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Go-Ahead Group (GOG) expects its full year profits to be ahead of previous expectations after strong trading in its core operations. The bus business is expected to see like-for-like revenues up 4% for the full year, with rail up 9%. Broker Panmure Gordon commented, "Even though the share price is supported by an attractive dividend yield, we retain a Hold recommendation". The shares chugged ahead by 4p to 1,516p.

Shares in Sportingbet (SBT) soared by 6.75p to 49.25p after the online gambling firm confirmed that it has received a highly preliminary approach from bookie Ladbrokes (LAD). The news comes under the backdrop of a rapidly consolidating gambling industry, just two months after Ladbrokes terminated discussions with peer 888 Holdings (888) and at the same time as Sportingbet is looking to acquire Australian gambling firm Centrebet. James Hollins, analyst at Evolution Securities commented, "We think the mooted deal (1) firmly fits with Ladbrokes’ desire to expand its international online opportunities and (2) a bid value of 80-90p/share is a suitable valuation for both sides." In contrast to Sportingbet Ladbrokes shares lost 0.3p to 146.2p.

Tough times at Safestore again Date: Thursday 23 Jun 2011 LONDON (ShareCast) - Storage space provider Safestore said it has seen signs of the economic recovery slowing as it reported a sharp drop in profits for the half year to 30 April. The company, whose customers include people moving houses, posted a pre-tax profit of £973,000 for the period, down from £6.67m the previous year even as revenues climbed to £45.5m from £42.4m. Safestore, which operates in Britain and France, said that, while the recovery continued in the first quarter “as we entered the second quarter the rate of UK economic growth slowed and our growth rates also slowed.” New lets climbed by 3% in the second quarter against growth of 9% in the first quarter. Safestore said it was seeing “robust trading” particularly in London, the South East and Paris.

http://www.investegate.co.uk/Article.aspx?id=20110623160000H5640

http://sharecrazy.com/beta/daily/5441/buy-seaenergy-at-30p May be of interest

Nativis upgrades Diageo from neutral to buy.

The Board continues to believe that Guoco Group's final Offer of 150p per share substantially undervalues Rank and fails to reflect its underlying value and prospects. The Board believes that this position is reinforced by the trading update announced today. However, the Board believes that it is important for Rank shareholders to understand that, while Guoco Group has announced its intention to maintain the listing of Rank's shares, if sufficient further shareholders accept the Offer such that the number of Rank shares held in public hands falls below the UK Listing Authority's listing eligibility threshold of a free float of 25 per cent., Guoco Group has reserved its right to consider all options available to it. These options may include the cancellation of the listing of Rank shares on the Official List and the admission to trading of Rank shares on the London Stock Exchange's main market for listed securities (the "Listing"). In the event of a cancellation of the Listing, Rank shareholders who did not accept the Offer would no longer be provided the protections available to them under the Listing Rules and would own shares in an unlisted company controlled by Guoco Group. This would significantly reduce the liquidity and marketability of Rank shares which have not been accepted into the Offer and the value of any such Rank shares may be significantly adversely affected as a consequence. The Board does not currently believe that Guoco Group has received sufficient acceptances to seek the cancellation of the Listing of Rank shares. However, the Board has no certainty that this will continue to be the case at 1.00pm (London time) on the Closing Date and therefore there is no certainty that the Listing of Rank shares will be maintained following the closure of the Offer. Further, Rank shareholders will not know before the Closing Date whether the Listing of Rank shares will be maintained and, in the event that Guoco Group seeks the cancellation of the Listing of Rank shares (as it has reserved the right to do), then Rank shareholders who have not accepted the Offer by its closure will own shares in an unlisted company controlled by Guoco Group and will have no further opportunity to accept the Offer. In addition, their ability otherwise to dispose of their Rank shares following closure of the Offer will be materially restricted. Accordingly, while the Independent Directors of Rank, who have been so advised by Goldman Sachs International, consider the Offer to substantially undervalue Rank, for the reasons stated above they recommend that shareholders accept the Offer, as they will be doing in respect of their own beneficial shareholdings. In providing advice to the Independent Directors, Goldman Sachs International has taken into account the Independent Directors' commercial assessments.

http://www.investegate.co.uk/Article.aspx?id=201106231438330098J

http://www.investorschronicle.co.uk/Companies/ByEvent/NewIssues/Analysis/article/20110622/3d20440e-9cae-11e0-877d-00144f2af8e8/Investors-snap-up-resources-floats.jsp

Matrix recommends buy Imperial Tobacco Group, target price 2290p.

Is yesterday’s profit warning shattering for Superglass? On the face of it, things do not look good. Sales via the Government-sponsored Carbon Emissions Reduction Target (CERT) scheme – which demands that utilities subsidise insulation using materials that Superglass makes – have been poor. There are grounds for seeing Superglass as a recovery play, not least because of the political drive to cut emissions. Speculative buy, says the Independent.

The process of extracting oil and natural gas from shale is a controversial one because of claimed environmental damage. This requires the use of advanced pumps and other equipment, and the world leader in providing these is Weir Group through its Texas-based SPM business, which has about 50 to 60 per cent of the pumps market and 30 per cent of the total equipment needed. The shares are on a hefty 15-plus times future earnings, but the SPM story has further to go, says the Times.

AstraZeneca announced the widely expected sale of its Astra Tech dental implants and medical devices unit yesterday. US group Dentsply triumphed over rival bidders from the medical and private equity world to acquire the business for $1.8bn. In the past, we’ve held back from buying as AstraZeneca appeared to offer little in the way of exciting growth prospects. This deal – though good for investors, who should see nice returns – does not change that view. Hold, says the Independent.

Citigroup reiterates buy on Standard Chartered, target price cut from 2200 to 2000p

Citigroup reiterates buy Eurasian Natural Resources Corporation, target price reiterated at 1000p

Micro Focus misses lowered profit target Date: Thursday 23 Jun 2011 LONDON (ShareCast) - Bidders contemplating making an offer for legacy software specialist Micro Focus have not been put off the idea, despite the company's underlying earnings coming in below the guidance range issued at the time of the company's February profits warning. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell to $158.7m in the year to 30 April, down 8.4% from the $173.3m achieved the year before. The group had indicated in February that underlying earnings would be in a range running from $159m to $167m. Stripping out net exceptional charges of $14.5m (2010: $45.1m) arising from major restructuring and property rationalisation, adjusted EBITDA improved to $144.2m from $128.2m the year before, in line with company guidance of a figure somewhere between $141m and $153m. Reported revenue was also on target, albeit towards the lower end of the group's indicated range of $432m to $442m. Turnover edged up 0.8% to $436.1m from $432.6m the year before. Net debt narrowed to $14.9m from $68.2m, despite the company spending $42m on buying back its shares. The group, which lost its chief executive, Nigel Clifford, in April after he spent just 11 months in the hot seat, said discussions are still in progress with "a number of potential offerors in relation to a variety of possible structures". "This has been a disappointing year for Micro Focus," admitted executive chairman, Kevin Loosemore. "The reported results are significantly below management's expectations at the beginning of the year. Our failure to execute in line with agreed plans has resulted in two profit warnings and a further change in executive management," Loosemore noted. Consultancy has been a loss making revenue stream during 2011, and the group is fighting shy of taking on these types of projects in future, which may lead to a reduction in the consultancy revenue stream. As such, overall sales are expected to decline, at least in the near term. "In this context, we are taking the necessary steps to protect our margins through a clear focus on profitability throughout the group," Loosemore said. Signalling confidence in the future, however, the board has recommended a maintained final dividend of 16.2 cents, which means the full-year pay-out will be 23.4 cents, up 7.3% from the previous year's dividend of 21.8 cents. "In order to achieve a similar level of revenue in the year to 30 April 2012 we will need to grow like for like licence fee revenue against a backdrop of a 15.2% decline this year, in order to offset the anticipated decline in maintenance fee revenue and maintain consultancy fee revenue at the same level," Loosemore stated. -- jh

Increased Maple offer for TMX ups pressure on LSE Date: Thursday 23 Jun 2011 LONDON (ShareCast) - The consortium of Canadian banks bidding against London Stock Exchange (LSE) for Canada’s TMX group has upped its offer, putting more pressure on the British exchange. The patriotically-named Maple consortium, which includes Toronto-Dominion Bank and Manulife Financial, said it would pay C$3.8bn (£2.4bn), or C$50 a share, for TMX, up from a previous offer of C$48 a share. LSE’s bid is worth less than C$45. Both the LSE and Maple have agreed to pay TMX shareholders a special dividend should they succeed in taking over the company. The bidding war comes amid a period of frenetic M&A activity among global exchanges. A tie-up between LSE and TMX would need the approval of Canada’s industry minister because LSE is a foreign company.

Compass Group Acquires Shing Hin Catering in Hong Kong Compass Group PLC is pleased to announce the acquisition of Shing Hin Catering Group Limited in Hong Kong from Mr Au-Yeung Kwan by its Hong Kong subsidiary Compass Group Hong Kong Limited. Shing Hin Catering generated annual revenues to 31 December 2010 of HK$159.4 million (£12.7 million) and gross assets at that date were HK$17.2 million (£1.4 million). The acquisition strengthens Compass Group's existing foodservices business within the Education and Business & Industry sectors in Hong Kong and will reinforce the platform for further development into the fast growing Chinese market.

http://www.investegate.co.uk/Article.aspx?id=201106230700059429I

http://www.investegate.co.uk/Article.aspx?id=201106231125199891I