Investors Chronicle articles from December 2003

Investors Chronicle archives from December 2003

Wrong number.
December 5, 2003... "Despicable." That was the trade union response as Norwich Union cut 2,500 jobs here in the UK this week, and transferred the work to offices in India. In consultants' jargon, it's called 'offshoring'. Norwich Union is just the latest large...

Not me, Guv.
December 5, 2003... Not many Dutch companies make it into this column. But recently, the chairman of one of Holland's biggest and brightest blue-chips, Ahold - a $50bn-a-year food retailer - drew the curtains on a fantastic episode of incompetence in a way so...

The ascent of Man.
December 5, 2003... Hedge fund manager Man Group must be among the most impressive success stories of recent years. Despite an economic slowdown, and the worst equity bear market since the 1970s, this company has risen to FTSE 100 prominence - from near obscurity...

Pre-budget yawn.
December 5, 2003... There'll be even less activity than usual in the City next Wednesday - because most people will be listening to the Chancellor's pre-budget statement. This just might contain something important. It's possible he will announce tax rises to...

Seeking stability.
December 5, 2003... Rarely can so many column inches have been devoted to an event that's had such a limited effect. The euro's stability pact was put through the shredder and chucked out with the trash last week. But the world has still carried on as normal. ...

Next week.
December 5, 2003... MONDAY 8 DECEMBER Interims: Carclo, Faupel Trading, Heath (Samuel) & Sons, International Greetings, Mitie, Savoy Asset Management, Total Systems Finals: i-documentsystems, Medisys, SCI Entertainment, Treatt Economics: UK November...

Slowdown hits Austin Reed.
December 5, 2003... Austin Reed has become the latest casualty of the high-street slowdown. The clothing store group says that recent poor sales mean profits will be hit hard. Consumers are failing to buy winter clothes, and House of Fraser, Next and Marks &...

Bid tabled for Derwent Valley.
December 5, 2003... REIT Asset Management, the investment vehicle of property magnate Leo Noe, has tabled a cash bid of 800p a share for West-end office specialist Derwent Valley. The bid is conditional on limited due diligence, which REIT Asset Management...

Lifeline to recovery.
December 5, 2003... As Christmas approaches, it's time for the financial community to get out the crystal ball and start making predictions for 2004. Over the next few weeks, there will be the usual array of forecasts, ranging from the euphorically bullish to the...

Muted response to new RMC boss.
December 5, 2003... Construction analysts were somewhat underwhelmed by the choice of David Munro to take over as chief executive of RMC, the ready-mixed concrete group. There was general disappointment at the company's failure to attract a higher-profile...

Kier on solid ground.
December 5, 2003... Contractor and housebuilder Kier issued an upbeat trading statement this week. The group said that the year-to-date performance is in line with expectations and its order books are "at healthy levels". The company says that the commercial...

Celltech pulls out of Pfizer deal.
December 5, 2003... Celltech has pulled out of its lucrative collaboration with Pfizer after failing to agree new commercial terms. The two were developing CDP 870, an antibody therapy for rheumatoid arthritis and Crohn's disease. Pfizer inherited the project...

Cash holdings cloud equity outlook.
December 5, 2003... The outlook for equities is deteriorating, because fund managers' cash holdings are falling. Figures released this week by the Bank of England show that non-bank financial institutions' cash holdings fell by GBP1.2bn in October. This means they...

Keller to sell Makers.
December 5, 2003... After announcing its second profit warning in less than six months, construction group Keller has finally given up on its social housing refurbishment business, Makers. The operation is for sale and City analysts reckon it could fetch...

Informa pays handsomely for PJB.
December 5, 2003... Informa has splashed out GBP120m on pharmaceutical publishing company PJB Publications, in a deal that will test its reputation for making successful acquisitions. Like Taylor & Francis' GBP82m acquisition of Dekker last month, at first glance...

Burren set for London listing.
December 5, 2003... Burren Energy, an oil exploration and production company with interests in Turkmenistan and the Congo (Brazzaville), plans to list in London within the next couple of weeks. No price has yet been fixed, but the market capitalisation is expected...

GSK unveils heart and cancer targets.
December 5, 2003... After months of build-up, GlaxoSmithKline (GSK) finally held its research and development (R&D) day this week - the first time the pharmaceutical giant has showcased its development pipeline since the merger that created it in 2000. GSK has...

Peerless to take charge of Alliance.
December 5, 2003... Peerless Technology, the acquisition vehicle set up in 2001 by Intechnology chairman and Freeserve founder, Peter Wilkinson, has finally found a company to invest in. It will acquire Alliance Pharmaceuticals in a cash-and-shares deal, which...

Vista opens up placing plans.
December 5, 2003... PVC doors manufacturer Vista has unveiled plans to join Aim, becoming the only pure-play listed business of its kind. Vista was acquired last month by newly-formed shell company Readymatch for GBP4m. An offer for subscription has already raised...

Euro laws set to spark Mercury.
December 5, 2003... Mercury Recycling is set to benefit from European legislation that should force the controlled disposal and recycling of fluorescent tubes. Ahead of plans laid down by The European Waste Electrical and Electronic (WEEE) directive that will come...

City Lofts extends to Aim listing.
December 5, 2003... Given the importance of location, property developer City Lofts Group has decided to move onto Aim. It hopes to raise GBP13.5m to accelerate its development programme, and will be valued at around GBP50m when it joins the junior market. ...

Vedanta set to float.
December 5, 2003... Shares in Indian metals group Vedanta start unconditional trading next week after an apparently well-subscribed institutional placing. Vedanta has timed it nicely, with base metal prices booming and sentiment towards fast-growing markets...

Daylight for McLeod Russel shareholders.
December 5, 2003... Long-suffering investors in McLeod Russel finally have an escape route from the beleaguered filtration group, thanks to a recommended GBP15.1m offer from SPX Corporation. McLeod Russel, currently loss-making, has disappointed for some...

How I made GBP2.4m.
December 5, 2003... It's probably only incidentally relevant to this tale, but Pieter Totte's introduction to quoted UK plc nicely embodied both the high and low points of the game. In late 1980s, he was persuaded out of self-employment into Parkfield - a go-go...

Serial directors.
December 5, 2003... Most of us struggle to meet the demands of one job and would laugh at the idea of doubling or tripling our workloads. But directors, it seems, are different. The City is rife with serial directors who just can't seem to pack enough work into...

Savills issues bullish update.
December 5, 2003... Savills' shares hit a five-year high of 299p after the property consultancy said that full-year profits would "materially exceed current market expectations." Management said that, after a slow start to the year, the performance of...

US lawyers target alcoholic drinks companies.
December 5, 2003... First it was tobacco, then fast-food. Now America's lawyers are turning their attention to the alcohol industry. A firm of attorneys is launching legal action against a number of leading spirits and beer makers, alleging that they have...

Rank hit by falling dollar.
December 5, 2003... The fall in the US dollar is causing a headache for management at gambling operator Rank. The group makes about half of its profits in the US, largely through its Deluxe film-processing business and the Hard Rock Cafe chain. These two...

SEC slaps Invesco with fraud charge.
December 5, 2003... Fund manager Amvescap hit back strongly this week after Invesco, one of its US subsidiaries, was charged with fraud by the Securities and Exchange Commission (SEC). The SEC alleges that Invesco breached the policies outlined in its funds'...

Rentokil stumbles after poor trading.
December 5, 2003... A lacklustre trading update from Rentokil sent its shares tumbling by 7 per cent to 206p. Rentokil's hygiene business, which rents out equipment for lavatories, was particularly disappointing, with turnover up just 1.8 per cent on last year....

Intertek warns on profits.
December 5, 2003... Intertek, the product testing and certification business, has warned investors that this year's operating profits will be below last year's levels. The weak dollar is partly to blame, but profit margins also appear to be shrinking. Work for...

Barclays raises interest rate fears.
December 5, 2003... Barclays had pleasing news to report with its trading statement earlier this week. Management expects the full-year profit to be "somewhat better" than last year's GBP3.7bn, while group bad debt provisions are down. But Barclays' top team...

ScS owns up to head-office mistake.
December 5, 2003... ScS Upholstery's shares rallied sharply this week after the furniture retailer explained why pre-tax profits fell last year from GBP9.75m to GBP8.57m. Up until last week, when the company issued a profit warning, analysts expected profits of...

VAT on investment trusts is unfair.
December 5, 2003... investors chronicle supports the campaign by the Association of Investment Trust Companies (AITC) to force the Treasury to scrap its unfair policy of charging value-added tax (VAT) on investment trusts' annual management charges. VAT does...

Gold breaks $400 mark.
December 5, 2003... The gold price broke through the $400 (per troy ounce) mark last week for the first time since March 1996, reflecting its role as a portfolio diversification tool. The gold price has risen since hitting a low of $252 in August 1999, as demand...

Gold Bullion to list.
December 5, 2003... Gold investors can now invest in bullion without having to take physical delivery of gold, or worry about insurance and storage, by buying shares in Gold Bullion Securities, which plans to list on the London market this month. Simon...

St James Place fined.
December 5, 2003... Wealth manager St James Place Group has been fined GBP250,000 by the Financial Services Authority for serious monitoring and record-keeping inadequacies. The regulator said it was concerned that investors may have been sold investments that may...

Trust purchases wane.
December 5, 2003... Investment trust savings scheme purchases fell in the third quarter of 2003 to GBP48.7m, down from GBP50.5m in the previous quarter. The global growth sector accounted for 55 per cent of purchases, and UK growth for just under 8 per cent.

No taxed abode?
December 5, 2003... When you sell your home you do not usually run up a capital gains tax (CGT) bill. This is because private houses attract tax relief, known as principle private residence (PPR) relief. If you live or have lived in the house you are selling, you...

The world at your fingertips.
December 5, 2003... Electronic exchanges, together with the internet, have paved the way for a powerful new breed of software that can not only chart and generate buy and sell signals according to formulae that investors input, but also execute these trades...

Commercial interest.
December 5, 2003... Investing in commercial property is an excellent way to diversify your portfolio. And it should also provide you with a good income stream over the medium term. According to the Investment Property Databank, industrial premises are...

My DIY pension.
December 5, 2003... When writing about the dramatic toppling of Michael Green at Carlton Communications last month, I automatically took a close interest in Anthony Bolton, the fund manager who wielded the dagger. Most of the reporting inevitably focused on the...

Abbeycrest.
December 5, 2003... Although these results show an improvement, Abbeycrest continues to struggle. A return to profitability is expected by the year-end, but results will fall behind expectations.

Merrydown.
December 5, 2003... The Shloer brand continues to power ahead - it now accounts for 70 per cent of sales. Merrydown has also reported a slight recovery in cider sales. Christmas trading is looking good.

MS International.
December 5, 2003... Market conditions remain subdued for MS. Almost a million shares were acquired for cancellation during the year.

Syltone.
December 5, 2003... Manufacturer Gardner Denver has offered 185p a share for Syltone, valuing it at GBP47.2m. Restructuring in 2001 boosted the group's prospects and recent trading has been good.

Tex.
December 5, 2003... Progress has been reported across all divisions. Tex expects second-half results to be ahead of the comparative period.

Walker, Crips, Weddle, Beck.
December 5, 2003... A lower cost base helped the group move into the black. It should benefit further as world economies recover.

XKO.
December 5, 2003... A swing into the red is due to exceptional charges relating to a recent acquisition. But demand has picked up, particularly in professional services.

Wilshaw.
December 5, 2003... Sales of Alnico magnets were weak as demand has fallen. Soft magnets are performing well, though, and a move to Aim is planned.

DOWDING & MILLS.
December 5, 2003... Market conditions continued to deteriorate and the group focused on reorganising and restructuring its business. Dowding is still reliant on economic recovery.

GET.
December 5, 2003... These are record results for GET, thanks to a broader product base and new customers. Margins have held up and current trading is good.

Intelek.
December 5, 2003... A further push into the satellite communications market has helped profits recover at Intelek. Its largest division, Paradise, has done particularly well, and net debt has fallen.

Braemar Seascope.
December 5, 2003... Braemar suffered due to a drop in the US dollar against the pound, but the company continues to benefit from internal hedging. It has also extended its geographical reach.

Air Music & Media.
December 5, 2003... Acquisitions have helped boost results at Air Music. Having recently secured GBP2m by way of two placings, the plan is to seek further deals. Indications for Christmas are good.

Northern Venture Trust.
December 5, 2003... While the level of new investment was low in comparison with previous years, there has been an upturn in the number of sale opportunities - helping the group pay a capital dividend.

Angus & Ross.
December 5, 2003... This was a period of consolidation and change - the group expanded from one large tantalum project in Greenland to a broad spread of other mineral licenses in Australia, Brazil and Canada.

Avocet Mining.
December 5, 2003... Avocet's switch into gold from tungsten looks ever more prescient - the gold price continues to rise as local costs remain steady. It expects to increase the amount of gold produced.

Caffyns.
December 5, 2003... The comparative period includes a GBP2.3m exceptional gain. Caffyns acquired an Audi dealership in Eastbourne in July. The first quarter was slower than expected.

Bits Corp.
December 5, 2003... Bits' cash position is now much more healthy as a result of the successful completion of Rogue Ops and Die Hard: Vendetta. The group continues to work on other development opportunities.

Connaught.
December 5, 2003... Connaught continues to benefit from its leading position in the social housing market which, in turn, continues to benefit from the government's Decent Home Standard.

Clan Homes.
December 5, 2003... The sales programme continues and the chairman has agreed to acquire any remaining properties. New investors have bought in at 100p a share and Clan is now looking for an acquisition.

CybIT.
December 5, 2003... CybIT turned in a maiden profit. It now has 450 customers, and is also earning revenues from consulting work. A recent fund-raising means it can continue investing in the business.

City of London.
December 5, 2003... The group sold its e-mail archiving arm, after the sale of a large stake in the business by chairman John Greenhalgh. A GBP1.3m write-down took the shine off the recovery in the investment portfolio.

Iomart.
December 5, 2003... The webservices business continues to grow and further acquisitions can be expected. The group plans to focus on gaining visibility and credibility for its NetIntelligence product.

Sutton Harbour.
December 5, 2003... The costs of setting up Air Southwest dented results for Sutton. Demand is strong and a new Plymouth to Manchester route is planned.

Wynnstay Properties.
December 5, 2003... Profits for the first half, before property disposals, showed an increase from GBP316,000 to GBP322,000. Last year's results included a surplus of GBP101,000 on the disposal of an investment property.

Genus.
December 5, 2003... The late selling season has hampered results at Genus, but a stronger second half is expected. The market has been depressed, but is now recovering.

Charlton Athletic.
December 5, 2003... Increased television receipts and the team's impressive performance ensured that revenues grew by a record amount. This season has also started well for the club.

Educational Development.
December 5, 2003... Formerly Goal. Following an acquisition last December, the restructuring exercise is almost complete and should yield annual cost savings of GBP1.2m. The group has GBP1.3m cash in the bank.

European Diamonds.
December 5, 2003... Equity fund-raisings helped European Diamonds keep its star geologist in business on the project in Finland. But no kimberlite pipes have yet been found.

Mezzanine.
December 5, 2003... The focus is still on the Smollenskys brand. Debt is high at GBP16m and Mezzanine has decided to delist its shares from Aim in an attempt to cut costs.

Highams Systems.
December 5, 2003... The group has agreed the sale of Highams Business Solutions to Surecomp for GBP910,000 so that it can focus on its recruitment activities. The sale proceeds will facilitate investment.

Eurocopy.
December 5, 2003... Although hardware sales were lower than in the previous year, operating profits were up. Contracted service revenues will help underpin future growth.

Gaming Corporation.
December 5, 2003... The group's core business, play.casino.co.uk, has performed ahead of expectations since its launch last December. A recent GBP500,000 fund-raising will augment acquisitions.

Thirdforce.
December 5, 2003... Thirdforce has licensed its LCD technology business and acquired an e-learning business. Having repositioned itself, the group will focus on providing high-quality e-learning products.

Numerica.
December 5, 2003... Numerica continued to focus on creating a fully integrated business services group, and completed its ninth acquisition during the period. Steps have been taken to reduce its cost base.

CORAL PRODUCTS (CRU).
December 5, 2003... IN October, the EU imposed duty on the import of CD cases from the Far East. That's good news for Coral, which had virtually given up producing plastic houseware for supermarkets because of overseas competition. It has already picked up one...

INTELLEXIS (ILX).
December 5, 2003... The appointment of Ken Scott as Intellexis's chief executive in June 2002 seems to be working out well. Last year, the company recorded impressive annualised sales growth and the loss included a write-off of capitalised development costs....

JOHN SWAN & SONS (SWJ).
December 5, 2003... Demutualisation loser Ken Murray built up a 10 per cent stake in John Swan in 2002, but sold out earlier this year when the board pushed through January's purchase of the Wooler mart near Berwick for GBP1.25m. The fact that the working...

LAWRENCE (LAC).
December 5, 2003... Reorganisation at Lawrence seems to be on track, with the demerger of its most profitable business - pet accessories subsidiary Interpet - expected "soon". According to company broker Charles Stanley, Interpet contributes profits of GBP2.5m a...

HALLADALE (HDG).
December 5, 2003... Are times looking up for the depressed M4-corridor property market? Halladale has just bought a low-tech office building for GBP3.18m in Swindon, let to Allied Dunbar as a call centre. The net yield is 16 per cent, with a break clause in 2007....

BASE GROUP (BS.).
December 5, 2003... In September, director Leon Angel resigned in order to buy out the group's football interests. This process is now complete. Base represented such football stars as Liverpool's Harry Kewell and Tottenham's Darren Anderton. But the days of...

INT. GREETINGS (IGR).
December 5, 2003... The dramatic news at International Greetings (IG) is not last year's profits - they were not much higher than 2000-01's figure, after all - but a turnaround from 41 per cent gearing to net year-end cash of GBP3.65m. Behind that change was a...