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Dr Axel Müller, Chief Executive Officer of SkyePharma, said: "Trading continues to be in line with our expectations. The approval of EXPAREL™ in the United States was an important milestone for SkyePharma and we look forward to a successful launch of the product in the U.S. It was disappointing that a complete consensus was not reached on the European MAA for Flutiform™ by Day 210 of the Decentralised Process. We are continuing to work diligently and closely with Mundipharma to try to obtain a positive outcome for the Flutiform MAA by the end of 2011. We are also actively seeking a partner for our diabetes product candidate, SKP-1052."

Financial position As announced with the interim results on 18 August 2011, the Group had cash of £20.8 million at 30 June 2011. As anticipated, there has been, and will continue to be, substantial cash outflows during the second half of 2011, due to costs incurred on preparing for the launch of Flutiform™. The Group cash position will be boosted by the U.S.$10 million (£6.2 million) milestone payment due when Pacira achieves the first commercial sale of EXPAREL™ in the United States. If Flutiform™ is approved in Europe, liquidity will be further boosted by launch milestones, although the Group is obliged to apply 50% of these Flutiform™ milestones as prepayments of the Paul Capital finance secured debt facility. A similar obligation for the CRC finance facility has been deferred, as announced on 1 August 2011. As previously announced, the Board continues to work with Jefferies International Limited which is advising on the Group's capital structure.

Trading Trading to date has continued to be in line with the Board's expectations. However, given that Flutiform™ will not now be launched in 2011, total revenues for the year are expected to be lower than in 2010, as substantial non-recurring manufacturing volumes recorded last year are likely to be only partially offset by revenues from the manufacture of Flutiform™ this year. As reported previously, total costs are expected to be higher in 2011 than in 2010 due to costs relating to the Flutiform™ supply chain, although the Group continues to conserve cash where possible through careful cost and working capital control.

http://www.investegate.co.uk/Article.aspx?id=201111140700520147S

Production potential raised at Carioca discovery, offshore Brazil BG Group plc today announced an extended well test (EWT) had increased the production potential of the Carioca discovery located on the BM-S-9 concession in the Santos Basin, offshore Brazil. Results from the EWT in progress at the well 3-SPS-74, known as Carioca Nordeste, indicate potential production of approximately 28 000 barrels of oil per day (bopd), above initial expectations. The well, which is connected to the FPSO Dynamic Producer, is currently producing 23 400 bopd, constrained by facilities. The potential of the Carioca area was further underlined by results from the 4-BRSA-973A-SPS well, informally known as Abaré, located 35 kilometres south of the discovery well 1-BRSA-491-SPS (Carioca) and 293 kilometres off the coast of São Paulo state. Wireline samples showed good quality oil at Abaré, about 28° API, in carbonate reservoirs at a depth of about 4 830 metres. A drill stem formation test is planned to evaluate the productivity of the interval. Five wells have now been drilled in the Carioca area in addition to the completion of two formation tests. This fulfills the evaluation commitments required by the National Agency for Petroleum, Natural Gas and Biofuels (ANP). Given the promising results at Carioca, the consortium intends to do more appraisal work to further evaluate the area's full potential. To allow this, the ANP has approved a revision of activities and has extended the deadline for a Declaration of Commerciality from November 2011 to 31 December 2013. There is no change to the consortium's plans and schedule for development and production. BG Group has a 30% interest in Block BM-S-9 which is comprised of two appraisal areas - Guará and Carioca (Petrobras 45%, operator and Repsol Sinopec 25%).

http://www.investegate.co.uk/Article.aspx?id=201111140700520148S

OUTLOOK The strength of the Group's Film, Television and Family slate provides a solid foundation to maintain the positive momentum into the second half of the year. The directors look forward to delivering another year of growth in line with expectations. The Board's review of strategic options, announced on 14 September, is progressing well and an update will be provided to the market in due course.

Darren Throop, Chief Executive Officer, commented: "I am pleased to report yet another strong set of results. Our Film businesses performed well and the strength of our release slate continues to improve. In Television we continue to grow our outstanding portfolio of network series and the number of renewals we are seeing is a testament to the quality of our productions. I am also delighted with the progress being made by Peppa Pig in the US and internationally. The Group's ability to extend and expand its lending facilities against the backdrop of the current financial markets is recognition of the strength of our performance over a sustained period and I look forward to a very positive second half of the year."

http://www.investegate.co.uk/Article.aspx?id=201111140700470003S

Legal & General, the FTSE 100 insurer, has made an approach for Cofunds, the fund supermarket in which it owns a 25% stake, in a deal which could value the business at up to £200m. The Sunday Telegraph can reveal that Mark Gregory, L&G's group executive director of savings, approached Charlie Eppinger, Cofunds' chairman, with a written expression of interest. The insurer's executive management team, led by outgoing chief executive Tim Breedon, is understood to want to build out its fund platform, which would act as an intermediary between fund managers and individual investors. However, the offer, which was put to the company's board last month, could yet be usurped following early-stage interest from Bridgepoint, the private equity house, which is understood to have indicated its desire to speak to Cofunds' board, the newspaper reports.

Also on Tuesday, luxury brand Burberry is expected to release its first half results. The firm has already confirmed that revenues rose 30% in the six months ended 30 September, so Credit Suisse notes that the focus next week will likely be on margins, cash flow and outlook comments. The Swiss broker thinks that gross margins will be 64.8% and operating margin will be 14.9% ("broadly flattish year-on-year"), translating into £116m operating profit. It also expects Burberry to reports a pre-tax profit of £159m, a 24% growth on last year.

One to BUY and hide away for a rainy day further down the line

Anglo Pacific has only ten employees, but is valued at more than £300m and last year made £66m. Not surprisingly, its profits per employee are among the highest on the London Stock Exchange, yet the company is relatively unknown and its line of business is highly unusual in this country, explains the Mail On Sunday’s Midas column. The business line that Midas is referring to is the buying of mining royalties, which gives it a percentage of revenue from a range of mining projects worldwide. Amongst other possible inherent advantages to Anglo's business model, the pay-out on those royalties is tied to the revenues generated by the different mining sites, and is thus not affected by production or infrastructure costs for instance. Also worth noting, the company’s progressive and “generous” dividend policy. As well, the company may soon benefit from Rio Tinto’s intention to expand the Kestrel mine in Australia, with production expected to ramp up next year. That mine ‘down under’ is Anglo’s main royalty agreement. What is Midas’ verdict? The shares have fallen from 338p to 277p since July, reflecting global economic uncertainty and concern over commodity prices in the next 12 months. At the current price, the shares are cheap. Even if commodity prices stagnate in the short term, long-term prospects are sound. Buy.

Cape, the industrial cleaning and supplies provider, informed in its latest trading update of some pressures on margins in the Middle East which could crimp earnings. There was also a surprise one-off charge relating to a contract in the North Sea and three contracts were subject to delays in the underlying projects. The Telegraph’s Questor team believes however that the resulting fall in the company’s share price only makes sense if markets are discounting a significant slowdown in its business, which it considers unlikely. Among the reasons for that are the world’s structural need for energy, the massive amounts which will be invested in mining in the next few years and the company’s presence in the liquefied natural gas area, with the latter offering good opportunities for growth. Also in the firm’s favour perhaps, its chief executive reacted to the price fall by purchasing an additional 60,000 shares in stock. “The shares might trade sideways until there is news on new contract wins but they remain a buy, despite last week's disappointment,” Questor concludes.

Eurasian Natural Resources (ENRC) The early October bear trap as far as ENRC is still working its magic on the price action, although one might consider that the law of diminishing returns is in operation here. Nevertheless, while there is no end of day close back below the August support line / 50 day moving average at 634p one would be biased towards targeting near term resistance at 700p at least one more time. So reckons Zak Mir

BHP Billiton (BLT) It looks as though we have a slow burn buy on our hands at BHP Billiton, at least in terms of the hourly chart perspective. This is said on the basis of a multi tested RSI uptrend line, as well as a rising trend channel based at the present level of the 200 period moving average at 1,954p in place since the third week of last month. While there is no end of day close back below the 200 period line the upside here is seen as being towards the 3 week resistance line projection as high as 2,050p over the next week to 10 days. So reckons Zak Mir

Galvan Research has marked AMEC out as a buy, saying that it expects the engineering and project management services (EPMS) stock to retest "main post August intraday resistance of 960p plus".

Nomura slashes target from 1,900p to 1,100p but keeps buy recommendation.

UBS downgrades from buy to neutral, target slashed from 1,610p to 890p.

Credit Suisse downgrades from neutral to underperform, target cut from 1,500p to 1,100p.