Member Info for jange

Shire plc is an international specialist pharmaceutical company which in-licenses and develops early stage projects for its own marketing in the major markets around the world. Registered in Jersey, headquartered in Ireland, it has a large operational base in the United Kingdom. Brands and products include Adderall XR, Carbatrol, Fosrenol, and the recently released Vyvanse.

Broker estimates put earnings per share (EPS) for the financial year ending August at 34.5p, up 23% from 28.1p in 2011. EPS is predicted to grow an additional 12% year-on-year to 38.5p in 2013

Collins Stewart comments just 16% of Fenner's sales originate from Europe, so it should weather the region's lasting macroeconomic turbulence better than the vast majority of its industrial peers. By comparison more than half of all turnover is generated from the Americas and just over a quarter emanates from the Asia Pacific region. Peel Hunt expects net debt of £125 million to drop to £100 million by the year-end. This, it adds, will leave the business with a net debt to earnings before interest, tax, depreciation and amortisation ratio of just 0.7, giving scope for further acquisition activity.

Fenner has been extremely active on the merger and acquisitions front, ramping up its mining and energy-related businesses across the globe. This has included the purchase of Singapore's Multiseals (28 April 2011) and Transeals in Australia (1 September 2011). These seals production and distribution businesses serve the resources sector. The firm's latest acquisition, Pennsylvanian belt builder Allison Custom Fabrication (1 December 2011), enhanced the product offering to the North American coal industry.

The FTSE 250 constituent's improved return on sales owes much to a growing focus on high-margin products, particularly in the medical and resources sectors. Its mining and energy offerings provide strong exposure to the fast-growing shale gas and thermal coal sectors, the latter representing the firm's predominant end market.

Fenner revealed margins across both its divisions - Engineered Conveyor Solutions and Advanced Engineered Products - had improved. This was owing to operational efficiencies witnessed in the latter part of 2011. Citigroup estimates group-wide margins will rise to 13.8% this year from 12.7% in 2011 before marching to 14% and 14.1% in 2013 and 2014 respectively.

Fenner (FENR) ahead of next week's (25 April) interims which should underline the £821 million cap's continuing strong growth prospects. The numbers should prompt a reversal in the de-rating which has resulted in Fenner's 13% fall from last month's 483.7p all-time high. On a price/earnings (PE) multiple of 12.2, the conveyor belt and industrial seals builder is cheap versus the high-teens PEs of its peers. The Yorkshire-based company noted in its pre-close update last month (8 March) first-half operating profit was 'significantly' ahead of 2011. It also reported the order book remained healthy. Increasing demand from the mineral extraction and energy sectors combined with market share gains to underpin solid growth.

It would be easy to panic over Promethean World's (PRW) profit warning last week (18 April) and a savage 40% decline in first-quarter US revenue is worrying. But the real test will come during July to September, the educational technology supplier's slowest sales period, when most schools spend their investment budgets. Longer term, education organisations have little alternative but to invest in technology learning tools if they are to stay relevant to young people so used to smartphones and the internet. Promethean has demonstrated significant progress in broadening its product range (ActivProgress, ActivTable) and content partnerships (ChannelOne, HMH). That International sales are up 22% in the first quarter is encouraging. Flagged as a 'buy' at 57.5p by Shares Magazine (9 February 2012), the £109 million cap touched 75.5p within weeks. The same contrarian dynamics Shares Magazine liked back then remain in place now. A 2012 price/earnings ratio of 7.6 dropping to 6.1 in 2013 prices in the gloom but little upside in the event the second half of this year positively surprises.

Charles Stanley expects earnings per share growth of 10% for this fiscal year and 8.5% for next. Whilst that still leaves the stock on a forward price/earnings ratio of 15.6, that rating is more than merited given its broad-based growth prospects, pricing power and potential M&A upside. Based on consensus dividend estimates of 44p, a dependable 2.8% yield offers downside protection.

Analysts reckon potential M&A targets to boost the North American business could even include Jose Cuervo. Diageo will not renew its Cuervo distribution contract on expiry in April 2013 and if it owned the tequila brand outright, higher margins could be earned.

Potential catalysts for share price gains include merger and acquisition (M&A) activity, with the strongly cash-generative beverages behemoth boasting a proven pedigree when it comes to canny strategic deals. Examples include last year's £1.3 billion takeover of Mey Icki, for exposure to the fast-growing Turkish middle class, as well as investments made in Chinese white spirits company ShuiJingFang. In the case of the latter Diageo last month (20 Mar) gained regulatory approval to buy the outstanding shares in the Shanghai-listed concern.

Growing middle class populations in developing economies aspire to drink international premium spirit brands and can increasingly afford to do so. This trend is driving strong sales of Johnnie Walker in China, Russia and also Africa, where the label is spearheading the growth of premium scotch

Diageo is also a third-party distributor for tequila brand Jose Cuervo in most European countries and has a 34% stake in Moët Hennessy. The brand strength of the company's plethora of products, sold in more than 180 countries, confers considerable pricing power. Product and international diversification, plus an ability to make, rather than take prices, give Diageo its defensive attribute

The FTSE 100 constituent continues to benefit from a portfolio of strong spirit, beer and wine brands, which engender the feel-good factor in times of economic turbulence. Besides Johnnie Walker whisky, the £40 billion cap's resilient spirits include Smirnoff vodka, Baileys Irish Cream liqueur and Captain Morgan rum, while its beloved beer offerings include Guinness and Red Stripe.

Buy into the trading and share-price momentum of the world's largest premium drinks business Diageo (DGE) ahead of a third-quarter trading update next week (3 May). In an uncertain global economy, the London-headquartered drinks giant offers scope for earnings upgrades as its high-end spirits brands benefit from 'premiumisation' trends in emerging markets. There is also the potential for acquisitions to push analysts' estimates higher.

Dean Webster, Chief Executive Officer, said: "The group will continue to benefit from its growing international order book, diversified geographic reach and global corporate client base. We anticipate continued strong growth in the Asia Pacific markets and expect conditions in our European markets to remain challenging, although the actions we have taken to reduce our cost base in the region ensure that our business will remain competitive."

On a year-on-year basis, the group's order book has improved by £9m to £88m with 54% in Asia Pacific, 39% in Europe and 7% in the Middle East, Africa and India.

During the year the company invested in its growing international presence, particularly in China and south-east Asia. The Asia Pacific region now accounts for around 30% of the group's total revenue, up from 24% last year. Revenues derived from Europe and the Middle East, Africa and India now stand at around 60% and 10%, respectively.

Sweett Group, an international property and infrastructure consultancy, delivered a robust financial performance in the year ended March 31st, partly as a result of two million pounds-worth of annualised cost savings. The firm has said its profit before amortisation and exceptional administrative expenses for the year is set to be in line with market expectations, if certain disposals are completed as expected.

Caspian Holdings has reduced its losses in 2011 from £0.196 to £0.087m as a result of negative goodwill on the acquisition of a subsidiary, earning the company £0.1m. Since the year end the firm has won an 18-month exclusive option extension that will enable it to focus on bringing the La Parrilla tailings processing facility on stream, into production and complete the step out drilling in the extension of the La Parrilla mine area. Cash levels rose significantly over the year from £14,476 to £221,393.