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Southern Cross proposes rent deal Date: Monday 28 Mar 2011 LONDON (ShareCast) - Britain’s largest provider of residential and nursing care Southern Cross Healthcare fell back sharply today after it emerged it will pay all landlords rent on a monthly rather than quarterly basis. The company, desperately trying to cut rental costs, will save millions from the move. A letter was sent last week to the one third of landlords not already on monthly payments telling them of the plan. Southern is in a real pickle as public spending cuts force local authorities to pay the company lower fees to look after elderly residents. Earlier this month, the company walked away from offer talks and warned that it had seen a decline in its trading outlook since February. The group also said its lenders are aware of an impending banking covenant breach, but remain fully supportive of the actions which the company is taking to address its problems.

http://www.investegate.co.uk/Article.aspx?id=201103280700096960D

China growth a concern for RCG Holdings Date: Monday 28 Mar 2011 LONDON (ShareCast) - RCG Holdings reported higher revenues in the year to 31 December, but profits fell the Asia-focused biometrics and surveillance software company warned that lower than expected growth in China leaves it cautious for the current year. Revenues were up by 23.5% from the previous year to HK$3.03bn (£240m), while adjusted pre-tax profits decreased by 72.9% to HK$214m. “Acknowledging the Chinese government's forecast of lowering China's GDP yearly growth rate, the ongoing political turmoil in the Middle East and the uncertain economic impacts of the recent disaster in Japan, the board believes that it is prudent to set a cautious tone on the group's revenue expectation,” the company said. “Moreover, the group has been experiencing increased competition from local companies which the board believes will impact upon the group's growth prospects.”

Weak German market hits sales at Allergy Therapeutics Date: Monday 28 Mar 2011 LONDON (ShareCast) - Pharmaceutical firm Allergy Therapeutics reported broadly flat revenues and profits for the six months ended 31 December, as a result of weakness in its core German market. First half revenue was £27.4m, slightly higher than £27.3m in 2009. Weakness in the euro also had a £1.1m impact on turnover. Pre-tax profit grew to £5.97m, from £5.64m previously. Germany – which accounts for 70% of revenue – saw sales decline for the first time in the firm’s history after the introduction of new regulation, leading to the withdrawal of certain product ranges and pressures on doctors’ spending. “Moreover, the pollen count last year was lower than normal in most areas of Germany,” the group said. Allergy Therapeutics generates some 60-70% of revenues in the first half, due to the seasonality of the pollen allergy market, and will likely record losses in the second half, as usual. Nevertheless, shares rose after the group revealed in a separate statement that the US Food and Drug Administration intends to allow the development of the MATA-MPL grass pollen-specific allergy vaccine product.

Astra settlement removes overhang Date: Monday 28 Mar 2011 LONDON (ShareCast) - A 13-year tax wrangle between the US and the UK involving drugs giant AstraZeneca has been resolved, resulting in a substantially lower tax rate for Astra in the current financial year. The two governments have agreed to the terms of an Advance Pricing Agreement regarding transfer pricing arrangements for AstraZeneca's US business for the 13-year period from 2002 to the end of 2014. At the same time, AstraZeneca has reached agreement with the US tax authorities on a related valuation matter arising from integration of its US businesses in 2000 following the global AstraZeneca merger in 1999. Following these agreements Asta now expects to pay a net amount of $1.1bn to resolve all US transfer pricing and related valuation matters for all periods from 2000 to the end of 2010. The payments arising from these agreements are expected to be made during 2011. Astra has known the resolution of these tax issues was on the cards for some times and has made provision for them in its accounts. AstraZeneca will release a portion of the provision related to these matters resulting in a benefit to earnings in the first quarter of around $0.5bn. This release will reduce the net accrual for transfer pricing and other international tax contingencies of $2.3bn. Over the course of the year the effect of the release of provisions and the settlement of tax issues will be that the tax charge for the current financial year will be around 6 percentage points lower than previously indicated, at around 21%. As a consequence, Astra has lifted its core earnings per share guidance for fiscal 2011 to $6.90 - $7.20 from $6.45 - $6.75 previously. Savvas Neophytou, an equity analyst at Panmure Gordon, said the settlement with the US tax authorities “removes a significant overhang and tidies up another liability.” The broker is adjusting its forecast for statutory earnings per share (EPS) for the current financial year from $6.13 to $6.49. The forecast for “core” EPS from $6.87 to $7.23. - - jh

Micro Focus to buy back shares Date: Monday 28 Mar 2011 LONDON (ShareCast) - Legacy software specialist Micro Focus has flagged plans to buy back as many as 20.5m of its own shares. Today’s announcement follows a slump in the share price mid-February following a second profits warning in six months. “The timing and quantum of any purchases will be determined by Micro Focus in accordance with the above parameters and in consultation with its joint brokers, Numis Securities Limited and UBS Limited, with regard to prevailing market conditions and any other relevant considerations,” it said Monday. “Micro Focus confirms that it is not currently in possession of any unpublished price sensitive information.”

http://www.investegate.co.uk/Article.aspx?id=20110328080000P1858

LMS Capital to keep selling quoted holdings Date: Monday 28 Mar 2011 LONDON (ShareCast) - Investment company LMS Capital grew its net asset value by over £17m in 2010 and expects to keep selling stocks this year. Net asset increase to £245m, or 90p a share, from £227.7m, or 84p a share, at the end of 2009, while the investment portfolio revealed a net gain of £23.9m compared with a £4.9m loss a year ago. Profit from continuing operations increased to £15.2m from £12.4m. "2010 was a transitional year during which we have successfully implemented a refined strategic focus; our results announced today demonstrate that the benefits of this are already coming through,” chief executive Glenn Payne said Monday. “New investments in 2010 were in profitable and growing businesses and we are no longer funding legacy investments. We sold a number of our quoted holdings during 2010 and we expect more realisations during 2011 as stocks hit the exit price we have established.”

Galliford Try to build luxury flats in Wandsworth Date: Monday 28 Mar 2011 LONDON (ShareCast) - Housebuilder Galliford Try has won a £38.5m contract to build apartments and commercial units at Wandsworth Riverside Quarter in south west London for Frasers Property UK. It will design and put up three mixed use buildings including 121 luxury apartments, some affordable apartments, commercial space and car parking. The build is expected to complete by January 2013. "We are delighted to secure this project which will build on our extensive expertise and experience of delivering quality, mixed tenure projects in the capital," Galliford boss Greg Fitzgerald said.

Excellent news when present clinical hold lift is confirmed

U.S. regulatory update Allergy Therapeutics plc (AIM: AGY), the fully integrated specialty pharmaceutical company specialising in allergy vaccines is pleased to announce that it met with the U.S. Food and Drug Administration (FDA) for a productive discussion. The FDA has informed the Company of its intention to lift the clinical hold in order to allow the development of MATA-MPL© products to move forward. The Company expects to receive the formal communication from the FDA in the coming weeks. Manuel Llobet, Chief Executive of Allergy Therapeutics, said: "We are very pleased to have received positive feedback from the FDA and look forward to providing more information when the formal communication is received."

http://www.investegate.co.uk/Article.aspx?id=201103280702036964D

Manuel Llobet, Chief Executive of Allergy Therapeutics, said: "During the period we achieved growth across our core markets with the exception of Germany which was impacted by the introduction of new regulation and a weaker pollen count. To address the new regulatory requirements, we successfully filed 10 marketing applications to the Paul Ehrlich Institute, strengthening the Group's position in this important market. "The Company has initiated a number of measures to offset the impact of weaker sales in Germany, including strengthening our sales teams in major markets outside of Germany. We are also focused on expanding into new emerging markets where we see significant opportunities to increase sales and expand the business. "With a reduced cost base, a strong sales infrastructure in Europe and news today that the FDA intends to lift its clinical hold on development of the MATA MPL products in the US, we are confident that 2011 will be an important year for the Company and look forward to reporting progress across a number of fronts in coming months."

Allergy Therapeutics plc (AIM: AGY), the fully integrated specialty pharmaceutical company specialising in allergy vaccines announces interim results for the six months ended 31 December 2010. Highlights · Productive meeting held with FDA in the U.S. o FDA intends to lift clinical hold to allow further development of MATA-MPL products · 10 Marketing Authorisation Applications filed in Germany · Acquisition in Switzerland of the Group's distributor Teomed · Revenue marginally higher at £27.4 million (prior period H1 2010 (6 months ended December 2009): £27.3 million) o At constant currency revenue increased by 4% to £28.5 million (H1 2010: £27.3 million) o At constant currency Pollinex Quattro revenue increased by 4% to £17.0 million (H1 2010: £16.3 million) · Profit before tax increased to £6.0 million (H1 2010: £5.6 million)

http://www.investegate.co.uk/Article.aspx?id=201103280700096958D

Despite being impacted by a weak German market, Allergy Therapeutics (AGY) posted widened interim pre-tax profits, driven by a reduced cost base, and said it was developing a strategy for the emerging markets. For the six-months ended 31st December 2010, the pharmaceutical company specialising in allergy vaccines reported a 7% jump in pre-tax profit on revenue marginally greater at 27.4 million pounds. Separately, the group announced that the US Food and Drug Administration intends to lift the clinical hold in order to allow the development of its pollen allergy treatment products to move forward. Allergy shares increased 0.875p to 7.75p.

Despite the challenging macro economic environment, Irn Bru maker AG Barr (BAG) has maintained its track record of strong financial performance, delivering double digit annual sales and profits growth, and said sales in the first eight weeks of the new financial year were ahead of the same period a year earlier. For the 12-months to 29th January 2011, the soft drinks manufacturer announced a 13.3% rise in profit on ordinary activities - before tax and exceptional items - as turnover climbed 10.4% to 222.4 million pounds. In light of this, the group recommended a final dividend of 18.66p, giving a final dividend of 25.41p, up 10% on last year. Barr shares climbed 46p to 1,201p.

Commenting on the acquisition, Mark Rollins, Senior plc Group Chief Executive, said: "I am delighted to welcome Damar's employees to the Senior Group. Damar has a long and established reputation in the aerospace industry and its operations are highly complementary to Senior's existing business. Damar's capabilities, combined with Senior's wider market access, financial strength and operational excellence focus, are expected to lead to stronger growth prospects and improved operational performance, benefiting customers, employees and shareholders alike."

http://www.investegate.co.uk/Article.aspx?id=201103280700086912D

In a move to improve on its growth prospects, manufacturing group Senior (SNR) has acquired Damar Machine Company, a manufacturer and integrator of precision machined parts and assemblies for the commercial aerospace industry, for an estimated 24.5 million dollars (15.3 million pounds). Commenting on this, Mark Rollins, chief executive of Senior, said: "Damar's capabilities, combined with Senior's wider market access, financial strength and operational excellence focus, are expected to lead to stronger growth prospects and improved operational performance." The shares fell 0.1p to 148p.