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Company overview Headquartered in Warrington with 9,000 employees, United Utilities was created via the merger of North West Water and Norweb Electricity in 1995. The group holds a licence to provide water and sewage services to a population of around seven million people in North West England. United Utilities Plc is an international multi-utility business whose activities include water supply and distribution, waste water services, and utility contracting solutions. Its shares are listed on the London Stock Exchange and it is a member of the FTSE 100 Index.

Positive Points: Tobacco net revenues are expected to be up by around 4% - at the upper end of analyst forecasts. Strong gains were made within key strategic brands Davidoff, Gauloises Blondes, West and JPS which now account for almost a third of Imperial’s total stick equivalent volumes. The group holds investor appeal as it is a highly defensive predictable cash generator with a progressive dividend policy. The half year dividend was increased by 13% compared to the prior year. Imperial Tobacco benefits from good geographical diversification (products are available in over 160 countries worldwide) and a multi-product portfolio provides a degree of business resilience and a strong platform to deliver future growth. Imperial has been linked with sporadic talk as a takeover target by larger peers. The industry is likely to fight hard against plain packaging proposals. The group's CEO has previously insisted that plain packaging would not hugely dent Imperial's revenues. Despite concerns that consumers will simply buy on price, she highlighted its value offerings.

Negative Points: Overall, stick equivalent volumes for the period are expected to decline by up to 3%. Like rivals Philip Morris, British American Tobacco and Japan Tobacco, Imperial has suffered from a decline in smokers in mature markets. However, it has looked to offset this by hiking prices and expanding into Emerging Markets. Last year, Australia became the first country to pass plain packs laws, due to be implemented in December (2012). Tobacco companies will have to sell products in identical packs with large health warnings on. Other governments such as the UK's are thought to be considering such proposals. Currency movements provide potential headwinds. The tobacco industry is exposed to litigation which could have a significant impact on future financial performance.

Financial Highlights: Stick equivalent volumes are expected to decline by up to 3% - compared to re-stated 2011 volumes of 346 billion as disclosed at its 2012 half year results. Tobacco net revenues, on a constant currency basis, are expected to be up by around 4%.

Full year trading update: Trading proves in line at Imperial Tobacco. In a relatively brief statement, management confirmed that the group's overall financial position and operational performance had proved to be in line with its prior expectations. Volumes (stick equivalent) are expected to decline by up to 3%, the majority of which is due to ongoing market weakness in Ukraine (cigarette), Poland (fine cut tobacco) and compliance with international trade sanctions against Syria. Nonetheless, aided by an emphasis on higher priced quality brands, tobacco net revenues are expected to be up by around 4% - at the upper end of analyst forecasts - with particularly good performances in Eastern Europe, Africa & Middle East and Asia-Pacific regions highlighted. On balance, with concerns for plain packaging introductions and additional country (Russia) indoor smoking bans weighed against defensive attributes in uncertain economic times,

Company overview Imperial Tobacco is a leading international tobacco company, headquartered in Bristol, England. The group's core activity is the manufacture, marketing and sale of tobacco and tobacco related products. Imperial is the world leader in roll-your-own, rolling papers and tubes. Group brand names include Lambert & Butler, Davidoff, Rizla, John Player, Navy Cut, Woodbine, Richmond, Golden Virginia, Embassy, Regal, Super Kings and many others. Its brands and products are available in over 160 countries worldwide. It is the market leader in the UK and holds second place in Germany. The group currently operates 49 manufacturing sites and employs around 38,000 personnel. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.

After a strong run in the share price, passing their target price on the way, analysts at Panmure Gordon believe it is time to lock in some profits on Wolseley. Hence, they cut their recommendation from Buy to Hold, while maintaining their 2500p target price.

Their forecasts for a fiscal year 2012 earnings per shares (EPS) of 162p, versus a consensus estimate of 160p, and a fiscal year 2013 EPS of 184p (Consensus: 183p) imply a calendar 2012E price-to-earnings multiple of 16x falling to 14x. That compares with its near UK peers on circa 11x, although Home Depot appears to be on 18x. Nevertheless, the broker admits that the company's shares offer a sound long-term investment case. Panmure thus adds that: "We have been impressed with the action taken by management in recent years, with many of its problem businesses sorted out. The 63%/37% North America/Europe split is still an attractive "mix," until signs of a stronger European recovery emerge." Despite which...recommendation trimmed Lastly, these analysts write that: "The next news update from the group will be the fiscal year results release on October 2. July traditionally is a key trading month for the group. With the share price having sailed through our target price we believe it is right to now lock in some profits so we cut our recommendation to Hold (from Buy)."

After a strong run in the share price, passing their target price on the way, analysts at Panmure Gordon believe it is time to lock in some profits on Wolseley. Hence, they cut their recommendation from Buy to Hold, while maintaining their 2500p target price. Of interest, they indicate that,"having healthy exposure to US construction markets has been a catalyst for share price out-performance. We would flag Ashtead and Keller while noting that Home Depot in the US has also done very well. Wolseley's share price started the year at 2000p and recently hit 2800p equivalent to 26% relative (to all share index) outperformance year to date."

"If the issue is successful and the other equity divestments occur we believe this may be very good news for the group as it would go a long way to rectifying the core financing problems of the group which we have regularly highlighted. The shares should react positively to the success of the issue and we will be reviewing our forecasts once the outcome has been published." Seymour Pierce is currently telling clients to "reduce" shares of Capital Shopping Centres and has a target price of 327p.

In a research note sent to clients this morning analysts from Seymour Pierce indicate that they will be closely watching for the success -or not- of real estate investment trust (REIT) Capital Shopping Centres' just announced debt issue. In their own words, the transaction "[adds] to the proliferation of debt and equity raises in the sector." More specifically, they point out how the terms offered are somewhat higher than those offered by British Land in a recent debt sale of its own. As well, Seymour Pierce adds that: "Given the equity yield of 4.4%, and that CSCG is currently trading at an 11.3% discount to its June 30 2012 net asset value of 390p, the success of the issue is purely predicated on debt funds which have to deploy into the debt or convertible market rather than investors with a choice between debt and equity." In a positive tone, the say that: "The issue will provide, in our view, a much needed potential capital injection into a business which is struggling to make the investment we believe is necessary to maintain the appeal of its centres. The group has also said that it is considering selling stakes of up to 25% in specific centres in order to provide further funding. Its LTV at 48% as at June 30 2012 would have further deteriorated by year end leaving the group vulnerable to any protracted UK economic malaise.

The group also announced a special interim dividend of £0.048 per share.

Russian gold miner Highland Gold said first half net profit fell to 45m dollars from 70.3m dollars a year earlier while pre-tax profit fell by a third due to the higher cost of sales. The group said that it remains on track to produce between 200,000 ounces and 215,000 ounces of gold and gold equivalents in 2012. Pre-tax profit for the half year ended June 30th 2012 fell to $57.3m compared to $85.1m for the same period a year ago. Revenue increased to $161.5m from $158.1m. Earnings before interest, tax, depreciation and amortisation (EBITDA) fell to $65.7m from $88.1m before. EBITDA margin fell from 55.7% to 40.7%. The firm, which produces gold at its Belaya Gora, Mnogovershinnoye and Novoshirokinskoye mines in Russia, said gold production increased to 101,900 ounces from 93,057 ounces. Gold sales fell to 102,036 ounces versus 104,911 ounces. Highland Gold expects second half operating expenditure to remain stable or below levels during the first half due as it reduces open pit stripping ratios. It expects stable metal production at Mnogovershinnoye in second half. Capital expenditure rose to $47.1m from $31.4m before. Diluted earnings per share increased to $0.138 from $0.215.

Market insight and strategic marketing firm Cello posted a 2.8% to £63.3m (2011: £61.6m), gross profit up 7.2% to £31.7m (2011: £29.5m), headline profit before tax up 2.2% to £3.0m (2011: £2.9m), and statutory operating profit down £1.7m (2011: £2.4m). Growth was driven by the Health division as well as the effect of MedErgy joining the group last year. The interim dividend was increased by 5.5% to 0.58p (2011: 0.55p). Cash and equivalents fell from £5.1m to £1.2m.

OpSec Security Group, a supplier of anti-counterfeiting technologies and services, has agreed with JDS Uniphase to purchase its New Jersey-based holographic security business for an initial consideration of $11.5m. A further consideration of up to $4.0m could become payable depending on whether certain performance conditions during the 12 month period after completion of the acquisition are achieved. The purchase will be funded using exisiting cash resources and additional bank facilities with JP Morgan Chase.

Crimson Tide, the software company behind the mpro mobile business application, has bagged four clients for the latest version of the software, which runs on smartphones and tablets that use the Apple and Adroid operating systems. Knight Frank, The Erith Group, Hampshire County Council and Initial Building Services are the four early adopters of mpro5. A number of significant trials of Crimson Tide's souped-up version of mpro are scheduled for the fourth quarter, many of them "beyond the scope of our previous offerings both in terms of potential users and addressable markets," the company said. "These prestigious contract wins demonstrate clients' belief in the system, and our short to medium term aim is to migrate all existing clients on to mpro5. This innovative solution has enabled us to win paid trials which we believe, are potentially very exciting for the future of Crimson Tide," revealed Barrie Whipp, Executive Chairman of Crimson Tide.

Leather goods firm Pittards said it had succeeded in breaking even in the first half after being hit by export taxes imposed by the Ethiopian government. Exports from Ethiopia represent 93% of the company's sales and the government there has put a 150% tariff on crust leather exports. Despite this, Chairman Stephen Boyd said the firm's "commitment to accelerate the realisation of the benefits from manufacturing more products in a low cost economy remains strong". The firm also said raw material prices had remained stubbornly high at its tannery in Ethiopia but there were signs of prices easing which should contribute to improved gross margins in the second half. Revenue dropped to £18.3m in the first half, compared to £20.3m the year before. There were no profits, but Pittards avoided making a loss. This compared with a £1.1m profit the previous year. Boyd said work to restructure the company's balance sheet to enable the payment of a dividend was progressing well. "We expect to give notice of a general meeting to seek approval for this change shortly," he said.

"The existing portfolio remains stable and we will seek to add to this, and take advantage of our market reputation, and preferred buyer status, but only when we identify opportunities that meet our criteria. We believe that these are most likely to be derived from institutional funds wishing to exit non criteria assets and distressed sales from banks and receivers."

Real Estate Investors, a West Midlands based property group, almost doubled its rental income for the half year ended June 30th, prompting the company to offer a maiden dividend of 0.5p per share. Rental income rose 48% to £2.67m (H1 2011: £1.81m), contributing to a pre-tax profit of £0.556m compared to a loss of £1.88m the same period the previous year. Gross property assets were up 3% to £73.5m from £71.2m at the end of 2011, while investment property assets rose 4% to £65.8m from £63.4m six months earlier. The company has net assets of £39.4m (December 31st 2011: £39m), equal to a net asset value per share of 55p (December 31st 2011: 54.6p). Cash levels fell £2.0m to £6.0m over the year. In a statement the firm commented: "Contracted rental income has risen to £6.3m. Valuations across the property market remain under pressure. However, through careful asset management and improving rental income, we are able to combat these pressures and have seen a modest increase in the value of the portfolio, with further growth potential. "Commercial property activity in the West Midlands doubled in Q2 2012 to £317 million from £167 million in Q1 2012. This is due to improving lending conditions and growing appetite for regional assets that provide significantly better yields and capital growth potential than in London, which has been the focus of the market for some time.

Three-dimensional technology firm DDD said it had extended a licensing deal with China's top PC maker. The company has licensed its 3D software for another two years to Top Victory Investments for use in 3D monitors. The technology allows 2D to 3D conversion for video and games, as well as playback for originally made 3D photo and video content, and will be used in AOC, Envision, Philips and TPV's own brand monitors. It also means around 100 Chinese online games and over 670 PC games can be played in 3D 'off the shelf' even though they have not been specifically developed for 3D. Under the deal DDD will continue to receive quarterly royalties based on the volume of monitors shipped. Chief Executive Chris Yewdall said the first year of DDD's partnership with AOC had proved to be very successful. "TriDef 3D [technology] continues its rapid expansion in the 3D market with over one million PC licenses shipped in the first half of this year," he said