Member Info for jange

Positive Points: Management highlighted "good momentum on lettings across all schemes". Retail Portfolio voids were flat at 3.6% (3.6% at 31 March 2012). Retail units in administration were 2.0% (2.2% at 31 March 2012) with 53% of these still trading. The weighted average cost of group debt was 4.9% compared to 5.0% as of 31st March 2012, with an average duration of 10.6 years (10.9 years at 31 March 2012). Accompanying management comments noted that "We remain confident that the development pipeline offers exceptional opportunity to deliver growth while our active asset management and strong financial base underpin our activities." At the last full year results, progress for management's key valuation measure, adjusted diluted Net Asset Value (NAV), rose by 4.5% to 863 pence per share. The first interim dividend payment for the current financial year will be 7.4 pence per share, up from 7.2 pence per share for the first quarter last year.

Negative Points: Management noted that "transactions are taking longer". Voids or empty lets in the overall like-for-like portfolio rose to 3.2% (3.0% at 31 March 2012). Within the London Portfolio, voids rose to 2.9% compared to 2.5%. As at 30 June 2012, adjusted net debt (including joint ventures and adjusted for the nominal value of bonds but excluding the mark-to-market on swaps) amounted to £4.04 billion compared to £3.98 billion as of 31 March 2012. With UK inflation still running ahead of wage growth, the outlook for consumers remains challenging, a fact which has placed pressure on its Retail portfolio.

Financial Highlights: Voids in the like-for-like portfolio up at 3.2% (3.0% at 31 March 2012) Retail Portfolio voids flat at 3.6% (3.6% at 31 March 2012) London Portfolio voids at 2.9% (2.5% at 31 March 2012) There were no disposals in the period

First quarter update: Voids or empty lets across the total portfolio rose marginally to 3.2% from 3.0% as of 31 March, with management noting that "transactions are taking longer". Activity within its London (largely office) portfolio impacted, with voids rising to 2.9% from 2.5%. Empty lets for its Retail division remained flat at 3.6%. A further £9.3 million of development letting had been signed since the 1st April, with total investment in the quarter of £148.2 million, including capital expenditure on developments of £59.5 million. Accompanying management comments noted that "occupier interest and intent remains firm as businesses seek out efficient space for their future needs". Group debt rose marginally, although a further increase in the dividend was confirmed. In all, near term concerns for the UK's economic outlook continue to weigh against the company's income paying ability in a low interest rate environment.

Land Securities is a major Real Estate Investment Trust (REIT). It owns, manages and develops properties across the United Kingdom. The group operates through two divisions: 1) The London Portfolio – which includes office developments and retail properties in London 2) The Retail Portfolio – which includes shopping centres and shops, retail warehouses and food stores. Around 500 organisations are provided with accommodation via its London Portfolio, whilst the Retail Portfolio includes over 40 shopping centres and retail parks.

Positive Points: On 28 June Severn Trent announced that it and Costain Group PLC had entered into a new Joint Venture to provide complete business water and wastewater management services to high volume commercial and industrial water users in the UK. Operating costs are expected to rise year on year, due to the impact of inflation, a full year of operating private drains and sewer assets, and increases in quasi taxes. The utility said these would be offset by efficiency improvements. Severn Trent is subject to occasional takeover speculation. The group's defensive nature provides investor attraction when set against an uncertain economic backdrop. In the present low interest rate environment, a progressive dividend policy currently yielding over 4% remains attractive.

Negative Points: Profitability from Severn Trent's core water business is dependent on the group's ability to meet tough regulatory efficiency targets. Bad debt as a consequence of the economic downturn is being closely monitored by the group. Exceptional charges of £50.9 million were reported within the group’s full year results on 30 May that included operational costs of £34.4 million. Within this figure, costs arising from Severn Trent Water's programme to restructure and realign the business resulted in an exceptional charge of £11.5 million.

Financial Highlights: The group stated that no new material trading events or transactions had occurred during the reporting period 1 April to 17 July 2012.

Interim statement: The Board of Severn Trent Plc confirmed that trading across the group had been in line with its expectations and prior guidance. The water utility said customer prices in Severn Trent Water increased by 5.2%, including inflation, from 1 April. Consumption across its measured income base had declined year on year in the period, also in line with expectations. The group advised that it will continue to forecast a bad debt level around 2.2% of turnover for the full year, adding that the matter is being closely monitored, especially unemployment levels. Based on current RPI expectations, the group's interest charge is expected to be slightly lower year on year. For the full year, Severn Trent Services said it expected to deliver low single digit revenue growth

Severn Trent is a group of companies employing more than 15,000 people across the UK, US and mainland Europe, with some involvement in the Middle East. It is traded on the London Stock Exchange and is a constituent of the FTSE 100 Index. Severn Trent Water provides water and sewerage services to over 3.7 million households and businesses in the Midlands and mid Wales. The group also operates a non-regulated business. Severn Trent Services is one of the world's leading suppliers of water and waste water treatment solutions. Headquartered in the US, it has a growing presence in Europe, the Middle East and Asia. The business has three main divisions: Water Purification, Operating Services and Analytical Services

Positive Points: Management reported a "robust operating performance in a challenging environment with annual production records achieved across ten operations." Six major projects delivered first production during the year, while a total investment commitment of US$7.5 billion (BHP Billiton share) enabled another eight major projects to move into execution. An assessment of more non-core products and operations continues to be made by management. Last November, BHP said it would sell its Ekati diamond mine in Canada, and in February agreed to offload its stake in Richards Bay Minerals, a mineral sands operation. The board has recently placed a greater emphasis on controlling costs. In total, exchange rate volatility increased underlying earnings by $543 million as of the half year results. BHP already enjoys extensive product diversification. Earnings from the group's petroleum business, a business not enjoyed by major rivals, rose by over 38% at the half year results. Petroleum for the half year generated just under 18% of group revenues. The company is a potential beneficiary of any broad recovery on the global economy.

Negative Points: The group remains sensitive to global economic health and China in particular. A major proportion of Australian iron ore production is exported to China. The IMF has recently downgraded global economic growth expectations whilst the Chinese economy grew by 7.6% in Q2 2012, its slowest pace in three years. Aluminium production was lower than all comparable periods as capacity at Hillside (South Africa) remained curtailed following a major unplanned outage in the March 2012 quarter. Operations are expected to progressively return to full technical capacity during the 2013 financial year. Zinc production at Antamina declined during the 2012 financial year. Diamonds production was also lower. Cost pressures for both BHP and the wider industry continue to be seen. Higher fuel and energy prices (of which BHP Billiton is a net beneficiary), together with increased maintenance, labour and contractor expenses continue to provide cost pressures. Natural events such as the recent floods in Australia could again impact production. Currency movements provide potential headwinds. Net debt, comprising interest bearing liabilities less cash, was US $21.5 billion as of the half year results, an increase of $15.6 billion compared to the net debt position at 30 June 2011. A serious of attempts substantially to expand the company has failed, including a proposed merger with giant rival Rio Tinto. As such, the opportunity to remove significant costs has been lost. Costs in relation to each failed deal, including potential fees to investment bank advisers, have been suffered.

Highlights: Western Australia Iron Ore shipments rose to an annualised rate of 179 million tonnes in the June 2012 quarter. Record annual metallurgical coal production achieved at Illawarra Coal. The successful integration and further development of its Onshore U.S. shale liquids and gas assets contributed to a 40% increase in petroleum production in the 2012 financial year.

Full year production update: Following the statement, the share price rose in early London trading. Annual production records had been achieved across ten of its operations, with its important Western Australian iron ore operations generating a twelfth consecutive annual production record. A modest increase in metallurgical coal production was reported, whilst an 11% increase in copper production in the June 2012 quarter helped established strong momentum for its Base Metals business according to management. On a development basis, six major projects delivered first production during the year, while a total investment commitment of US$7.5 billion (BHP Billiton share) enabled another eight major projects to move into execution. In all, near term global economic concerns continue to weigh against expected long term growth in China and the Emerging Markets,

The Group's principal activities are exploring for, developing, producing and processing minerals, oil and gas. The Group's operations are divided into nine business divisions. Base Metals focuses on copper, silver, zinc, lead, uranium and copper by-products including gold. Petroleum focuses on hydrocarbons covering oil, gas and liquefied natural gas. Aluminium relates to bauxite, processing and marketing of aluminium and alumina. Iron Ore focuses its mining activities in the areas of Western Australia and Brazil. Energy Coal focuses on energy coal for use in electricity generation. Metallurgical Coal operates three underground coal mines in Australia. Manganese focuses on alloys, ores and metals. Stainless Steel focuses on nickel minerals which are used in the production of stainless steel. Diamond and Specialty Products operates a diamond mine in Canada and an integrated titanium smelter/mineral sand mines in South Africa. The group employs around 41,000 people working in over 100 operations in 25 countries.

"While we have been pleased with the growth in our Services revenue, the increase in new business has come with significant additional start-up costs that will adversely impact profit in 2012." "However, the Board believes that this incremental cost, which remains in line with our statement of 14 June 2012, will help secure Computacenter's long term growth potential and enhance the quality of earnings," it said in a statement. Across its geographical divisions UK revenue grew by 5% in the first half of the year, German total revenue increased by 7% and France grew revenues by 9% on a constant currency basis.

European IT services provider Computacenter said it continues to trade in line with company expectations and the outlook for the full year to 31 December remains intact. Group revenue increased 4 per cent in the first half on a reported basis and 8 per cent in constant currency and includes a small contribution from acquisitions made during 2011. Services revenue rose by 12% on a reported basis in the half year and 15% in constant currency. Supply Chain revenue increased 1% on a reported basis and 4% in constant currency. During the second quarter Computacenter saw a 16% increase in services revenue in constant currency resulting in the group taking on 700 extra staff to cope with the demand. The cost of the recruitment and training of the extra staff is expected to cost the group an extra £7m in 2012.

PHSC, the Aylesford-based provider of health, safety and environmental services to corporate and public sector clients, has signed an irrevocable agreement for the acquisition of the entire share capital of QCS International. The acquisition will complete at the end of this month. The company specialises in quality, environmental, and health and safety management systems. QCS earned adjusted operating profits of £0.1m in the year to April 2011. A consideration of £160,000 cash will be paid, together with the issue of 79,186 new ordinary shares in the capital of the company at completion, £160,000 on the first anniversary and a final payment of between £40,000 and £80,000 two years after completion, subject to certain targets being achieved.

SkyePharma, a pharmaceuticals company, has been granted marketing authorisation in Germany for its flutiform product, a combination product for the treatment of asthma. The launch of flutiform in Germany is expected to take place later this year, earning the firm €4.0m. The approval follows the European Commission's decision earlier this month to adopt a legally-binding decision in favour of the granting of marketing authorisations for flutiform. It is anticipated that further national marketing authorisations will be granted in some countries shortly. In other countries negotiations will also be required with national pricing and reimbursement authorities before the product can be made commercially available

Coral Products, a specialist in the design, manufacture and supply of injection moulded plastic products, has posted a 31% rise in revenue from £13.2m to £17.3m for the year ended April 30th, boosted by a strong performance from food packaging sales following acquisition of Interpack. Underlying EBITDA doubled from to £1.2m, an operating loss of £0.7m turned to a profit of £0.25m and gearing increased from 15.5% to 23.3%. Underlying profit before tax came in at £0.185m compared to a loss of £0.753m the previous year and underlying earnings per share were 0.58p (2011: loss 3.74p per share). The firm opted to pay a dividend per share of 0.5p (2011: nil).