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Ian Pollard – Finsbury Foods #FIF accelerates reshaping of Asset footprint !!

Finsbury Food FIF Once you read that the group has done well in accelerating the  reshaping of its asset footprint during the year to the 30th June, you know that it has had problems. Meaningless jargon is always a sign of a management lost for words even if it does manage to claim that its performance has been resilient. In fact so resilient that sales, taking into account closed businesses, declined by 3.4% and even the 50% owned European business saw a drop of 0.7%. On a like for like basis group sales rose by 2.4% and FIF is confident that it will deliver profits in line with expectation. The trading environment was very challenging with unprecedented commodity and labour inflation.

Inland Homes INL updates that growth in both revenues and homes delivered and under construction was strong during the year to the 30th June. Good quality also helped customer demand to remain strong, as did an average affordable selling price of 293,000 per unit. Open market completions rose by 46.3% and revenue by 66.7% but as for the future there seems to be a cloud on the horizon, with forward sales as at the trading update down by 23.1%

Plant Health Care PHC Is on track to achieve full year revenue expectations, which would represent 30% growth over 2017. In Brazil, Harpin αβ was launched in February 2018 for use on sugarcane  and demonstration field trials showed an average yield increase of over 20% whilst n the USA, an agreement has been reached which will give Harpin αβ access to the large corn seed treatment market.  First sales will be in the second half of 2018. The planted area of corn has now reached 90 million acres and significant growth is expected thereafter.

TP Group TPG claims it has made a strong start to 2018 with the completion of a number of major contracts during the half yer to the 30th June. A new manufacturing facility in Manchester has also been completed and it continues to be active in the acquisition field.

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Greggs – Strong Rise in Like For Like Sales

Greggs GRG Third quarter sales grew by 8.6% over the 13 weeks to the 30th September. On a like for like basis the rise was 3.9%. For the year to date, like for like sales in company managed shops were up by 5% compared to 2.8% in 2016. So far in the current year 98 new shops have been opened and 32 closed with a total of 1830 trading at the quarter end. Recent trading has benefited from greater product availability and service.

Ferguson FERG enjoyed another good year in the 12 months to 31st July, with profit before tax nearly doubling from £675m. to £1180m. and the final dividend increased to 73p. making a total for the year of 110p, a rise of 10%. In addition a 500m share buy back program is announced which is expected to be completed over the next 12 months. Annual revenue rose by 22.5% or 6% on a like for like basis, whilst headline earnings per share rose by 6.8% at constant exchange rates. Momentum is expected to continue over the coming year.

Electrocomponents plc ECM expects first half headline profit before tax to rise to 78m. compared to last years 55m. The good trading seen in the first quarter has continued into the second quarter, with stronger than expected progress leading to faster revenue growth and gains in market share,  in all five regions. Group revenue for the quarter rose by 14%.

AB Dynamics ABDP expects revenue and profit before tax for the year to 31st August will be slightly ahead of analysts forecasts, with significant year on year growth in underlying revenue and profit before tax.

Inland Homes INL will today start a share back program of up to 1 million 10p ordinary shares, to be completed by 31st December 2017.

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Daily Actions – UK Main & AIM markets 08042016

IntellisysLogoDaily Actions is a daily summary analysis of changes in short term actions from our Daily Recs – AIM and Daily Recs Main markets reports. This report is typically distributed before the open of trading in London

AIM Market

ST Rec. changed
From To
Basic Resources    
Amur Minerals Corporation Buy Neutral
Arian Silver Neutral Buy
Centamin Neutral Sell
Connemara Mining Company Buy Neutral
Karelian Diamond Resources Buy Neutral
Clontarf Energy Buy Neutral
Financial Services    
Fairpoint Group Buy Neutral
Inland Homes Neutral Buy
Mirland Development Corporation Buy Neutral
Tiziana Life Sciences Buy Neutral
Health Care    
Cyprotex Buy Neutral
Taihua Buy Neutral
Industrial Good & Services    
Accsys Technologies Neutral Buy
Hargreaves Services Buy Neutral
Media    
International Greetings Buy Neutral
Mirada Neutral Buy
Oil & Gas – Explorers    
Tower Resources Buy Strong Buy
Oil & Gas – Producers    
Frontera Resources Neutral Buy
Infrastrata Neutral Buy
Retail    
Stanley Gibbons Group Buy Neutral
Technology    
NetDimensions Holdings Neutral Sell
ProActis Holdings Sell Neutral
Telecommunications    
MXC Capital Buy Neutral

Main Market

ST Rec. changed
From To
Banks    
Barclays Neutral Buy
Building Materials & Fittings    
CRH Neutral Sell
Food Producers & Processors    
Cranswick Neutral Sell
Unilever (UK) Neutral Sell
General Retail    
French Connection Group Sell Neutral
Leisure & Hotels    
Intercontinental Hotels Group Sell Neutral
Restaurant Group Buy Neutral
Media & Entertainment    
WPP Sell Neutral
Software & Computer Services    
Micro Focus International Neutral Sell
Speciality & Other Finance    
Charles Taylor Sell Neutral
Rathbone Brothers Neutral Buy

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