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The third quarter has seen year-on-year operating margin improvement at Coats as stocks, benefiting from the lower raw material prices experienced earlier in the year, have been sold and the income from the Crafts sales price increases implemented in the first half has been realised. However, Coats is seeing the return of a generally upward trend in commodity prices and this, combined with the structural inflation affecting the business, will contribute to continuing pressure on margins going into 2013. This structural inflation is driven primarily by labour, energy and utility costs. Despite this, Coats is still expected to return full year profits to be in line with market expectations, with the exception of reorganisation costs that are expected to be somewhere between $25m and $30m higher than last year, although the resultant cash effect will largely arise in the 2013 financial year. Reorganisation charges are currently projected in the range $20m to $30m for 2013, reflecting an accelerated programme which brings forward projects planned for future years, one consequence of which is that management do not envisage incurring separately identifiable reorganisation expenditure from 2014 onwards. Overall net cash outflows on these accelerated projects are expected to be largely offset by disposal proceeds of some $50m (£31m) before tax from surplus properties. The increased 2012 reorganisation costs will have an impact on the net result reported by Coats in its income statement for the full year.

Net asset backing per share at Guinness Peat Group edged up in the third quarter as the investment holding company continued to unwind its investment portfolio to finance its share buy-back programme. The net asset backing per share stood at 31.07p at the end of September, up from 30.99p at the end of June. The group has got shot of four investments so far in the second half of the year: ClearView Wealth, Green's Foods, Thwaites and Tourism Asset Holdings. The plan is ultimately for Guinness Peat's principle holding to be Coats, the world's largest supplier of industrial thread and consumer crafts. Since embarking on this mission to whittle down its portfolio, 57% of the portfolio held at the start of January 2011 has been disposed of. Total funds generated since July 1st of this year from investments, including dividends and capital returns, amounted to £130m, giving a cumulative total since January 1st, 2011 of £433m. Guinness Peat's parent group's cash at the end of September had risen to £303m from £289m at the end of June. Given the increased focus on Coats, which is wholly owned by Guinness Peat, the group has given a trading update for the world's second largest zip manufacturer. Despite facing tough market conditions, third quarter like-for-like sales were up 5% on a constant exchange rates basis, but down 4% using actual exchange rates.

Its pension scheme deficit increased from £18.7m at March 31st 2012 to £22.3m at September 30th, due to a fall in the discount rate. However, this deficit represents only 6% of the total scheme which is worth £366m. Consequently, it plans to close its defined pension benefit scheme to new entrants from April next year. Net debt before prepaid finance costs at September 30th 2012 increased to £20.2m from £18.5m at March 31st 2012, but leverage still remains low at 1.1 times earnings before interest, tax, depreciation and amortisation (EBITDA). The interim dividend is up 10.7% to 0.155p a share, payable on January 8th 2013. Broker commentHouse broker Numis said: "We maintain our view that Norcros looks too cheap relative to the merchanting companies which are driven by the same end-user market but trade on valuation ratings almost double that of Norcros, and retain our 'Buy' recommendation." It has a price target of 20p.

Total revenue for the six months ended September 30th 2012 in its South African business was 17.4% higher than prior year on a constant currency basis at £39.9m (2011: £39.2m), although a considerably weaker rand means reported sterling revenue was ahead by only 1.9%. An underlying operating profit of £0.5m was recorded compared to an underlying operating loss of £0.3m in the prior year, principally driven by an improved performance in its tile manufacturing business as well as further improvements in our market leading adhesive business. Revenue at its Australian operation, Johnson Tiles, at £5.3m was 9.3% higher (2011: £4.8m) on a constant currency basis driven by a new tile range, success in the specification sector, and continued share gain with Bunnings, a major Australian DIY retailer. This new range together with a strong customer relationship and logistics expertise recently helped win further business to supply Bunnings in New Zealand. The business remained profitable in the period, generating an underlying operating profit of £0.1m (2011: £0.1m).

Norcros, a supplier of branded showers, tiles and adhesives focused in the UK and South Africa, has delivered solid interims and expressed confidence that it will make 'further progress'. For the six months ending September 30th, revenues increased 3.8% to £106.3m (September 2011: £102.4m), with pre-tax profits leaping 53.5% to £6.6m (September 2011: £4.3m). The vast improvement in profits was as a result of an improved underlying profit before taxation (up 11%), no exceptional charges in the period and higher non cash finance income. Basic underlying earnings per share were 1.1p (2011: 0.9p), driven by improved underlying profit before taxation and a low tax charge as a result of the recognition of a deferred tax asset in its South African business not previously recognised. Norcros's UK business increased revenues by 4.7% to £61.1m (2011: £58.4m) although underlying operating profit at £6.0m was 9.5% below last year. Its South African business is growing strongly and returned to profitability.

Online betting firm Sportingbet edged higher after William Hill and GVC Holdings were granted an extension to their offer deadline until December 4th this year. The two companies had previously been told that they were required to either announce a firm intention to make an offer for Sportingbet or announce they do not intend to make an offer by November 13th. Sportingbet previously rejected an indicative joint offer from sector peers William Hill and GVC Holdings for 52.5p per share. The company said at the time that the offer - comprising of 45p in cash from William Hill and 7.5p in shares in GVC - was not high enough. Following this, GVC was granted a temporary suspension of trading after the agreement of a revised and increased possible offer on October 16th. Sportingbet's shares climbed 0.99% to 51p by 13:00 on midday.

Online betting firm Sportingbet edged higher after William Hill and GVC Holdings were granted an extension to their offer deadline until December 4th this year. The two companies had previously been told that they were required to either announce a firm intention to make an offer for Sportingbet or announce they do not intend to make an offer by November 13th. Sportingbet previously rejected an indicative joint offer from sector peers William Hill and GVC Holdings for 52.5p per share. The company said at the time that the offer - comprising of 45p in cash from William Hill and 7.5p in shares in GVC - was not high enough. Following this, GVC was granted a temporary suspension of trading after the agreement of a revised and increased possible offer on October 16th. Sportingbet's shares climbed 0.99% to 51p by 13:00 on midday.

Property group British Land has signed a major forward funding agreement that will enable the development of the 310,000 sq ft Old Market scheme in Hereford city centre. The £90m deal is one of the only significant UK retail forward fundings to take place over the last five years and represents a yield on cost of between 6.75 and 7%, the group said. The scheme is located on the site of Hereford's former cattle market and will comprise 22 retail units, seven restaurants and a six-screen Odeon cinema. It will be anchored by a huge three-storey, 84,000 aq ft Debenhams store. Other shops include Next, TK Maxx, Frankie & Benny's and Waitrose. Over 50% of the space has already been pre-let. Richard Wise, Head of Retail Development for British Land, said: "We believe retail development adds significant incremental value and are replenishing our pipeline to build growth and opportunity by assembling an exceptional, diversified portfolio of dominant assets. "We are one of a very small group that has the ability, experience, financial strength and scale and strategy to capitalise on future demand for the right space."

"The mine's success is a credit to the people who work there, at Yellowknife and with the marketing team in Antwerp. Harry Winston has long experience in the Canadian diamond industry and their commitment to study further development at EKATI could help extend the mine's contribution to Northern Canada for many years to come." The sale is subject to the approval from regulators but BHP expects it to complete in the first quarter of 2013.

Mining giant BHP Billiton is to sell its diamonds business to Toronto-headquartered diamonds group Harry Winston for half a billion dollars, the company announced on Tuesday afternoon. Under the terms of the $500m cash sale, Harry Winston will take over BHP's interests in the EKATI Diamond Mine and Diamonds Marketing operations, and will assume all of its obligations under EKATI's agreements with the Canadian government. All BHP employees associated with the diamonds subsidiary will move over to Harry Winston. The divestment will see BHP take an impairment of $200m after tax to the value of the asset which will be reflected as an exceptional item in the group's results. The EKATI mine is located nearly 200 miles north-east of Yellowknife in the Northwest Territories of Canada. Tim Cutt, the President of BHP's Diamonds & Specialty Products division, said: "We are very proud of EKATI's track record and the substantial value it has created for the region and our shareholders.

Fund manager Invesco Perpetual, the lair of famed stock picker Neil Woodford, has increased its stake in G4S following the security company's recent share price falls. Invesco previously had an 11.3% stake in G4S, but has revealed that on November 8th it increased its exposure from about 159m to 172m shares, equal to 12.22% of the issued share capital. The security group's share price originally fell following the fall-out from its London Olympics staffing fiasco. Then, after staging a brief recovery, lurched down when it paid the price for embarrassing the British government, missing out on contracts to run prisons. Not only did G4S fail to win any new contracts in the biggest round of prison privatisations in England and Wales, but it has also lost its contract to run Britain's first private prison.

Centurion Resources started trading on AIM on November 12th having raised money to acquire and develop the 33 square kilometres Mitterberg copper exploration licences in Salzburg, Austria. The group boasts a board of industry veterans, including Peter Landau, Alastair Clayton and Greg Kuenzel, who will use their extensive contacts and experience to identify and evaluate other acquisition opportunities. "The Mitterberg Copper Project is a highly prospective, previously operating high grade copper mine, located in an area of significant mineralisation in Austria. Exciting exploration upside is evident within the tenure offering Centurion the opportunity to create substantial value," claimed Alastair Clayton, the miner's Chief Executive Officer. The group raised £1m before expenses by way of a placing and a share subscription of 100m shares at a penny each. Beaumont Cornish acts as nominated adviser (Nomad); it is also, along with Merchant Securities, the company's broker.

Positive Points: Current trading remains in line with management’s expectations. The take-up of the Government backed 5% deposit NewBuy mortgage product is gradually improving. To date, Persimmon has supported over 450 customers to purchase a home with a NewBuy mortgage. The group anticipates an improvement in its average selling price to c. £172,000 for the full year, an increase of 5% over the prior year (2011: £163,999) due to change in sales mix which is in line with its first half performance. The company highlighted that it was fully sold up for the current year and has £508 million forward sales reserved beyond 2012, a 5% increase on the comparable prior year position (2011: £484 million). The board continues to anticipate an increase in the current full year profit margin. The group’s landbank remains a management focus. Persimmon has acquired over 5,500 plots since 1 July, including 1,600 plots in the South East with the acquisition of Hillreed Homes on 5 October 2012. A concentration on cash generation since early 2008 has allowed group debt to be eliminated. Management anticipates that the company will be holding an increased level of cash at the close of the year (30 June 2012: £135.2 million) resulting from the strong free cash generated by its operations. Plans previously outlined to return £1.9 billion over the next nine and a half years appear to underscore management confidence in the outlook.................

Negative Points: Accompanying management comments noted that “the UK housing market continues to be challenging and mortgage availability remains the key constraint.” The share price valuation relative to rival housebuilders has been highlighted as a concern by some analysts. Regulatory moves to increase banking capital cushions could further constrain mortgage availability. Government spending cuts and tax increases required in order to reduce record borrowing levels remain a threat to consumer sentiment going forward. Both government and banking industry measures to limit the fallout from the credit crisis have allowed weaker rivals to otherwise survive.

Third quarter update: The update broadly reassured, although the share price weakened in early trade, down over 1.5%, with possible profit taking and the generally lower market appearing to play their part. Management noted that “current trading is in line with our expectations.” On entering the autumn selling season from the second week of September, the group experienced the usual seasonal pick-up in sales. The weekly private sales rate proved to be similar to the first half, with visitor levels to its sites 6% ahead of last year from the start of the autumn season and cancellation rates still running at historically low levels. In all, today’s update again builds on its previously outlined plan for the next 10 years. The group’s better health coming into the credit crisis has placed it ahead of many rivals, whilst the shortage of family housing looks to underwrite the long term story. In all, despite some valuation concerns,

Company overview Founded in 1972, Persimmon Plc is one of the UK's leading house builders, headquartered in York. It builds homes under the Persimmon homes, Charles Church and Westbury Partnerships brands. The company is listed on the London Stock Exchange and is a constituent of the FTSE 250 index.

Walker Crips, an integrated financial services group, has told investors it suffered 'difficult trading conditions' in the half year ended September 30th and said broadly lower transaction volumes in what were weaker equity markets results in a negative impact on performance. As a result, the dividend was slashed to 0.47p per share (2011: 0.94p per share), although this will be combined with the previous announced special dividend after the company disposed of Liontrust Asset Management, which resulted in a one-off gain of £10m. In a statement the company said: "The depressed market conditions of recent years show no signs of abating, as fragile investor confidence stutters in the face of Euro and market uncertainty. However, [the] board is confident that the group is well positioned to benefit from any longer term improvement in market activity. "The group has been implementing a strategy to refocus and build its investment management division. This process is now well advanced. We are very encouraged that twelve advisers, along with their clients, have joined the company since the beginning of the financial year bringing with them substantial new revenue streams, most of which will take effect in the second half of the year. Further recruitment is in prospect." During the period revenue fell from £10.65m to £8.84m, with gross profit at £5.18m (2011: £7.4m) and profit before tax at £7.7m, significantly up on the £0.83m generated in the same period the previous year. Administrative expenses remained stable at £6.3m, just slightly up on the £6.6m spent in the same period in 2011.

Walker Crips, an integrated financial services group, has told investors it suffered 'difficult trading conditions' in the half year ended September 30th and said broadly lower transaction volumes in what were weaker equity markets results in a negative impact on performance. As a result, the dividend was slashed to 0.47p per share (2011: 0.94p per share), although this will be combined with the previous announced special dividend after the company disposed of Liontrust Asset Management, which resulted in a one-off gain of £10m. In a statement the company said: "The depressed market conditions of recent years show no signs of abating, as fragile investor confidence stutters in the face of Euro and market uncertainty. However, [the] board is confident that the group is well positioned to benefit from any longer term improvement in market activity. "The group has been implementing a strategy to refocus and build its investment management division. This process is now well advanced. We are very encouraged that twelve advisers, along with their clients, have joined the company since the beginning of the financial year bringing with them substantial new revenue streams, most of which will take effect in the second half of the year. Further recruitment is in prospect." During the period revenue fell from £10.65m to £8.84m, with gross profit at £5.18m (2011: £7.4m) and profit before tax at £7.7m, significantly up on the £0.83m generated in the same period the previous year. Administrative expenses remained stable at £6.3m, just slightly up on the £6.6m spent in the same period in 2011.

Engineering group Costain said it had secured three additional highways contracts worth a minimum of 15 million pounds. The first, a four-year technology contract, is for the maintenance of Road Network Communications and Tunnel Systems across Wales and worth around £15m. It involves routine maintenance and fault repair of technology systems such as CCTV cameras, variable messaging signs, emergency telephones and traffic signals and includes the strategic routes of the M4, A55, and Conwy tunnels. Costain will commence the new service in early 2013, following a transition and handover period. The company has also been appointed onto both North and South lots of the Highways Agency Asset Support Framework. The framework allows the Agency to call on suppliers, including Costain, for larger maintenance schemes and improvement works, up to the value of £15m each. There is no commitment by the Agency to spend under the framework, but Costain said over £750m of work packages were expected to be awarded through it over the next three years.

DQ Entertainment, the AIM-listed production and distribution group, plunged after reporting a big drop in profits in the first half. Profit before tax came in at $1.79m in the six months to the end of September, down 34% from the $2.7m it reported the year before. The firm said the fall was on account of a foreign exchange loss, as well as the impact of Rupee-Dollar exchange rates. Shares dropped almost 13% on the news. Revenue in local currency - the Indian rupee - increased by 5%, however as the financials are presented in US dollars, the firm was hit by a 20% depreciation of rupee against the dollar since September 2011. This meant revenues dropped to $17.9m from $19.9m the year before. Chairman Tapaas Chakravarti said the company's production pipeline was steady. "We remain confident that the global entertainment industry has excellent long term growth prospects, while our business remains well placed for projected growth in the current year," he said.