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Singer Capital Markets commented on HiWave Technologies (HIW), the electronic components supplier for sound and touch applications in consumer electronic devices. Following the interim management statement, the broker said it believes the re-engineering of the business has the potential to improve financial performance and competitiveness. That said, Singer thinks that the onus is on management to rebuild confidence and, whilst positive first steps have been taken, evidence of new products gaining traction and contributing to improvements in financial performance will be required. HiWave shares lost 0.2p to 3.875p.

HaiKe Chemical pays divi as revenues soar Date: Thursday 19 May 2011 LONDON (ShareCast) - HaiKe Chemical, a China-based manufacturer of petrochemicals, speciality chemicals and biochemical, paid a maiden dividend after returning to profitability in 2010. The company posted a profit of $1.8m (£1.8m) for the year against an identical loss the previous year. Revenue climbed by 132% to $1.37bn. HaiKe is paying a full year dividend of $0.43 a share. Sales from petrochemical products climbed by 151% to $1.22bn. Chemical products sales rose by 44% to $151.6m. “We will continue to grow our refinery business and focus on the development of new specialty, salt and bio-chemical products in order to take advantage of increasing demand, and further enhance profitability,” said chairman Xiaohong Yang. “We expect the PRC (People’s Republic of China) economic growth will be sustained and the refinery business to benefit from the NDRC's (National Development and Reform Commission) future plan to shorten the adjustment interval period for the price of refined products which will improve our margins.” The company said it expects the crude price to be volatile in coming years.

Outlook l Increase in feedstock prices and scheduled repair and maintenance at major subsidiaries will impact profitability and as a consequence we expect to break even in Q2 2011 l Further actions to improve cost control and efficiency by improving product mix, technology innovation and optimising intra-group operational synergies to mitigate higher feedstock prices l Crude oil price continues to be volatile in coming years as the global geo-politics is being re-aligned. Margins of refinery business remain cyclic in 2011. However, Haike's refining business will benefit from reduced government regulation and industry consolidation in China l Evaluation of new chemical products with higher margins will continue to diversify the group business from the uncertain low margin refining to the downstream chemical area. Selection of viable projects to enhance HaiKe's feedstocks position with high return remains challenging. New chemical projects will be launched after thorough evaluations

Operational Highlights l Increasing prices and new contribution from Ruilin increased sales l Streamlined internal management team, tightened cost control and technical improvements and innovations generated significant cost savings l Correlation of feedstock requirements and end product output provided intra-Group buying synergies l Emphasis on energy conservation and reduction in exhaust emissions enhanced awareness of corporate responsibility on energy and environmental issues

Financial Highlights l Total revenue increased substantially by 132% to $1,373.1 million (2009: $591.3m) l Petrochemical products revenue grew by 151% to $1,221.5 million (2009: $486.3m) l Chemical products (including speciality, salt and biochemical) revenue increased by 44% to $151.6 million (2009: $105.0m) l Profit after tax (including non-controlling interest) was $1.8 million (2009: loss of $1.8 million) l Profit excluding non-controlling interest was $6.3 million (2009: $0.2 million) l EPS was $0.164 (2009: $0.005) l Recommended final dividend of ($0.043 per share) (2009: nil

Mr. Xiaohong Yang, Executive Chairman, said: "This has been a pivotal year for the Group and despite an uncertain economy and higher feedstock prices, I am delighted to announce a return to profitability following the substantial changes we made to the business to improve efficiency and cost controls. Our confidence in the future is reflected in the recommendation of a full year maiden dividend of US$0.043 per share. The Group is focused on the long term growth of the business and to this end is taking further actions to improve technology and optimise intra group operational synergies to mitigate higher feedstock prices. We will continue to grow our refinery business and focus on the development of new specialty, salt and bio-chemical products in order to take advantage of increasing demand, and further enhance profitability. We expect the PRC economic growth will be sustained and the refinery business to benefit from the NDRC's future plan to shorten the adjustment interval period for the price of refined products which will improve our margins. We are, however, mindful that the global economic and political environment together with threat of inflation and tightening monetary policy in the PRC could have some impact on the business, but remain confident that the positive steps we are taking will place us in a stronger position to weather external issues and create long term growth and value for our shareholders."

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Panmure Gordon restated its "buy" rating for Metric Property Investments (METP) with a 137p target price. Commenting on the group following results, the broker said the investment outlook remains encouraging as the company looks to have a strong strategy in place to improve the rent roll from its portfolio through active asset management. Furthermore, with more retail property expected to be offered for sale in 2011 as banks look to reduce real estate exposure, Panmure believes Metric remains well placed through access to new debt to pick up further value-creating acquisitions. The shares were down 0.625p to 109.375p.

Evolution Securities initiated coverage of Travis Perkins (TPK), the builders' merchant, with a "buy" recommendation and 1,250p target price. The broker notes that the group has concentrated on building up scale in its home market, which has enabled it to generate superior margins. However, Evolution believes the UK market is unlikely to show significant volume growth and the firm will need to rely on pricing and branch openings to drive its top line. Shares in Travis, which supplies more than 100,000 product lines to trade professionals and self-builders, gained 27p to 1,048p.

Orders disappoint at Invensys By Benjamin Chiou Date: Thursday 19 May 2011 LONDON (ShareCast) - Invensys, the engineering and IT company, took a tumble on Wednesday after the company revealed a worse-than-expected order intake at its rail division during the year ended 31 March. Invensys Rail, which provides rail control and communication solutions, saw order intake fall 32% from £817m to £557m, reflecting the uneven nature of order intake in the industry and the unexpected delay in being awarded some larger contracts, the firm said. Operating profit at Invensys Rail fell 9% from £141m to £129m, however the strength of the order book helped it to increase revenue by 9% to £772m. In a separate statement, the company announced that president and chief executive officer of Invensys Rail, James Drummond, will leave the division at the end of next month after accepting a role outside of the group. Chief operating officer of the rail business will succeed Drummond in both positions. Meanwhile, group orders fell by just 1% from £2.47bn to £2.45bn, as strong growth in the Operations Management business (orders up 22%) - its technology, software and consulting business - was able to partially offset the decline in Rail. Group revenue for the 12-month period jumped by 11% from £2.24bn to £2.49bn, helped by the 15% revenue growth in Operations Management. Revenue at this division increased from £1bn to £1.15bn, as the company ramped-up activity on several large greenfield projects that it has won over the past two years. Group operating profit rose 6% to £262m, from £248m, while earnings per share jumped from 18.5p to 22.4p. "It is clear to me that we have three strong divisions each with management strength in depth and the ability to create significant growth and value. We are a global company operating in end markets which each have strong growth prospects. Our overall strategy remains unchanged but we will have an increased focus upon execution," said chief executive Wayne Edmunds. The total dividend is a third higher than last year's at 4p per share.

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Dairy Crest ekes out FY profit gain Date: Thursday 19 May 2011 LONDON (ShareCast) - A solid performance from its spreads and cheese businesses helped chilled foods firm Dairy Crest report a 5% increase in full year adjusted pre-tax profit as tough trading conditions in dairies continues. The maker of Clover and Cathedral City said adjusted pre-tax profit rose to £87.6m for year ended 31 March 2011 from £83.5m the year before. Pre-tax profit was flat at £77.8m while revenue fell 2% to £1.6bn during the year. Sales of its five key brands were up 7%. Commenting on the results chief executive Mark Allen said, "Results for the year demonstrate the benefit of being a broadly based business. A strong performance from our branded Spreads and Cheese businesses has more than offset tougher trading in Dairies." The group added that against a background of higher input costs and increasingly cash-constrained consumers it would continue to focus making efficiency improvements and invest long term in its brands. Dairy Crest made £20m in annual cost cuts during the year and has earmarked a further £20m for 2011/12. A final dividend of 14.2p has been proposed, up 4% from last year. CJ

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Intertek expects high single digit growth in 2011 By Benjamin Chiou Date: Thursday 19 May 2011 LONDON (ShareCast) - Quality and safety services provider Intertek has seen organic revenue grow by 8% in the year so far, as the firm was able to offset a slower-than-expected performance in its Consumer Goods division. Intertek also said it anticipates achieving organic revenue growth in the high single digit range for the full year. What's more, after accounting for revenue from acquisitions made in 2010, total reported revenue jumped by 11% (year-to-date) compared with the same period the year before. This helped an increase in operating profit, despite a slip in profit margin which was attributable to Consumer Goods. The Commodities division saw good revenue growth, Intertek said, as clients' trading, refining and fuel development activities expanded, fueling demand for petroleum-related cargo inspections in North America. Commercial & Electrical also performed well, as developments in renewable energy technologies and energy storage - along with clients wanting to reduce their energy usage and environmental impact - increased demand. However, despite being a seasonally slower period for the Consumer Goods division, revenue growth was worse than expected, mainly due to "an unusually long new year holiday shut-down period in China." "All of our divisions had positive revenue growth in the first four months of the year, with higher than expected performances in the Commodities and Commercial & Electrical divisions offsetting the slower start for Consumer Goods," said chief executive officer Wolfhart Hauser.

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Profits jump by a quarter at SABMiller By Benjamin Chiou Date: Thursday 19 May 2011 LONDON (ShareCast) - Brewing firm SABMiller has hailed an "excellent financial performance" for the year ended 31 March, as profits swelled by 24%, helped by strong growth in the emerging markets. As a result, the group hiked its full-year dividend by almost a fifth from 68 cents to 81 cents. SABMiller - famous for it Miller, Grolsch and Peroni lager brands - saw pre-tax profit jump from $2.93bn to $3.63bn, on a 7% rise in revenue to $28.31bn, from $26.35bn, which was attributable to higher volumes, selective price increases and a favourable brand mix. Total beverage volumes were 3% ahead of the previous year, at 270m hl, accompanied by share gains in a number of markets, the statement said. "SABMiller's financial performance for the year was very strong, benefiting from our sustained focus on our strategic priorities right across the business. Brand equities and sales execution drove profitable volume growth, and while we maintained focus on cost management, we continued to increase investment behind our local and international brand portfolios," according to chairman Meyer Kahn. Earnings, before interest, tax and amortisation (EBITA), increased by 15% from $4.38bn to $5.04bn, lifted by the performance in emerging markets. Latin America delivered EBITA growth of 17% on flat lager volumes, as the region was helped by price increases, lower raw material costs and fixed costs. Within the region, Peru's strong economic recovery prompted a 10% growth in lager volumes, while this was met with a decline of 6% in Colombia as a result of higher consumer prices. "Trading conditions across the group were mixed with improvements in most of our emerging markets, although constraints on consumer demand impacted performance in Europe and North America," the statement said. Nevertheless, EBITA in Europe grew by 2%, while North America achieved 20% growth despite a "challenging" US beer market. Basic earnings per share increased by a quarter to 152.8 cents, from 122.6 cents previously. --- BC

Good trading over Easter for Marston's Date: Thursday 19 May 2011 LONDON (ShareCast) - Food sales continue to drive growth at brewing and pubs group Marston's, though drinkers are putting their hands in their pockets more often, too. Revenue in the 26 weeks to April 2nd rose to £317.9m from £309.2m at the interim stage last year. Marston's Inns and Taverns, the group's managed pub estate, grew revenue by 3.6% to £181.7m, with a strong contribution from newly built pubs. Like-for-like (LFL) sales were up 2.4%, with LFL food sales up 4.7% while "wet" (beverage) sales were up 1.5% on a LFL basis. Marston's Pub Company, the tenanted and leased pub estate, grew revenue by 4.5% to £85.9m. Average profit per pub increased by 1.5%. On the brewing side, Marston's Beer Company saw a 2.5% dip in revenue to £50.3m, reflecting the later timing of Easter this year and the decline in popularity of lager. Profit before tax and exceptional items advanced to £29.2m from £27.8m the year before, bang in line with a forecast from broker Panmure Gordon. With exceptional items included, pre-tax profit jumped to £35.6m from £26.3m. Basic earnings per share, excluding exceptional items, climbed to 4.1p from 3.8p. The interim dividend has been maintained at 2.1p. Since the end of the reporting period LFL sales are up 5.0% on last year, reflecting, in part, the inclusion of the Easter period this time round. Tenanted and leased LFL profits are estimated to be up 0.4%, while own-brewed volumes of beer are 4% ahead of the corresponding period last year. "The performance of the group in the first half year has been encouraging, despite challenging market conditions and the severe weather in December, and this has continued with good trading over the Easter period," said Marston's chief executive, Ralph Findlay. "Our focused and disciplined strategy, offering consumers value for money in well-invested pubs, together with sector-leading shares in the growth segments of the beer market, places us in a strong position for the future," Findlay added.

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