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Commenting on the second quarter, Olivier Bohuon, Chief Executive Officer of Smith & Nephew, said: "Smith & Nephew continued the strong dynamic of recent quarters, delivering 12% reported revenue growth and 5% underlying for the current quarter. We again outperformed our competitors in many of our markets by delivering innovative products that offer our customers clinical and cost benefits. After four months as CEO, two things are certain in my mind. The first is that Smith & Nephew has a great foundation with a track record of successful innovation, a strong focus on customers, and talented people. The second certainty is that we can be even better. We are operating in an increasingly changing environment. We are adapting to and anticipating these market conditions and have established a new strategic framework to drive Smith & Nephew's future success. This strategy has five priorities: focus in established markets, grow in emerging markets, innovate for value, simplify our operating model and supplement the organic growth through acquisitions. We are working to make Smith & Nephew an even better company for our customers and patients, our employees and our wider stakeholders."

Q2 Commentary · Reported revenue was $1,077 million, good underlying growth of 5% · Reported trading profit was $236 million and trading margin was 21.9% - 160 basis points decrease due to adverse sales mix, non-recurring expenses and the phasing of investments · EPSA increased 6% to 18.1¢, benefiting from the weaker US dollar · Geographically, growth was 5% in the US, 2% in Europe and 9% in the rest of the world · Orthopaedics: another strong quarter of market outperformance, driven by 10% growth in US knees · Endoscopy: stronger US performance offset by somewhat weaker Europe · Advanced Wound Management: continued strong performance, next generation of NPWT launched in Europe · Strong trading profit to cash conversion ratio of 103% (2010 - 89%) · Interim dividend increased by 10% to 6.6¢

http://www.investegate.co.uk/Article.aspx?id=201108050700168032L

Ralph Topping, Chief Executive of William Hill, commented: "This is an especially strong set of results for William Hill in challenging economic conditions. The comparator period also included part of a World Cup that delivered a record result for us last year. I am pleased with both our Online performance, which has been driven by outstanding Sportsbook growth and innovations in our in-play and mobile offerings, and the strength of our Retail business, which continues to benefit from the popularity of machines and the resilience of over-the-counter betting. We have also made progress on our international growth strategy, both in Europe and through the three impending land-based sports-betting acquisitions we are currently pursuing in the US. "Looking ahead, although the economic environment continues to be challenging, our offering is very strong and competitive. Our multi-channel business targets the widest possible audience, and our positioning on pricing and trading, together with our extensive product range and effective use of new technologies, including mobile, combine to present customers with a highly attractive experience. We are performing well and, given our market-leading position, international developments and a pipeline of innovations, we look to the second half of the year and beyond with confidence."

Highlights: Ÿ Strong first half performance at the top end of market expectations Ÿ Sportsbook performance driving robust Online growth Ÿ Doubling of in-play amounts staked Ÿ Innovations in mobile betting deliver over 600% net revenue growth Ÿ Slips and stakes growth in Retail OTC allied to strong gaming machine growth with gross win per machine per week now over £900 across an estate of more than 2,350 shops Ÿ International growth progresses with impending US acquisitions and launch of regulated website in Italy Ÿ Good cash generation reducing net debt (for covenant purposes) by £39.3m since 2010 year-end Ÿ 16% increase in dividend, ahead of Operating profit(1) growth

http://www.investegate.co.uk/Article.aspx?id=201108050700168037L

Arbuthnot initiates buy on office2office, target price 185p

Exane BNP Paribas downgrades IMI from outperform to neutral, target price cut from 1220p to 875p

Public sector squeeze in Netherlands hurts Logica Date: Friday 05 Aug 2011 LONDON (ShareCast) - Software provider Logica reported a 5% rise in interim revenues in the six months to 30 June but pre-tax profits were lower after its exposure to the squeezed public sector pushed it to an underlying loss in the Benelux countries. Full-year revenue growth is expected to be at a similar level to the first half, but margin improvement now depends on progress in Benelux, the company said. Pre-tax profits fell to £75m from £86m over the same period the previous year on revenues that climbed by 7% to £2bn. “Our Public Sector clients continued to implement spending cuts, with a particularly sharp decline in the Netherlands leading to disappointing profitability in the Benelux,” Logica said. Chief executive Andy Green said the company saw good gains in outsourcing in France and Northern and Central Europe and in the commercial sectors in the UK. It also won work with the Dutch retailer Ahold, the oil giant Shell and the UK’s Serious Organised Crime Agency.

http://www.investegate.co.uk/Article.aspx?id=20110805070000PEE11

Commenting on the acquisition, J.P. Bryan, Chairman and CEO of Resaca, said: "We are excited to add this quality oil asset to our property portfolio at a favorable price. This asset is an ideal complement to our nearby Cooper Jal Unit, which generates over 50 percent of our current production and contains over 70 percent of our proved reserves. The Langlie Jal Unit has all the characteristics we look for in an acquisition - current production with a very low decline rate and significant exploitation potential through the implementation of proven engineering techniques. In addition to opportunities to immediately increase production by returning certain inactive wells to production, we believe this asset has significant production potential from many of the same opportunities we have identified at Copper Jal, including uphole recompletions, refracs of currently producing zones, waterflood enhancement and optimization, infill drilling and potential CO2 flooding. The acquisition of this property will enable us to leverage what we have learned at Cooper Jal and gain economies of scale by utilizing our personnel and service providers who are already working in the immediate area on our properties. We believe this acquisition is a very important step for Resaca to maximize shareholder value."

Property acquisition Resaca (AIM: RSOX), the oil and natural gas production, exploitation, and development company focused on the Permian Basin in the USA, is pleased to announce that it has entered into an agreement to purchase Permian Basin oil and gas properties for $4.4 million in cash and 841,308 shares of newly issued Resaca common shares ("Consideration Shares") for total consideration of approximately $5.7 million based on the closing price of the Company's shares on 4 August 2011. The properties comprise the Langlie Jal Unit ("LJU") in Lea County, New Mexico, near city of Jal and the Company's largest property - the Cooper Jal Unit. The properties included in this acquisition cover 3,748 gross acres and contain 112 wells (34 producing wells, 45 water injection wells and 33 inactive wells), all of which will be operated by Resaca. Resaca will acquire a 73 percent working interest and a 57 percent net revenue interest in the LJU. The properties are being acquired from Wind River Petroleum, LP, a private company owned by Richard Counts. Resaca estimates net daily production from LJU of 51 barrels of oil and 42 Mcf of natural gas (58 barrel of oil equivalents or "boe"), as well as proved reserves of approximately 1.3 MMboe. The purchase price equates to $4.31 per boe of estimated proved reserves. Approximately 30 percent of the evaluated reserves from this pending acquisition are considered proved developed and 91 percent of the proved reserves are oil. The closing of this acquisition is expected to occur on 5 August 2011. Application will be made for the admission of the Consideration Shares to be admitted to trading on AIM ("Admission"). It is expected that trading in the Consideration Shares will commence on 11 August 2011. Subsequent to the issue of the Consideration Shares, the Company announces that the total number of common shares of $0.01 each of the Company in issue is 20,747,410 with each share carrying the right to one vote. There are no shares held in treasury. The total number of voting rights in the Company is therefore 20,747,410. The above figure may be used by shareholders as the denominator for the calculations by which they determine if they are required to notify their interest in, or a change to their interest in, the Company under the Disclosure and Transparency Rules.

http://www.investegate.co.uk/Article.aspx?id=201108050700168034L

Strong growth in Asia drives profits at Prudential By Benjamin Chiou Date: Friday 05 Aug 2011 LONDON (ShareCast) - First half profits at insurance titan Prudential jumped by a quarter to top expectations, driven by strong growth in Asia. Operating profit, on a International Financial Reporting Standards (IFRS) basis, rose 25% from £0.85bn to £1.06bn, ahead of expectations of £0.96bn. IFRS basic earnings per share increased 27% from 25.4p to 32.2p. "For the first time, both our IFRS operating profit and our [European Embedded Value] new business profit have exceeded £1bn for the first six months of the year," said chief executive Tidjane Thiam. The firm saw a 12% reduction in total investment in new business, as its focus on capital allocation has allowed it to deliver higher profits. Strong performances in Indonesia, Malaysia and Singapore drove IFRS operating profit in Asia up 24% to £326m. Prudential said that while sovereign debt issues in the US and the Eurozone have had some adverse effects on the global economy, the company still thinks that its “substantial presence in growing and developing markets across Asia put us in a position to continue to deliver relative outperformance in the medium term.” Annual premium equivalent sales in the first half grew by 10% from £1.66bn to £1.82bn. "We expect to see continued, profitable and cash generative growth in the second half of 2011. We remain on course to deliver the 2013 profit growth and cash generation objectives we outlined at our investor day last year,” Thiam said. The interim dividend was hiked by 20% from 6.61p per share to 7.95p.

It appears institutional investors are willing to trust Schroders to look after their money in turbulent times. The blue-chip and blue-blooded fund manager yesterday reported a rise in assets under management to £204.8bn, which was ahead of most analysts' forecasts and was helped by net new business of £5bn. All the same, the company is still reporting healthy earnings – they rose to £215.7m from £188.2m a year earlier. In what we take as a good sign, this supported an 18 per cent increase in the interim dividend to 13 pence. This was a creditable set of results from Schroders, but we think there are better opportunities in the fund-management sector (for example Aberdeen, or Jupiter). As a result, we'd avoid these shares, suggests the Independent.

Royal Dutch Shell – Buy Royal Dutch Shell has released its unaudited 2nd Quarter 2011 results. Reporting on a current cost of supplies basis, the company reported a strong rise in earnings for the quarter. With a strong balance sheet and positive outlook for its product mix, the company continues to position its self for future growth in the energy sector.

KCOM – Hold A solid set of final results has cemented KCOM’s turnaround story and allowed the group to more than double the full-year dividend. Notable progress has also been made on reducing debt while the pension deficit has shrunk considerably. Future earnings growth is now more dependent on revenue growth than cost cutting but with a solid dividend yield we rate the stock a hold.

British American Tobacco – Sell Half With global cigarette sales falling last year and expected to fall this year tobacco might not be an industry where you would expect good earnings growth. However, this is exactly what BATs has delivered through its focus on emerging markets, cost cutting and share buy-backs. With the stock having had a strong run recently, though, we recommend members sell half their holding

Not too long ago, British defence industry chiefs were jostling to get as large a slice of the Pentagon’s growing budget as possible. But even before this week’s $2.5 trillion debt reduction package, the US military had begun the process of cutting back. Contracts have been delayed and there is uncertainty over the future of many big programmes. Cobham, which gets about half of its revenues from the United States, has already suffered. Revenues in the first half were down 7 per cent to £892 million and it has cut its full-year sales forecast. As an engineer, Cobham has proven itself an innovative and successful business. But it urgently needs to redirect some of that nous and energy into new geographical markets and products. If the US Treasury market starts to squawk again, the Pentagon cuts may have to go much deeper. Avoid, suggests the Times.

Fiberweb, whose non-woven materials are used in everything from baby nappies to specialist industrial wipes, disappointed investors with news of a fall in first-half profits yesterday. The result was partly down to the pressure on margins, owing to what the company said was "a sharp increase in raw-material prices in the first half of 2011". Still, the company does deserve credit for partly mitigating the hit with operational efficiencies and by growing volumes. On the upside, Fiberweb did say that the costs are likely to be "fully recovered in the second half as a consequence of price increases" in its hygiene and industrial arms and as a result of increased hedging. In other words, things are likely to get better. Moreover, investors should note the thin valuation, with the stock trading on around six times forward earnings for 2012. The weakness presents an opportunity ahead of the expected recovery later this year, according to the Independent who suggests to buy.