Member Info for jange

Rapid changes in the pharmaceuticals industry over the past two years have helped prove that god is not always on the side of the big battalions. As big pharmaceutical firms close, outsource or cease many of their peripheral, but still important, testing and research functions, smaller research and testing companies are coming into their own. Cyprotex is one such, specialising in testing drugs and cosmetics for toxicity. The firm's profile is still small, but it is making inroads into key markets that could make it extremely valuable in the long term. The crucial change for Cyprotex was the decision to invest significantly in toxicity testing for pharma majors in 2010. Not only did this boost its appeal, but the timing was excellent as many of the larger research companies had started to wind down their toxicity-testing services. The downsizing of pharma research & development budgets has meant that older methods of testing are no longer efficient or cost-effective, and this has opened an opportunity for smaller companies that can do sophisticated tests at cheap prices.

Botswana Diamonds has recovered a two carat diamond at its sampling project at Libongo in the Cameroon. The diamond is a low value, near gem quality stone. A sample has been taken and is currently being processed. The discovery has enabled the company to make its presence in the remote site more justifiable, saying "the stone is of industrial quality, but proves the concept".

NetDimensions, a global provider of performance, knowledge and learning management systems, has reported strong trading during the first half both in terms of financial and operational progress. Key contracts and agreements signed during the period have already made a contribution to the group and as a result revenue, profit before tax and earnings per share are expected to be in line with management expectations, with cash at June 30th of around $7.7m (H1 2011: $5.9m). Trading in the second half has so far been in line with full year market expectations.

Publishing group Mecom returned to the black with profit for the period coming in a €43.1m compared to a loss of €10.1m the previous year, when profit from discontinued operations is factored in. This was despite a decline in total revenue from €532.5m to €492m, dragged lower by a 15% decline in advertising revenue which were substantially affected by recessionary economic conditions in the Netherlands and related difficulties in print advertising. Costs were 6.0% lower at €454.1m compared to €482m.

Red24, a provider of security assistance services, has said the firm enjoyed a satisfactory start to the fiscal year, with sales and profit before tax both marginally ahead of last year. Its Food Safety product continues to win new clients and the firm has now been retained by a ninth underwriter. As a result it has appointed a food safety specialist in the US and is on course to achieve the revenue goals set for this product last year. The company has opened a small office in New York and has agreed, in principle, to acquire the ownership of its Cape Town premises.

Polymers maker Victrex has said the group sales volumes have remained strong since the half-year end with third quarter volumes of 754 tonnes, marginally ahead of 750,000 tonnes reported the year before. Sales orders for the beginning of the fourth quarter and new business development remain encouraging, the firm said, although it is mindful of the economic uncertainty, particularly in Europe, and the impact that could have on its customers. "We continue to expect revenue growth year-on-year from Invibio, our biomaterial solutions business, whilst cognisant of the on-going challenges in the US healthcare market," the firm said. "The company remains in an excellent financial position with a healthy balance sheet, strong cash generation and no significant changes in its financial position since 31 March 2012."

Positive Points: Net rental income on a like-for-like basis rose by 2.4%, with group retail occupancy rising to 97.5% (31 March 2012: 97.0%). The half year dividend payment was increased by 5.5% to 7.7 pence per share. Management outlook comments noted that "Hammerson has implemented a strategy to focus on the successful sectors of the retail market. Our prime shopping centres, convenient retail parks and premium designer outlets continue to attract consumers and tenants. This allows us to maintain high occupancy and secure new tenants at attractive terms. The benefits of this strategy are apparent in the first half figures and give us confidence in our ability to grow future rental income and dividends." The group offers a degree of geographical diversity. Group net debt reduced to £1.9 billion as of 30 June 2012 from £2.0 billion as of 31 Dec 2011. Management noted that "Hammerson is in a strong financial position. Including proceeds for sales contracted in the period, pro forma loan-to-value and gearing figures are 27% and 36% respectively, with around £1 billion of cash and undrawn facilities."

Negative Points: Total net rental income fell by 1.6% to £141.6 million. Accompanying management comments noted that "macro economic conditions are uncertain and household budgets in the UK and France remain under pressure." The group's move to sell its office developments reduces its diversity. Group net debt as of 30 June 2012 was £1.9 billion

Financial Highlights: Net rental income fell by 1.6% to £141.6 million on a total basis, but rose by 2.4% on a like-for-like basis. EPRA (European Public Real Estate Association) net asset value per share increased by 0.9% to £5.35 per share. EPRA earnings per share grew by 6.3% to 10.2 pence. The half year dividend payment was increased by 5.5% to 7.7 pence per share.

Half year results: Management continued to underline its move to become a retail property company, having previously agreed to sell the majority of its office developments. Like-for-like net rental income increased by 2.4%, with the group's portfolio now 97% retail focused. Group retail occupancy rose to 97.5% (31 March 2012: 97.0%), exceeding management's target of 97%. Additional investment of £100 million in the growing premium designer outlet market was made, with management confidence for the outlook underwriting a 5.5% increase to the half year dividend payment. On balance, Hammerson's income generating ability in a low interest rate environment weighs against concerns for the economic outlook and the health of consumers, with the consensus opinion of a buy having recently come under some pressure.

Company overview Hammerson is a major property investment and development company. Its property portfolio comprises principally of prime shopping centres in the UK and France and conveniently located retail parks. The retail portfolio provided 1.6 million m2 of space and includes 19 shopping centres and 18 retail parks. Joint ventures account for 45% by value of the portfolio, including eight major shopping centres in the UK and two in France. At the end of June 2012, 73% of the portfolio by value was located in the UK, and the remainder in France. The retail weighting was 97% and developments comprised less than 5% of the total.

Positive Points: The group's earnings materialised at the higher end of analyst expectations. Sales in developing markets expanded by 11%. Agriculture - Sales of $3.4 billion were up $0.4 billion, or 13%, with 7% price and 6% volume gains. The group's Agricultural division delivered 13% higher sales. Pioneer seed maintained its momentum delivering 12% sales growth. Crop Protection sales grew by 15%, underpinned by strong demand across all product lines. Sales at its Nutrition and Health unit increased by 82%, primarily reflecting a two month acquisition benefit from its purchase of the Danisco speciality food ingredients business. Management noted that "the company is on track versus its full-year 2012 productivity targets for fixed costs and working capital."

Negative Points: Due to both economic and currency uncertainties, management has guided current full year earnings estimates downwards. Product volumes declined by 1%, compensated for by higher product prices. For its Electronics & Communications business, sales declined by 11% to $795 million on 6% lower volume and 5% lower selling prices, primarily due to the pass-on of lower metals prices. Sales reflected continued soft demand for photovoltaic (solar) materials. At its Safety & Protection business, sales fell by 4% to $986 million. Volume declined due to lower public sector demand and continued softness in industrial markets. Volatile energy, currency and commodity prices continue to provide uncertainty moving forward. The dividend has remained unchanged since 2008.

Financial Highlights: Excluding exceptional items, earnings per share came in at $1.48 per share versus $1.37 per share in the prior year. Revenues increased 7% to $11.0 billion. Sales volume declined by 1%. Management expects full-year earnings to be toward the lower end of its existing outlook range of $4.20 to $4.40 per share.

Second quarter results: The announcement brought mixed news for investors. While earnings grew by 8% compared to the prior year quarter, at the higher end of analyst forecasts, accompanying full year management guidance provided disappointment. Full-year earnings are expected to be toward the lower end of its existing guidance ($4.20 to $4.40 per share), due to economic and currency uncertainties, along with a higher tax rate relating to the current earnings mix. Furthermore, while sales increased by 7% to $11.0 billion, this reflected a 6% increase in local prices, along with changes in the product mix, partially offset by a 3% reduction from currency movements and a 1% decline in sales volume. More positively, the group's agricultural, food and bioscience businesses all performed well globally, with group wide sales in the developing markets expanding by 11%. In all, with product volumes again declining and management expressing caution for the outlook, we believe that favourable analyst consensus opinion (cautious buy) is likely to remain under pressure.

DuPont is a science company, founded in 1802 and now the second-largest chemicals maker in the United States. The group operates in over 70 countries worldwide through a number of businesses, including agriculture and nutrition, coatings and colour technologies, electronic and communication technologies, performance materials, pharmaceuticals, safety and protection, and textiles and interiors.

Positive Points: 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. 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. Management reported continued growth in luxury Cuban cigar volumes. Imperial has been linked with sporadic talk as a takeover target by larger peers. Low debt, robust cash generation and modest organic growth are attractions.

Negative Points: Overall, stick equivalent volumes for the nine months to end June fell 3%. Imperial, like its bigger rivals Philip Morris, British American Tobacco and Japan Tobacco has suffered from a decline in smokers in mature markets but has offset this by hiking prices and expanding into Emerging Markets. The company is exposed to currency translation and transaction risk. The tobacco industry is exposed to litigation which could have a significant impact on future operational and financial performance. The UK (or other governments) may introduce rules requiring "plain packaging", the consequences of which may lead to a significant decline in profits in the markets affected.

Financial Highlights: Imperial Tobacco reported net revenue up 3%. The tobacco company saw strategic brand growth continue with net revenues up 13% and combined stick equivalent volumes up 6%. Imperial's strong growth record in cigars and snuff continues. Volumes of luxury Cuban cigars increased by 1% in total and by 10% in emerging markets, and grew snuff volumes by 39%.

Interim statement: Imperial Tobacco saw sales growth gather pace leading the Board to confirm that its financial and operational performance is on track for the full year (30th September). Bristol based Imperial, reported tobacco net revenue in the nine months to end of June was up 3%, reflecting an ongoing strong price/mix. Stick equivalent volumes declined 3%. Strong key strategic brand growth continued to be seen with net revenues up 13% and combined stick equivalent volumes up 6%. Furthermore, the group saw strong emerging market growth in Cuban cigars and significant snuff gains. Regionally, in the EU, Imperial said it consolidated the market share gains it made in Q2 with stable or increasing cigarette and fine cut tobacco shares in a number of markets. In Spain, the group continued to build on its leading positions in cigarette and fine cut tobacco. Outside the EU the group reported excellent performances from key strategic brands in numerous emerging markets in Asia-Pacific, Africa and the Middle East and Eastern Europe, while the USA remains very competitive.