Banks, Financial

Banking app targets millennials who want help budgeting

Graduate debt, rent and high living costs have made it hard for millennials to save for a house, a pension or even a holiday. For Ollie Purdue, a 23-year-old law graduate, this was reason enough to launch Loot, a banking app targeted at tech-dependent 20-somethings who want help to manage their money and avoid falling […]

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Eurozone inflation climbs to highest since April 2014

A welcome dose of good news before next week’s big European Central Bank meeting. Year on year inflation in the eurozone has climbed to its best rate since April 2014 this month, accelerating to 0.6 per cent from 0.5 per cent on the back of the rising cost of services and the fading effect of […]

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Wealth manager Brewin Dolphin hit by restructuring costs

Profits at wealth manager Brewin Dolphin were hit by restructuring costs as the company continued to shift its focus towards portfolio management. The FTSE 250 company reported pre-tax profits of £50.1m in the year to September 30, down 17.9 per cent from £61m the previous year. Finance director Andrew Westenberger said its 2015 figure was […]

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Travis Perkins and Polymetal to lose out in FTSE 100 reshuffle

Builders’ merchant Travis Perkins and mining company Polymetal face relegation from the FTSE 100 after their recent performances were hit by political events. The share price of Travis Perkins has dropped 29 per cent since the UK voted to leave the EU in June, as economic uncertainty has sparked concerns among some investors about the […]

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RBS share drop accelerates on stress test flop

Stressed. Shares in Royal Bank of Scotland have accelerated their losses this morning, falling over 4.5 per cent after the state-backed lender came in bottom of the heap in the Bank of England’s latest stress tests. RBS failed the toughest ever stress tests carried out by the BoE, with results this morning showing the lender’s […]

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Categorized | Property

New markets provide shot in the Arm

Posted on March 31, 2014

Hopes of a turn of fortunes put Arm Holdings among the FTSE 100’s biggest gainers.

Having started 2014 at a record high, the chip designer slipped 10 per cent over the first quarter as slowing smartphone sales put its expected royalty revenue under pressure.

    Downgrades now look to have run their course, according to Barclays, with handset shipment forecasts falling to “very achievable levels” and data from the supply chain improving.

    With momentum on the turn, news on Arm’s entry into the networking and server markets should lift longer term forecasts, the broker said. Arm closed 2.1 per cent higher at 998p.

    “The combination of reasonable growth in mobile and very strong double-digit growth in these new markets supports our view of Arm growing revenue at circa 20 per cent for the next five years,” said Barclays.

    It added that, with Arm’s cash pile set to grow beyond its operational needs, the prospect of improved shareholder returns made a valuation of 30 times 2015 earnings “very attractive”.

    The first quarter ended with a whimper, leaving the FTSE 100 down 0.3 per cent, or 17.21 points, to 6,598.37. For the quarter, the index lost 2.2 per cent.

    Babcock International led Monday’s blue-chip risers, up 4.3 per cent to £13.47, after its consortium was named preferred bidder for a £7bn contract to decommission Magnox nuclear reactors.

    JPMorgan Cazenove saw the deal as worth £196m in annual sales over the next 14 years which, on a profit margin of about 9 per cent, would boost Babcock’s operating earnings by 5 per cent.

    Vodafone ended 0.5 per cent higher at 220.3p, though it was well off its session high, after its long-rumoured predator AT&T pledged cash towards buying back 300m shares.

    The US group also said to expect its net debt to remain below 1.8 times operating earnings.

    Drugmaker Shire lost 2.5 per cent to £29.45 in delayed response to a US Court of Appeals defeat on Friday that ordered a retrial of a ruling that had stopped Actavis from making versions of Shire’s bowel disease pill.

    Citigroup saw a settlement with Activis as likely, at a cost of about 6 per cent of Shire’s 2016 earnings.

    Evraz led the metals companies, up 10.6 per cent to 79.7p.

    Credit Suisse, which put a 100p target on the Russian steelmaker, said the weak rouble and cost-cutting should mean Evraz could cope with its debt burden even though its domestic market would be oversupplied for the next two years.

    Songbird Estates, the owner of London’s Canary Wharf development, climbed 12.9 per cent to 250p after just over 400,000 shares changed hands at 257.5p apiece.

    The thinly traded shares have jumped 30 per cent since Songbird last week reported its highest occupancy rates since the financial crisis.

    Iraq explorer Gulf Keystone Petroleum lost 12.4 per cent to 86.3p after it was targeted by prominent short sellers, who argued that the group would need a cash call if a planned bond issue failed.

    Gadget refurbishment group Regenersis jumped 10.4 per cent to 395p after announcing the €60m acquisition of Blancco, a Finnish data erasure specialist.

    The purchase, which was funded via a £100m share placing at 345p apiece, was ahead of European legislation due to come into force next year that will fine companies breaching data security up to 5 per cent of their global turnover.