Intertek Group PLC (LSE:ITRK) shares fell 1.6% to 4,393 after the testing and assurance services specialist posted first half results below market forecasts.
Broker Shore Capital said revenue growth of 13% was below forecast reflecting a lower than expected forex benefit while margins were also weaker than anticipated.
It commented “Clearly, an inflationary cost environment, China lock-down and competition in pandemic recovery are biting.”
Adjusted pre-tax profit of £204mln was up 9% against the first half of last year but some way below Shore’s £234mln forecast.
Shore Capital added “We see challenges stiffening in some respect in H2 driven by lower global consumer demand and continuing geopolitical tensions.”
“No doubt there will be opportunities too, but our immediate concern is over cost inflation pressures on the technical staff base and competitive forces from clients on margins visibility is clouded in our opinion.”
“Caution is required, and we will therefore reduce our margin assumptions.”
IMI advances as analysts warm to first half numbers
IMI PLC (LSE:IMI) shares motored ahead by 4.41% to 1,349p after reporting 9% growth in first half operating profit to £160mln with broker JP Morgan (JPM) pointing out this was above its expectations.
JPM commented “Organic sales growth has continued to be solid and the strategic progress is increasingly visible in the numbers.”
“The print is about as good as could be hoped in what will remain an uncertain macro.”
Sales and EBITDA were both ahead of JPM’s forecasts with all three divisions seeing margins up year on year.
Forecasts going forward are likely to be held as management reiterated EPS guidance of 100p, JPM said.
JPM maintained its 2,000p December 2023 price target, and its outperform rating.
Investec was also upbeat after the release commenting that “positive changes continue to progress, driven by management actions.”
“The strategy, involving sharpening commerciality and even divesting businesses, is bearing fruit in shareholder returns.”
“ Underlying demand is improving, and there is now greater visibility in the medium-term margin targets, which provide a positive future returns profile.”
“Overall, IMI is competitive in its markets, management continues to drive improvement initiatives, and this should result in a higher quality business.”
Bank of America and Peel Hunt also reiterated buy ratings on IMI.
Moneysupermarket.com (LSE:MONY) slips as Liberum cuts rating after good run
Moneysupermarket.com (LSE:MONY) Group PLC fell back today after its recent good run with analysts at Liberum downgrading the stock to hold from buy.
The broker pointed that since upgrading the stock to buy on July 5th it had rallied by around 20%.
Shares in the group slipped 2% in a strong market to 205.50p.
Liberum suggested the group could still attract a potential suitor.
Ormonde Mining Spanish sale sends shares higher
Ormonde Mining was a winner on the AIM-All Share market after it announced the sale of its stake in the La Zarza Copper-Gold Project in Spain for EUR2.3mln cash to La Zarza Mineria Metalica.
Shares powered ahead by 26.09% to 0.73p reflecting a better than hoped for sale price.
The sale price is at a premium to the book value of EUR2.0mln with the company receiving EUR 800,000 on completion of the sale with the balance to be paid in three equal payments of EUR 500,000 on the first, second and third anniversaries of completion.
Brendan McMorrow, Chief Executive Officer, commented:
"This is an important milestone for Ormonde in positioning the Company to execute new opportunities which leverage our financial strength and have the prospect of generating value for shareholders in the medium term.”
“To reach a Sale agreement to release value from these assets at a premium to the book value is an excellent outcome for the Company and its shareholders. It places the Company on a stronger financial footing to acquire new projects in line with Ormonde's strategy to generate shareholder value by leveraging its balance sheet and resources."