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http://www.investegate.co.uk/Article.aspx?id=201201110700093373V

Reports of a strong second half of trading at Belgravium Technology (BVM) sent shares in the data capture service provider up 0.375p to 6.5p. Trading in the group's major markets of logistics, transportation and retail were satisfactory, while the completion of the Monarch Airlines contract was shortly followed by a contract win with another major airline. Belgravium emphasised that new contracts included annual recurring software licence and service fees, helping the group to increase its level of repeat income.

Earlier this year, fashion brand French Connection returned to profitability after two years of losses forced it to close many of its foreign stores and dispose of designer brand Nicole Farhi. Its wholesale division, which supplies international joint ventures, franchises and other retailers, is growing. But retail stores in the UK, Europe and North America are still losing money. This situation is looking intractable while customers remain frugal because French Connection is tied into long-term leases it cannot easily shed. While a very low share price makes this iconic brand attractive to value investors, the payoff could be years away and depends on founder and majority shareholder Stephen Marks' ability to wring profit from his stores or get rid of some of them Source Moneywise

Nomura upgrades Burberry from neutral to buy, target price increased from 1356p to 1530p.

Oriel Securities initiates sell on Smith & Nephew, target price 500p.

Oriel Securities initiates reduce on BSkyB, target price 680p.

Deutsche Bank initiates buy on Spirent Communications, target price 140p.

Arbuthnot Securities initiated coverage of Vp (VP.) with a "buy" recommendation and target price of 300p. The construction equipment rental company reported a strong first half performance, with pre-tax profit growth of 21%, year-on-year, and the broker says that this demonstrates the firm's underlying strength in difficult economic conditions. Arbuthnot attributes the resilient performance to its high exposure to global energy-related business and safety. With a strong balance sheet the broker is also attracted by a healthy dividend yield of 5%. Vp shares lost 4.63p to 214.75p.

Panmure Gordon maintains hold and 248p target.

N Brown: Peel Hunt maintains buy recommendation and 340p target;

Citigroup downgrades Unilever from neutral to underperform, target price cut from 2190p to 2140p.

DEWHURST Lift component manufacturer Dewhurst maintains high levels of profitability without recourse to debt and there's a controlling family interest. Short-term investors dislike controlling interests because they block potentially quick routes to profit, but for long-term investors, stability can be an asset. Dewhurst reached record levels of turnover and profit in 2010. Sales rose again in 2011 according to recent full-year results. But falling demand in the UK - due to reductions in public spending - dented profits, as will rising costs as the company spends money on a new factory and integrates three small acquisitions. However, it has proven management, and still-strong finances. I expect any damage to be limited and share price weakness to be an opportunityfor investors. Source Moneywise

COLEFAX Colefax may be the archetypal safety-first investment: profitable, unburdened by debt and operating in a prosaic business - upmarket fabric and wallpaper. It owes its stability to chairman and chief executive David Green, who has been in charge since 1986 and owns almost a third of the shares. Green is downbeat about the company's immediate prospects, even though 2011 seemed to herald a return to pre-credit crunch levels of profitability when profits were enhanced by the completion of major decorating projects. Economic uncertainty and high cotton, linen and silk prices mean a full and sustained recovery could be years away. Meanwhile Colefax continues to buy back shares, and since Green has a lot to lose if the company turns out to have paid inflated prices, he must be confident that the shares are cheap. Source moneywise

10/01/2012 http://www.growthcompany.co.uk/news/1683503/dongfang-sinks.thtml

Engineering consultancy WS Atkins is flush from winning a £70m contract to help Qatar develop its transport and infrastructure, The Times's Tempus column notes. A lot of hope is being pinned on the shoulders of Atkins’s new German Chief Executive, Uwe Krueger, says Tempus, and with some reason; the firm has also recently won a £65m contract to assist with the Doha sewage system. If Kreuger fails, however, then there is always the chance of a takeover and WS Atkins only trades at 8 times earnings with a yield of more than 4%. Tempus says buy.

Where did they 'find' those figures after all the negativity!

Commenting, Steve Ingham, Chief Executive said: "In 2011, we grew our full year gross profits by 25% to a record £553.7m. We expect our pre tax profit from trading activities to be in the region of £85m, approximately 18% up on 2010. We continue to benefit from our geographic and discipline diversification, achieving growth during the year in all reported disciplines and geographic regions. Our financial position is strong, with approximately £60m of cash at the end of the year. "The uncertainty caused by the concerns surrounding the Eurozone and the lowering of worldwide GDP forecasts during the fourth quarter impacted significantly on our clients' recruitment plans, with many hiring decisions being deferred or cancelled. As a consequence, year-on-year growth in the fourth quarter gross profit slowed to 13%. "As in previous economic slowdowns, we will react according to the prevailing economic climate in each market in which we operate and manage each business appropriately, adjusting headcount to reflect market conditions, while continuing to invest where we have opportunities for long-term growth. Group headcount increased by over 850 people in the first three quarters of 2011, as we invested in growth opportunities through geographic and discipline expansion. Reflecting the more uncertain outlook, in the fourth quarter, our headcount reduced by 64 people, as a result of not replacing those who left through natural attrition. "While mindful and cautious of the current macro economic outlook, we are in a position to continue our geographic expansion, as there remain many long-term growth opportunities in our newer territories, particularly Latin America and Asia. During the course of 2012, we currently expect new country openings in Columbia, Morocco and Taiwan, as well as several new office openings in existing countries."

FULL YEAR AND Q4 2011 TRADING UPDATE FULL YEAR HIGHLIGHTS · Full year 2011 gross profit of £553.7m, an increase of £111.5m or 25.2% (23.1%*) on 2010 · Full year 2011 pre tax profit from trading activities is expected to be in the region of £85.0m (2010: £72.2m**) · Continued organic investment 17 new offices and 3 new country openings during 2011. Now have 160 offices in 32 countries · 5.7m shares (1.8% of share capital) purchased and cancelled during the year, returning £30.3m to shareholders · Strong balance sheet with net cash at 31 December 2011 in the region of £60m (31 December 2010: £80.5m) Q4 HIGHLIGHTS · Q4 gross profit of £135.9m up 13.4% (13.3%*) on Q4 2010 · EMEA (45% of Group) Q4 gross profit of £60.9m up 15.3% (15.1%*) on Q4 2010 · UK (23% of Group) Q4 gross profit of £30.9m up 0.6% on Q4 2010 · Asia Pacific (19% of Group) Q4 gross profit of £25.6m up 23.3% (19.4%*) on Q4 2010 · Americas (13% of Group) Q4 gross profit of £18.5m up 18.6% (23.6%*) on Q4 2010 · Permanent (78% of Group) Q4 gross profit of £106.4m up 14.3% (14.4%*) on Q4 2010 · Temporary (22% of Group) Q4 gross profit of £29.5m up 10.0% (9.2%*) on Q4 2010 · Headcount reduced in Q4 by 64 to 5,286 at 31 December 2011 (+17.5% on 31 December 2010)

http://www.investegate.co.uk/Article.aspx?id=201201110700093404V

Hmmmmm - Michael Page: Peel Hunt reiterates sell rating and 280p target; Panmure Gordon keeps sell rating and 281p target.