Member Info for jange

Interact, the firms intelligent intranet software supplier, made a gross profit of £1.5m and recorded its highest ever figure for new business sales of its flagship software, Interact Intranet, including three intranet sales each in excess of £100,000. The average sales value for an intranet continues to increase and support revenues should now exceed £0.8m on an annualised basis. Hasgrove's creative design consultancy delivered a gross profit of £1.0m. It had a difficult start to the year due to delayed spend from a major client for the second consecutive year. However, there has been an increased effort in new business development and cost reduction to manage this temporary situation, it said. Based on the improved performance of both Amaze and Interact, the company is confident of achieving its full year targets. Paul Sanders, Group Chief Executive, said: "The first half of 2012 has seen a significant improvement on the second half of last year. Our focus on the provision of digital solutions for global organisations, along with our restructuring, has paid dividends resulting in improved efficiency, better delivery of projects and good new business wins. "The pipelines of both Amaze and Interact are strong, having secured wins with prestigious clients, giving us confidence in achieving our full year expectations."

Digital and communication services group Hasgrove reported a 16 per cent like-for-life (LFL) increase in revenue for the half year ended June 30th, boosted by an improved performance by both Amaze and Interact. Gross profit rose 11% on a LFL basis to £9.1m (H1 2011: £8.2m) on revenues of £12.2m (H1 2011: £10.5m). Pre-tax profit came in at £0.7m (H1 2011: £0.1m), with basic earnings per share at 2.0p, up from 0.5p the previous year. The group's net debt at June 30th was £1.0m (December 31st 2011: £1.5m). The first half of 2012, in comparison with the second half of last year, has seen a significant improvement in the performance of Amaze and Interact with improved efficiencies and greater control of projects. Amaze, a full-service marketing and technology company, delivered a gross profit of £6.6m during the period partly on the back of successful new business activity.

"Our game-changing Juicy products have grown as a percentage of our business and attract industry attention and client commitment. We punch above our weight in the industry, and continue to gain traction with the major buyers of market research in the large and strategically important markets in which our clients operate."

BrainJuice Group, an international online market researcher, has posted a 14 per cent rise in pre-tax profit and revenue, prompting an increase in the dividend from 0.75p to 0.85p for the six months ended June 30th. Turnover for the half year period came in at £10.4m (H1 2011: £9.1m), boosting profit before tax to £0.72m (H1 2011: £0.63m). Earnings per share rose to 3.7p from 3.2p a year earlier. At the period end the company had £2.4m cash (June 30th 2011: £2.1m) and no debt. The company's two largest operations, in the UK and the US, revenues grew by 3% and 16%, respectively. Together they generate more than two thirds of the company's revenue. Juicy revenue increased to 48% of the UK total in the first half of 2012 from 39% in the same period last year. John Kearon, Founder and Chief Juicer of BrainJuicer, said: "During the first half of 2012 we opened a new office in Italy and saw very encouraging growth in the USA, Switzerland and our Brazil and China offices. As ever, revenue visibility is limited as we approach the seasonally important final quarter of the year. Nevertheless the board is confident that the company will make further progress in the second half and we believe we are on track to meet market expectations for the year as a whole.

The decision by mobile solutions company 2ergo to issue shares at a heavily discounted price has paid off, with punters queueing up to get their hands on the company's stock. Numis Securities, which had been given the option by the company to increase the number of shares it placed in the market, has exercised that option to meet strong after-market demand. The share price of 2ergo almost halved last Friday after the company had to price its shares at 10p each to persuade investors to get on board. Three of the firm's directors, namely Chief Executive and founder Neale Graham, director and founder Barry Sharples and Non-Executive Chairman Keith Seeley, put their money where their collective mouth is and subscribed for a total of 7.0m shares. That demonstration of confidence in the company's prospects may have played a part in the recovery in the share price this week from below 23p to 26.5p near Thursday's close. As a result of the exercising of the option to place more shares, the company will raise an additional £0.45m to top up the £2.2m (before expenses) raised by the original placing of shares.

Imperial Tobacco Group has said that the overall financial position and operational performance of the group in the year ended September 30th has been in line with its expectations. Tobacco net revenues are expected to be up by around four per cent with particularly good performances in its Eastern Europe, Africa & Middle East and Asia-Pacific regions. However, stick equivalent volumes are expected to decline by up to three per cent, the majority of which is due to ongoing market weakness in Ukraine and Poland and compliance with international trade sanctions against Syria. In a statement the firm said: "We are delivering strong gains from our key strategic brands and improving our revenue momentum through our focus on driving quality growth across our total tobacco portfolio. "We are making excellent progress with our key strategic brands Davidoff, Gauloises Blondes, West and JPS and expect this to be reflected in further strong volume and revenue gains from these brands which continue to represent an increasing proportion of our volumes." Analysts at Credit Suisse reacted by reiterating their "outperform" view on the company's shares. They added the followin: "This means that Imperial should deliver 4% organic tobacco sales growth in FY12, which we see as a resilient performance considering the difficult EU industry volume backdrop this year (...) On the positive side, Imperial's strategic brands continue to enjoy strong momentum in non-EU markets, trends in Germany remain favourable and the roll-out of innovation (glidetec, Davidoff Id, crushballs) should continue supporting top line growth in coming quarters."

Utility company United Utilities remains confident of delivering its 2010-15 regulatory out-performance targets after a solid start to the current financial year. Revenue in the year to the end of March 2013 should be higher than last year, but, as expected, the increase is slightly below the allowed regulated price rise, principally reflecting the ongoing impact of customers switching to meters and continued lower commercial volumes. The increase in revenue for the full year is, as previously flagged, anticipated to be largely balanced by higher depreciation, alongside higher infrastructure renewals expenditure and other operating costs both of which are impacted by the transfer of private sewers. Group borrowings, net of cash and short term deposits and derivatives, at the half year (end of September) are expected to be moderately higher than the position at 31st March 2012. Gearing remains in the middle of industry regulator Ofwat's assumed range (55% to 65% net debt to regulatory capital value), reflecting growth in the regulatory capital value through continued high levels of capital investment coupled with retail price inflation.

Makro, a business the firm acquired in early July, has been struggling for the past few years and its performance in the past ten weeks has continued to be challenging. Charles Wilson, Booker Chief Executive, said: "Booker Wholesale and Booker Direct have had a good start to the year as we continue to improve choice, price and service. We are confident that once we have clearance from the competition authorities, Booker and Makro will be able to improve choice, prices and service for the caterers, retailers and small business in the UK. Makro will prove a good addition to the Booker Group." The firm added: "The senior management of Booker and Makro are confident that, by working together, we will be able to improve choice, prices and service to the caterers, retailers and small and medium sized enterprises that we serve. We will be able to offer foods and non-foods via the internet, delivery and cash and carry. This will help Booker Group in its ambition to become the UK's leading wholesaler."

Food and drink wholesale group Booker Group has reported a 4.3 per cent year-on-year rise in total sales in the 12 weeks to September 14th, with non-tobacco sales 3.9 per cent higher, while tobacco sales rose by 5.1 per cent. On a like-for-like basis, total sales rose by 4.4%, non-tobacco sales by 3.8% and tobacco sales by 5.4%, with the latter significantly ahead of the decline of 1% predicted by Peel Hunt. The broker's forecast for non-tobacco sales was also slightly off the mark, having predicted a rise of 4%. Total sales (excluding Makro) in the 24 weeks to September 14th rose by 3.3% on the same period last year. Non-tobacco sales were 4.2% higher, while tobacco sales rose by 2.0%. On a like-for-like basis total sales rose by 3.1%, non-tobacco sales by 3.8% and tobacco sales by 1.8%. The results were boosted by a good performance by Booker Wholesale, the cash and cash division, which saw an improvement to customer satisfaction, higher customer number and sales which matched expectations. Booker Direct, its delivered wholesale division, also had a good half, while Ritter Courivaud, the speciality foods business, performed well. Classic, the on-trade wholesaler, had a good period and has been rolled out into a further five Booker branches. Chef Direct, the foodservice business it launched in January, is making good progress having secured several catering accounts.

Commenting on the news analysts at Nomura are of the following opinion: "Ofcom does not demand James Murdoch be removed from the board, but leaves this question up to the other directors at BSkyB. There are still obstacles to News Corporation reviving its bid for BSkyB, not least ongoing police investigations, the statements made at the time by David Cameron and Ed Miliband and the prevailing political climate; however, this judgement removes one crucial barrier, in our view."

BSkyB has said it welcomes an announcement by Ofcom that Sky 'remains a fit and proper holder of its broadcasting licences'. The investigation followed the infamous hacking scandal which surrounded Rupert Murdoch's media empire. The company issued a statement saying: "Ofcom is right to conclude that Sky is a fit and proper broadcaster. As a company, we are committed to high standards of governance and we take our regulatory obligations extremely seriously. As Ofcom acknowledges, our track record of compliance in broadcasting is good. "We are proud of our contribution as a broadcaster, the investments we make to increase choice for UK audiences and the wider benefits we create for the economy. After a lengthy review process, we are pleased that Ofcom has now reached its conclusion and we look forward to continuing to develop our business for the benefit of customers and shareholders alike." However, Ofcom criticised the actions of James Murchdoch, who resigned from Sky in April of this year, saying: "We consider James Murdoch's conduct, including his failure to initiate action on his own account on a number of occasions, to be both difficult to comprehend and ill-judged. "We consider that the events ... raise questions regarding James Murdoch's competence in the handling of these matters, and his attitude towards the possibility of wrongdoing in the companies for which he was responsible."

Salamander Energy, the upstream oil and gas company focused on Thailand and Indonesia, has said the Atwood Mako jack-up rig has arrived on location and begun development drilling from the Bualuang Alpha platform on the group's B8/38 licence in the Gulf of Thailand. The Mako is on long-term contract, and will initially complete a short development drilling programme on the Bualuang Alpha Platform. Salamander will then be using the rig to drill two exploration prospects in the Greater Bualuang area ahead of an extended development drilling campaign from the Bualuang Bravo platform from the end of October.

Analysts have weighed in and updated their coverage of Inditex after the Spanish fashion retailer pleased the markets with better than expected results on Wednesday. Analysts at Japanese brokerage firm Nomura have reiterated their 'neutral' rating while raising the price target to €92 from €86 per share. Kepler reiterated its 'buy' rating while more aggressively boosting its price target to €108 from €90. Banco Sabadell also has a 'buy' rating with a price target of €104.90. Analysts at the Spanish bank point out that the second quarter was even better than an excellent first quarter and that the third quarter has got off to a very good start with 17% sales growth at constant exchange rates. They believe that the good results will support the stock's outstanding performance. Analyst consensus estimates are expected to be raised. Banco Sabadell estimates a 2012 Price-to-Earnings (PER) ratio of 22, which it does not see as too high considering the 30% profit growth in the first half of the year.

In a move to accelerate its cost-savings plan, Bank of America is considering the lay-off of 16,000 employees by the end of the year, according to a document given to top management, The Wall Street Journal reports. The job cuts are part of the bank's plan to become a better organized and less diversified entity that will take less risks and generate more revenue from existing customers. Most of the lay-offs will be produced in the retail division although some lay-offs may take place among less-experienced investment bankers. After closing 178 branches in 2011, Bank of America plans on closing another 200 in 2012 and closing the year with 260,000 workers. The company would no longer be the largest US banking employer as it would have a smaller staff than JP Morgan, Citigroup, and Wells Fargo.

Mining giant Anglo American Platinum (Amplats) has reported poor attendance at its Rustenburg process operations since it re-opened on Tuesday following a temporary halt to operations amid a wave of labour unrest that has hit the mining industry in South Africa in recent weeks. The firm announced on Wednesday that the current industrial action is illegal and said it has given notice to its employees that they are required to return to work by Thursday's night shift. "The company continues to be disappointed with the low turnout rate at four of its Rustenburg mines which are currently reporting less than 20% attendance," the firm said. "The increase in police visibility and action has created an environment conducive for our employees to return to work and isolated incidents of intimidation and violence are being dealt with. As already stated, our employees have until night shift today, September 20th, to return to work failing which legal avenues will be pursued." The firm warned investors that its Rustenburg mining operations are already under considerable economic pressure and the illegal industrial action is making these operations "even less viable". Anglo American's share price fell 3.56% to 1,961.50p by 13:36. The stock has fallen 20%, equal to 493.50p, in the past year.

Shares in orange tree plantation operator Asian Citrus have risen more than one-tenth ahead of Friday's full-year results. That will be some consolation to long-suffering shareholders who have seen the share price slide from the high eighties to the low twenties as doubts persist that the company may be over-stating its assets, a concern emanating from a single story run by the sort of magazine normally found near the check-out counter in supermarkets. Seymour Pierce thinks Friday's results will show a strong advance in revenues, up 22% to RMB.1,725m. "The increase is driven by a full year revenue contribution from the fruit processing business, BPG, compared with just 7 months in FY11A [fiscal 2011, actual) and the 12.2% increase in orange production," the broker said. "The trading update on July 25th guided to net profit (pre- revaluation of biological assets) being higher than FY11A but not significantly so due to the impact of heavy rainfall in the final quarter of the year necessitating the usage of a higher volume of pesticides and fertilisers to protect the crops," the broker added. "If there was no increase in net profits, FY12E [fiscal 2012, estimated] EPS pearnings per share] would be RMB0.46, down -13.9% YOY [year-on-year] due to the share dilution from the BPG acquisition," Seymour Pierce continued. "We would expect management to provide an update on the operations and the impact of continued heavy rain through July and August on the FY13 figures. The actual impact on the winter harvest revenues will not be known until ACHL [Asian Citrus] updates the market on the winter crop and it's pricing in early November," Seymour Pierce analyst Sue Munden said.

Positive Points: Trading for the current full year remains in line with management expectations. The board remains confident regarding the delivery its 2010-15 regulatory outperformance targets. The company's net finance expense for the first half of 2012/13 is expected to be moderately lower than the first half of last year. This principally reflects lower RPI inflation in respect of the group's index-linked debt. Renewed foreign takeover speculation has recently surfaced, with private equity, Chinese and Middle East interest being mooted. A deferred taxation credit of approximately £50 million will be recognised in the group's financial statement for the first half of 2012/13, following the government's move to reduce the rate of corporation tax from April 2013. The group's business remains highly defensive when set against a backdrop of a challenging economic environment. United Utilities adopts a progressive dividend policy of targeting annual growth of 2% above RPI inflation.

Negative Points: The Office for National Statistics has recently outlined a number of options to change the way it calculates the retail price index measure of inflation. The consultation period closes in November with any recommendations being announced in January 2013. Should a change be implemented, this could negatively impact on utility companies and may lead to price increases for its customers. In July, government draft proposals included making it easier for business customers to choose their water suppliers and for new entrants to join the water market. United Utilities operates in a highly regulated environment and is dependent on its ability to meet tough regulatory efficiency targets and frequent reviews.

Financial Highlights: The group expects to deliver a good underlying financial performance for 2012/13. Management is confident of delivering its 2010-15 regulatory outperformance targets. Group borrowings, net of cash and short term deposits and derivatives, at the half year (end of September) are expected to be moderately higher than the position at 31st March 2012.

Trading statement: United Utilities confident on progress and regulatory targets. Management highlighted that current trading was in line with group expectations of delivering a good financial performance in 2012/13 and remains confident of delivering its 2010/15 regulatory outperformance targets. Revenue in the year to the end of March 2013 should be higher than last year, added the company, but, as expected, the increase is slightly below the allowed regulated price rise, principally reflecting the ongoing impact of customers switching to meters and continued lower commercial volumes. The increase in revenue for the full year is anticipated to be largely balanced by higher depreciation, alongside higher infrastructure renewals expenditure (IRE) and other operating costs, both of which are impacted by the transfer of private sewers. United Utilities will announce its half year results on 28 November 2012.