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Recent AIM debutant and meter specialist Smart Metering Systems (SMS) grew sales by 28% in the six months to June amid continued demand for its services. The Glasgow-headquartered company, which specialises in a variety of services for the gas industry such as gas meter installation, reported an increase in pre-tax profits from £704,000 to £1.5m on turnover of £7.4m. EPS increased from 0.6p to 1.79p while net debt stood at £1.4m. SMS joined AIM this June at 60p a share in a float that raised £10m. In an interview with Growth Company Investor, chief executive Alan Foy enthused that the company was benefiting from investment into its IT system, noting that for every meter installed it receives an income stream. Foy argued that, as a result, 'Growth in our business comes from gearing and increasing our assets.' Foy was keen to remark that the government has introduced legislation mandating that all commercial meters are 'smart' by 2014, with all residential properties in the UK to be made smart by 2019. Smart meters send data regarding energy consumption directly to the energy supplier without the need for a meter reading. Analysts at house broker Cenkos are forecasting pre-tax profits of £3.8m (EPS: 2.4p) on sales of £15m for the year to December 2011. In 2012, profits of £4.9m (EPS: 4.4p) are expected on turnover of £17.2m. A maiden dividend of 0.4p a share is forecast for 2012. The company is looking to profit through mandatory legislation, with recurring revenues offered via its business model with continual income received from each meter. SMS operates in a sector with considerable barriers to entry and is a relatively low-risk investment by sector standards. Buy.

http://www.growthcompany.co.uk/recommendations/1656303/smart-metering-systems.thtml

Brewin Dolphin upgrades KBC Advanced from hold to buy, target price raised from 60p to 78p.

Natixis downgrades CSR from neutral to reduce, target price cut from 250p to 185p.

Euromoney Institutional Investor falls back. The business-to-business publisher and events organiser, has seen a slow-down in the rate of growth of advertising and event sponsorship sales in the last couple of months but bookings for events and courses have held up well, while subscriptions revenues, which account for approximately half the group's total revenues, have continued to grow at similar rates to the third quarter. Total revenues for the year to September 30, 2011 are expected to show a headline increase of around 10% on 2010.

The way to play any equity market fall is to buy quality, high-yielding shares – such as Scottish & Southern Energy (SSE), the UK’s second-largest electricity producer. Yesterday’s slide means the company is now yielding a particularly impressive 6.2% – and it is going to get even better over the next two years. The shares are trading on a current-year earnings multiple of 11.1 times, falling to 10 next year. Buy, says the Telegraph.

Micro Focus International, the maker of software, has had a truly awful couple of years, since the creation of AMQ, a testing business, which proved to be a serious underperformer. The company was in talks with no fewer than four private equity firms earlier in the year, including Bain and Advent, but no agreement could be reached on price. It is still going to be a long haul; the shares, even on less than ten times earnings, do not look that appealing, the Times says

Citigroup downgrades Smith & Nephew from buy to sell, target price cut from 775p to 507p.

Barclays upgrades BSkyB overweight, target price raised from 785p to 840p.

Peel Hunt downgrades Wolfson Micro from hold to sell, target price cut from 155p to 135p.

Numis upgrades Euromoney from add to buy, target price raised from 666p to 700p.

CONT The group's final results are sensitive to a number of factors between now and September 30, including exchange rate movements and late sales. In the event the adjusted operating profit^ is £107 million or more, the profit target under the group's capital appreciation plan (CAP 2010) will be achieved a year earlier than expected. This would give rise to an additional accelerated long-term incentive expense of £6.6 million under IFRS2, even though individual awards under CAP 2010 will not vest until February 2013, with a corresponding reduction in long-term incentive expense in financial years 2012 and 2013. In this case the total long-term incentive expense will be £16.0 million and the adjusted profit before tax* will be £84 million or more. At current exchange rates, group net debt at September 30, 2011 is expected to be no more than £125 million, against £102.7 million at March 31. The increase in net debt follows the acquisition of Ned Davis Research Group for approximately £66 million in August, offset by strong second half operating cash flows. The year end results will be announced on the morning of November 10, 2011, followed by an analyst presentation and investor meetings.

EUROMONEY INSTITUTIONAL INVESTOR PLC PRE-CLOSE TRADING UPDATE Euromoney Institutional Investor PLC ("Euromoney"), the international publishing, events and electronic information group, today issues a pre-close trading update ahead of the announcement of its results for the year to September 30, 2011. Since issuing its Interim Management Statement on July 15, 2011, markets have suffered from concerns over increased fiscal risk and reductions in forecasts for global economic growth. This has resulted in a slowing in the rate of growth of advertising and event sponsorship sales. In contrast, delegate bookings for events and training courses have held up well, and subscriptions revenues, which account for approximately half the group's total revenues, have continued to grow at similar rates to the third quarter. Total revenues for the year to September 30, 2011 are expected to show a headline increase of approximately 10% on 2010. This recent weakness in advertising and event sponsorship sales has not had a significant impact on trading for the key month of September. The group expects to announce a record adjusted operating profit^ of not less than £106 million for the year to September 30, 2011 (2010: £100.1 million). Adjusted net finance costs# are expected to be £7.0 million (2010: £9.3 million) and the share of profits in associates is expected to be £0.3 million (2010: £0.3 million). After deducting a long-term incentive expense of £9.4 million, the adjusted profit before tax* will be not less than £90 million.

http://www.investegate.co.uk/Article.aspx?id=201109230700097917O

2ergo Group (RGO), the international provider of mobile business strategy consultancy has announced a partnership with CallCredit Information Group to provide corporate customers with mobile business products based on mobile behaviour, and financial and social background. The partnership will allow 2ergo to combine MobileDNA's insight with CallCredit's detailed analysis of users' demographics, to further enhance the efficiency of its marketing activity and promotions

Revenues at Altitude Group (ALT) fell 16.2% to 2.46 million pounds in the six months to June following the disposal of the firm's promotional products division, while pre-tax profits at the IT services company slid 60.1% to 63,000 pounds following the amortisation of intangibles and a significant increase in administration expenses. The group has set out a product roadmap for the next twelve months, which will see the introduction of iPad, iPhone and Android applications for customers.

Scottish and Southern Energy (SSE) has dealt a blow to Government hopes for British involvement in the construction of a new fleet of nuclear reactors by signalling it may withdraw from the project. SSE said it would review its membership of the NuGeneration consortium alongside Iberdrola of Spain and GDF Suez of France, says the Daily Express.

WPP has stunned its major investors by suggesting that Sir Martin Sorrell, its long-standing chief executive, should be awarded a pay rise of as much as 50% that could take his salary to £1.5m – and push up the potential bonuses he might also receive. The advertising and marketing group, founded by Sorrell and home to names such as JWT and Ogilvy & Mather, has not increased Sorrell's £1m salary since January 2007 and is now arguing that the chief executive needs a boost in his basic pay to keep pace with his rivals, writes the Guardian.

http://www.investegate.co.uk/Article.aspx?id=201109230700098077O

Commenting on the development, Sunil Lulla, Vice-Chairman, Eros International Plc, said: "Jimmy Shergill has made an indelible mark in Punjabi films and Eros is looking forward to partnering with him as we continue to expand our presence in the regional film markets." Jimmy Shergill added: "Punjabi cinema is growing with every film and I am really happy to tie-up with Eros as a systematic corporate approach will help us take Punjabi cinema forward and present on a global platform."