Investors Chronicle articles from July 2004

Investors Chronicle archives from July 2004

Spendthrift Uncle Sam.
July 2, 2004... When the Korean economy fell off a cliff in 1997, it was not devoid of virtues. Three decades of growth had made it the 12th largest economy in the world, ahead of India, Holland and Switzerland. However, its current account deficit was 4 per...

Motoring ahead.
July 2, 2004... I am currently in the market for a new car. Unfortunately, I don't want to be in the market for a new car. Not that I don't like cars, I do. But the thing is, I had a car, and one that I was very happy with. Sadly, someone liked my sporty...

Alpha minus beta.
July 2, 2004... Everyone thinks that they are above-average. Every testosterone-fuelled male thinks he is an above-average driver. Every anxious and ambitious middle-class parent thinks his or her child has above-average intelligence. By the same token,...

Steer clear of cyclicals.
July 2, 2004... By the time you read this, the chances are that the Federal Reserve will have raised US interest rates for the first time in four years. In itself, this shouldn't be big news. It has been well flagged in advance and, as far back as last...

Rose's thorns.
July 2, 2004... Whatever you think about his share buying, and whatever conclusions the Financial Services Authority (FSA) comes to about it, you have to admit that Stuart Rose is no shrinking violet. On Monday morning, after a media frenzy over the watchdog's...

Cash machines.
July 2, 2004... Investors have been well served by the UK's listed banks. Against the background of a fairly benign economic environment - characterised by low interest rates, low levels of unemployment and one of the best economic growth rates in Europe -...

Next week.
July 2, 2004... Monday 5 July AGMs: Baltimore Technologies EGMs: Baltimore Technologies Economics: UK CBI service sector survey Tuesday 6 July Interims: Alphameric Finals: Halladale, Northgate, Vega Economics: UK May industrial...

Cabinet contract crisis crumples ITNET.
July 2, 2004... Shares in ITNET crashed by 36 per cent, to 181p, this week after the IT consultancy revealed that a five-year contract with the Cabinet Office worth GBP83m had been cancelled. The Cabinet Office says that the none of the services under the...

Forecast upgrade boosts CSR.
July 2, 2004... Cambridge Silicon Radio (CSR) ensured its shares continued their extraordinary progress last week, with another impressive trading statement. Shares in the company, which sells 'bluetooth' wireless communications technology, have risen 60 per...

Laing eyes GBP300m of new projects.
July 2, 2004... Laing, the private finance initiative (PFI) investment group, has announced a joint venture with Commonwealth Bank of Australia to bid for up to GBP300m of new projects within five years. The joint venture will look at UK hospitals and European...

Wyevale's wet weather woe.
July 2, 2004... Wet weather has once again rained on Wyevale Garden Centre's parade. The UK's largest plant retailer said that profits in the first half would be at least GBP15.7m, compared with GBP17.5m this time last year, as heavy rain in March and in the...

Mowlem hit by labour shortages down under.
July 2, 2004... The booming Australian building industry is making life hard for construction firm Mowlem. Labour is difficult to come by at the moment - particularly in the finishing trades - and that has pushed up costs. It has also delayed the completion of...

Margin warning rocks Filtronic shares.
July 2, 2004... Shares in Filtronic have taken another battering after the company warned of lower margins at its handset aerials business, high capital expenditure and development costs, and lowered sales expectations for its infrastructure arm. Broker...

Nord Anglia sells off schools business.
July 2, 2004... Nord Anglia, the education group, has disposed of its UK schools business, completing its restructuring programme. The sale raised GBP11.9m, in line with market expectations, and helps fund the two nursery acquisitions it has made this year....

Vernalis receives boost from Biogen.
July 2, 2004... Vernalis' shares were given a lift after the UK biotech signed a licensing deal - potentially worth $100m - with Biogen Idec for Parkinson's disease product, V2006. US-based Biogen is paying $10m for the rights to V2006, currently in Phase I...

Aim set to lose its Peel.
July 2, 2004... The Alternative Investment Market was dealt a blow earlier this week with news that property giant Peel Holdings is to go private. As the largest constituent of the index, the planned exit will leave First Calgary as the leading light on the...

Price review lacks spark.
July 2, 2004... The electricity industry now faces a clearer outlook after Ofgem, the industry regulator, released its initial proposals for electricity distribution pricing between 2005 and 2010. A final determination will be made in November. The price...

UK small-caps target Falklands.
July 2, 2004... UK-listed small-caps have been making most of the running recently in the latest moves to develop the resources of the Falkland Islands. Fully listed mini-conglomerate Falkland Island Holdings (FIH), and Aim-listed hedge fund RAB Capital, have...

Berkeley Homes quits traditional housebuilding.
July 2, 2004... Berkeley Homes' decision this week to exit the traditional housebuilding business has sent shockwaves through the City. Managing director Tony Pidgley has an enviable track record in calling the housing market. In 1988, as house prices were...

Berkeley's banker.
July 2, 2004... Companies are always harping on about their efforts to realise shareholder value, but few have gone as far as Berkeley - it is returning GBP1.4bn, or GBP12 a share, to shareholders over the next six years. That's equivalent to the market...

Singer & Friedlander snaps up Wintrust.
July 2, 2004... The identity of the mystery bidder for property lender Wintrust was unveiled this week as private bank Singer & Friedlander. Singer is offering 520p cash per share, valuing Wintrust at GBP53.3m. It represents 1.26 times net assets, or 15.2...

Hamworthy ready to grow via expansion.
July 2, 2004... Aim-hopeful Hamworthy already has an impressive portfolio of fluids technology, as well as a solid client base, underpinning its GBP98m-strong order book. And now it expects to grow both organically and via acquisition as it takes advantage of...

French Connection founder sells GBP39m of shares.
July 2, 2004... French Connection's shares slipped 4 per cent to 442p after the founder and chairman Stephen Marks placed up to 9m (about GBP39m-worth) of shares. It is widely believed that the sale is to fund his divorce, though the company would only say it...

Body Shop warns on profits.
July 2, 2004... Body Shop has warned that first-half profits will not match last year's, because of unfavourable exchange rates, and a slowdown in wholesale sales to franchisees. It also admits that underlying sales in the UK fell by 7 per cent in the first...

Somerfield chairman splits jobs.
July 2, 2004... Somerfield's executive chairman, John von Spreckelsen, is moving to a part-time role, finally splitting the roles of chief executive and chairman. Steve Back, the finance director, will take over as chief executive in September. "When I took on...

Zambezi takes a shine to southern Zambia.
July 2, 2004... The recent run on base metals prices has caused activity levels on the Zambian Copper Belt, along the border with Congo, to increase sharply. What is less well-known is that much of the rest of the country is has good prospects, too, as Aim...

Virgin mobile set for float.
July 2, 2004... Virgin Mobile plans to list on the London Stock Exchange via an institutional placing, within a month. If the mooted valuation of GBP1.1bn is achieved, it would be the biggest UK flotation this year. Virgin offers investors a different...

News round-up.
July 2, 2004... A new way of calculating debt should reduce the discounts on a number of investment trusts. Investment trusts' debt will be measured at fair value - the cost of repayment now, rather than at maturity - from 30 June. According to the Association...

Keep a close eye on changes to funds.
July 2, 2004... Changes to funds must be monitored carefully to ensure that your money is still invested in the same fund that you bought. Fund manager M&G is now closing three funds and merging two others. The three funds to be closed are specialist...

Lifetime pension allowance to rise to GBP2.5m.
July 2, 2004... The GBP1.5m lifetime pension allowance may be extended to GBP2.5m, but only if your pension provider buys your annuity for you. There has been no formal change in policy, but the government has recognised that, in some cases, annuitants...

Complaints about contracting out.
July 2, 2004... The Financial Ombudsman Service (FOS) is dealing with complaints from those who were advised to contract out of the State earnings-related pension scheme (Serps) and into a personal pension. They are discovering that they would have been...

Can you land the big returns?
July 2, 2004... The shortage of housing across the UK, and the government's desire to build 3m new homes by the 2020s, has led to an ever-growing number of land investment schemes. In theory, they are very attractive. Simple laws of demand and supply mean...

Successful float for Office2Office.
July 2, 2004... Stationery supplier Office2Office made a successful market debut this week. Shares in the group, which was spun out of Her Majesty's Stationery Office before being bought by private equity group Gresham, rose to 194p from a float price of 178p....

Get the most out of rate hikes.
July 2, 2004... Interest rates are now firmly set on an upward curve. It may seem like an age since rates last went up in the late 1990s but, since November last year when the Bank of England nudged up the base rate by 0.25 per cent, the trend has bedded in....

Free rein.
July 2, 2004... Investors are always being told that broad-brush asset allocation is much more important than the choice of individual stocks in a portfolio. The big decisions about how much to put into bonds versus shares, or the UK versus the US will always...

XANSA (XAN).
July 2, 2004... After a shaky few years of profit warnings and earnings downgrades, Xansa is now on a steadier footing. The IT services company has ditched most of its poorly performing overseas operations (closing offices in North American and continental...

ZincOx.
July 2, 2004... Aim. Zincox sold its Shiarmerden Deposit, acquired in 2002, for an initial $7.5m, with a further $12m-$15m due if the zinc price trades in line with its long-term average.

Go green.
July 2, 2004... Ethical investors need not sacrifice investment performance. Although the long-term figures suggest that ethical funds do under- perform on average - the FTSE All-Share rose by 106 per cent in the decade to 28 June, compared with a 71 per cent...

PHOTO-ME INTERNATIONAL (PHTM).
July 2, 2004... Photo-Me shareholders should be celebrating. The company's digital mini-lab business is finally delivering everything it promised - if not more - and its digital photo processing kiosks look like being a success. But, after a sharp drop in the...

DYSON (DYS).
July 2, 2004... Dyson is making strides in repositioning its business - it is moving away from low-margin thermal technology activities towards more sophisticated performance materials business. Huge demand for Saffil, a chemical fibre used in catalytic...

Victory Corporation.
July 2, 2004... Aim. Victory increased the number of its cosmetics consultants by 25 per cent. Capo, its loss-making retail business, was sold in April 2003. An open offer raised GBP10m, which was used to cut debt.

CREST NICHOLSON (CRST).
July 2, 2004... Crest's move downmarket continues apace. The housebuilder is moving away from the luxury sector, and is instead expanding its affordable (or social) housing operation. It's also shifting its geographic focus from the south east of England to...

EXCEL AIRWAYS (EXA).
July 2, 2004... Excel Airways racked up bigger losses in the first half of this year than last year due to heavy investments in its internet sales capability. This already seems to be paying some dividends: 250 per cent more seats have been sold via its...

STAGECOACH (SGC).
July 2, 2004... These are the first full-year results since Stagecoach restructured itself, and it's clear that the remaining businesses are performing well. Overall, profits from continuing operations advanced 12 per cent to GBP129m. Growth was entirely...

RENSBURG (RBG).
July 2, 2004... Rensburg (formerly known as BWD Securities) is still looking for a home for the GBP35m cash pile that was created via the sale of its administration services business last year (the profit on that deal flattered last year's first-half numbers...

600 GROUP (SIXH).
July 2, 2004... After a truly dismal few years, chief executive Tony Sweeten is now almost jauntily confident that things are taking a turn for the better. The dramatic slide in 600 Group's revenues has been stemmed, and Mr Sweeten insists that better...

DS SMITH (SMDS).
July 2, 2004... Paper and packaging companies have long suffered from excess capacity. The solution to this problem is further industry consolidation. But just try telling that to the competition watchdogs. When DS Smith recently bought rival Linpac to become...

COSALT (CSLT).
July 2, 2004... The almost bewildering array of pies in which Cosalt has its fingers - from life jackets, to school uniforms, to fish-netting, to caravans - means it's unlikely that all divisions will excel at the same time. Some are now struggling. Operating...

iSOFT (IOT).
July 2, 2004... iSoft estimates THAT its triumph in the NHS national IT programme will generate roughly GBP500m of revenue over 10 years. This figure is higher than previous guidance of GBP300m, but the upgrade was not unexpected. Although the programme...

ANGLO PACIFIC (APF).
July 2, 2004... Anglo Pacific has been reinvesting the royalties from two coal mines in Queensland. Last year, they fell sharply from GBP5.39m to GBP2.9m because more coal was mined on Crown land. But they are forecast to be significantly higher in 2004. With...

PORVAIR (PRV).
July 2, 2004... After a transitional period during which non-core chemical businesses were discarded, Porvair is now concentrating on its specialist filtration arm to bring in the money. Although the realignment in the business has meant a cut in the dividend,...

PARKDEAN HOLIDAYS (PDH).
July 2, 2004... growing losses would appear to be a bad sign. But that is the nature of Parkdean's business. As a caravan park operator, the winter months are a time for making sure that the parks are ready for the all-important summer season. This means that...

GLOTEL (GLO).
July 2, 2004... Glotel's management is hailing a return to growth in its markets. The international recruitment specialist took a pasting during the worst of the technology industry's slump. As telecoms and networking companies shed staff, demand for Glotel's...

VISLINK (VLK).
July 2, 2004... Vislink's 2003 loss can be blamed on a sharp fall in UK broadcasting sales (less Ministry of Defence work), and GBP5m (up from GBP1.68m) of rationalisation costs. But prospects are now perkier, thanks in part to a jumbo $58.85m contract to...

UNIVENT (UVT).
July 2, 2004... It's champagne time at Univent - it has just paid its first dividend for 20 years. Profits remain depressed due to a further GBP167,000 impairment provision against the value of a Halifax nursing home, because of low fees. But a GBP300,000...

CLARKSON HILL.
July 2, 2004... Clarkson Hill joined Ofex in January 2003 at 28p to give employees a stake in the business - and they now account for 90 per cent of shareholders. During 2002-03, the number of advisers rose from 105 to 142 and now stands at 170. The cost of...

LINTON PARK (LPK).
July 2, 2004... At an operating level, and after exceptional costs, Linton Park reported a 2003 loss of GBP1.31m (GBP7.47m profit in 2002). So, once again, profits depended on a big contribution - of GBP9.4m (GBP10.55m) - from 32 per cent-owned associate and...

GEORGE GALE.
July 2, 2004... George Gale has 110 outlets, stretching from Hampshire to east Sussex, and up to Berkshire. It has also just reported its 14th consecutive year of profits growth, and recent fine weather means that trend should continue in 2004-05. Key to...

PORTMEIRION group (PMP).
July 2, 2004... Like other tableware manufacturers, Portmeirion is having to adapt quickly to cheap supermarket imports. It will continue to make its classic botanical ranges in Stoke but, since late 2003, has been importing its Portmeirion Studio ceramic...

SHERWOOD (SHW).
July 2, 2004... For the past seven years, Sherwood has generally been losing money due to its downsizing programme. At one time, it operated seven UK garment factories and five lace mills which, in the face of intense competition from cheaper imports, have...

EURASIA MINING (EUA).
July 2, 2004... Eurasia has built up platinum metal interests in the central Urals and on the Bushveld complex in South Africa. Exploration work in Russia is focused on the 100 per cent-funded West Kytlim alluvials project, but plans to start a pilot...

BOND INT. SOFTWARE (BDI).
July 2, 2004... Bond International has bounced back due to a turnaround in the fortunes of its key market: recruitment. Margins benefited from reduced staff numbers and expensed development costs, while capitalised development costs jumped from GBP172,000 to...

RELIANCE SECURITY (RSG).
July 2, 2004... Reliance's shares haven't been so reliable recently, having crashed from highs of above 700p in April following a profit warning. This was triggered by slow trading and margin pressure in security services, which was caused by uncertainty over...

SECURED PROPERTY DEVELOPMENTS.
July 2, 2004... Secured Property Developments owns three shops in Scarborough and one in York. The leases on two of the Scarborough properties run out this September and the third next year. Secured had weighed up the possibility of selling one or more of the...

FITZHARDINGE (FHG).
July 2, 2004... A "fundamental reorganisation" costing GBP1.5m hit Fitzhardinge's 2003 results, but it still made a "quantum leap" in size following the acquisition of two similar property consultancies in March 2003 for a total of nearly GBP12m. Fitzhardinge...

DESIRE PETROLEUM (DES).
July 2, 2004... Desire has 100 per cent interests in four exploration licence blocks north of the Falkland Islands and 12.5 per cent of a fifth. No oil was found during a drilling programme in 1998, but that may be because the drilling was in the wrong place....

HIDEFIELD (HIF).
July 2, 2004... Hidefield has changed tack. Its portfolio of North American exploration projects is now non-core as the company becomes a gold explorer in its own right. These non-core interests may be floated off at some stage as a separately listed business...

GRIFFIN MINING (GFM).
July 2, 2004... ON One day last month, a trade in 2.6m Griffin shares took place. Finance director Roger Goodwin reckons this deal is a good example of a "roly poly" or roll-over of a short sale intended to depress the price so the buyer can acquire the shares...

NORTHGATE INFO SOLUTIONS (NIS).
July 2, 2004... Northgate has been on an acquisition binge, spending GBP210m on five businesses during the past 12 months. The largest deal was the purchase of payroll software and outsourcing company RebusHR for GBP176m earlier this year, funded by the issue...

LITHO SUPPLIES (LTS).
July 2, 2004... Litho Supplies floated on the stock market in November 1993. It then made two acquisitions in 1994, two in 1995, one in 1996 and two in 1997. As a result, it built up a business that, in 1996, was spread across 26 sites. Since then, it has...

EXCHEM.
July 2, 2004... Exchem's Explosives division claims to be the market leader in the UK, and accounted for most of last year's reduced profits. The mining and construction division, which produces chemical anchors to hold steel beams onto walls and ceilings, ran...

QUALCERAM SHIRES (QLC).
July 2, 2004... Back in September 2000, Irish-based Qualceram took over UK private company Shires in a deal worth GBP34m, plus assumption of GBP8m of debt. Nearly four years later, there's been very little added value, partly because the rationalisation...

Albion.
July 2, 2004... Main market. The collapse of Ciro Citterio hit sales hard at Albion. By utilising skills in China, Albion hopes to position itself as a first-choice suit supplier to a number of new customers.

VISTA (VST).
July 2, 2004... Vista shares were placed at 95p last December and went nowhere until the 2003-04 results were announced at end-April. They then shot up on news that first-quarter 2004-05 sales were 18 per cent ahead, coupled with news of big cost savings...

Aukett.
July 2, 2004... Main market. Aukett continues to win new commissions, but still plans to increase its size through an acquisition or capital injection. Goodwill write-offs accounted for GBP466,000 of losses.

OEM.
July 2, 2004... Main market. Following the death of former chief Brian Schneider, it has been alleged that he took part in a theft in 1997. Losses includes a GBP5m exceptional charge relating to this.

James Latham.
July 2, 2004... Main market. Latham's impressive results are due to strong demand for its products. Market conditions are buoyant and planning consent has been granted for a major east London site.

NICHOLS (NICL).
July 2, 2004... Nichols moved down to Aim in May, following a two-year rationalisation programme. It cut the number of factories from three to one and outsourced most of its soft drinks production. The past two years' results have been hit by exceptional...

MS International.
July 2, 2004... Main market. MS has performed strongly due to tight cost controls and an improved order book. Net cash is a healthy GBP2.2m.

Partridge Fine Arts.
July 2, 2004... Main market. Trading is picking up after tough conditions last year and Partridge's summer catalogue has been well-received.

Eliza Tinsley.
July 2, 2004... Main market. Expensive manufacturing capacity was rationalised in the UK due to falling demand, but it is strengthening its position in North America.

COMPUTERLAND UK (CPU).
July 2, 2004... This record set of results marks the fourth consecutive year of growth in sales, profits and earnings at ComputerLand. And with conditions continuing to improve, it looks as though the good times are set to keep rolling. The main driver...

Appian Technology.
July 2, 2004... Ofex. Results were in line with expectations as Appian focused on sales to the police and the enforcement market. Demand is on the increase and the UK customer base continues to grow.

Award International.
July 2, 2004... Aim. Award listed on Aim in March, raising GBP2.25m. The plan now is to grow its sales team and to develop relationships with key agencies and third-party partners.