Index.

Positive Points: Fundraising within ICG's Europe Fund V was reported as above target, with €2.3bn of commitments received to date. The group said that this will result in this fund being its largest ever mezzanine fund and the largest fund of its type in Europe. A strong balance sheet was reported by management with unutilised debt facilities of approximately £442 million following a further £80 million retail bond issue in September. A progressive dividend policy continues to be pursued. The Board has declared an interim dividend of 6.3 pence per share in the latest period.

Negative Points: Net impairments for the period of £64.8 million (2012: £28.4 million) were reported. Provisions were taken on four assets, including £11.7 million relating to impairments of shareholder loans and £70.2 million relating to two large mezzanine assets. The present volatile market conditions could impact on ICG's investment and fundraising activities. A marked deterioration in economic conditions would impact on group performance. The company has substantial exposure to euro-denominated assets.

Financial Highlights: Group profits before tax in the six months to 30 September were £39.6 million, compared to £108.8 million in the first half a year earlier. Assets under management rose 6% to £12.1 billion and included £9.1 billion of third party funds. An interim dividend of 6.3 pence was declared.

Interim results: Intermediate Capital Group reports a broadly resilient performance. Specialist asset manager, Intermediate Capital Group which operates within two business segments, a Fund Management Company (FMC) and an Investment Company (IC) announced an overall group profit of £39.6 million in the six months to 30 September compared to £108.8 million in the first half of last year. This comprised of profit before tax at the FMC of £17.2 million compared to £17.1 million in the prior year, and profit before tax at the IC of £22.4 million compared to £91.7 million a year earlier. The decrease in Group and IC profit for the period was due in part to a higher level of impairments in the current period. Intermediate Capital Group said the challenging environment provided a difficult backdrop for its portfolio companies. Meanwhile, whilst the performance of its investment portfolio had been "broadly resilient", the group took material provisions for two large assets which are undergoing restructurings.

Company overview Intermediate Capital Group plc is an independent mezzanine provider with investment portfolios in Europe, Asia Pacific and the United States. Just at the mezzanine lies between two conventional floors in a building, so mezzanine finance fills the gap between senior bank loans (which normally have first right of repayment in the event of financial difficulty) and equity capital. The company operates through two business groups: The Fund Management Company (FMC) and The Investment Company (IC). FMC is the operating vehicle of ICG plc that sources and manages investments on behalf of the Investment Company (IC) and its third-party funds. IC is the investment unit of ICG plc and co-invests alongside its third party funds.

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