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news) ., a provider of inter-modal logistics solutions, has grown strongly in the last three years and continues to trade well, with new business wins and profitability growing in line with expectations.
Synergies have already been identified with the other group businesses, in particular the container transport operation of the O'Connor Group. The group's contracts protect it from rising fuel prices and despite fears over a downturn in consumer confidence, Eddie Stobart continues to grow and considers that its differentiated operating model will allow continued future growth even in the event of an economic slowdown. Back in March, the group snapped up rival road haulier Irlam Group and transport infrastructure group WA Developments for a total of 69.9 million pounds and reached an option agreement to buy Carlisle Airport. Stobart has warned that the value of its share in several properties will show a significant deterioration by the end of the year. This, says John Lawson of Investec Securities, should not surprise investors and he has already factored-in a 25 percent reduction to 44.2 million pounds in his group sum-of-the-parts valuation. Lawson (Frankfurt: 502337 - news) predicts year to end-February 2008 pretax profits of 7.2 million pounds, up from 4.7 million pounds, for EPS of 4.0 pence. An unchanged 8.0 pence dividend payout is anticipated. Trading at Robert Wiseman Dairies Plc. will be in line with management expectations -- Investec (LSE: INVP.L - news) 's Nicola Mallard forecast shows 11 percent pretax growth. The group's new dairy is now up and running, although a slight delay in commissioning phase one led the analyst to trim her 2009 profits by a modest 1 million pounds. Meanwhile, at the 2008 pretax level, Mallard expects to see profits benefit from higher margins, with the operating margin, on a ppl basis, increasing to 2.65ppl from 2.39ppl. This results in an adjusted pretax forecast for the year to March 2008 of 37.5 million pounds, up from 33.2 million pounds, for EPS of 35.2 pence (30.3). The analyst also expects around 8.7 million pounds of exceptional costs in 2008 -- the main component of this is the 6.5 million pounds (including legal fees) relating to the early resolution agreement with the OFT.
TUESDAY MAY 13 Trading at Carluccio's Plc., the UK-based group of Italian restaurants with integrated food shops, has continued to perform in line with expectations, and in the 26 weeks to March 23, turnover grew by 19 percent year-on-year. This is in line with Altium's full-year sales growth assumption of 19.2 percent and a slight strengthening from the 18 percent-plus position at the 16-week stage. Altium's Greg Feehely would hope that his current top line growth assumption could be beaten, given the full period contribution in H2 of the three H1 openings and the partial contribution from the two further units scheduled to open before the year end. Three of the minimum target of five new stores during this financial year have now opened at Stratford upon Avon (October-07), Manchester Spinningfields (November (Frankfurt: A0S9N7 - news) -078) and most recently at Heathrow Terminal 5. Furthermore, the company's first franchise store has opened very successfully in Dublin, strengthening Feehely's view that this concept will work well in a number of overseas territories. Meanwhile, the measured opening programme continues to be comfortably funded out of cash. As a result, the analyst feels the cash pile could grow to around 4 million pounds this year, which could allow for dividend progression -- one again -- to exceed expectations. Summing up, analysts are predicting year to September 2008 pretax profits of 6.4 million pounds, with around 2.9 million pounds expected to emerge at the half-way mark to March 2008, up from 2.4 million pounds.
The February trading update from Invu Plc (LSE: INVU.L - news) ., the document management software provider, indicated that underlying profits for the year to end-January 2008 will be in line with market expectations. This, says Robert Sanders of Arbuthnot Securities, is a good achievement given the delays in rolling out Series 6 and the distractions to senior management of the reorganisation of the shares, which culminated in a UK-domiciled company in December. One further positive in the closing half was the emergence of ErgoTM, Invu (LSE: NVU.L - news) 's next generation search and social networking tool, as a potential generator of new revenues for the group. The reported results will be complicated by the IFRS treatment of the share reorganisation on a proforma basis, but Sanders expects sales of 7.9 million pounds, pretax profits of 2.7 million pounds and EPS of 1.74 pence. Reported pretax profits in the previous year were 1.983 million pounds. WEDNESDAY MAY 14 The financial performance of Datatec Ltd (LSE: DTC.L - news) ., an information and communications technology group, has improved for the fifth successive annual reporting period, with a strong performance in the second half of the last financial year. For the year ended 29 February 2008, headline EPS are each expected to be between $0.42 and $0.46, compared with $0.40 in the previous year Underlying earnings per share are expected to be between $0.44 and $0.48. Underlying earnings per share excludes goodwill impairment, amortisation of intangible fixed assets, profit or loss on sale of assets and businesses and unrealised foreign exchange movements on inter-company loans. Dresdner Kleinwort believes the company is benefiting from exposure to emerging markets, tight cost control in the United States (implemented during calendar H2 2007) and improved trading in its reselling division, Logicalis. Last year was a frustrating one for both management and shareholders of Leisure & Gaming Plc., the betting and gaming group. Sporting losses between May and September outweighed good gains in Q1 and Q4 and the Italian government was slow to approve new gaming products. In January, the group indicated that final results will show a 1.6 million euros operating loss. April's update showed the continuation of a turnaround that began at the beginning of October, when important operational changes were implemented. These included the restructuring of franchisee commissions, disposal of unprofitable agents and shops, and strengthening of risk management processes. Jane Anscombe of Edison Investment Research predicts narrowing year to December 2007 pretax losses of 1.8 million pounds against 4.2 million pounds. The extended trading period to February 2008 of Vertu Motors Plc (LSE: VTU.L - news) ., the UK's 10th largest motor retail group, has matched expectations, despite a fluctuating marketplace. Four acquisitions have been successfully completed and performances across the franchise network show strong like-for-like growth in a tough market, according to Nigel Harrison of Edison Investment Research. Progress on property disposals appears to have been slower than expected, so net borrowings are likely to be above the analyst's earlier target of around 18 million pounds. Harrison forecasts year to February 2008 pretax profits of 1.40 million pounds, for EPS of 1.08 pence. Over at Brewin Dolphin (LSE: BRW.L - news) , Michael Vassallo, believes prospects for the consumer have deteriorated in recent months and is, therefore, building in an additional 0.3 million pounds of comfort into his 2009 forecasts. He is also increasing his forecast interest payable by 0.2 million pounds due to the delay in property disposals. As a result Vassallo's, year to February 2009 pretax estimate has been reduced to 5.2 million pounds from 5.7 million pounds. For the year to end-February 2008, the analyst looks for 1.2 million pounds pretax. MONDAY MAY 19 Mitie Group Plc., the UK support services company, continues to perform in line with management expectations and it remains on track to complete another successful year. The order book has continued to grow and by February, the company had secured 97 percent of revenue for the financial year. Meanwhile, conditions remain favourable in Mitie's chosen markets and good organic growth continues to be reported across each of the Facilities, Property and Engineering Services divisions. Andy Brown of Panmure Gordon predicts year to March 2008 group pretax profits of 69.5 million pounds, up from the previous year's 58.2 million pounds, for EPS of 14.9 pence against 12.3. The analyst expects the payout to rise to 5.9 pence from 5.1. TUESDAY MAY 20 Trading at RDF Media Group Plc., which has received an indicative cash approach from management, is in line with its expectations. Visibility is good, given some shift of U.K. production business to 2009 post the hiatus last year, but also due to strong commissioning performance in the United States and Children's business. The Board confirmed in its March update the lifting by the BBC of its commissioning pause on all RDF's production companies and divisions. The group can now attempt to rebuild normal commissioning relations post last year's Monarchy issues, according to Steve Liechti. The analyst forecasts year to January 2008 pretax profits of 5.6 million pounds, down from 7.7 million pounds, for EPS of 10.3 pence against 15.1. He expects the payout to rise to 3.90 pence from 3.00, nevertheless. Over at Altium, Roddy Davidson looks for pretax of 5.3 million pounds, EPS of 8.5 pence and a dividend of 3.5 pence. WEDNESDAY MAY 21 Year to March 2008 group revenues at Business Post Group Plc. increased by 10.1 percent on the previous year. Excluding the revenues from the FedEx (NYSE: FDX - news) contract, which terminated on April 30 2007, underlying group revenue increased by 16.5 percent. The company continues to see good growth in its B2B parcels business which represents around 80 percent of parcels revenues. In B2C, which represents 15 percent of the parcels business, Business Post is seeing an improving trend of performance. Revenues in the Mail business, UK Mail, increased by some 50 percent on the previous year, derived from both new contract wins and substantial further business from existing customers. The company now handles some 10 percent of all mail collected in the U.K. Revenues in Specialist Services are now recovering with the fourth quarter showing growth. The Courier business, now trading under the UK Mail brand, has recently won a number of new same-day contracts. Wayne Gerry of Dresdner Kleinwort left his numbers unchanged following the April update. He forecasts year to March 2008 pretax profits of 14.0 million pounds, up from 11.5 million pounds, and EPS of 17.66 pence against 14.55. He looks for a same-again dividend total of 17.2 pence.
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