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Negative Points: Whilst underlying revenues grew across all divisions, underlying headline operating profit did not expand at Smiths Medical. Substantially increased investment in sales and marketing in higher growth markets impacted. At Smiths Medical, looking to the balance of the year, the introduction of a medical device tax in the US in January is expected to constrain growth and margins. The impact of foreign exchange translation represented a slight headwind to the level of profit growth. Pressures on government spending are expected to continue; conditions are likely to continue to constrain parts of business with government-funded customers. Via John Crane, the group is exposed to numerous lawsuits in the US where damages arising from products containing asbestos are pending.

First quarter update: Trading at Smiths Group reassures. The statement broadly reassured investors, with management's expectations for the year remaining in line with guidance given back at the full year results. The board highlighted "underlying revenue growth across all divisions." Demand for its first-fit original equipment and aftermarket services helped drive performance at its John Crane business, whilst its Detection division continued to build on its performance improvement programme, delivering cost savings and completing first shipments from its new manufacturing facility in Malaysia. Less positively, although as anticipated, headline operating profit at its Medical division was lower, reflecting the annualised effect of its increased investment in sales and marketing in Emerging Markets. In all, despite broader concerns over the health of the global economy, the company continues to make progress,

Company overview Smiths Group is a leading British engineering company involved in wide-ranging speciality engineering activities. It is based in London, listed on the London Stock Exchange, and a constituent of the FTSE 100 Index. Smiths Group has five divisions - Smiths Detection, Smiths Medical, John Crane, Smiths Interconnect and Flex-Tek. They are focused on threat & contraband detection, medical devices, energy, communications and engineered components markets worldwide. The group’s customers range from governments and their agencies, to hospitals, petrochemical companies and equipment manufacturers and service providers in various sectors around the world.

Negative Points: The group's high weighting in commercial office space within London’s financial district could provide a medium to longer term drag, as an increased regulatory environment and higher taxes potentially see financial businesses relocating elsewhere in the world. The outlook for UK and European consumers remains uncertain. The group's Retail assets which accounts for around 60% of its portfolio provides exposure.

Financial Highlights: Underlying profit before tax increased to £137 million, from £132 million in the same period a year earlier. The group's portfolio valuation was in line with 31st March 2012 at £10.4 billion (UK +0.2%). The board has recommended a quarterly dividend of 6.6 pence that brings the half year dividend to 13.2 pence.

Interim results: British Land outperforms UK property market. British Land, one of Europe's largest Real Estate Investment Trusts (REITs) reported a robust set of results that continued to outperform the UK property market on all key metrics - rental growth, capital returns and total returns. Net rental income rose 1.1% to £272 million, while the company said that total and capital returns were 170 basis points and 200 basis points ahead of the benchmark Investment Property Databank (IPD), respectively. Chief Executive Chris Grigg said: "In a market where leasing activity has been generally slow and valuations have continued to weaken, our results underline the strength and resilience of our business and the actions we have taken in recent years to drive performance." In a separate announcement, the firm announced that its Chairman of six years, Chris Gibson-Smith, would be stepping down at the end of 2012. He will be succeeded with effect from 1 January 2013, by John Gildersleeve, who joined British Land as a Non-executive Director in 2008 and is currently Senior Independent Director

Company overview British Land is one of Europe's largest Real Estate Investment Trusts (REITs) with total assets, owned or managed, of £15.8 billion (British Land share £10.3 billion), as valued at 31 March 2012. Its property portfolio is focused on prime retail locations and Central London offices, with the aim of attracting high quality occupiers committed to long leases. Retail assets account for 61% of the British Land portfolio with around 27 million square feet of retail space across 89 retail parks, 97 superstores, 12 shopping centres and 10 department stores. Only 3% of their portfolio is based in Europe, compared to 34% (rising to an estimated 40% on completion of current developments) of the portfolio made up from offices located in the City of London and West End.

William Hill: JP Morgan raises target price from 340p to 385p, overweight rating kept.

Wetherspoon (JD): JP Morgan moves target price from 390p to 465p, underweight rating maintained.

Ultra Electronics Holdings: UBS reduces target price from 1300p to 1200p, sell recommendation maintained.

Rotork: JP Morgan raises target price from 2450p to 2500p, overweight rating reiterated. Morgan Stanley raises target price from 2070p to 2240p, equal-weight rating kept.

Pan European Terminals: Westhouse Securities upgrades from add to buy, target price of 30p reiterated.

Lamprell: Liberum Capital reduces target price from 176p to 153p, buy recommendation maintained.

Intertek Group: Jefferies cuts target price from 2800p to 2700p, hold recommendation remains unchanged. JP Morgan raises target price from 3230p to 3267p, overweight rating kept.

International Consolidated Airlines Group: RBC Capital upgrades from underperform to outperform.

Intercontinental Hotels Group: Barclays upgrades to overweight.

IMI: Morgan Stanley raises target price from 1123p to 1154p, overweight rating kept.

Huntsworth: Panmure Gordon reduces target price from 45p to 40p, hold recommendation remains unchanged.

Euromoney: UBS raises target price from 730p to 775p, neutral rating kept.

Compass Group: Investec raises target price from 740p to 800p, buy recommendation kept.