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French Connection displays joie de vivre 16/03/2011 Ben Jaglom Fully-listed clothing retailer French Connection (FCCN) has lifted annual profits tenfold after extensive restructuring. The company, which achieved notoriety in the early noughties for its '****' advertising campaign and range of t-shirts, has reported pre-tax profits up from £700,000 to £7.3 million for the year to January on revenues up 2 per cent to £205 million. The profits recovery follows the closure of the majority of French Connection's loss-making US stores and of its retail operation in Japan and the sale of its Nicole Farhi brand. Stephen Marks, the ex-professional tennis player who is the company's chairman and chief executive officer, remarks he is 'delighted with the significantly improved performance for our latest financial year'. He comments he is 'looking forward to growing the business further from the solid foundations generated by our recent reorganisation.' Recommended by Growth Company Investor last month at 90.5p, the shares have leapt 41.2 per cent to a current price of 127.75p on investors' enthusiasm over French Connection's prospects since the restructuring. While we believe the shares could have further to go, there are some significant, structural challenges to the retail environment in which French Connection operates, not least of which is the continuing pressure on the middle-income consumer that makes up the typical customer of the brand. As a result now could be an appropriate time to take some profit. Reduce.

http://www.investegate.co.uk/Article.aspx?id=20110316120757PE041

Immediate Report Queenco Leisure International Ltd., a developer, operator and owner of entertainment centers, casinos and leisure resorts ("QLI"), today announced that QLI Management Services Ltd, a wholly owned subsidiary of QLI, has received a letter from the Chairman of the Board of Directors of Club Hotel Loutraki Ltd (the "Letter" and "CHL"), addressed to CHL's shareholders, including Powerbrook Spain S.L ("PBS"), a company jointly and indirectly controlled by QLI and the Club Hotel Group which holds 78% of the shares of CHL. The Letter stated that due to the turbulent Greek economy and changes in Greek regulation and the political environment, CHL requests that the Board of Directors of PBS consider a capital injection of up to 15 million Euros into CHL. To QLI's knowledge, as of the date of this report, the matters described in the Letter have not yet been discussed by CHL's Board of Directors. Until CHL`s Board of Directors discuss the Letter and update QLI on such discussions, QLI is unable to consider the foregoing request. QLI wishes to clarify that it is not obligated to provide a capital injection to CHL, and that to its knowledge, PBS's current cash position is approximately 10 million Euros. In light of the information provided in the Letter and due to the fact that, to QLI's knowledge, CHL's Board of Directors have not yet discussed this matter, a request was forwarded to CHL`s Chairman of the Board of Directors to convene a meeting of the CHL board immediately.

http://www.investegate.co.uk/Article.aspx?id=201103161210440599D

Directors' Report: Chairman's Statement Highlights • NAV total return ahead of benchmark by 3.4% • NAV total return over last five years of 38.1% - exceeding benchmark by 6.5% • increased gearing at market low point in June • dividend increased for the 36th consecutive year • portfolio repositioned on 100% active lines with a more proactive approach to risk management

http://www.investegate.co.uk/Article.aspx?id=201103160700240204D

Witan reinvigorated Date: Wednesday 16 Mar 2011 LONDON (ShareCast) - Venerable Witan Investment Trust, founded 102 years ago, showed there is still life in the old dog as it outperformed its benchmark index in 2010. Net asset value (NAV) total return in 2010 was 18.9%, compared with a return on the trust’s benchmark index of 15.5%. Share buybacks contributed half a percentage point to the outperformance, while gearing boosted outperformance by 1.9 percentage points. Like most investment trusts Witan prefers to take a longer term view of its performance, and added that over five years the Witan NAV total return has been 38.1% which translates into a 6.7% per annum compound rate of return, while the share price total return has been 7.1% per annum, despite the market crisis in 2008. The company has declared a second interim dividend of 6.5p per share, bringing the full year pay-out up to 10.9p, up from 10.5p in 2009. The annual dividend has now been increased for 36 years in a row. “Recent data indicate that the global recovery remains intact. However politicians are performing a high wire act, trying to balance the imperative of continued economic growth on the one hand and the need to resolve the debt crisis on the other. It would seem that higher inflation is probably the inevitable outcome,” opined Witan chairman Harry Henderson. Notwithstanding the immediate uncertainties caused by the Japanese earthquake and tsunami, the board believes that “in the years ahead a well diversified portfolio of global equities offers the opportunity to participate in positive longer term trends in the global economy, as well as offering some protection against the risks of higher inflation.”

Mecom to pay interim dividend in autumn By Caroline Jouan Date: Wednesday 16 Mar 2011 LONDON (ShareCast) - Mainland European newspaper publisher Mecom said it had seen an improvement in digital advertising revenues and plans to pay a dividend this autumn. "While the overall advertising outlook for the group remains uncertain, we expect continued growth in our online and other new revenues, especially in the Netherlands," the group said in a company statement. Mecom, which also owns newspapers and websites in Denmark, Poland and Norway, said overall its advertising revenues were down 4% to €656.3m while digital revenues surged 23% to €83.4m. The board intends to start making dividend payments with an interim dividend in the autumn of 2011, Mecom said. "The board intends to adopt a policy of increasing dividends over time to reflect growth in the group's earnings per share, with dividends over time approximately three times covered by net earnings," it said. Adjusted EBITDA was up 28% to €155.5m for the year ended 31 December 2010 as it reduced total costs by a further 5% or €62m.

http://www.investegate.co.uk/Article.aspx?id=201103161200040578D

http://www.halifaxmarketwatch.co.uk/news.cgi?story=4112807&view=full&username=&ac=

Hikma hurt by Middle East conflict By Caroline Jouan Date: Wednesday 16 Mar 2011 LONDON (ShareCast) - Shares of Jordan based Hikma Pharmaceuticals fell as it warned recent events in the Middle East and North Africa region, particularly in Egypt, Libya and Tunisia will result in slower growth in its key branded business in 2011. "We started 2011 with double digit growth expectations for our Branded business. Recent events in the MENA region... now require us to be more cautious in our ability to achieve this. To date, we have experienced disruptions in manufacturing, sales and distribution," Hikma said in a company statement. The group, which makes around 60% of its revenue from the MENA region, said overall group revenue is expected to grow around 7% in 2011. Looking longer term Hikma said it remains "very optimistic" about opportunities that economic reform can bring to the MENA region. "We continue to believe in the excellent long-term growth potential of the MENA region and will continue to invest in building our unique local presence, both organically and through acquisitions," it said. Group operating profit rose to $135.1m for the year ended 31 December 2010 from $107.3m the year earlier. Revenue rose to a better than expected $730.9m during the year from $636.9m before. The board has recommended a final dividend of 7.5 cents per share, which will make a dividend for the full year of 13 cents per share, up from 11 cents per share in 2009.

Commenting on this announcement, Stephen Marks, Chairman and Chief Executive of French Connection said: "I am delighted with the significantly improved performance for our latest financial year. We have achieved a considerably higher profit from the core continuing operations, notwithstanding a period of major change for the Group and challenging market conditions. I am looking forward to growing the business further from the solid foundations generated by our recent reorganisation and I believe there are many opportunities for the Group to create further value for shareholders in the future." "The proposed increase in final dividend reflects the Group's profitability and cash generation and the Board's confidence in the future. It is the Board's intention to increase the dividend in the future in line with increases in profit." "The French Connection brand is recognised all around the world and generates over £400 million of sales at retail for us and our partners. With our business back on track we are focused on creating great products that stand apart from the rest and reflect the enormous fashion heritage inherent within the French Connection brand." "The current economic environment is clearly difficult and it appears likely that it will remain so in the coming year. However, I am confident that we have the people, infrastructure, drive and brand strength to build further on the growth we have achieved."

Results of the core continuing operations* are as follows: · Revenue up 2% to £205.0 million (2010: £200.8 million) · Gross margin at 52.0%, up 50 bps · Profit before tax was £7.3 million (2010: £0.7 million) · Adjusted Earnings Per Share+ of 7.5 pence (2010: 0.5 pence) · Positive cash flow of £6.5 million contributing to closing net cash of £34.1 million (2010: £35.7 million) · Dividend proposed of 1.5p for the year (2010: total dividend 0.5p)

http://www.investegate.co.uk/Article.aspx?id=201103160700220195D

French Connection boasts 'significant' growth By Lee Wild Date: Wednesday 16 Mar 2011 LONDON (ShareCast) - Fashion retailer French Connection made even more in the 12 months to 31 January than the hefty increase promised at last month’s trading update. Profit before tax from continuing operations leapt to £7.3m from £0.7m the year before. It had predicted “at least £6.8m” in February. Sales rose 2% to £205m. An improvement in the levels of full price sales in the wholesale divisions, increased group gross margin – up 50 basis points to 52% - growth in licensing income and contributions from joint ventures in Asia were behind the better numbers. Retail sales in the UK and Europe fell 1.4% on a like for like basis and by 4.5% in North America because of weakness in Canada during the second half. The firm, which trades out of more than 340 branded retail outlets, is “cautious” about the short term outlook, with raw material costs forcing selling prices higher. "The current economic environment is clearly difficult and it appears likely that it will remain so in the coming year,” chairman and chief executive Stephen Marks said. “However, I am confident that we have the people, infrastructure, drive and brand strength to build further on the growth we have achieved." A final dividend of 1p takes the full-year payout to 1.5p, up from just half a penny the year before.

Chief departs Mitchells & Butlers Date: Wednesday 16 Mar 2011 LONDON (ShareCast) - Adam Fowle, chief executive of Mitchells & Butlers, is to leave the pub owner by mutual consent after two years in the job. His departure come less than a month after M&B appointed senior independent director Simon Burke as its new chairman, taking over from John Lovering. The firm said it is looking for a replacement, but in the meantime non-executive Jeremy Blood will be interim chief executive until a permanent successor is appointed. Mr Blood was formerly managing director of brewer Scottish & Newcastle. The statement added he will continue to focus on its strategy to develop and grow Mitchells & Butlers' market leading brands. The company is performing in line with the board's expectations, the statement added.

Intercontinental Hotels chief hands over reins Date: Wednesday 16 Mar 2011 LONDON (ShareCast) - InterContinental Hotels’ chief executive Andrew Cosslett has shocked the Crowne Plaza and Holiday Inns chains owner by handing in his notice. Long-serving Cosslett will stand down on 30 June to be replaced by finance director Richard Solomons, who has been on the board since 2003. Solomons is also head of Head of Commercial Development. "Andy has been an outstanding chief executive since joining the company in February 2005 and we are very appreciative of the contribution he has made during his time at IHG. While we understand and respect his decision to leave at this stage, we are extremely sorry to see him go,” David Webster, Chairman of InterContinental Hotels said. “Richard and Andy have worked very closely over the last six years and in making this appointment the board is ensuring continuity in management and in our strategy to drive growth,” he added. Mr Cosslett said " We have a powerful portfolio of brands, including a now fully rejuvenated Holiday Inn, and established leading positions in the biggest and fastest growing markets of the world, including China. The prospects for the Group are excellent and with IHG entering the next phase of its development, and after six years, this is the right time to hand over the reins,". Aged 55, he took over as CEO at Intercontinental in 2005 after 14 years in marketing and general management at Cadbury Schweppes.

Profits in line at Marston's Date: Wednesday 16 Mar 2011 LONDON (ShareCast) - The food offering at brewing and pubs group Marston’s is defying consumers’ attempts at belt tightening, while even beer sales are up this year. The company said it has “delivered an encouraging and robust performance despite the continued economic uncertainty” in the 23 weeks to 12 March, with profitability in line with expectations. Marston’s Inns and Taverns, the group’s managed pubs division, saw a 2.4% year on year like for like (lfl) growth in the period, led by food sales, which saw lfl sales grow 4.7%. Even “wet sales” – sales of drinks – are on the up, and showed lfl growth of 1.5%. Like-for-like sales in the past seven weeks were 3.0% ahead of last year. Operating margin is slightly ahead of last year. At Marston’s Pub Company, the tenanted and leased pubs division, underlying profit trends have continued to improve, with lfl profits estimated to be 0.1% ahead of last year, which compares favourably to the 4% decline in financial year 2010. The company attributed the improvement primarily to the continuing successful rollout of the franchise-style Retail Agreement, which will be operating in around 190 pubs by the halfway stage of the financial year . In addition, the profit performance of the pubs which will remain on traditional agreements for the long-term is ahead of last year. On the brewing side, the Pedigree ale brewer said own-brewed volumes are up 4% on last year in a market where sales are said to be down by around 7%. The surprising growth in popularity of ale among the 20 to 34 years age group has helped boost sales of premium cask ale in the period by 5% while bottled ale sales are up 16%. Net debt and cash flow are in line with the company’s expectations.

Greggs makes record money in 2010 By Lee Wild Date: Wednesday 16 Mar 2011 LONDON (ShareCast) - Sausage roll fans filed into Greggs in record numbers during 2010, pushing profits up almost 8%, and like for like sales growth so far in 2011 is double what it was for all of 2010. The Newcastle-based company, which runs over 1,480 value bakers shops up and down the country, made £52.5m in the 52 weeks to 1 January, a record high and up from £48.8m in 2009. Six million hungry customers a week helped the cheap cakes and sandwiches firm increase sales by 2.1% to £662m and 0.2% on a like for like basis, as flagged in January’s trading update. Chief executive Kennedy McMeikan is aiming for “marginally positive” like-for-like sales growth this year. And everything’s gone as expected so far, with sales for the 10 weeks ended 12 March up 3.8% and 0.4% like for like. An ambitious plan to open at least 600 new shops is on track. Net additions were a record 68 last year – 93 opened and 25 shut - and around 80 net new shops are earmarked for 2011. “The year ahead will continue to be challenging with rising global commodity prices being reflected in significant upward pressure on many of the key ingredient costs of all food producers,” McMeikan says. “However, we expect to continue making Greggs even more efficient and as part of this we are dedicating resources to identify and unlock further cost savings throughout the business.” A final dividend of 12.7p a share takes the total payout to 18.2p, up a satisfying 9.6% on the year.

Obviously not - nor does the market !