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Utilities are traditionally favourite choices of cautious investors looking for income, and Scottish and Southern Energy (SSE) is no exception. Questor in the Sunday Telegraph notes the current prospective yield is 5.8%, rising to 6.1% next year. The company aims to make a full-year dividend increase of at least 2% more than the retail price index (RPI) in the financial year just started and next year as well. After that, the group targets an increase in the payout of “RPI-plus”. The group reckons it can achieve these targets while maintaining a dividend cover around its established range. Revenue from new customers and generation projects due to come online this year and next will underpin dividend payouts, said Ian Marchant, chief executive. The shares are trading on a current-year earnings multiple of 11.8 times, falling to 10.7 next year. Buy for the income, Questor suggests.

XP Power (XPP) upgraded to Buy by Westhouse - target price 1900p

Alterian(ALN) retained as hold by Panmure - price target reduced 8p to 121p

Halfords(HFD) reiterated as buy by Execution Noble - price target 425p

Invensys (ISYS) price target reduced from 355p to 260p by RBC

Diversification to accelerate at Stobart Date: Monday 23 May 2011 LONDON (ShareCast) - Stobart Group's revenue topped the half billion pounds mark but underlying profits at the logistics firm eased a tad in a year characterised by a tough operating environment. Revenue from continuing operations in the year to 28 February rose to £500.4m from £447.7m the year before. Market consensus had been for revenue of £489.3m. Underlying earnings before interest, tax, depreciation and amortisation slipped to £57.2m from £57.4m, while underlying profit before tax fell to £34.5m from £36.0m the year before. The market had pencilled in a figure of £32.95m for profit before tax. Reported profit before tax was £29.5m, down from £33.3m a year earlier. Adjusted earnings per share retreated to 9.7p (consensus: 9.12p) from 10.8p the previous year. Net debt increased to £156.1m from £96.8m at the end of February 2010 but was down from £162.0m at the end of August 2010. The final dividend of 4p takes the full year pay-out to 6.0p, a tenth of a penny lower than the market had been expecting, and unchanged from last year. "These results are largely due to the ongoing strength of our transport and distribution business, significant new business wins and tight cost control," said Andrew Tinkler, Stobart's chief executive officer. Tinkler added that the figures were in line with management's expectations. The group has announced the formation of two new divisions: Transport & Distribution, and Estates, Air, Biomass and Infrastructure & Civil Engineering. Having recently raised around £115m in new funding, the company will be investing in these new divisions and expects them to generate significant returns. "We will be developing the substantial property assets held by the group by building them out and then leasing them advantageously. We will also continue to invest in our transport and distribution business, as well as in air and biomass," pledged Rodney Baker-Bates, the group's chairman.

MITIE posts mighty profits rise Date: Monday 23 May 2011 LONDON (ShareCast) - Outsourced service provider MITIE said it is benefitting from both private companies and government looking to drive down costs in the current tough climate as it posted a sharp rise in profits for the year to 31 March. Pre-tax profits jumped to £86.8m from £79.7m the previous year on revenues that were up to £1.89bn from £1.72bn. The company, which is engaged in activities such as cleaning, pest control and gritting roads, is paying a full-year dividend of 9p a share, up from 7.8p the previous year. Important contracts were won with clients such as the aero-engineer Rolls-Royce, the telecoms group Vodafone and the Home Office. “The opportunities in outsourcing and energy services in the UK and abroad are significant,” said chief executive Ruby McGregor-Smith. “Our strong balance sheet and excellent cash conversion, as well as a record order book and sales pipeline, will enable us to achieve our growth aspirations.” In the private sector, where companies are seeking to drive down costs, MITIE’s ability to deliver integrated services is helping it win business, the company said. In the public sector, the ability of outsourcers to reduce costs while also improving services leaves it well positioned to help the government’s efforts to address the deficit, the company said. MITIE said 75% of its contract awards this year have come from the private sector.

beatthe house - fair call re drop today on results

http://www.investegate.co.uk/Article.aspx?id=201105230700160553H

http://www.investegate.co.uk/Article.aspx?id=201105230700090563H

British Land shrugs off weak economy Date: Monday 23 May 2011 LONDON (ShareCast) - Property group British Land reported continuing strong demand for its retail and office properties in spite of economic weakness as it posted a rise in profits and net asset value (NAV) in the year to 31 March. At £256m, underlying pre-tax profits were 9.9% higher than in the previous year. The value of the company’s portfolio climbed by 6.9% to £9.6bn, which lifted NAV per share by 12.5% to 567p. “While, as a nation, we have moved from 'Recession' to the 'Age of Austerity', consumers are still shopping and good businesses are looking to grow,” said chairman Chris Gibson. “British Land has been well served by the quality, location and sustainability of its portfolio.” Retail assets, such as the St Stephens shopping centre in Hull, account for 66% of British Land’s portfolio, while London offices, including Broadgate in the City of London, account for 32%. The company said it is focused on retail assets that are “accessible and affordable” and that demand for offices remains strong. “Therefore, while the economic recovery in the UK remains weak, we are optimistic about the prospects for the business and look to the future with confidence,” it said.

http://www.investegate.co.uk/Article.aspx?id=201105230700070435H

AG Barr sales still sparkling Date: Monday 23 May 2011 LONDON (ShareCast) - Scottish soft drinks maker AG Barr toasted a strong start to the year despite increased levels of competition and promotion and is confident of continued progress. The Irn Bru maker said total revenue for the 15 weeks to 14 May 2011 increased by 6.3% compared to the same period last year despite a continued uncertain consumer environment. The group, whose other brands include Rubicon and Tizer, said margins are in line with expectations with continued high levels of input costs offset by price increases and further management action to reduce operating costs. Overall raw material inflation remains at previously guided levels, it said. "The combination of good sales momentum, stable margins and strong growth plans at this early stage of the year, give us confidence that we will continue to deliver good growth in line with our expectations, despite the increasingly competitive market place," said AG Barr in a company statement. AG Barr added that its balance sheet remains strong.

Entertainment upbeat as Peppa toys head to the US Date: Monday 23 May 2011 LONDON (ShareCast) - Peppa Pig franchise owner Entertainment One posted a 39.2% rise in annual pre-tax profit and expects to make further progress over the coming year. Entertainment also expects to sign a master toy license deal for Peppa Pig in the US in the near future as part of its international expansion drive. Last year the cartoon character made an impressive £200m in UK merchandise sales and analysts predict merchandise sales in the US could reach $1bn in the first year. Group pre-tax profit rose to £32.3m for the year ended 31 March 2011 from £23.2m the same time a year before. Revenue for the period increased 12.1% to £469.7m. Underlying EBITDA was up 20.4% at £42.5m while net debt was reduced to £38.6m from £63.2m before. Its film business generated a total box office of $202m compared to $156m in 2009/10 after a strong performance from The Twilight Saga: Eclipse. Commenting on trading chief executive officer Darren Throop said, "This year has seen a number of significant milestones for Entertainment One which have helped the group deliver another strong financial performance. The recent acquisition of Hopscotch adds to our growing international footprint. " "The Board therefore looks forward to another year of growth."

Kier completes sale of two PFI investments for £9.2 million Kier Group plc ("Kier") announces that on 20 May 2011 it completed the sale of its 50 per cent interests in two Private Finance Initiative ("PFI") projects, Oldham and Norwich Schools, to an HICL Infrastructure Company Limited and Kajima Partnerships Limited joint venture for an aggregate consideration of £9.2 million. The consideration was paid in cash in full on completion. The sales are in line with Kier's policy of selectively realising the value of the equity in its PFI portfolio. Kier constructed the schools and has also provided the schools with facilities management services for a number of years. Following the disposals, Kier will continue to provide the facilities services under the current contracts for a further 21 years in the case of the Norwich schools, and 22 years in the case of the Oldham schools. The aggregate consideration gives rise to a profit of £4.3 million which will be disclosed in Kier's full year results for the year ending 30 June 2011 and represents a valuation discount rate on the base case cash flows of approximately 7 per cent.

http://www.investegate.co.uk/Article.aspx?id=201105230700070490H

Vectura losses narrow Date: Monday 23 May 2011 LONDON (ShareCast) - Vectura, the respiratory inhaler firm, reduced losses for the year, drove revenues higher and said it is on track for annual cost-savings of approximately £6m. Loss after tax reduced to £8.8m for the year ended 31 March 2011 from a loss of £10.2m in 2010. Revenue increased to £42.9m from £40.1m. Vectura said it expects several major catalysts in the near future including the Novartis' release of more NVA237 Phase III data and a file for regulatory approval in 2011, with launches expected in 2012. "The QVA149 Phase III trials are ongoing and Novartis expects the first product launches in 2013. We also anticipate further progress on VR315 in Europe," Vectura explained. Licensing activities will continue across all our areas including products, technologies and our broader intellectual property portfolio." Cash reserves rose to £10.3m from £74.4m at March 31 2011.

Alterian reports full-year loss on increased costs By Benjamin Chiou Date: Monday 23 May 2011 LONDON (ShareCast) - Alterian's numbers for the full year ended 31 March were seemingly in line with company guidance, following two profit warnings issued last month, but the group swung into the red as revenue growth failed to outweigh rising costs. The marketing software provider registered £37m in revenue, bang in line with its trading statement on 18 April, and down from £38m the year before, as a 10.9% increase in USA revenue was offset by a 16.6% fall in the UK. The group said that the "poor results" were attributable to increased costs ("aimed at expanding the business") that were not matched by growth in revenues,"which were substantially below plan." Revenue growth was limited due to the delayed roll-out of its latest suite of products for campaign management and analytics ('Alterian Alchemy'), Alterian said. "In addition, in March 2011 a major partner did not sign an agreement for a large licence renewal and extension which had been included in the company's revenue and cash flow plans," the statment said. Adjusted operating profit, whilst 'in line', dropped from £7.7m to just £0.1m, meaning that the group swung to a total operating loss of £4.4m, down from a profit of £6.6 the year before. Loss per share was 7.1p, down from an earnings per share of 12.5p previously. Operating expenses jumped by 22% from £30.3m to £36.9m, due to new product costs, higher sales and distribution costs, and the introduction of managed service activities in the USA. Alterian expects to report £41m in revenue in the current year, but has reiterated its prudence in setting the target, saying that the figure is "subject to uncertainty and will be affected by general market conditions."

Royal Dutch Shell is spending $12.6bn (£7.8bn) to build the world’s largest floating structure as it seeks to produce and process gas from increasingly remote locations. Called The Prelude the platform will be moored more than 125 miles from Australia and will produce and process gas from offshore fields before liquefying it to be taken off by tankers, says the Daily Express.

Greencore, the UK's leading sandwich-maker, has held talks with private equity companies over a potential sale of the group, just months after it failed in an attempt to buy giant rival Northern Foods.Sources close to the talks said the Dublin-based company was exploring its options after failing to land the takeover of Northern two months ago, and a sale had been discussed, the Independent reports.