Member Info for jange

Gaming software specialist Playtech is set to see a maiden first half contribution from PTTS, the company it acquired in July 2011. Peel Hunt is predicting adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of around €88m, including the contribution from William Hill Online.

Positive Points: Management reiterated that the group remains on track to meet current analyst forecasts for the full year. Serco's geographical footprint continues to swell. The group recorded that 46% of total group revenue is now generated outside the UK, an increase from 42% in 2011. The board highlighted that it's recently created global Business Processing Outsource (BPO) business had demonstrated the strength of its strategic positioning, with strong growth prospects within the private and public sectors forecast. A total £4.2 billion of contract awards compared with £2.5 billion in the equivalent period in 2011. A progressive dividend policy continues to be pursued by management.

Negative Points: Whilst its UK market is showing signs of improvement, government austerity measures continue to pose a threat. The company incurred £15.7 million in implementation costs of organisational changes during the first half year. With a major proportion of Serco's revenues exposed to the public sector, the company carries a degree of political risk. Serco operates in a highly competitive market. Any future acquisition carries a degree of over payment or integration risk.

Financial Highlights: Profit before tax for the period was £120.5 million, up from £111.8 million in the same period a year ago. Serco reported revenues of £2.34 billion for the half year, representing total growth of 4.3%, underpinned by acquisitions and good growth in Australasia and the Middle East. Organic revenues, excluding acquisitions and currency effects, declined by 2.1%, the impact of challenging US market conditions which were largely offset by growth in other parts of Serco’s broad portfolio. The Board have declared an interim dividend of 2.65p per share, representing an increase of 6% on the 2011 dividend.

Half year results: Serco's broad and resilient portfolio keeps it on track. Outsourcing group Serco declared it was hurt by challenging US market conditions and reorganisation costs in the first half year but said it expected a strong performance in the second. Posting profits in line with analyst forecasts, Serco said it had won £4.2 billion worth of work in the period, compared with £2.5 billion a year ago, and had increased its order book, (the value of future revenues based on all existing signed contracts) to £19.4 billion. British and US markets had suffered, caused by budgetary delays with austerity measures in the UK slowing the flow of public sector work and a presidential election and a difficult and uncertain US federal outsourcing market impacting on US spending plans. Elsewhere, reorganisational costs included the creation of a global business process outsourcing (BPO) division, where Serco is targeting more back and middle office outsourcing work and avenues into private sector markets. The company added that it expected to deliver a year of good organic revenue growth in 2012, with a first half decline of 2% set to improve off the back of strong second half growth driven by previously announced contract wins. On balance, market consensus opinion indicates a strong hold will remain in place for the time being.

Serco was founded in 1929 as a United Kingdom division of the Radio Corporation of America and initially provided services to the cinema industry. It changed its name to Serco in 1987 and has been a London Stock Exchange listed company since 1988. Today, Serco has grown to become one of the world's leading service and outsourcing companies. The group operates in Europe, the Middle East, Asia Pacific and North America. High profile contracts include London's cycle hire scheme and the Dubai metro.

Positive Points: The results proved to be broadly in line with analyst expectations. Copper production rose by 16.5% to 336,000 tonnes. Gold production almost doubled to 136,100 ounces, again due to the increase in Esperanza production. Management’s forecast production for the full year remains at approximately 700,000 tonnes of copper, as well as 280,000 ounces of gold and 11,000 tonnes of molybdenum. This increase in low-cost production from Esperanza has allowed Antofagasta to maintain a relatively stable cash cost position, within the context of an industry environment which remains tight. The gold price averaged at US$1,651 per ounce in H1 2012, a 14% increase on the average price during the first six months of 2011 of US$1,445 per ounce. Gold currently accounts for just over 6% of total group revenue. The Water division achieved a 7.0% increase in volumes, at 25.7 million cubic metres in the first half of the year. At 30 June 2012 the net cash balance of the company was US$1.345 billion (31 December 2011 - US$1.14 billion). Total Group borrowings were US$2.0 billion (31 December 2011 - US$2.14 billion). A 6.3% increase in the half year dividend was announced compared to the year before. As in previous years, the appropriate overall pay out level for the year, including any special dividends, will be determined at the year-end.

Negative Points: The copper price averaged 367 cents per pound in the first half of 2012, compared with 426 cents in H1 2011. After starting the year at 343 cents, the price rose to above 380 cents for much of February and March. However, the price fell significantly during May, and was 345 cents at 30 June 2012. The group has exposure to volatile copper prices. With approximately 80% total group revenue related to copper, any change in copper prices has a significant impact on the performance of the miner. The copper price remains something of a barometer for the health of the global economy. The company previously made a sharp cut to its dividend payment. For the Transport division, total volumes transported were 3.9 million tonnes compared with 4.1 million tonnes in the first half of 2011. During the period, the group's mining revenues included US$571.6 million related to one large customer that individually accounted for more than 10% of the Group's revenues. During 2012 the Chilean Congress has studied a bill that increases the rate of first category tax in 2013 from the previously expected 17% to 20%. This still requires final parliamentary and presidential approval. If passed the change is expected to be applied retrospectively with effect from 1 January 2012.

Financial Highlights: Group revenue rose by 3.5% to $3.16 billion. Adjusted profits (Earnings Before Interest, Tax and Amortization – EBITDA) declined by 5.4% to $1.84 billion. Earnings per share fell by 7.2% to 65.5 US cents per share. The half year dividend increased by 6.3% to 8.5 US cents per share.

Half year results: Increased production helps offset a falling copper price at Antofagasta. The figures proved to be broadly in line with analyst expectations. Increased group production helped to offset the fall in average market copper prices, with the result that group revenue expanded by 3.5% to $3.16 billion. Group core copper production rose by 16.5% to 336,000 tonnes, predominantly due to increased production at its Chilean Esperanza mine, which had commenced operation at the start of 2011, as well as increases at Los Pelambres and El Tesoro. Gold production almost doubled to 136,100 ounces, again due to an increase at Esperanza. Nonetheless, with the London Metal Exchange copper price averaging 367 cents per pound in the first half of 2012, compared with 426 cents in first half of 2011, and higher exploration and evaluation expenditure, profits declined. On balance, with expanded group production weighing against concerns for the global economic outlook,

Company overview The Group's key activities are the operation of 4 major copper mines, (Los Pelambres, Esperanza, El Tesoro and Michilla) the transportation of copper cathodes down from the mines and sulphuric acid back up to the mines by rail and road freight and a concession allowing the distribution of water within the Antofagasta region in Chile. The Group has operations in the United Kingdom, Chile, Peru and Bolivia. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.

Time to get back in guys.........

Investec's summary is that, overall, the group has delivered a good first half performance, despite difficult trading conditions. Perhaps the old Yorkshire adage that "where there's muck, there's brass" still holds true. "Although the adverse currency impact could be a little greater in the second half than in the first, we will not be changing our full year forecasts or our PE-based [price/earnings ratio-based] target price," Investec said. "We are maintaining our Buy recommendation on a business that we regard as very well managed with good medium-term growth prospects," Investec concluded. It is hard to argue with that analysis. The day Berendsen starts becoming too sexy for its shirt is probably the day long-term holders want to start worrying about management becoming overly ambitious.

The UK flat linen business actually saw revenue dip a little, to £95.0m from £96.4m the year before, but this can be explained by 2011's interim figures covering 27 weeks and this year's just 26; adjusted for this, revenue was up 2%. Even so, the company managed to eke out an increase in operating profit to £10.7m from £10.1m the year before. The operating margin improved to 11.3% from 10.5% at the halfway point last year. The group lost some contracts with smaller hotel customers, which held back revenue growth. The group is, in any case, diverting more energy to the Healthcare part of the business, as demand is currently stronger than the Hotel trade. For the Core Growth businesses as a whole, revenue edged up to £344.1m from £343.4m. Adjusted operating profit notched up a fairly impressive 6.6% increase to £59.5m from £55.8m, while the operating margin jumped to 17.3% from 16.2%. Where there's muck ...

Workwear saw revenue unchanged at £143.0m, but the adjusted operating profit improved to £23.1m from £22.6m at the interim stage last year, leading to an increase in the operating margin to 16.2% from 15.8%. Underlying constant currency growth was 3% for revenue and 4% for adjusted operating profit. The group's focus in this division is on improving efficiency levels in Germany and the UK towards those it has in Holland and Denmark, through advanced process changes, improved sourcing and management of textiles and use of online customer service. The Facility division, seen as the sector offering the sexiest growth (although nothing much about Berendsen is ever sexy) - grew revenue to £106.1m from £104.0m the year before and adjusted operating profit to £25.7m from £23.1m previously. That led to a two point increase in the operating margin to 24.2%. The level of new contract sales for mat and wash-room services in Scandinavia is ahead of the company's expectations, driven by an increase in sales efficiency which the group's management attributed to the more focused business line organisation, which enables it to drive new initiatives and to benchmark performance much more effectively. "We have made operational progress in the wash-room business following the acquisitions we made last year to become market leader. We see a good opportunity to grow margins closer to those of the more developed mat business," the company said.

Berendsen is one of those work-a-day companies that never seems to elicit much excitement, and so it proved again with a subdued reaction to a solid set of interim figures. The top line may have fallen 2% in the first half of 2012 to £488.2m from £495.9m in the corresponding period of 2011, but with the effects of acquisitions and exchange rate fluctuations factored out, revenue rose by 2%. Adjusted operating profit rose 6% in actual terms and 8% on an underlying basis to £65.0m from £61.6m, and the group managed to ratchet up its adjusted operating margin by nine-tenths of a percentage point to 13.3% from a year earlier. Headline profit before tax of £51.5m, up from £48.4m the year before, and slightly ahead of Investec's expectations. The broker said earnings per share of 22.3p versus 20.8p a year earlier also counted as a "beat". Core growth businesses do what they say on the tin As Investec noted, profit growth was driven by what Berendsen calls its Core Growth businesses, so these parts of the group are living up to their name. The Core Growth businesses comprise: Workwear (rent, wash and maintenance of uniforms and overalls); Facility (mats and wash-rooms); UK flat linen (primarily serving the hotel and healthcare markets).

Mining giant BHP Billiton has signed an agreement to sell its Yeelirrie uranium deposit in Western Australia. Yeelirrie, located 630km north-east of Perth in the Northern Goldfields region, will be sold to uranium titan Cameco Corporation for $430m. "Cameco is one of the world's largest publicly listed uranium producers and is highly respected in the industry. We believe they are well placed to carry this project forward in a responsible manner," said BHP's Uranium President Dean Dalla Valle. Uranium was discovered at the Yeelirrie site in 1972 by Western Mining Corporation, which was acquired by BHP in 2005.

He said: "I am excited and honoured to have been asked to lead AstraZeneca. Throughout my career I have had enormous respect for the people of AstraZeneca and what they have achieved. No-one is blind to the challenges that confront the pharmaceutical sector and this company, but the underlying strengths of AstraZeneca in delivering on its strategy are clear. "AstraZeneca will continue to make a positive difference to patients over the longer term and I'm looking forward to playing my part in shaping that future." The firm also announced on Tuesday that the European Commission has granted marketing authorisation to ZINFORO, its new intravenous cephalosporin antibiotic for the treatment of adult patients with complicated skin and soft tissue infections or community acquired pneumonia. "This makes ZINFORO the only approved cephalosporin monotherapy in Europe with demonstrated clinical efficacy against methicillin-resistant Staphylococcus aureus (MRSA), a common cause of serious and difficult to treat complicated skin infections," the firm said.

Pharmaceuticals group AstraZeneca, which has been on the search for a new boss for four months, has appointed Pascal Soriot as its Chief Executive Officer (CEO), joining the firm from Swiss rival Roche. Soriot, who has been the Chief Operating Officer of Roche's pharmaceuticals division since 2010, will take on his new responsibilities at Astra and join the board on October 1st. Astra announced on April 26th that CEO David Brennan would retire after more than six years on the job, leaving Chief Financial Officer Simon Lowth to stand in his place temporarily. That decision came as the group revealed that first-quarter revenues came in well below market expectations. Astra's Chairman Leif Johansson said in a statement on Tuesday morning: "This is a key appointment at an important time for AstraZeneca and we are certain that Pascal's leadership qualities combined with his strategic thinking and relevant experience make him the right person to drive the company to success over the coming years. "I am confident that Pascal's approach and his track record of delivering results in innovation-driven businesses will be valued by shareholders and employees alike." Soriot also held the position as CEO of Genetech, where he was credited with leading the successful merger between the San Francisco-based biologics business and Roche.

"The PolymerLatex acquisition has significantly enhanced our product portfolio and reach, as well as provided additional cash resources which we are using to invest in emerging markets and innovation to position us for future growth." The group has proposed a total dividend of 5.5p and an interim dividend of 2.2p. The board intends to target a dividend cover of three times by 2015.