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Emerging markets boost Reckitt Benckiser Date: Wednesday 20 Apr 2011 LONDON (ShareCast) - A strong performance in emerging markets helped Reckitt Benckiser, the maker of household products such as the cleaning agent Cillit Bang, to a good start to 2011. Net revenues in the first quarter were up by 14% from the same period the previous year at £2.28bn. On a like-for-like basis, excluding the impact of the condom and footcare products maker SSL which was acquired last year, sales were up by 5%. Sales in developing markets, which account for 24% of revenues, were up by 23%, or 14% on a like-for-like basis. In Europe, which accounts for 45% of revenues, net revenue was 17% higher at £1.03bn, but on a like-for-like basis sales were flat. In North America and Australia (24% of revenues) sales were up by 5%, 2% on a like-for-like basis. The pharmaceutical division, which accounts for 7% of revenues, saw sales rise by 23% to £156m, after buying back the rights to sell Suboxone, used to treat heroin addiction. “These results position us well to achieve our FY 2011 financial targets of +12% net revenue growth and +10% adjusted net income growth (both at constant exchange), and with that to deliver another year of above industry-average growth,” said chief executive Bart Becht. RG

Chemring buys bio threat detection firm Date: Wednesday 20 Apr 2011 LONDON (ShareCast) - Military decoy flare and mine detection firm Chemring has agreed to acquire the Detection Systems operations and certain related assets of General Dynamics Armament, a subsidiary of US based General Dynamics Corporation. The total cash consideration of £55.2m will be paid on completion of the deal. Chemring said it is acquiring a US leader in chemical and biological threat detection which has an advanced capability in stand-off detection of Improvised Explosive Devices (IEDs). To fund the acquisition the company is raising £112.3m (gross) through a placing of 17.41m new ordinary shares at 645p each. The money left over will remain in the company war chest ready to take advantage of future opportunities. The shares being issued pursuant to the placing represent around 9.8% of the existing issued share capital of Chemring. In the twelve months to 31 December 2010, Detection Systems reported an unaudited profit before tax of £5.1m, the same as in 2009, on turnover of £37.7m, which actually fell from the previous year's £42.8m. The order book at 31 March 2011 was £38.0m, £28.2m of which is expected to be delivered during 2011. The gross assets of Detection Systems at 31 December 2010 were £14.1m. Chemring believes that the acquisition creates substantial opportunities, by enhancing its existing IED detection capabilities and through growth within Detection Systems' chemical and biological detection programmes. The acquisition is expected to be earnings accretive in the 12 months to 31 October 2012. The completion of the transaction is conditional on, inter alia, certain US regulatory approvals which are anticipated in around sixty days.

Chairman David Hudd commented: "I am pleased to report a good overall performance from the Group. "FOGL has made further progress towards its objective of drilling at least one well in the first quarter of 2012. The rig contract is under negotiation and subject to it being signed an additional £32 million of equity funding has been raised sufficient to provide additional drilling options for FOGL's planned 2012 drilling programme. "Looking forward, FIC will continue to benefit from oil exploration around the Islands which should compensate for the more testing economic conditions impacting our UK businesses. "The Group's preliminary results for the year ended 31 March 2011 are expected to be released on 23 June 2011."

Highlights · Falkland Islands Company (FIC) - Stronger than anticipated performance was boosted by the economic benefits of oil exploration activity in the Falkland Islands. Retail sales increased by 21% and, despite increased shipping costs and lower profits from property disposals, FIC has produced a record result. · Portsmouth Harbour Ferry Company (PHFC) - Previously implemented fare rises and tight control of operating costs offset a 2.7% decline in annual passenger numbers. The new pontoon at Gosport, financed by Gosport Borough Council and subject to a 50 year lease to PHFC, is expected to be installed in May. · Momart - Market conditions were challenging, particularly in the UK Exhibitions division which saw revenues and margins fall relative to the prior year. This was partly offset by growth in the Commercial Galleries division although the net effect was flat overall sales and a significant reduction in overall profitability. Steps have been taken to improve performance in the current year. · The Group's financial position remains strong with year end cash balances of £1.9 million and bank borrowings of £4 million. · As announced on 19 April 2011, FOGL has signed heads of agreement to enable it to drill the Loligo prospect in the first quarter of 2012 and is raising £32 million of equity to provide additional drilling options for its 2012 programme. Erebus Limited, a subsidiary of FIH, owns 12 million FOGL ordinary shares which at 31 March 2011, had a market value of £10.8 million. Erebus has agreed not to dispose of any of its FOGL shares until the earlier of the announcement by FOGL of the results of the wells drilled in this campaign or 31 May 2012.

http://www.investegate.co.uk/Article.aspx?id=201104200700122127F

Falkland Islands ahead of expectations By Benjamin Chiou Date: Wednesday 20 Apr 2011 LONDON (ShareCast) - Falkland Islands Holdings, the AIM-quoted retail, transport and logistics services group with an 8.2% stake in Falkland Oil and Gas Ltd, says that trading in the year ended 31 March has been ahead of expectations, and underlying pre-tax profits will be around £2.7m, a similar level to the previous year. "I am pleased to report a good overall performance from the group,” said chairman David Hudd. Its Falklands business activities – conducted by the Falkland Islands Company (FIC) – have seen retail sales jump 21% to a record result, despite increased shipping costs and lower profits from property disposals, as the performance was boosted by the “economic benefits of oil exploration activity in the Falkland Islands”. Increased fares and cost control meant that its ferry operating division, Portsmouth Harbour Ferry, could offset a 2.7% decline in passenger numbers. However, its fine art and antique business Momart has seen revenues and margins fall at its UK Exhibitions division as a result of challenging market conditions. "Looking forward, FIC will continue to benefit from oil exploration around the Islands which should compensate for the more testing economic conditions impacting our UK businesses,” Hudd said. The group does not expect the total dividend to be less than the 9p per share paid previously.

Trifast sees FY ahead of views Date: Wednesday 20 Apr 2011 LONDON (ShareCast) - Industrial fastenings firm Trifast said it expects profit before tax, pre-exceptionals to be ahead of current market expectations and remains confident about future trading. The East Sussex based nuts and bolts maker said buoyant trading conditions fuelled growth at the group. "Overall, as we continue to focus on the delivery of our stated three-phase strategy and building on our performance," the group said in a company statement. Year-end net debt is higher than at the half year stage and in-line with expectations. This is largely as a function of the required increase in levels of stock to service the new and existing business that came on stream during the year, Trifast explained.

Outlook The coming financial year is one during which we are intent on continuing to put good business practices into all aspects of Trifast. This will include, well earned wage rises for staff and an on-going focus on maximising margins. Particular attention will be given to the pricing of both new and existing contracts and more efficient sourcing. Following recent unfortunate events in Japan and the ongoing unrest in the Middle-East, the Group remains mindful of the potential impact on some of its customers but as yet is not seeing this translate to altered ordering patterns.

The Board of Trifast plc publishes the following Trading update ahead of its Preliminary results for the year ended 31 March 2011 which are scheduled to be announced in June. Trading Since the Group's Interim Management Statement (16 February 2011), the business has continued to experience buoyant trading conditions; this is evidenced with the last month of the financial year to be reported, recording record sales since the changes made to management and TR structure in early 2009. After having taken into account the additional costs and negative impact of Foreign Exchange, a point we highlighted in our last Interim Management Statement in February, the Board is pleased to announce that Group profit before tax, pre-exceptionals, is expected to be ahead of current market expectations. Year-end net debt is higher than at the half year stage and in-line with expectations. This is largely as a function of the required increase in levels of stock to service the new and existing business that came on stream during the year.

http://www.investegate.co.uk/Article.aspx?id=201104200700112099F

Gem Diamonds boosts production at Lesotho mine Date: Wednesday 20 Apr 2011 LONDON (ShareCast) - Global diamond producer Gem Diamonds increased production from its Letseng mine in Lesotho in the first quarter of 2011 and benefited from higher prices. The company said 26,541 carats were recovered at its Letseng operations, up 29% from the same period in 2010. The average value per carat from Letseng rose to $3,067 from $1,839 during the first three tenders of 2010, while its April 2011 exports achieved a value of $4,272 a carat. Fancy yellow diamond production from Ellendale in Australia achieved an average price of $3,379 a carat sold to US jewellery giant Tiffany during the first quarter of 2011, up from $2,545 a carat in the same period 2010. Gem Diamonds chief executive, Clifford Elphick explained, "The successful implementation of Letseng's sales and marketing strategy; increasing demand for diamond jewellery from the world's largest market, the US; continued very strong demand from India and China; and low stocks of rough and polished diamonds in the cutting centres have led to substantial rises in the price of both rough and polished diamonds. The industry fundamentals remain excellent, especially for the larger, higher quality diamonds produced at Letšeng and Ellendale. The benefits of the October 2010 price increase for Ellendale's fancy yellow diamonds sold to Tiffany & Co. are being seen and negotiations for the second price review are on-going. The initial work has already started at the Gope mine, in Botswana, which is due to go into production in early 2013 and the finalisation of the pre-feasibility study for the Letšeng expansion is due before the mid-year, both of which will substantially increase Gem Diamonds' growth profile." The company also informed investors that a detailed Mineral Experts Report(MER), detailing the Group's mineral resources and reserves, has been compiled and will be published during May 2011. The shares moved higher after today's announcement. ab

Gem Diamonds CEO, Clifford Elphick commented: "Letšeng's recent production achieved a Letšeng record average value of US$4 272 per carat. The successful implementation of Letšeng's sales and marketing strategy; increasing demand for diamond jewellery from the world's largest market, the US; continued very strong demand from India and China; and low stocks of rough and polished diamonds in the cutting centres have led to substantial rises in the price of both rough and polished diamonds. The industry fundamentals remain excellent, especially for the larger, higher quality diamonds produced at Letšeng and Ellendale. The benefits of the October 2010 price increase for Ellendale's fancy yellow diamonds sold to Tiffany & Co. are being seen and negotiations for the second price review are ongoing. The initial work has already started at the Gope mine in Botswana which is due to go into production in early 2013 and the finalisation of the pre-feasibility study for the Letšeng expansion is due before the mid year, both of which will substantially increase Gem Diamonds' growth profile."

Highlights during the period: Letšeng: · Letšeng achieved an average value of US$4 272 per carat for its April 2011 export, bringing the average value to US$3 067 per carat for the period (US$1 839 per carat for the first three tenders in 2010). · 16 rough diamonds achieved an average value in excess of US$1m each during the period. · Letšeng produced a total of 59 rough diamonds that achieved prices greater than US$20 000 per carat, equivalent to 68% of Letšeng's revenue for the period. · A 2.79 carat blue diamond sold on tender for a new Letšeng record of US$199 199 per carat. · Two pink diamonds of 28.37 carats and 30.68 carats were sold for US$140 994 and US$130 378 per carat respectively. · Letšeng produced 151 rough diamonds greater than 10.8 carats in size in the first quarter. · 26 541 carats recovered during the first quarter of 2011, up 29% from 2010. Ellendale: · Ellendale achieved an average price of US$3 379 per carat for its fancy yellow diamonds sold to Tiffany & Co. during Q1 2011 (US$2 545 per carat in Q1 2010). · For its commercial goods, Ellendale achieved an average price of US$196 per carat during Q1 2011 (US$142 per carat in Q1 2010). Gope: · On 14 March 2011 the Gem Diamonds Board approved the first stage of the development of the Gope mine. · The first phase of the mine construction has commenced with the building of the camp at Gope. Group: · The Group has US$127.7 million cash as at 31 March 2011, of which US$106.2 million is attributable to Gem Diamonds.

http://www.investegate.co.uk/Article.aspx?id=201104200700101913F

Dividend In recognition of the Company's improved performance in 2010, the Board declared an increased second interim dividend of 15.5 pence per share (2009: 14.5 pence per share), making a total dividend in respect of 2010 of 23 pence (2009: 21.5 pence per share), an increase of 7 per cent. This second interim dividend will be paid on 6 May 2011 to holders of ordinary shares registered on 15 April 2011. Interim Management Statement for the period from 1 January to 19 April 2011

Annual General Meeting and Interim Management Statement Charter International plc is holding its 2011 Annual General Meeting at 2 p.m. today. At the meeting, Lars Emilson, the Company's Chairman, will make the following statement which incorporates the Company's Interim Management Statement for the period from 1 January to 19 April 2011. In 2010, revenue was £1,719.6 million (2009: £1,659.2 million), an increase of 3.6 per cent and adjusted operating profit was £145.9 million (2009: £122.8 million), an increase of 18.9 per cent. Adjusted earnings per share in the year were 66.1 pence (2009: 55.0 pence), an increase of 20.2 per cent.

http://www.investegate.co.uk/Article.aspx?id=201104201403072817F

Spotlight on Entertainment One (ETO) Shares in movie and TV show maker Entertainment One have risen from 39p in November 2009 to 148p on the back of the success of childrens' favourites such as Peppa Pig. Britain's top pre-school cartoon character is now poised to conquer the American kiddies market, while a Peppa Pig World theme park is planned for Hampshire this month. The group swung into profit in 2009/10 and the upcoming results in May are expected to show positive pre-tax returns of £31 million, compared with £6.9 million last time. In a gung-ho mood to expand, the group is raising £11.6 million via a share placing to finance a series of small acquisitions. The shares sell on 11.7 times prospective earnings. This article was taken from the April 2011 issue of Money Observer.

The shares of KCOM (KCOM), the troubled telecoms concern, were trading as low as 10p in the autumn of 2008. Now they have recovered to 65p, following the management's decision to almost double the dividend this year to 3.3p and raise the payment 10% annually until 2013. This is all possible thanks to a return to profit growth after horrendous losses of £100 million in 2009. Profits for the year to March are expected to rise from £19.17 million to £42.2 million with further growth expected. The shares, meanwhile, still yield a prospective 5.5% and sell on only 11.6 times earnings.

A chunkier yield of 5.6% is on offer at Dairy Crest (DCG). At 349p, the shares are cautiously rated on a price/earnings multiple of 7.6. The market is expecting profits to rise from £77 million to £85 million in the year to March and a further rise is expected. But will they reach the £100 million peak of 2009? Meanwhile, a partial restoration of the dividend - it was cut in two stages from 24.4p to 18.9p - should help the shares.