Investors Chronicle articles from January 2004

Investors Chronicle archives from January 2004

Wishing and hoping.
January 9, 2004... This is my wish-list for 2004. True, it's a wish-list that won't come to pass, but that's the nature of these things. They are expressions of what should be, not what's likely to be. They are still worth making, though. If only because, by...

Forecast folly.
January 9, 2004... It's the time of year when people make silly and implausible statements. No, not New Year resolutions, but macroeconomic forecasts. Economics is not about macroeconomic forecasting (and forecasting isn't about predicting the future - but that's...

Late delivery.
January 9, 2004... It's January and you probably have those post-Christmas blues. No parties to go to, a strict diet to stick to and an empty wallet in your pocket. But cheer up. It might sound sadistic, but this month you can look forward to seeing one of the...

New deals.
January 9, 2004... Talk about a clean start to the New Year! Managers at the world's biggest conveyor-belt car wash company made themselves GBP30m on Monday, when they sold their British business to an American private equity firm for GBP350m. That same day,...

More than just split milk.
January 9, 2004... Here's a handy little bon mot: "The important thing is not to stop questioning." It's a quote from Albert Einstein. Hilariously, these words are quoted by Grant Thornton at the top of its corporate brochure. Grant Thornton is surely choking on...

Supermarket sweep.
January 9, 2004... To outsiders, the super-market industry seems to have changed little in the past year. William Morrison is still in the process of taking over Safeway, Tesco and Asda are stealing market share from rivals, and J Sainsbury is still lagging....

Next week.
January 9, 2004... Monday 12 January Interims: Pace Micro, Honeycombe Leisure, Photo-Me International Trading statement: J Sainsbury EGMs: Cytomyx Economics: UK CBI quarterly financial services survey, UK December producer prices Despite...

Carpetbagger eyes up Standard Life.
January 9, 2004... Life assurer Standard Life seems set to face a new demutualisation vote, having survived one in 2000. Carpetbagger David Stonebanks, whose bid last year was rejected on a legal technicality, has collected over 1,000 signatures, sufficient...

Contract wins boost iSOFT.
January 9, 2004... Healthcare IT specialist iSOFT has secured another two regional contracts to upgrade the National Health Service's IT systems. The new contract wins mean that three of the four Local Service Provider (LSP) contracts awarded to date will use...

City boost for property sector.
January 9, 2004... Hopes that the City of London office market has finally bottomed-out were bolstered this week when property consultant Jones Lang LaSalle forecast that new lettings in the area would rise by 20 per cent in 2004. West End offices were already...

Jardine Lloyd Thompson gets HCC.
January 9, 2004... Insurance broker Jardine Lloyd Thompson (JLT) has announced that it's buying US broker HCC Employee Benefits for GBP34m. A further GBP14m could be paid in 2005 depending on the unit's profitability this year. HCC specialises in life, accident...

Glittering debut for HHG.
January 9, 2004... Shares in fund management group HHG have made an impressive start since floating just before Christmas. The company raised GBP190m (almost double its initial expectations) in an equity offer at 30p a share in December - its shares are now...

WH Smith's Christmas woe raises sector fears.
January 9, 2004... Following WH Smith's admission that it has suffered a miserable Christmas, the City is bracing itself for a series of retail profit warnings. Matalan, Woolworths and Clinton Cards all could be in trouble. Heavy promotions, such as...

Clothing retailers defy high-street discounting.
January 9, 2004... The UK clothing market is far from dead, according to the first clothing chains to report their Christmas trading. Next's shares rushed to an all-time high of 1,249p as the retailer announced that underlying sales rose by 2.8 per cent in the 20...

Brown & Jackson warns again.
January 9, 2004... Brown & Jackson's shares fell 26 per cent to 66p this week as it released its second profit warning in as many months. The retailer, which owns the Poundstretcher chain, said that underlying sales in December fell by 8.5 per cent. Broker...

Topps Tiles profits from home improvements craze.
January 9, 2004... Topps Tiles continues to flourish - despite consumers spending less money on expensive household items such as carpets. Underlying sales in the past 14 weeks have increased by 16 per cent - an even stronger performance than the company reported...

David Aaron Partnership goes bust.
January 9, 2004... The David Aaron Partnership - one of the country's largest independent financial advisers, with more than 150,000 clients and a team of 50 - has gone into administration. It is believed that the weight of compensation claims relating to...

Invu trades well after Aim float.
January 9, 2004... Despite the pressure of being the first Aim float of 2004, document management software group Invu hasn't disappointed. Having raised GBP3m at 8.5p a share, it is currently trading at 10.5p, valuing the group at GBP9.9m. The money raised...

Smaller companies news round-up.
January 9, 2004... There was plenty of activity in the small-cap oil sector over the Christmas period, and with Opec signalling that oil prices are set to remain high, that pace is unlikely to slacken. Both Hardman Resources and Northern Petroleum signed new...

Banks, media and telecoms set for vintage year.
January 9, 2004... Banks, media, telecoms, electronics, and forestry and paper should be the five best-performing sectors this year, according to investors chronicle's economic models, while the outlook is grim for mining, real estate, construction, personal care...

Aegis upbeat on advertising spending.
January 9, 2004... Media advertising buyer Aegis this week fuelled hopes that 2004 will see a strong recovery in advertising spending with an upbeat trading statement. Management now forecasts that global advertising spend will rise 4.7 per cent in 2004. It...

Skyepharma forecast to lose GBP30m in 2003.
January 9, 2004... Delays in signing licensing deals will cause biotech group Skyepharma - which specialises in improving existing drugs made by others - to make a loss for the 2003 financial year. It is finding it difficult to seal agreements with pharmaceutical...

Marconi sells off us broadband business.
January 9, 2004... Marconi's restructuring gained momentum this week with the disposal of its US broadband business for GBP135m. The price amounts to a respectable 1.15 times forecast sales this year, and around 18 times operating profits. Proceeds from the sale...

New year cheer for momentum investors.
January 9, 2004... It was a great end to 2003 for momentum investors. The 10 best-performing stocks in the FTSE All-Share index during the third quarter have risen by an average of 18 per cent since 30 September. That's almost twice the gain made by the All-Share...

Big Food Group waits on Londis shareholders.
January 9, 2004... Big Food Group is fighting to take over Londis, the convenience store co-operative. If the deal is successful, Big Food would create a group with GBP5.5bn-worth of sales, according to chief executive Bill Grimsey. And adding Londis's 2,000...

Pension reforms will not encourage saving.
January 9, 2004... The Chancellor's proposals to reform the pension regime are well-intentioned, but short-sighted. It is certainly vital to encourage greater long-term saving. According to figures from JP Morgan Fleming, 53 per cent of the UK population can...

Chase de Vere fined over precipice bonds.
January 9, 2004... Chase de Vere, a leading independent financial adviser (IFA), has been fined and reprimanded by the Financial Services Authority for promoting complicated stock market-linked investments without fully explaining the risks involved. Chase de...

FSA plans to shake up with-profits market.
January 9, 2004... The Financial Services Authority (FSA) plans to reform the with-profits market to ensure that policyholders are treated fairly. It has issued proposals that include rules and guidance on payouts, surrender values, market value reductions and...

Retirement income reform bill launched.
January 9, 2004... MP Adrian Flook launched his Retirement Income Reform Bill in the House of Commons this week. The bill aims to reform the law relating to the compulsory purchase of annuities, and is the fourth bill on annuity reform to come before parliament....

Norwich Union to exit pre-funded care products market.
January 9, 2004... Norwich Union is pulling out of the pre-funded long-term care market because of poor demand for the product. This follows the recent departure of PPP Lifetime from the market. Average care home fees are about GBP1,950 a month, but most...

Income drawdown to be simplified.
January 9, 2004... Income drawdown will become simpler and more flexible from April 2005, according to David Holt at The Annuity Bureau. Mr Holt says proposals in the government's Pensions Simplification paper would allow the drawdown of as little as GBP1 a...

Artemis looking for another special showing.
January 9, 2004... Fund name: Artemis UK Special Situations Sector: Equity UK Fund manager's name: Derek Stuart Fund size: GBP306.4m Fund charges: 5.25%, 1.5% annual Three-year total return (to ): 18.5% Sector average: -19% Rank in...

Aiming high.
January 9, 2004... The big winners in last year's financial recovery were the junior markets, specifically the Alternative Investment Market (Aim) and the FTSE Fledgling. Aim offers investors access to exciting, new, growth companies, while the companies listed...

Get a great pension.
January 9, 2004... Until recently, most employees were complacent, believing that their employers would fund their retirement through company pension schemes that offered defined benefits based on your final salary. The model used for these schemes is the...

Beating the gun.
January 9, 2004... "The actual private objective of the most skilled investment today is to 'beat the gun' as the Americans so well express it, to outwit the crowd, and to pass on the bad, or depreciating, half-crown to the other fellow." No more so than in the...

Think bigger.
January 9, 2004... New Year, and my first pension resolution is to think bigger. With hindsight, my individual investments have been too small. I know institutional fund managers routinely manage scores, if not hundreds, of different companies in their equity...

Amberley.
January 9, 2004... Following a disposal programme, Amberley is now left with several properties in Hull, and tax losses of GBP14.6m. The plan is to return the sale proceeds to shareholders.

Eliza Tinsley.
January 9, 2004... The European market has proved difficult, but Tinsley has picked up business in North America. The consumer products division is trading well, and low-cost product sourcing has helped.

Einstein.
January 9, 2004... See interim statement (page 59).

Excel Airways.
January 9, 2004... Despite disruption from the Iraq war, Excel's profits surged. The growing demand for low-cost travel leaves management confident about the outlook.

FSG Security.
January 9, 2004... Traded on Ofex. The group suffered some significant contract losses. As a result, it was forced to cut costs and to reorganise its management team.

Gladstone.
January 9, 2004... A maiden pre-tax profit of GBP183,583 was achieved, following a GBP1.75m loss last year. Software support, which generates "higher-quality earnings", now accounts for 37 per cent of turnover.

FTV.
January 9, 2004... Liquidation of former subsidiary Forecourt Television is expected in the first half of 2004. Reverse takeover opportunities are under examination.

Impax.
January 9, 2004... Higher equity prices resulted in improved revenues from asset management, while Impax's corporate finance activities benefited from sustained revenue growth in the second half.

Ingenta.
January 9, 2004... A drive to boost efficiency has shaved GBP4.9m off annualised costs. Ingenta is now profitable on a monthly basis and the focus is on winning new sales.

Imagestate.
January 9, 2004... Market conditions remained tough and the company cut costs. A new CEO was appointed on 17 November, and there is some indication that business is now picking up.

Leeds.
January 9, 2004... The results at Leeds' leasing arm proved disappointing, due to difficulties in securing new business at good margins. The Hemmers business has traded well, though.

Lo-Q.
January 9, 2004... Due to underperformance at two theme parks, sales did not meet expectations. With its technology now in place at six theme parks, Lo-Q is confident about winning new sales.

Triad.
January 9, 2004... Market conditions remain challenging, but high government spending is going some way to compensate. Margin pressure on the resourcing business continues to bite.

MG Capital.
January 9, 2004... MG was involved in the establishment of the New Opportunities Investment Trust during the period. It suffered badly during the equity sell-off, and will now be converted into a realisation fund.

Netcentric.
January 9, 2004... Having completed a restructuring, with virtually all assets now disposed of, Netcentric now plans to seek a reverse takeover candidate.

Online Travel.
January 9, 2004... Online suffered a weak trading environment last summer, but trading has picked up considerably since then. A deal with Thomas Cook should boost revenues in 2004.

Personal Screening.
January 9, 2004... Traded on Ofex. Personal says that the broad range of its activities ensures stability. Losses remain, but it has raised funds through a placing and open offer that has not yet closed.

RAFT.
January 9, 2004... Raft won significant new business over a period that saw losses halve. Margins leapt as cost controls took effect, and there's still GBP2.2m in the bank.

Resurge.
January 9, 2004... Resurge continues to seek opportunities to provide finance to distressed businesses. Recent deals include a GBP12.9m term facility for the acquisition of estate agent Chesterton.

SWP.
January 9, 2004... The core division, Fullflow, is involved in rainwater management. It has worked hard to chase new sales, but so far progress has lagged expectations. A cash injection is required.

Talent.
January 9, 2004... Progress in building management and development teams, in addition to new commissions, were offset by delays to a key programme and a major office relocation.

Tecteon.
January 9, 2004... Tecteon is in the process of establishing a worldwide marketing network. A small order has been received from Korea and a big Scandinavian telecoms company is undertaking tests.

United Clearing.
January 9, 2004... Traded on Ofex. The group continues to secure deals with operators worldwide, including more blue-chip operators, to provide financial clearing and settlement services.

Vega.
January 9, 2004... Orders now stand at GBP41.7m. Vega is working on projects relating to the F-16 for the Dutch and Norwegian air forces, as well as with Alvis. The consulting arm has grown strongly.

Wren Homes.
January 9, 2004... Traded on Ofex. Disappointing results from Wren due to a shift in accounting policies. The focus is still on buying land under option and market conditions have held up well.

BAGGERIDGE BRICK (BGBK).
January 9, 2004... The UK's fourth-largest brick manufacturer reported a strong improvement in profitability for the full year, buoyed by demand from housebuilders and an exceptionally dry autumn, which allowed building activity to continue longer than normal....

BRITISH ENERGY (BGY).
January 9, 2004... The crisis at British Energy continues. An extended power-station shutdown prompted another profit warning and a fresh liquidity crisis. This has meant that the government has had to step in and increase its GBP200m loan by GBP75m. However,...

CARNIVAL (CCL).
January 9, 2004... The smell of recovery is in the sea air. In recent weeks, bookings for Carnival cruises have been running 33 per cent above last year's levels, even though the company is charging higher prices. Investors are now expecting a big surge in the...

TEATHER & GREENWOOD (TEG).
January 9, 2004... Teather & Greenwood produced a blast from the past by appointing Lord Baker, the former education secretary and home secretary, as its chairman from next April. And the board will be hoping that he can help to restore the stockbroker to its...

LONDON CLUBS INTERNATIONAL (LCI).
January 9, 2004... London Clubs International (LCI) has rediscovered winning ways. Business is booming across its 11 casinos here and overseas. And thanks to a pending deal with lenders relating to its substantial debts, the company's immediate future is looking...

NEWMEDIA SPARK (NMS).
January 9, 2004... NewMedia SPARK finally looks set to get its hands on some of the E60m (GBP42m) of cash held at its defunct German subsidiary, Spuetz. During the past six months, NewMedia has been bombarded by a barrage of spurious legal actions from rogue...

CHERWELL CAPITAL.
January 9, 2004... Cherwell has completed its exit from marine insurance services and will now concentrate on being an incubator fund, taking small stakes in university spin-offs. Last year, it looked at more than 250 biotech projects, but rejected almost all of...

CONSTELLATION (CST).
January 9, 2004... Constellation reports a significant increase in demand for top executives. It reckons that demand in the UK is stronger than in the US - and certainly Europe. Constellation is a general practice concentrating on boardroom appointments. It...

PEEL (PEEL).
January 9, 2004... In a year's time, International Accounting Standards (IAS) will start to have a major impact on annual accounts. A good example of the adverse effects of IAS on property companies is Peel Holdings, owner of the Trafford shopping centre in...

Wiggins.
January 9, 2004... Wiggins raised GBP46.3m from December's placing and open offer. Operating losses in the first half totalled GBP8.3m, compared with a profit of GBP8m in the first half of the previous year.

LONDON FINANCE & INVESTMENT (LFI).
January 9, 2004... London Finance has a 40 per cent stake in fellow investment company Western Selection, plus a portfolio of blue-chip shares overweight in banking, insurance, food and consumer goods. It has two direct holdings: 24 per cent of ambient cake maker...

ST HELEN'S CAPITAL.
January 9, 2004... Aussie serial investor Bruce Rowan is cleaning up. After taking major stakes in scores of UK mining minnows, he may soon be a significant investor in one of St Helen's next Ofex flotations, cleaning services company Chores Group. St Helen's...

HARDY AMIES.
January 9, 2004... Hardy Amies is the new name for Luxury Brands. This change follows a deal with Singapore-listed Aussino and its chairman, Mr Anthony Lim, who are subscribing GBP743,000 (or 6p a share) for 29 per cent of the enlarged equity. Mr Lim will become...

ID DATA (IDD).
January 9, 2004... ID-Data is the seventh-largest smart-card manufacturer in the world. It has won some big contracts, including the Nectar store card and some 12m cards for the Post Office Counters Account. But smart-card prices are falling, so ID-Data also has...

OXUS GOLD (OXS).
January 9, 2004... Oxus Gold's shares have soared since hitting a low of 4.25p in early November 2002. That was shortly after the company lost its mining licence for the two-thirds-owned Jerooy gold deposit in Kyrgyzstan, and after it failed to raise its share of...

HONEYCOMBE Leisure (HCL).
January 9, 2004... Last February, Honeycombe sold 12 freehold pubs to Punch Taverns for GBP11.72m. Partly as a result, 2002-03 results included a GBP1.86m property gain (a GBP276,000 loss in 2002). Under the agreement with Punch Taverns, Honeycombe will continue...

SAFELAND (SAF).
January 9, 2004... As a property trader, Safeland's profits are likely to be up one year - as in 2002-03 - and well down in another - almost certainly in the current 12 months, following recent interims. Last year, profits of nearly GBP2.5m (GBP570,000 in the...

AVANTI CAPITAL (AVA).
January 9, 2004... Avanti is the result of the merger of two internet businesses. It has held on to its cash for a long time but, in August last year, made its biggest investment to date with the acquisition of Po Na Na's 28 student bars and nightclubs from the...

ARGYLL.
January 9, 2004... Argyll is not sure that the advertising/ public relations market is on the up: it says that clients are currently asking 12 to 15 agencies to pitch for business against three or four in the past. But it reckons that its own brand of PR - the...

YORKSHIRE GROUP (YOR).
January 9, 2004... Yorkshire's problem is that it's not in the right places. All its dye-making plants are in the developed west (Leeds, northern France and North Carolina), where local demand has fallen sharply and is expected to decline further. Most of the...

World Trade Systems.
January 9, 2004... Discussions with investors in Hong Kong and Japan continue. Talks are also under way in London and Europe, but a deal has yet to be completed.

BRITANNIA FINANCE.
January 9, 2004... Britannia's share price has trebled (from 10p) since June as more investors appreciate the profit potential of providing motor finance to drivers who don't qualify on the normal lender point-scoring system. The rate of interest charged is...

IWP INTERNATIONAL (IWP).
January 9, 2004... In September 2002, IWP sold its household products division, which includes Jeyes fluids and Bloo Loo toilet cleaner, for E102.2m cash, plus a E33m deep discounted bond. The effect of this and other restructuring measures on 2002-03 figures was...