An update on trade talks between the US and China fails to have any major influence on global stock markets, with the FTSE 100 edging a mere 2.6 points higher to 7,404.5 on Friday, a fairly quiet day for corporate news.
Sports betting and gaming giant GVC (GVC) gains 11p to 594p on a strong first quarter update, news of ‘an excellent start to the year’ reassuring the market following recent director share sales. For the quarter to 31 March, GVC’s online net gaming revenue (NGR) rose 17% with strong volume growth in all major territories. The UK retail business (Ladbrokes Coral) also put up a resilient showing, although trading in GVC’s high street betting shops will be hit by the recently imposed restrictions on fixed-odds betting terminals.
There’s also an upbeat outlook statement from CEO Kenneth Alexander, who remains ‘very confident of achieving our target of double-digit online NGR growth’ and is ‘confident of delivering EBITDA and operating profit in-line with expectations’, albeit at this early stage of the year.
Also in demand is ContourGlobal (GLO), the electricity generating plants owner sparking up 5.3% to 192p on well-received maiden full year figures following a late 2017 IPO, showing adjusted EBITDA up 19% to $610m and a chunky increase in the dividend too.
Used car retailer Motorpoint (MOTR) reverses 4.2% to 182p on a full year trading update highlighting ‘more modest growth’ in the second half of the year to March 2019 and a slight softening in annual gross margins.
The good news is cash generative Motorpoint still expects to report annual sales growth of over 6% and a 10% hike in underlying pre-tax profit for 2019, although analysts downgrade 2020 estimates on a cautious outlook statement from Motorpoint citing the ‘continued volatile political environment and consumer uncertainty’.
Ferrexpo (FXPO), the Swiss-headquartered iron ore company with assets in Ukraine, firms 3.2p to 277.7p as a slight drop in first quarter iron pellets production is essentially in line with Shore Capital’s expectations, with production of higher-premium 65% Fe pellets slightly up year-on-year.
Gift packaging, greetings cards and creative play products maker IG Design (IGR:AIM) improves 2.3% to 544p on the news Impact Innovations, acquired in August, has been awarded Supplier of the Year 2019 for seasonal and celebration products by the world’s biggest retailer, Walmart.
This is a catalyst for Canaccord Genuity to wax lyrical about IG Design - the broker sticks with its ‘buy’ rating and 800p price target - which it believes is ‘well placed to deliver strong, profitable growth in the coming years, through a combination of organic growth, mainly driven by the growth of leading retail customers and sales in new product categories, combined with potential acquisitions.'
Corporate insolvency specialist Begbies Traynor (BEG:AIM) is bid up 0.25p to 62.75p on the acquisition of BSM, one of Eastern England’s largest independent chartered surveyors, an earnings enhancing deal that is in line with Begbies’ strategy to build its property services division.
Lower down the market cap ranks, tube manipulation specialist Tricorn (TCN:AIM) sparks up 15.6% to 18.5p after guiding to circa 30% year-on-year adjusted pre-tax profit growth for the year to March on sales up ‘around 2.5%’. CEO Mike Welburn says his Malvern-based charge enjoyed new business growth in its transportation division, more than offsetting a drop in revenue in the energy division, a joint venture in China ‘continues to perform well’.
