Member Info for jange

Negative Points: On a reported basis, group revenue declined by 4%. This was due to a -3% negative currency headwind and the impact of the Bioventus transaction. S&N recently announced the completion of this, transferring its Biologics and Clinical Therapies business to Bioventus and retaining a 49% shareholding. The board noted that "conditions across our Established Markets remained subdued, with some small signs of improvement in the US being offset by continued challenges in Europe." Its Hip Implant franchise continued to feel the effects of negative commentary regarding the metal-on-metal total hip replacement sector, with the decline in sales of its BIRMINGHAM HIP# Resurfacing System increasing quarter on quarter. Revenue across the franchise was down 5%, against a market up 2%. Sales to emerging market regions still only represent a minority proportion – less than 15% as of the current half year 2012. The delicate state of the economic climate, ongoing UK and European government spending cuts and US government healthcare reforms continue to provide a degree of uncertainty.

Financial Highlights: Second quarter trading profit margin increased by 0.8% to 22.7%. Interim dividend increased by 50% to 9.9 US cents. Revenue of $1.029 billion, up 2% on an underlying basis. Trading profit of $234 million, up 6% on an underlying basis.

Second quarter results: The update reassured investors, with management expressing confidence in the outlook via a 50% increase to the dividend payment. Management noted "Smith & Nephew completed a good first half as we continued to generate top-line growth and delivered an improved trading profit margin. This demonstrates the early benefits of our actions to reshape the group to provide the right commercial models, innovation and efficiencies required to win in our markets today and in the future." The main driver to the improvement in the group's profit margin proved to be the restructuring of its Advanced Surgical Devices business in the US. In all, whilst concerns for cuts to government health budgets and the delay of treatment by patients thanks to the economic downturn continue to overshadow, management initiatives and expected long term drivers such as ageing populations

Smith & Nephew is a global medical technology company. It claims leadership positions in Orthopaedic Reconstruction, Advanced Wound Management, Sports Medicine, Trauma and Clinical Therapies. The group has almost 11,000 employees and a presence in more than 90 countries.

Positive Points: Management guidance for full year profits remains unchanged. "The outlook for defence spending in the UK has stabilised" noted management. Management welcomed the UK government's confirmation, as part of the PR12 planning round, that the defence budgets were now in balance with the equipment plan. The company underlined good progress in securing business opportunities in international markets. Order intake in the first half of 2012 in markets outside the US and UK increased to £4.3billion (2011 £1.6bn), including a £1.6 billion training aircraft contract in the Kingdom of Saudi Arabia and a £0.5 billion contract for CV90 vehicles in Norway. Overall, order backlog has increased by £0.9 billion from the position at 31 December 2011. Cost reduction remains a key management focus. Management has previously highlighted a focus on faster growing activities such as cyber-security. Sales growth was 6% at its US-based Intelligence & Security business and 13% for BAE Systems Detica during the period. Despite no acquisitions during the half year, recent acquisitions have included Intelligence Services Group, a U.S. government contractor, Norkom Group PLC which combats financial crime, and stratsec.net Pty Ltd., an information security company. A progressive dividend policy continues to be pursued. The interim dividend increased by 4% to 7.8p per share.

Negative Points: Management outlook comments remained cautious in tone. Modest growth in underlying earnings per share is forecast, with a greater bias being given to second half trading. Despite a stabilisation in the outlook for UK defence spending, government debt remains high. Historically, and in political terms, defence spending is easier to cut than Health or Education spending. With US government debt reduction measures to be determined and with Presidential and Congressional elections in November, delay to the approval of Fiscal Year 2013 budgets is likely, with the possibility that the US government operates under a Continuing Resolution in the last quarter of calendar year 2012. The risk of further reductions in US defence budgets remains. Given reduced US government defence spending, major US competitors are also likely to seek sales elsewhere in the world. The group's staff pension plan remains in deficit territory. Negotiations with regards to its important Salam contract have generally proved challenging. Saudi Arabian defence spending may slow if oil prices significantly decline. Currency movements can provide a drag on earnings.

Financial Highlights: Group sales reduced by 10% Underlying Earnings Before Interest Tax and Amortisation (EBITA) reduced by 3% Underlying or adjusted earnings per share increased by 1% Interim dividend increased by 4% to 7.8p per share

Half year results: The announcement failed to inspire investors, with the share price moving lower in opening trade. Underlying or adjusted earnings per share during the period increased by 1%, with overall group sales down by 10%, thanks mainly to reduced volumes for its land armament activities. Looking ahead, management flagged modest growth in underlying earnings per share, assuming a satisfactory conclusion to the Salam pricing negotiations in 2012 (Saudi Arabian Typhoon aircraft) and excluding the benefit in 2011 of the Research & Development tax settlement. Furthermore, while highlighting a stabilised outlook for UK defence spending, it also pointed to the uncertainty overhanging US defence spending, thanks largely to Presidential and Congressional elections in November. More positively, the company's drive to generate sales outside of its core UK and US markets had gained traction, with order intake during the period increasing to £4.3 billion compared with £1.6 billion in the first half 2011. The interim dividend was increased by 4%, with the payment covered 2.4 times by underlying earnings and consistent with the group's policy of long-term sustainable cover of around two times. In all, with uncertainty for the outlook weighed against diversity of operations and an attractive dividend yield in a low interest rate environment, analyst opinion currently denotes a strong hold.

The Group's core activities are the development, delivery and support of advanced aerospace systems and defence products for all 3 branches of the military. BAE Systems designs, manufactures and supports military aircraft, surface ships, submarines, fighting vehicles, radar, avionics, communications, electronics and guided weapon systems. The Group has customers in some 130 countries with major operations conducted in the UK, the US, Australia and Germany

positive Points: The group continues to expect overseas operations to be c70% of group premiums in 2015 and is confident of delivering a good full year performance. M&A has been a key part of the group's growth with nearly 50 acquisitions completed since 2005. Going forward, management said focus will be on bolt-on acquisitions. The insurer acquired L'Union Canadienne during the quarter which should consolidate it to a number 3 market position and bolster its footprint in Quebec, Canada. Further bolt-on acquisitions are expected to position RSA as a top 5 general insurer in Argentina. RSA reported strong performances in Scandinavia and Canada. For the full year RSA stated its investment income is expected to be in the region of £500 million.

Negative Points: Competition within the group's core UK home market remains intense. A highly competitive industry in recent years saw many players slash rates to maintain market share, which the market claims led to unsustainable low rates that are now rising to more normal levels. The insurance industry is vulnerable to risks arising from exposure to bond markets, movements in interest rates, along with foreign currency exchange rate fluctuation. RSA has ongoing exposure to potential weather and catastrophe losses. Earthquakes in Japan and New Zealand, windstorms in the US and flooding in Thailand cost insurers about $105 billion last year, making it the industry's most expensive year on record, according to industry sources

Financial Highlights: RSA reported that net written premiums edged up 2% to £4.2 billion from £4.1 billion the year before. Profit before tax declined 38% to £233 million in the six months to the end of June from £376 million in the first half of 2011. The insurer's operating profit of £316 million was down 23% when compared with a year earlier. The company announced that it is paying a dividend of 3.4 pence, an increase of 2%.

Half year results: Insurance group RSA declared a solid performance in a challenging environment in the first half of 2012, even though its profits fell by more than a third. The decline was caused by an estimated 40 million pounds loss related to Britain's floods, and a further 35 million pounds from earthquakes that struck Italy's Emilia Romagna region in May. Premium growth in the first half of the year was driven by RSA’s focus on Emerging Markets, Canada and Speciality. In the UK, under the "More Than" brand it had grown its core lines of Home, Pet and Commercial Property insurance and continued to reduce volumes in Motor, reported management. Overall, the company remained confident that its combined operating ratio (COR), costs and claims as a percentage of revenues, a key profit indicator, will be lower than 96% over the year as a whole, compared with 95.2% in the first half. We believe that the current market consensus opinion of a strong hold will remain in place for the time being.

RSA has been writing insurance for almost 300 years. Formerly Royal & Sun Alliance Insurance Group PLC, its principal activity is the transaction of personal and commercial general insurance business. The Company operates in three segments: International, Emerging Markets and the United Kingdom. The company has over 20 million customers and has the ability to write business in 130 countries around the globe. RSA is a constituent in the FTSE-100 index.

Positive Points: Both sales and profit guidance have been increased. The group's online offering, Next Directory, continues to expand. Next Directory now represents a major online brand. Expansion overseas is being targeted. As of the group’s last full year results, reported partner sales increased by 9% in total and 5% on a like-for-like basis. Overseas Directory now trades online in over 40 countries. A share buy-back scheme continues to support group earnings per share. It remains the board’s intention to buy back approximately £200 million of shares this year, of which as of the half year update, it had spent £112 million buying 3.9m shares. A progressive dividend policy continues to be pursued. As of the last full year results, the final dividend was increased by 15%.

Negative Points: Like-for-like or same store sales at its Retail division remain under pressure. The group has previously proved vulnerable to cost pressures, particularly a rise in the cost of cotton. The outlook for consumers continues to prove challenging. Government austerity measures are scheduled to be increased, inflation continues to outpace wage growth whilst events in Europe are arguably dictating confidence in the global economy. The group has recently upped its exposure to more cyclical homeware products, opening a serious of dedicated stores. Moves overseas are now being pursued. NEXT International operates almost 200 mainly franchised stores around the world. The development brings increased risks including currency volatility, varying economic environments and correctly judging the tastes of consumers.

financial Highlights: Total NEXT Brand sales for the first half were up 4.5% (VAT exclusive). Management now anticipates Brand sales growth of +2.0% to +4.5%. Full year profit guidance was raised to between £575m to £620m (previously £560m to £610m).

Half year update: With a likely assist from the weather, the retailer reported sales growth which exceeded its own previous guidance. Total NEXT Brand sales for the half year grew by 4.5% (VAT exclusive), ahead of management's prior guidance of +1% to +4%. Total Directory sales grew by 13.3%, aided by consumers' apparent reluctance to venture out into the wet summer weather. At its high street Retail business, sales from new floor space more than compensated for a decline in same store sales - total Retail sales grew by 0.2%. As such, management was able to increase its full year guidance for both sales growth and profitability. The share price rose by over 3.5% in early morning trading. In all, whilst the tough environment for consumers continues to weigh, Next continues to outpace rivals. Therefore, we believe that consensus analyst opinion of a strong hold could come under some upward pressure. Full half year results are scheduled for the 13 September (2012).

Next PLC is a British retailer with its headquarters in Enderby, Leicestershire. It is one of the United Kingdom's largest clothing retailers. The company has over 500 stores throughout the UK and the Republic of Ireland, and more than 180 branches in Europe, Asia and the Middle East. These are located at a mixture of high streets, shopping centres, and retail parks. Next sells some of its merchandise through the Next Directory, a home shopping catalogue launched in 1988. Other businesses include Next Sourcing, which designs, sources and buys Next branded products. The company is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.

The debt free firm boasted a strong balance sheet with £84.5m cash resources at the period end. Research and development expenditure for the six months was £6.4m (2011: £6.6m). Ian Garland, Chief Executive Officer, said: "We had a very successful start to the first half of 2012, with the previously announced exclusive Tris licensing deal and associated fund raising. Since then Tris has initiated development work and the first three programmes are advancing well. "We have progressed well in research where we secured further new collaborations and achieved an increase in revenues. The outlook for the remainder of 2012 and beyond is positive, underpinned by our Tris collaboration, strong balance sheet, royalty stream, NCE pipeline and research platform."