Member Info for mulledwine

http://www.investegate.co.uk/Article.aspx?id=201210310700058934P

Imperial Tobacco’s £1.2bn writedown of its Spanish business is hardly a surprise. The company is the largest operator in the recession-hit country, where a quarter of the workforce is unemployed. Volumes are falling and companies such as Imperial have been increasing prices to boost profitability. It has also been focusing on its core brands, namely Davidoff, West, Gauloises and JPS. These have higher margins, Significantly, the Imperial’s four strategic brands now account for 30% of sales, up from 26% in 2010 when Alison Cooper, chief executive, took the helm. Regionally, the UK and the Rest of the World categories generated the highest growth in adjusted operating profits, rising 8.7% to £627m in the UK, and 9.8% to £872m in the Rest of the World. The company does have a lot of debt, which stands at £9bn, but it is able to service this and the cost of borrowing fell this year to 5.5% from 5.7%. Imperial’s shares continue to trade at a discount to its peers because of this. Last tipped as a buy in September at £23.99 the rating remains the same – buy for the income, The Telegraph´s Questor team says.

Investors could be forgiven for being slightly concerned when Regus, Europe’s leading operator of serviced offices, starts talking about ramping up its expansion plans. In the 20 years since it was founded, Regus, which provides “flexible space” that can be hired for as little time as an hour, has been a rollercoaster of a business. Mr Dixon, who learnt his lesson about expanding at the top of the market “the painful way”, believes that growing the business now in a recessionary environment is the right way to go. There are also big growth opportunities abroad. Some 80% of Regus’s business is in mature markets, such as the UK and the US, but it is expanding in emerging markets such as China and India and last week opened in Sri Lanka. With its strong cash flow, which allowed it to invest a further £30m in expansion in the third quarter, Regus is looking a solid hold, Tempus writes.

Valuation: Medium-term value The share prices of several motor dealership groups, including H R Owen (+16%) have moved ahead over the past three months, as SMMT forecasts for the current year have been upgraded. The current rating is looking ahead towards the indicated 2014 performance, but if the group can deliver to expectations, the shares offer real value, given the potential of the new strategy and the unique nature of the franchise portfolio and customer base.

http://www.edisoninvestmentresearch.co.uk/researchreports/HROwenupdate311012.pdf

Summary Price increases in the main packaging paper grades offer support for the remainder of the year. Looking further forward, continued soft demand on the back of the prevailing macroeconomic uncertainties and some additional capacity expansions in certain of our core markets remain a concern, although it is encouraging to note that the strong supply side fundamentals remain generally intact. Contact details: Mondi Group David Hathorn +27 (0)11 994 5418 Andrew King +27 (0)11 994 5415 Lora Rossler +27 (0)11 994 5400 / +27 (0)83 627 0292 FTI Consulting Richard Mountain +44 20 7269 7186 / +44 20 7909 684 466 Chloe Webb +27 (0)11 214 2421 Editors' notes Mondi is an international packaging and paper Group, with production operations across 29 countries and revenues of EUR5.7 billion in 2011. The Group's key operations are located in central Europe, Russia and South Africa and as at the end of 2011, Mondi Group employed 23,400 people. Mondi Group is fully integrated across the paper and packaging process, from the growing of wood and the manufacture of pulp and paper (including recycled paper), to the conversion of packaging paper into corrugated packaging, industrial bags and coatings. The Group is principally involved in the manufacture of packaging paper, converted packaging products and uncoated fine paper (UFP). Mondi Group has a dual listed company structure, with a primary listing on the JSE Limited for Mondi Limited under the ticker code MND and a premium listing on the London Stock Exchange for Mondi plc, under the ticker code MNDI. The Group has been recognised for its sustainability through its inclusion in the FTSE4Good Global, European and UK Index Series (since 2008) and the JSE's Socially Responsible Investment (SRI) Index since 2007. The Group was also included in the FTSE350 Carbon Disclosure Leadership Index for the second year. Sponsor in South Africa: UBS South Africa (Pty) Ltd

Financial position Net debt was EUR1,188 million at the end of the quarter, down EUR85 million on the half-year. The acquisitions of Nordenia and the Duropack corrugated assets as well as the disposal of Aylesford will increase net debt in the fourth quarter of 2012. On 21 September 2012, Mondi successfully launched a 3.375%, 8-year, EUR500 million Eurobond maturing in September 2020. The Group also cancelled its unutilised EUR250 million bridging facility arranged specifically for the acquisition of Nordenia. On 29 October 2012, Mondi issued an unconditional and irrevocable guarantee to the holders of the Nordenia bond. During the quarter, the Group's investment grade credit ratings of Baa3 (Moody's Investor Services) and BBB- (Standard and Poor's) were reaffirmed. The Group continues to be strongly cash generative and working capital levels remain within the Group's targeted range. Capital expenditure increased during the period compared to the previous quarter due to the preponderance of maintenance shuts during the period as well as increased spending on the energy improvement projects. Total capital expenditure for the year is expected to be around 90% of the Group's annual depreciation charge. Finance charges during the period were lower than the previous quarter on both lower average net debt and lower effective interest rates, but are expected to increase in the fourth quarter as net debt rises following the completion of the Nordenia and Duropack acquisitions. The average maturity of the Group's committed debt facilities at 30 September 2012 was approximately 5 years. The Group had available EUR941 million of committed, unutilised borrowing facilities at 30 September 2012, immediately preceding the completion of the Nordenia transaction.

Group Performance Overview Underlying operating profit for the third quarter ended 30 September 2012 was EUR135 million (year to date EUR405 million, 2011 EUR490 million) in line with that of the comparable prior year period (Q3 2011 EUR136 million) and below that of the prior quarter (Q2 2012 EUR150 million). This was in line with expectations and reflects a stable trading environment considering the impact of the traditionally weaker European summer months, annual maintenance shuts at a number of the Group's larger operating sites during the quarter and ongoing strong cost containment. Sales volumes were, on average, similar to those achieved in the previous quarter but above those of the comparable prior year period, although demand in the downstream converting operations was below that of the prior year. Third quarter average benchmark selling prices across all grades were below those of the comparable prior year period. Selling price increases were realised in kraft paper during the quarter and price increases for containerboard are effective from early in the fourth quarter of 2012. On average, input costs in the third quarter were similar to the previous quarter and below that of the comparable prior year period. Benchmark recovered fibre costs decreased by 23% in the quarter and were 30% below the comparable prior year period. As a result of the anticipated start-up of new recycled containerboard capacity in Poland in early 2013, regional market pressure on recovered fibre costs is expected in the near term. The weaker South African rand and stronger US dollar versus the euro benefited mainly the South Africa division and, to a lesser extent, the Packaging Paper business. During the quarter, all conditions precedent for the acquisition of Nordenia International AG were met and, with effect from 1 October 2012, the Group acquired a 99.93% interest in Nordenia for a cash consideration of EUR259 million. As part of its continuing focus on its core businesses, the Group concluded the sale of its 50% share in Aylesford Newsprint to The Martland Holdings on 2 October 2012. The shares were sold for a nominal consideration following recapitalisation of the business. The net cash flow effect of the transaction was a EUR17 million outflow, while the estimated loss on disposal was EUR71 million. Following the sale of Aylesford Newsprint, the Group has restructured its reporting in South Africa to combine the Mondi Shanduka Newsprint joint venture into the South Africa division.

Interim Management Statement Mondi Limited (Incorporated in the Republic of South Africa) (Registration number: 1967/013038/06) JSE share code: MND ISIN: ZAE000156550 Mondi plc (Incorporated in England and Wales) (Registered number: 6209386) JSE share code: MNP ISIN: GB00B1CRLC47 LSE share code: MNDI As part of the dual listed company structure, Mondi Limited and Mondi plc (together 'Mondi Group') notify both the JSE Limited and the London Stock Exchange of matters required to be disclosed under the JSE Listings Requirements and/or the Disclosure and Transparency and Listing Rules of the United Kingdom Listing Authority. Mondi Group: Interim Management Statement 31 October 2012 This interim management statement provides an update on the financial performance and financial position of the Group since the half-year ended 30 June 2012, based on management accounts up to 30 September 2012 and estimated results for October 2012. These results have not been audited or reviewed by Mondi's external auditors. Audited results for the year ending 31 December 2012 will be published on or around 21 February 2013. Except as discussed in this interim management statement, there have been no other significant events or transactions impacting either the financial performance or financial position of Mondi since 30 June 2012 up to the date of this statement.

BerauCoal Berau Coal mined 5.5 million tonnes of coal in the third quarter, 4% higher than in Q3 2011. Berau's operations in the third quarter were impacted by a higher stripping ratio (10.1 bcm per tonne) which impacted costs. The third quarter average selling price per tonne was $71.3, which is 17% lower than the same period in 2011. The second half of the third quarter saw further declines in thermal coal pricing, particularly for sub-bituminous coal, which fell below $70/tonne. Berau is forecast to mine 21 million tonnes for 2012.

Long Haul Holdings Proposals Following receipt of the Proposals by Long Haul Holdings on 11 October 2012, the Bumi plc Board ("the Board") requested that the independent non-executive Directors of Bumi review the Proposals and report to the Board. The independent non-executive Directors will be considering each of the Proposals on their own merits, and the Board has appointed Rothschild Group to evaluate each of the three proposals on the basis of, inter alia, their value for shareholders, and deliverability and report to the independent directors and subsequently to the Board. Separately, the independent investigation commissioned by the Board into alleged financial irregularities in Bumi's Indonesian operations, especially in relation to PT Bumi Resources, in which Bumi has a 29% interest, continues. The Board confirms that it will not make any recommendations regarding the Proposals until the investigation is appropriately advanced. A further announcement on the above matters will be made in due course.

IMS Production Report for Q3 2012 Bumi plc ("Bumi" or the "Company") 31 October 2012 For Immediate Release Interim Management Statement Production Report for Q3 2012 Bumi today issues its Production Report for the third quarter ended 30 September 2012.1 On 25 October 2012, PT Bumi Resources informed the Indonesian Stock Exchange that it had requested an audit of its quarterly financial information for the period ended 30 September 2012, and that the audit would take up to 3 months from 30 September. Therefore, Bumi plc's Q3 interim management statement does not contain information relating to PT Bumi Resources for the third quarter. Highlights * Third quarter coal mined for PT Berau 5.5 million tonnes, up 4% over Q3 2011 * Lower realised prices for PT Berau, down 17% quarter-on-quarter * 2012 production target of 21 million tonnes of coal for PT Berau.

African Barrick Gold (ABG) issued yet another disappointing statement on Friday – which has become something of a habit. The negative news this time was a cut in full-year production guidance and a surge in costs, which caused third-quarter profits to fall by more than 70 per cent. This is the third consecutive year that the company has been forced to cut its production guidance. Barrick is still in talks with China National Gold Group about selling its 74 per cent stake in ABG to the state-owned company. The shares jumped substantially since the talks were revealed and, should an agreement fail to be reached, Questor sees significant downside. In fact, given Friday’s gloomy news, there is potentially more downside in the event China walks away than upside should a deal be struck. This means the risks look skewed to the downside. Questor has recommended the shares as a buy as low as 317p and as high as 448p, so all investors who acted on the advice are sitting on a profit. Questor thinks it is time to bank these gains and the shares are a sell.

RE-ITERATION Valuation: Upside over a third Our absolute valuation approaches indicate a value of c 34p, an upside of over a third from the current price. We note that stripping out excess cash reduces the 2013 P/E to c 17x. We also note the high operational gearing means that the DCF valuation can move quickly with a 10% increase in 2014 revenues, raising it by over 10p

http://www.edisoninvestmentresearch.co.uk/researchreports/Shareupdate261012.pdf

Valuation: Discount below longer-term averages The cum-income discount, currently at 9.9%, is below its three- and five-year averages of 15.1% and 15.0% respectively, and has moved closer to its broad target of 8%. The discount remains underpinned by a selective share repurchase programme and we believe IBT offers an attractive means of gaining a diversified exposure to quoted and unquoted biotechnology companies.

http://www.edisoninvestmentresearch.co.uk/researchreports/IBTReview251012.pdf

Dolphin Capital Investors Ltd Buy 25-Oct-12 £3,986,499.90 Miltos Kambourides 20,443,590 @ 19.50p

Bloomsbury Publishing saw its shares move lower yesterday after a mixed set of interim numbers. However, prospects for the second half of the year could be much better. The first half is traditionally weaker – with the key Christmas season being vital for book publishing. Releases lined up for the next few months include titles from celebrity chefs Hugh Fearnley-Whittingstall and Paul Hollywood, as well as a Hogwarts Library Boxed Set from J K Rowling and the latest novel from Will Self. Despite the fall in first-half profits the results were roughly in line with analysts' expectations. Sales and the dividend were higher than expected, although with profit being a touch light. However, there was evidence that the group's digital strategy is paying off. The company is focusing on electronic publishing, with its e-book sales rising by 89% in the period to £4.5m. Questor last recommended a buy at 117p in July, and the shares are now 11% ahead. They are trading on a current-year earnings multiple of 10.5 times, falling to 9.8 next year and yielding an attractive 4.3%, rising to 4.6%. Questor thinks this valuation looks full for now. Ahead of the key Christmas trading period, the rating is a hold.

Despite the challenging market backdrop, Unilever's strategy looks like it is working. Focusing on growth in emerging economies is boosting both the sales and profit – and the consumer products giant smashed expectations in the third quarter of the year. Shares in the Anglo-Dutch group hit an all-time high yesterday, following a particularly strong performance in Brazil. The company is no stranger to developing markets, having more than 50 years' experience in Brazil, China, India and Indonesia. For the group as a whole, Unilever said yesterday that it remained on track to deliver a modest improvement in operating margin, which last year came in at 14.9%. These numbers, in a challenging period, demonstrate that the group's emerging market strategy is on track. Questor has had a hold rating on the shares for some time because the valuation appears pretty full. Trading on a 2012 multiple of 18.2, falling to 16.7 next year and yielding 3.3 per cent, the view remains the same. However, Unilever really does look like it is now starting to deliver and The Telegraph´s Questor team has no compunction about advising investors to hold on.