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GETECH, an oil services business specialising in the provision of exploration data and geological exploration studies, has announced a major further licence for its Russian Arctic Shelf magnetic data set with a gross sales value of $1.28m. The Russian Arctic Shelf is a major under-explored area which is still in the early stages of exploration for oil and gas due to its harsh climate conditions and high exploration/production costs. It is the firm's third licence from this data set. "In recent years there has been an increase in the number of international oil companies establishing strategic links with Russian companies, which suggests there will be a continuing and active interest in exploration in Russia," the company said.

Mobile Tornado Group, a provider of instant communication mobile applications to the enterprise market, has unveiled a partnership with Cellhire, a global service provider, making Mobile's Instant Communication platform available as a fully serviced rental solution for major events and large-scale corporate use. The technology allows the establishment of half-duplex voice links, allowing one-to-one or one-to-many communication. "Our Instant Communication applications provides a more effective way to communicate, with greater flexibility and functionality than the traditional radio, mobile or PDA," Mobile said.

HaiKe Chemical Group, a petrochemical, specialty chemical and biochemical business based in China, has purchased a minority stake in Dongying Hi-Tech Ruilin Chemical for a total consideration of RMB121m (c.12m pounds), taking HaiKe's interest in Hi-Tech Ruilin from 65.7 per centto 88.85 per cent. Hi-Tech Chemical Group, HaiKe's 88.85 per cent-owned subsidiary, has agreed to acquire 104m shares in Donyingm, representing 26 per cent of the Hi-Tech Ruilin shares in issue for RMB121m. RMB21m will be paid by cash and the remaining RMB100m will be settled by a one-year interest bearing advance from Jindayuan with a coupon at market level (8.0 per cent). Following the acquisition, Hi-Tech Chemical's shareholding in Hi-Tech Ruilin increased from 74 per cent to 100 per cent and HaiKe's interest in Hi-Tech Ruilin increased from 65.7 per cent to 88.85 per cent. The acquisition was completed on July 10th.

That seemed to tie in with Peel Hunt's projections. The broker is leaving its profit before tax forecast for the current financial year unchanged at £25.2m, though next year's forecast has been trimmed from £28.5m to £27.0m.

The group conceded that market conditions had become more difficult, especially in Europe but also in Asia. On the plus side, North American activity benefited from the first signs of a pick-up in the housing market. Sales in Flooring, Building Products and Civil Engineering - the group's target growth markets - were vibrant but growth was more subdued in the Industrial and Transport markets while, as anticipated, sales in the Leisure segment remained very weak as the artificial grass market continued to contract. Operating margins improved from 6.5% to 6.9% in the half year despite, as broker Peel Hunt noted, the group making a significant investment in future growth. "Lower raw material prices should benefit H2 [second half of the fiscal year] but the weakening euro is a major headwind," Peel Hunt suggested. Net debt at the end of May had increased to £98.7m from £85.3m six months earlier, reflecting the group's acquisition of Xero Flor and its investment in its Saudi Arabian joint venture, as well as increased capital expenditure to support future growth. "These results demonstrate the quality of our business," claimed company Chairman, Martin Flower. "We expect macroeconomic conditions to remain challenging, particularly in Europe. However, with the benefit of ongoing internal growth initiatives and lower raw material polymer prices, we remain confident that full year results will be in line with expectations," Flower added.

Profit taking was in evidence after industrial fabric maker Low and Bonar's interim results were merely in line with expectations. Low & Bonar's shares have been on a good run since the end of May when the company said first half sales and profits would be comfortably ahead of last year. The company delivered on that promise but the market was evidently hoping for something a bit more spectacular as the shares had fallen 5.5p to 57.5p by the end of the lunch time session, and not even a 14% hike in the interim dividend from 7p to 8p could prevent the fall. Revenue in the six months to the end of May rose to £183.9m from £182.6m (or £176.9m on a constant currency basis) in the corresponding period 12 months earlier. Profit before tax, amortisation and one-off items jumped to £9.6m from £7.9m the year before, but statutory profit before tax tumbled to £6.3m from £11.2m, as this time round the group had exceptional debits of £3.3m against exceptional credits last year of £3.3m.

In a statement the firm said: "With healthy demand continuing, the company is implementing plans to add some costs in new product development, training, marketing and sales initiatives to take full advantage of a stronger sales environment. This is intended to put Somero in the best position to deliver growth in the medium and longer term, as well as to sustain the shorter term recovery that is evident in 2012."

Shareholders in laser machinery maker Somero Enterprises were beaming after the company said it made more profit in the first half of the year than the market was expecting it to make in the whole of the year. Earnings before interest, tax, depreciation and amortisation (EBITDA) at the half year stage are expected to be slightly ahead of the market's forecasts for the full year, while half year revenues should be around 50% higher than in the equivalent period of 2011. The company currently expects that increased costs, resulting from increased investment in training, product development and marketing, will lead to second half profitability being lower than the first half, despite expectations that the out-turn for the full year will be substantially ahead of current forecasts for 2012. In North America the firm demonstrated strong growth during the half year, benefiting from mild weather conditions and a benign economic environment. The Chinese business also performed well following the firm's investment in the region. Sales from the company's new product, the S-840, and the SXPD large line machines were significantly higher than in the same period last year. However, it wasn't all good news as the group cautioned that it is likely that respective rates of growth will be slower in the second half of the year, consistent with previous years.

On the home front, Tanfield has used the £11.4m it raised in another placing earlier this year to invest in its supply chain. The boost in capacity has allowed it to increase sales of its platforms and it expects "to reach break-even volumes during the second half of the current financial year." Darren Kell, Chief Executive, said: "Given that Tanfield is Smith's largest shareholder, Tanfield is keen to support the company in its planned IPO [initial public offering, or flotation]. This fund raising will enable Tanfield to participate in a lending facility that gives Smith that support without risking the progress achieved (so far) in the powered access business." WH Ireland said the forecast by Tanfield of hitting break-even volumes in the second half of the current financial year is in line with its own forecasts. "After a two-year buying hiatus, rental companies have begun to replace their ageing aerial lift equipment fleets, a trend which appears to continue despite global macro uncertainties," the house broker said. Tanfield's improved working capital following its earlier fund raising "allows the company to place larger orders with its principal suppliers, make investments in strategic supply channels and, where necessary, offer incentives to prioritise supply chain commitments from key supply chain partners," the broker explained

Tanfield Group, which makes aerial work platforms, has placed shares in the market at 42p each to raise funds for a bridging loan for associate company Smith Electric Vehicles. The company raised £2m through the share placing to provide a 180-day loan to Smith Electric Vehicles, in which it has a 24% stake. The loan will be repaid after Smith floats in the US, although no date for the flotation has been released. Smith will pay market rates for the loan. Tanfield's broker and nominated adviser (nomad), WH Ireland, reckons that Smith's flotation is still likely to take place "prior to the summer recess" but notes that, while US markets are still funding stock market flotations, "the window of opportunity this side of summer is clearly narrowing." "Tanfield retains a 24.13% equity stake in Smith Electric Vehicles which, based on a proposed February 2012 private funding round, equates to an unrisked value equivalent to 43.6p per Tanfield share," WH Ireland analyst Matthew Davis calculates.

Titan Europe, a maker of steel wheels and other machinery components, saw its share price leap after it confirmed that it has received a bid approach from Titan International, which is operated by some members of the Titan Europe board. As is usual in these announcements, Titan Europe warned that "there can be no certainty that a formal offer will be made for the company," and it also gave no clue as to what sort of terms any offer might include. US firm Titan International, which specialises in tyres and wheels for off-road vehicles and equipment, must make an offer by August 14th if it wishes to go ahead with a takeover. The independent directors of Titan Europe have formed a committee to consider any such offer.

CIC, the consulting and advisory firm operating primarily in the mining and energy infrastructure sectors, has reported that following a 48-day leaching period, the Shanba gold mine in China has produced 3,825 ounces gold, with a further three-heap leach due to complete final leaching in the near future. A total of 4,790 ounces gold has been produced to date. The company is planning to cover the mine and processing equipment costs, which are expected to total $8.3m, from initial gold production. Once these are paid the company will receive a diviend from Shanba, although shareholders will have the choice to fund increased oxide gold production at its various gold leases.

CareTech Holdings, a UK provider of specialist social care services, has successfully completed the refinancing of its banking facilities, which were due to expire in April 2013. The new facilities total £149.4m, comprising a term loan, a revolving credit facility and an overdraft facility for working capital. The new facilities will be available for four-and-a-half years, expiring in January 2017. Three banks have opted to continue to offer loan facilities to CareTech and in addition Allied Irish Bank, with whom CareTech has had a long relationship, has rejoined the syndicate of banks. "After taking account of hedging costs the facilities are at a highly competitive all-in debt service charge of less than 4.5%, which further emphasises the company's strong asset backing and attractiveness to lenders," the firm said.

Shares in Essar Energy, the India-focused integrated energy company, fell more than two per cent on Tuesday after the Supreme Court of India ordered it to pay 182m dollars to the government of Gujarat by July 30th in relation to its deferred sales tax liability. Essar's Indian subsidiary, Essar Oil, is currently seeking guidance from the Supreme Court on a repayment schedule as well as the waiver of interest in relation to the deferred sales tax liability of around $1.12bn. The company also said that the previously announced potential loan facility of around $909m from Indian lenders is expected to be finalised shortly. The facility would be used as a contingency measure for use in the event that the sales tax liability becomes payable immediately or that Essar Oil is not able to negotiate a satisfactory repayment schedule.

London Pride brewer and pubs group Fuller, Smith & Turner comes in. The group will give a trading update at its annual general meeting, and Peel Hunt reckons Fuller's managed estate will have done well to show any sort of like-for-like growth. At the end of May the group said: "We have experienced the most volatile and weather-dependent start to a year that we can remember. April was the wettest on record, whilst last week was glorious." Trading in the first eight weeks of the new financial year saw like-for-like sales down 2.3% and, as Peel Hunt noted, this time a year ago the group reported a 3% increase in like-for-like sales, so the comparative figures are tough.

Cash and carry king Booker gives an update covering its fiscal first quarter. The shares trade on a heady price/earnings ratio of 18.1, so there is the possibility of share price punishment if there is even the faintest whiff of disappointment. Peel Hunt is forecasting 2% year-on-year like-for-like sales growth for non-tobacco products but thinks tobacco revenue will be down from a year earlier. "Trading at the start of the period was held back by the miserable summer weather. Tobacco will also have been poor due to the high duty increase, which is likely to have led to increased evasion. Tobacco makes little contribution to profits as it is very low gross margin," the broker noted.

mining giant BHP Billiton will follow hot on the heels of sector peer Rio Tinto with a second quarter operational update. Rio's shares slipped after it revealed output had run ahead of sales in the second quarter, and it will be interesting to see whether the same situation has occurred at BHP Billiton

Positive Points: The bank has shut down the risky trading activities at the CIO, overhauled management, and enhanced the governance standards within the group. The London office will now maintain a more conservative approach, the bank said. Despite the massive loss caused by a poorly executed trade using complex financial instruments, the bank was able to post second-quarter results that exceeded analyst expectations. The group's Retail Financial Services division delivered a strong quarter. Net income was $2.27 billion, compared with $383 million in the prior year. Management continued to highlight a 'fortress' type balance sheet. During the first half of 2012, the bank provided $130 billion of credit to consumers and nearly $10 billion of credit to small businesses. The group enjoys diversification in both business type and geographical location, a trait which some other banks do not enjoy.

Negative Points: The bank's London based Chief Investment Office became notorious in May when JPMorgan said bad derivatives bets had triggered about $2 billion of paper losses, a figure that turned into $4.4 billion of actual losses in the second quarter and may increase further. As a result of the trading losses, a host of international regulators and agencies are probing the bank. Besides the FBI and FSA, they include the U.S. Securities and Exchange Commission, the Federal Deposit Insurance Corp, the U.S. Commodity Futures Trading Commission, the U.S. Treasury's Office for the Comptroller of the Currency, and the Federal Reserve Bank of New York. The controversial loss has come at a difficult time. The US economy has been exhibiting fresh signs of an economic slowdown, due in large part to huge uncertainty surrounding Europe's debt crisis and slowing growth in China. JPMorgan's share buyback programme remains suspended "after discussion with the Federal Reserve", the bank said. The buyback programme was halted in May in order to preserve capital until the trading losses have been unwound. Given its size, the bank possesses a high level of exposure to the US consumer and any potential consumer weakness encountered. JP Morgan maintains relatively large investment banking and consumer credit exposure.

Financial Highlights: J.P. Morgan reported a profit of $4.96 billion, down from $5.43 billion a year earlier. Quarterly total net revenue amounted to $22.9 billion, down 17%, when compared to $26.78 billion in 2011. The bank's investment banking arm posted a profit of $1.91 billion, down 7% from a year earlier but up 14% from the first quarter. The bank's retail-services business, which handles consumer and small-business clients, reported a profit of $2.27 billion, significantly up from $383 million a year earlier and up 29% from the first quarter.