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Mining

Thursday's agenda: Sierra Rutile set to unearth annual results

Investors likely to look for news on project progress

Investors are likely to look for an update on project progress by Sierra Rutile PLC (LON:SRX) when the mineral sands miner unveils final results on Thursday.

The group has traditionally relied on dredging to produce rutile, the natural source of titanium, from its large deposit in Sierra Leone.

But times and the economic backdrop have changed and the company also now has dry mines at Lanti and Gangama as well as dredging operations at both places.

The next place to get a dry mine looks certain to be Sembehun, where a pre-feasibility study came back with significantly improved numbers compared to a scoping report carried out less than a year ago.

Earlier this month, Investec noted Sierra Rutile's extension of debt facilities. Maturity dates for a US$20mln working capital facility and US$15mln standby facility with Nedbank Limited were extended for a further 14 months until 30 May 2017.

The broker said: "This is a positive for SRX as the extension provides the company with more breathing space while it builds and ramps up Gangama, particularly in light of commodity pricing that is weaker than was expected."

Plastic piping maker Polypipe Group PLC (LON:PLP), which supplies homes, commercial premises and civil engineering and infrastructure projects, is tipped to report low single digit like-for-like UK revenue growth in its residential business, as continued growth in housebuilding activity is offset by weaker renovation, maintenance and improvement (RMI) work.

Numis is forecasting double-digit growth in pre-tax earnings before interest in the UK, while Polypipe's mainland Europe business is tipped to make a small operating profit despite lower revenue. Overall, it expects the group to report double-digit earnings growth in 2016.

"Looking forward, we expect Polypipe to point to a robust outlook in relation to UK new build residential and commercial/infrastructure markets, as well as improving lead indicators in regards to RMI."

Hilton Food Group (LON:HFG) was not exactly flavour of the month in intra-day trading on Wednesday ahead of its full-year results on Thursday.

The shares fell 19.5p to 500p as investors took a cautious approach following an update in January that showed a better-than-expected 2015 performance was largely due to one-off items.

Volume growth was a feature in 2015, mainly due to markets in the Netherlands and the UK, where extra business from supermarket chain Tesco PLC (LON:TSCO) helped to offset tough trading in other markets.

A second interim dividend of 9.2p was announced last month, which will be paid on April 1.

Numis Securities said: "This and the 4.1p 1st interim means 13.3p has already been disclosed for 2015.

"However, a final will still feature: we continue to forecast 14.2p overall (hence a final of 0.9p). Any final dividend will be incremental year-on-year as 13.3p was the 2014 dividend total."

Numis said this year's pre-tax profit would benefit from absent start-up costs incurred in 2015 of an estimated £1.6mln for Tesco expansion and a plant.

It added: "No costs are assumed for 2016 or 2017. However, the 53rd week will be absent, and ditto any other non-recurring items enjoyed in 2015 such as incentive situations.

"Our PBT projections for 2016 and 2017 of £30.7mln and £33.4mln respectively factor nothing in as yet for foreign exchange gains: now looking likely."

Other company and economic news on Thursday is due to include:

Finals: Globaltrans Investment PLC (LON:GLTR), Wireless Group PLC (LON:WLG)

Interims: James Halstead PLC (LON:JHD)

Trading statement: CMC Markets PLC (LON:CMCX), Electrocomponents PLC (LON:ECM),TUI AG (LON:TUI)

The following widely-held stocks are trading ex-dividend: Smith (LON:DS) PLC, Old Mutual PLC, Foreign & Colonial Investment Trust PLC, Moneysupermarket.com PLC, InterContinental Hotels Group PLC, Interserve PLC, British Land PLC

Economic: UK – Gfk Consumer Confidence, Net Lending to Individuals, Gross Domestic Product, Mortgage Approvals, M4 Money Supply; Eurozone – Consumer Price Index; US – Weekly Jobless Claims.

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