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Kraft Foods Group encompases the North American grocery business of the former Kraft Foods Inc., which spun off its global snacks business last month to create Mondelez International Inc. Kraft Foods Group is a manufacturer and marketer of branded food products sold in North America, with its portfolio of leading brands spanning numerous categories including beverages (Maxwell House, Capri Sun), cheese (Kraft, Philadelphia), meat (Oscar Meyer), and grocery (Kraft Mac & Cheese, Jello, Planters).

Positive Points: A strong performance in the Emerging Markets was reported. Covered sales for the group's Emerging Markets business rose by 12% on a local currency basis, non-covered sales by 19%. The group's African business continues to be expanded. During the period, terms were agreed to acquire a business from Ecobank in Nigeria for around $20 million. The group’s half year performance partly reflected a 27% jump in profit at Nedbank, its majority-owned South African banking business. Old Mutual has moved to make disposals, simplifying its structure and paying down debt since the financial crisis. During the period, its Finnish business sale was completed, whilst Austrian and German operations closed to new business. Restructuring of the group continues. In September (2012), the board announced the merger of the Skandia businesses (Skandia UK, Skandia International, Old Mutual Global Investors and the Skandia European businesses outside of the Nordic region) into a single business called Old Mutual Wealth. The operational changes are designed to combine asset management capability with UK platform strength and offshore expertise to grow into a leading provider of wealth management solutions in the UK and internationally. A progressive dividend policy is being pursued. At the half year results, the interim dividend increased from 1.50 pence per share to 1.75 pence.

Negative Points: Accompanying management comments highlighted a degree of caution. Traditional life sales (covered sales) for its developed markets business ‘Old Mutual Wealth’ declined by 17% on a local currency basis. The Financial Services Authority's Retail Distribution Review (RDR) continues to provide a degree of uncertainty. Earnings generated by Old Mutual's South African operations are subject to exchange control regulations. The group sustains currency exposure and political risk, given its strong focus on South Africa.

Financial Highlights: Funds under management for the group’s core operations increased by 4% to £263.3 billion. The board's £1.5 billion debt repayment target was met.

Third quarter update: Old Mutual enjoys a strong performance in the Emerging Markets. The announcement saw management highlighting another quarter of good operational progress overall, with a strong performance in Emerging Markets. The Chief Executive noted that "our sales during the period highlight the growing shift from traditional life products to modern investment products, including unit trusts and mutual funds, with these sales up 19% in Emerging Markets and 7%, on a comparable basis, in the Wealth business." Nonetheless, accompanying management comments continued to inject a degree of caution, noting both that "UK savings trends remain depressed by low consumer confidence and pressure on household finances" and that "in the short term, the sector will continue to be challenged by external factors." In all, whilst concerns for global economic health and its impact on consumers still weigh, the restructuring of the group to date and a focus on Emerging Markets sway to the positive.

Company overview Old Mutual is an international long-term savings group. Established in 1845 in South Africa, it today still operates in South Africa, along with the UK, US and parts of Europe. The company provides wealth accumulation and protection products through its operations in life assurance, institutional and retail asset management, banking and general insurance. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.

Positive Points: Randgold declared a strong improvement at its flagship Loulo mine complex, which increased production by 78% and reduced total cash cost per ounce by 8%. Tonnes mined and processed were mostly from Loulo's two underground mines, Yalea and Gara, which are now beginning to deliver their full potential, added the group. Randgold plans to produce 825,000 to 865,000 ounces of gold in 2012, a 19% increase over 2011. At its Kibali mine, development remained on track for first gold production by the end of 2013, with all key contracts now agreed and the mine's costing schedule finalised. The gold miner is seeking to boost its gold output to 1.2 million ounces of gold by 2015, compared with just under 700,000 ounces in 2011. A substantial capital investment programme continues to be pursued. The company's Massawa project in Senegal is at the feasibility stage and Randgold is currently in discussion with the Senegalese government about the possibility of securing a hydropower supply.

Negative Points: The group's Tongon mine suffered from frequent outages in its national grid power supply, which continued to impact negatively on plant availability and recovery, impacting on production and costs. The miner also faces high political risk in the Ivory Coast, where one of its mines, Tongon, is located. Randgold reports in US dollars. However, operating costs are split 40:60 between the Communaute Financiere Africaine franc (CFA) and the US dollar. The CFA is fixed against the euro, therefore, depreciation of the US dollar against the euro would cause the cost base to rise and could negatively impact future earnings. Unforeseen operational problems at its mines, higher than expected costs or adverse weather conditions could all have a detrimental effect on production. Unlike other metals, gold has few industrial uses. A recovering global economy could see Randgold lag other raw material producers.

Financial Highlights: Randgold reported a quarterly profit of $121 million, in line with the same period last year

Third quarter results: A mixed quarter for Randgold. Gold miner Randgold Resources saw production in the latest quarter decline from the preceding quarter's record levels as the company suffered grid power supply problems at its Tongon mine and processed lower grades at Gounkoto. The company, which operates gold mines in Mali, Ivory Coast and the Democratic Republic of Congo said it produced of 204,475 ounces of gold was down from the second quarter's 210,534 ounces but up from 182,362 ounces in the corresponding period of 2011. The total cash cost per ounce was $737, up from $703 in the preceding quarter but down from $747 the year before. Production and costs for the final quarter are forecast to show significant improvements, added management.

Company overview Randgold Resources is a Jersey based gold mining business operating mainly in Mali, West Africa. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index. The company was established in 1995 and was first listed on the London Stock Exchange in 1997. In 2000 it commissioned the Morila mine and in 2005 went on to commission the Loulo mine, both based in Mali.

Positive Points: Half year profitability before exceptional items exceeded the consensus analyst forecast. Management noted that "in retail/wholesale, which accounts for over 90% of our business, Burberry delivered 7% revenue growth, 11% profit growth and a further improvement in operating margin, all in a challenging external environment." The board continued to outline a number of growth strategies going forward, including digital innovation, non-apparel product sales growth, Retail investment focused on flagship markets (new stores in Hong Kong, Milan, Rome and London) and an Emerging Markets focus - 62 franchise stores in 27 countries worldwide. The generation of profits at the lower end of prior analyst forecasts for the full year would still see a gain in profits being made compared to last year. The group already enjoys geographical diversity, an attribute which many retail rivals such as Marks & Spencer are currently attempting to emulate. Burberry announced it will directly operate fragrance and beauty categories from 1 April 2013. Management noted that "integrating fragrance and beauty is a significant brand and business opportunity." A progressive dividend policy continues to be pursued. The half year dividend was increased by 14% to 8 pence per share.

Negative Points: Reported revenue growth for the group's Retail operations slowed from 14% in the first quarter to 6% in the second quarter. Comparable store sales in China were still positive but slowed in the second quarter, driven primarily by lower traffic. Footfall in London decelerated in the second quarter, in part due to the disruption from the Olympics, impacting both tourist and domestic customers. In the Americas, comparable Retail store sales growth was modest reflecting tough prior year comparatives, a more domestic customer base than other regions and greater exposure to the rationalisation of certain opening price point products in core accessories and outerwear. Licensing revenue fell by 5% on an underlying basis. The business represents 6% of group revenue (2011: 6%); of which approximately two-thirds comes from Japan. Management has recently taken steps to protect the group's long term luxury brand status, axing cheaper fashion lines in order to buoy prices. Cheaper handbags, made in Asia were reduced. Coats made from fabrics woven at Burberry's own mills in Yorkshire were increased. The lowest price for a trenchcoat has risen to about £1,000. Burberry's results are exposed to changes in demand for luxury goods, which in turn is reliant on the overall health of the economic environment, and consumer confidence. The Burberry brand's appeal could fade.

Financial Highlights: Total group revenue grew by 6% to £883 million. Retail revenue increased by 9% to £577 million. Adjusted profit before tax rose by 7% to £173 million. Reported profit before tax and including exceptional items declined to £112 million (2011: £159m). Net cash of £237 million. The half year dividend increased by 14% to 8 pence.

Half year results: Burberry surpasses expectations. In the wake of a surprise downgrade to profit guidance by management, profitability at the interim stage surpassed expectations. Adjusted profit before taking into account exceptional items came in at £173 million, up 7% and ahead of a consensus analyst forecast of £167 million. Pre-tax profit including exceptional items declined by 29.5% to £112 million. A charge of £73.8 million was taken in relation to the group's termination of its existing fragrance and beauty licence relationship. Adjusted operating profit margin for the group’s core Retail/Wholesale business rose by 0.6% to 15.5%. Management highlighted its drive of productivity, through an intense focus on innovative product, merchandising and marketing initiatives, while optimising efficiency and tightly controlling expenses. In all, Burberry appears to have largely restored investor confidence following an earlier lowering of full year earnings guidance. Management looks to be underlining its confidence for the future via a hike to the dividend payment (+14%), with comparable store sales in China still positive in the half year, although having slowed in the second quarter.

Company overview Burberry Group PLC is a British luxury fashion house, manufacturing clothing and fashion accessories. Its distinctive tartan pattern has become one of its most widely copied trademarks. The company has branded stores and franchises around the world and also sells through concessions in third-party stores. It runs a catalogue business and has a fragrance line. HM Queen Elizabeth II and HRH, the Prince of Wales have granted the company Royal Warrants. Burberry's trademark products are its fashionable handbags and exclusive fragrances. Burberry is quoted on the London Stock Exchange and is a constituent of the FTSE 100 Index.

Seymour Pierce has reiterated its 'buy' rating and 1,500p target price for luxury brand Burberry after a better-than-expected first half. Burberry reported a 6% growth in underlying profit before tax (PBT) to £173m, ahead of Seymour's £165m forecast. Meanwhile, the dividend was raised by 14% which shows "management's confidence in future growth," according to analyst Kate Calvert. "This is a reassuring set of results and will help rebuild sentiment towards the shares after its unscheduled trading update in September. This came after a dramatic sales slow down in the industry, which then recovered towards the end of September," Calvert said. "The market will welcome the news that bringing the fragrance and beauty license in-house will be broadly neutral to PBT in FY14, according to management, and earnings enhancing thereafter." Seymour Pierce now thinks that these figures mean that there is upward pressure to its own £390m full-year PBT forecast and consensus estimate of £400m. "On our current numbers, the shares are trading [at 16.1 times full-year earnings] which we believe is undemanding for its long term growth prospects. [...] We still consider Burberry a strong long term growth story with significant geographical and product mix opportunities."

Panmure has downgraded its 2013 and 2014 forecasts by 5-6%, with analysts saying that the key area of pressure comes in Australia particularly on the margin front. The broker has also cut its growth forecasts in Energy, saying that oil prices have the potential to fall from here. "While we believe the business is well positioned longer term, we do not see a re-rating from here until earnings momentum improves and the fundamentals in its key growth markets become clearer," Panmure said. A 'hold' rating on the shares has been maintained.

Panmure Gordon has reduced its price target for RPS Group from 270p to 242p and retained its 'hold' rating for the stock following a mixed trading update from the natural resources, land and property consultancy. The broker said: "RPS has delivered a solid Q3 IMS, indicating that it continues to trade in line with expectations. However, we take a more cautious stance on 2013E and 2014E estimates, given the scope for project delays and margin pressure in Australia, which is slowing down."

Seymour Pierce has reiterated its 'buy' rating and 1,500p target price for luxury brand Burberry after a better-than-expected first half. "On our current numbers, the shares are trading [at 16.1 times full-year earnings] which we believe is undemanding for its long term growth prospects. [...] We still consider Burberry a strong long term growth story with significant geographical and product mix opportunities," analyst Kate Calvert said.