Proactiveinvestors United Kingdom (In Brief) RSS feed

Aussie shares pulled back by banks

Mon, 05 Jan 2009 12:59:00 +0000

The Australian sharemarket opened markedly higher, led by resource heavyweights and small miners, but banking issues came under severe selling pressure and the strong three per cent overnight lead by Wall Street was not a factor in the local market.

Trading volumes were low as the summer holidays saw many investors and fund managers on the sidelines away from their screens.

Regional Asian markets were all higher with Hong Kong up one per cent and the Japanese market two per cent higher.

The benchmark S&P/ASX200 index closed down 26.8 points, or 0.7%, at 3687.

Bank stocks sold off

Bank stocks were weaker as niggles about the severity of bank bad debt levels overshadowed many investors’ perceptions. ANZ Bank (ASX:ANZ) lost 11 cents, or 0.7%, to $15.07, Commonwealth Bank (ASX:CBA) was down 60 cents, or 2.0%, at $28.60, NAB (ASX:NAB) lost 17 cents, or 0.8%, to $20.23 and Westpac (ASX:WBC) fell 12 cents, or 0.7%, at $16.64.

Macquarie Group (ASXMQG) was up 70 cents, or 2.4% to $29.86 and Babcock & Brown (ASX:BNB) gained 6 cents, or 31.6%, to 25 cents.

Miners continue to regain ground

Rebounding metal prices continued the renaissance of resource stocks since December 2008. BHP Billiton (ASX:BHP)was up $1.05, or 3.4%, to $31.63, Rio Tinto (ASX:RIO) was up $3.34, or 8.6%, at $42.30 and Fortescue Metals (ASX:FMG) gained 9 cents, or 4.5%, to $2.10.

Gold stocks were lower, as Lihir Gold (ASX:LGL) gave up 19 cents, to $2.90 and Newcrest Mining (ASX:NCM) was hammered losing $2.69, or 7.9%, to $31.22.

Oil stocks were higher, Santos (ASX:STO) was up 8 cents, or 0.5% to $14.75 and Woodside Petroleum (ASX:WPL) was up 47 cents, or 1.3%, to $37.77.

Harvey Norman (ASX:HVN) was up 4 cents, or 1.5%, to $2.69 and David Jones (ASX:DJS) lost 9 cents, or 2.8%, to $3.12.

The Australian dollar gained further ground to trade up at 71.20 US cents, up 4% since December 2008.

Private investors’ holding in UK equities at record low - Capita Registrars

Mon, 05 Jan 2009 12:58:00 +0000

The year 2008 closed with private investors owning the smallest-ever portion of the UK share equity portfolio on record, according to the latest Private Investor Watch from Capita Registrars, the UK’s largest administrator of company share registers.

Share sales combined with falling share prices mean that by December 15, they held £118 billion, just 9.6 percent of the UK market, the smallest ever share.

In value terms, UK private investors only owned less in 1981, 1979 and 1974, after adjusting for inflation. In 1981, Britain was in the grips of a deep recession as the Conservative government’s monetarist experiment tried to squeeze inflation out of the system. In 1979 Britain suffered the notorious Winter of Discontent, and in 1974, the Conservative three day week was followed by a Labour government trying to spend its way out of economic disaster and encouraging other countries to do the same, the group said.

By contrast, 1968 was the peak year ever for private investors. The value of their shares in today’s prices was £473 billion, four times as much as today, and their share of the stock market was 49 percent. 40 years on, the picture is very different.

Michael Kempe, Operations Director of Capita Registrars said: “Never in modern times has share owning been less fashionable. The combination of falling share prices and the long term trend by private investors to reduce their holdings has seen 2008 end on a whimper. 2009 could well see this trend reverse, at least in the short term. We are seeing signs private investors are prepared to dip into the market again. By the time the economic news hits rock bottom, share prices will already have started their upswing.”

According to the report, the grip of the bear market did not spur private investors to sell in large volume in 2008. Most of the preparation for this event took place in 2007. For 2008 as a whole, private shareholders traded a total of £7.2 billion, but only sold a net £42 million of their shares. This is a fraction of their 2007 activity, when they traded over £14 billion, reducing their portfolios by a net £4.9 billion, concentrating their sales on cyclically vulnerable financials and commodity stocks and their purchases on relatively more stable utilities and telecoms shares. 2008 saw this trend continue with healthcare also joining the buy list.

Notwithstanding the long term trend of selling direct equity holdings, private investors turned net buyers in October and November to the tune of £645 million, the first time they ventured back into the market since February. The FTSE All Share fell 14.1 percent in the period, but was extremely volatile, twice falling and then rising by almost 20 percent.

Kempe added: “Normally private investors shun volatile markets - they have been sitting on the sidelines for much of the past year. But it seems the lows of October and November proved irresistible to many and they dipped their toes back in, perhaps hoping to make some trading profits in time for Christmas. If you were clever and timed your buying and selling perfectly you could have made almost 50 percent returns in the last two months. 2009 should see market conditions improve, but it seems too early to call a bottom just yet– the recent upswings have all the characteristics of bear market rallies.”

Sychronica audio interview with Proactiveinvestors

Mon, 05 Jan 2009 12:52:00 +0000

Carsten Brinkschulte, CEO of Synchronica, talks about the company's business partners, which include Sun Microsystems and Brightstar, he talks about the burgeoning mobile phone market in the developing world
and recent contract wins, which validate Synchronica’s offering in a wide range of markets.

To listen to the interview, CLICK HERE

Akers Biosciences sells breath test product rights

Mon, 05 Jan 2009 12:50:00 +0000

Akers Biosciences Inc said it sold the intellectual property pertaining to the Free Radical Enzymatic Device (FRED) and future non-invasive exhaled breath test technology to Pulse Health LLC, based in Oregon, for US$3 million in cash.

The AIM-listed designer and manufacturer of rapid diagnostic screening and testing products said it will further benefit from an exclusive manufacturing agreement to supply FRED Aldehyde Assay Tubes at a price fixed for three years and also earn a per tube royalty fee for every FRED Aldehyde Assay Tube sold over that period.

In addition, ABI has the possibility to extend the exclusive manufacturing agreement beyond the initial 3-year term and Pulse has agreed to fund any future R&D projects that ABI undertakes on their behalf.
Notwithstanding the Agreement, ABI will retain the rights related to and solely own certain other tests incorporating non-invasive exhaled breath test technology, namely the BreathScan Alcohol Detector, the Legal Limit POV Safety Keychain, the Breath Alcohol Check .02 Detection System, the Breath Ketone Check and the Breath PulmoHealth Check

Pulse was formed to investigate new opportunities to market health and wellness evaluation devices. In 2006, Pulse approached Akers with the challenge of applying the company's patented breath condensate technology to develop a breath detection system to measure free radical activity in the body. The project, funded by Pulse, was extremely successful and led to the creation of FRED, the first non-invasive, easy-to-use test that helps monitor levels of free radicals and assess the effectiveness of nutritional supplements in the human body.

YM Biosciences’ Nimotuzamab selected for Phase III trial by Singapore

Mon, 05 Jan 2009 12:48:00 +0000

YM BioSciences Inc said the National Cancer Centre of Singapore (NCCS) has selected nimotuzumab, its epidermal growth factor receptor -targeting antibody, for evaluation in a multinational Phase III trial of more than 700 patients with cancers of the head and neck.

The NCCS stated that it selected nimotuzumab because of its reported preferential safety profile compared with other EGFR-targeting cancer drugs, the oncology group said. The trial is sponsored by the NCCS in collaboration with Innogene Kalbiotech Pte Ltd, YM's licensee for nimotuzumab for the region.

The NCCS is the lead cancer centre coordinating this clinical trial, which will involve approximately 22 institutions from 12 countries worldwide.

The primary endpoint for this study is two-year and five-year disease-free survival; the secondary endpoint is two-year and five-year overall survival.

Po Valley snares gas offtake, shares jump

Mon, 05 Jan 2009 11:13:00 +0000

Po Valley Energy (ASX:PVE) has announced a landmark first gas offtake agreement with Italtrading Spa from the company's northern Italy gas fields with a contract sales revenue of $A77.5 million (Euro38 million).

The agreement represents first sales revenue for part of planned production from the Sillaro and Castello gas fields in Italy. Further agreements to cover the balance of production for the first three years from the Sillaro and Castello fields are expected to be announced in early 2009, the company said.

ITaltrading SpA is an established gas and energy company, part of the the larger AFIN Group, a private company with global turnover of Euro500 million in 2007.

Further gas fields will be brought into production progressively by Po Valley in mid-2009.

Po Valley CEO, Michael Masterman said, "bidding for the output from these two fields was intense, with 11 bidders negotatiating for the supply contract." The strong interest co-incided with greater uncertainty in the Western European gas supply markets as Russia closed off gas supply to the Ukraine.

Offtake terms were based on the ENI Gas Release price formula with the current price equating to $US14 per one thousand cubic feet of gas.

Castello has proved and probable (2P) gas reserves of 6.3 billion cubic feet (bcf) and is expected to have an initial production rate of 2.7 million cubic feet a day starting in June/July 2009. Sillaro has 2p gas reserves of 14 bcf, with an expected initial production rate of 3.8 mcfpd, starting in September/October 2009.

Comment

With likely further gas offtake agreements in early to mid-2009, Po Valley shares are likely to resume an uptrend that mirrors development companies that become producers. With a tight share capital and in one of the strongest gas markets (in terms of gas prices and demand), PVE looks to be ideally placed in 2009.

The Restaurant Group sees full-year results in line

Mon, 05 Jan 2009 11:10:00 +0000

The Restaurant Group PLC said it anticipates reporting results for the year ended December 28 2008 in line with its expectations.

Like-for-like sales grew 1.5 percent from a year earlier, which compares to 2.5 percent rise for the 45 weeks to November 9 as announced mid-November, with the company calling the full-year figure a “creditable performance” resulting from its distinctive market positions and value for money offerings.

In a pre-close trading update, the company said the like-for-like performance over the seven weeks since the November interim management statement has been reasonable against a deteriorating economic backdrop, albeit at levels below the same period last year.

During the year the group opened 40 new restaurants resulting in a net increase of 24 sites and, as previously announced, expects to open between 18 and 25 in 2009.

Anglo Pacific moves onto Berkeley Resources register

Mon, 05 Jan 2009 11:08:00 +0000

In a vote of confidence for Berkeley Resources, the Anglo Pacific Plc (ASX:AGP/LSE:APF) has moved onto the Berkeley Resources (ASX:BKY / AIM: BKY) share register with the acquisition of 5.4 million shares in Berkeley via on-market purchases at prices from 16 cents to 30 cents in late 2008. Anglo Pacific is now one of the largest shareholders in Berkeley with 5.2 per cent of the company.

In 2008, Berkeley Resources struck a Co-operation Agreement with ENUSA Industrias Avanzadas S.A. (ENUSA), in which Berkeley will undertake a Feasibility Study to evaluate the re-commencement of uranium mining based on ENUSA and Berkeley’s assets in Salamanca Province, Spain.

Berkeley’s objective is to generate a total resource base for the project of over 65m lbs of U3O8 and to complete a Feasibility Study within 18 months of approval of shareholders in January 2009.

Berkeley Resources was trading at 33 cents.

Plexus Holdings wins 4 yr deal extension from Brunei Shell Petroleum

Mon, 05 Jan 2009 10:55:00 +0000

AIM listed oil and gas engineering services group Plexus Holdings PLC said it has entered into a new four-year contract with Brunei Shell Petroleum Sdn Bhd (BSP) for the supply of its proprietary POS-GRIP wellheads and TRT-S mudline suspension equipment and related services, with an initial value of approximately £800,000.

The deal is an extension of a previous two-year contract with BSP. It commences in the second half of the financial year with the supply of wellheads for two wells, one of which is high pressure/high temperature (HP/HT).

This agreement demonstrates an ongoing and developing supply relationship with a major operator in South East Asia, which can now be supported by its full time sales and operational presence in Malaysia, Plexus said.

The contract will help Plexus to further establish its reputation in the region, and follows on from a recent contract win with Shell Egypt.

Hydrodec inks deal with US utility to recycle transformer oil

Mon, 05 Jan 2009 10:54:00 +0000

Hydrodec announced an agreement with Consolidated Edison Company, a subsidiary of Consolidated Edison Inc (NYSE: ED), which will see Hydrodec receive all of Con Edison's used transformer oil. Consolidated Edison is one of the largest energy companies in the United States, with annual revenues of $13 billion and more than 3 million customers in New York State.

John Gunn, Chairman of Hydrodec commented: 'This agreement will provide Hydrodec with a significant amount of feedstock for our operations and shows acceptance of the Hydrodec technology as well as its green credentials in the United States. We are delighted that Con Edison selected Hydrodec to recycle its spent transformer oil which will, in turn, allow us to supply our US transformer manufacturing customers with SUPERfine.'

Persian Gold reports positive trenching results from Dalli property

Mon, 05 Jan 2009 10:41:00 +0000

Persian Gold PLC said results from the trenching program at the South Hill of Dalli in Iran show that the gold and copper mineralisation is still open at north-northwest.

The Ireland-based Iranian gold and copper explorer said a detailed 3D model of the deposit will be completed in Q1 2009, which will include an estimate of potential tonnage.

Samples from the eight trenches of a total length of 1,220 metres included 176 metres at 0.91 grams per tonne of gold and 0.34 percent grading of copper as well as 188 metres at 1.01 g/t of gold and 0.33 percent copper. The gold and copper concentrations in the trenches show a very good correlation at depth with the borehole results.

The Dalli property lies 200 kilometres southwest of Tehran and is a gold/copper porphyry with extensive surface mineralisation and two distinct centres located 1.7km apart. Dalli is a joint venture between Persian Gold and Dorsa, a local Iranian company, held 70 and 30 percent, respectively.

Liberty says Christmas trading exceeded expectations

Mon, 05 Jan 2009 10:23:00 +0000

AIM-listed London retailer Liberty PLC said sales in December exceeded expectations and almost matched the previous year's record Christmas as the regent Street store cleared its stocks in preparation for a major renovation during January 2009 which will see two thirds of the building redesigned, re-merchandised and unveiled in February 2009.

In a Christmas trading update, the company said sales for the first 10 months of the year were ahead of comparative trading levels. Trading was also helped by Liberty's newly-launched e-commerce business which exceeded expectations and showed particularly significant growth in December.

Earlier this year Liberty launched its first stand-alone Liberty of London luxury brand store in Sloane Street.

Sales from the store have been slower than anticipated while it secures market share and establishes the brand in the current more difficult retail environment, Liberty added.

Carillion reaches financial close on £13 mln primary school project

Mon, 05 Jan 2009 10:20:00 +0000

Support services company Carillion PLC said it has reached financial close on a £13 million contract for Nottingham City Council to provide one of the first Primary Schools to be built under the UK government's £7 billion Primary Capital Programme.

Nottingham City Council was selected as one of 23 pathfinder local authorities to work with the Department for Children, Schools and Families, ahead of the national roll-out of the UK Government's Primary Strategy for Change, the funding for which was announced in November 2008.

The new Southwark Primary School will be built on the infant and nursery school site in Bulwell Lane, Old Basford. Construction work will begin in January 2009 and the new school will open in March 2010.

The new school is being procured through the Local Education Partnership (LEP), 'inspiredspaces limited', comprising Nottingham City Council, Carillion and Partnerships for Schools. Nottingham City Council and Partnerships for Schools each provide 10 percent of the equity in the LEP, with Carillion providing the remaining 80 percent.

The LEP was established in June 2008 to provide 8 new and refurbished secondary schools for Nottingham City Council, under a £208 million contract for the first-phase of Nottingham City Council's school construction programme as part of the UK Government's £45 billion BSF (Building Schools for the Future) investment programme for secondary schools.

Commerce Resources Interview

Mon, 05 Jan 2009 10:08:00 +0000

David Hodge, President and Director of Commerce Resources, explains why investors should be interested in a company exploring and developing tantalum and niobium projects in a safe jurisdiction, he also explains the ins and outs of the tantalum and niobium markets.

To listen to the interivew, CLICK HERE

Autonomy wins license deal from BAE Systems

Mon, 05 Jan 2009 10:06:00 +0000

Infrastructure software group Autonomy Corp PLC said it has entered into a multi-million dollar license agreement with defence and aerospace company BAE Systems to license Autonomy's Intelligent Data Operating Layer software for archiving.

Further details of the deal were not disclosed.

Broker FinnCap said in a note that the contract underpins its hypothesis that Autonomy’s blue chip client base still has budget for software and services. It maintains its stance that Autonomy should be treated as a utility for enterprises, large and small, and should not therefore suffer asymmetrically to its peers as ICT budgets come under increasing scrutiny.

The broker believes the real drivers for Autonomy in 2009 will come from the SME segment.

Fox-Davies Capital Monday Energy and Mining News Wrap

Mon, 05 Jan 2009 08:32:00 +0000

Persian Gold (PNG) provides results from the trenching programme at the South Hill of Dalli. The property, which lies 200km southwest of Tehran, is a gold/copper porphyry with extensive surface mineralisation and two distinct centres located 1.7km apart. Results include 176m at 0.91 g/t gold and 0.34% copper and 188m at 1.1 g/t gold and 0.33% copper. The results of drilling, trench sampling and surface geological mapping, show that the gold and copper mineralisation is still open at north-northwest of South Hill. A detailed 3D model of the deposit will be completed in Q1 2009.

Oilexco plunges as it files for administration

Wed, 31 Dec 2008 09:11:00 +0000

North Sea oil and gas exploration and production company, Oilexco (TSX & LSE: OIL) became one of the biggest casualties in the energy sector of the financial turmoil today, after it confirmed that it intended to place its subsidiary, Oilexco North Sea Limited into administration.

Oilexco has been attempting to refinance its huge debt pile, and confirmed this morning that despite previous assurances that funding would be available, it had been advised by a syndicate of banks, led by The Royal Bank of Scotland, that they were not prepared to lend the company any further money.

Shares in Oilexco plunged 50% on the announcement. The former mid-tier oil and gas company said it was now in the process of arranging settlement terms with prospective administrators and counsel. Oilexco further stated that it believed the administrators would attempt to sell all of the assets.

Oilexco’s main operations are in the UK Central North Sea.

Prime Focus London records profit before tax, just

Tue, 30 Dec 2008 10:59:00 +0000

Film and television special effect company, Prime Focus London (AIM:PFO) reported interim results for the six months to 30 September 2008 this morning. Financial highlights included revenues of £8.8 million (2007: £9.2 million) and profits before tax of £0.1 million (2007: 0.5 million) with earnings per share of 0.31 pence compared to 1.5 pence for the six months to 30 September 2007. Net debt ballooned from £2.95 million a year ago to £4.43 million now.

Prime Focus London did note that as part of a restructuring, it would no longer require leased premises at 76 Old Compton Street and 58 Wardour Street, which would generate savings of approximately £0.25 million per annum.

Prime Focus has been impacted by the writer's strike in Hollywood in 2008, and warned that the current industrial action by the Screen Actor's Guild was also causing delays and cancellations to a number of film and television projects. The industrial action was further compounded by a credit crunch, which has resulted in budget cutbacks by advertisers, the company said. "The Group is keeping a keen eye on developments in Hollywood and a full assessment of the impact on our business will be presented to shareholders in the Annual Report and Accounts to 31 March 2009," the company stated.

Namit Malhotra, Chairman of Prime Focus London, said:

"I am pleased to be able to report that during these times of business uncertainty, driven by the global financial crisis and growing international unemployment, the Prime Focus London Plc group is working harder to gain a larger share of the market and drive the business forward. The restructuring of the business followed by the re-branding initiative has placed the Company in a strong position to achieve this."

Tikit Group non-executive director snaps up 25,000 shares at 126 pence

Tue, 30 Dec 2008 10:32:00 +0000

IT solutions and support services to the legal and accounting sectors, Tikit Group announced that Neville Davis, who will join the board as a non-executive director on 2 January, 2009, acquired 25,000 shares at 126.5 pence per share. The share purchase was Mr. Davis' first, taking his holding to 0.17% of the company.

China Medical System Holdings says revenue guidance intact

Tue, 30 Dec 2008 10:20:00 +0000

Pharmaceutical sales, marketing and research company, China Medical System Holdings (AIM:CMSH) held firm today after announcing that it expects to meet market expectations for the year ending 31 December 2008. The company stated that sales for the full year are anticipated to be approximately US$72 million, up 38% on the previous year, and in line with market expectations.

The company however, did not elaborate on other performance metrics, including net profits or earnings per share.