Dignity shares alive and well
WHEN it is your time to go, you will want to go with dignity. Let’s face it, unfortunately if there’s one thing certain in life, it’s that you’re going to die. With the average cost of a funeral well over £3,000, the undertaking business is not a bad one to be in.
Look at Sutton Coldfield-based Dignity, the UK’s largest provider of funeral-related services, which operates a network of around 718 funeral locations throughout the UK, is going from strength to strength. Its shares advanced to 2353p before closing rock steady at 2320p on hearing that the number of people dying in England and Wales has increased at its fastest rate for nearly 50 years. Mortality rates rose by 5.4pc last year, the equivalent of 27,000 deaths.
Analysts expect 2015 results, expected early next month, will exceed expectations. A new Dignity crematorium is expected to open in Derby in 2017 following successful planning application and broker Investec has raised its earnings per share forecasts by 4pc.
There was still some life in the Footsie as it touched 5880 before closing 37.89 points better at 5862.17, while the FTSE 250 lost 25.81 points to 15,702.29. Wall Street returned from Monday’s President’s Day holiday with some catching up to do and traded 222.57 points higher to 16,196.41.
Overall sentiment was helped by news that a group of oil producing countries led by Russia and Saudi Arabia have agreed to hold oil production steady. Oil giant BP put on 4.6p to 337.4p and rival Shell 24p to 1564.5p.
A firmer oil price helped BA owner International Consolidated Airlines Group rise 13.5p to 518p and EasyJet 30p to 1538p.
International bank Standard Chartered lost 24.2p to 428.85p after Investec downgraded to hold and advised clients to take profits after the 17pc gain over the past two trading days. The broker believes investors can participate in a wider banking sector rally via other stocks. It is a buyer of Barclays ahead of full-year results on March 1. Shares closed 0.70p dearer at 161.45p.
Prudential eased 10.5p to 1183.5p despite upbeat comments by Berenberg. It advised clients that the insurance giant has faced a number of headwinds, but it should continue to grow nicely, with strong net flows and stable margins where it counts. The broker says it is one of the most undervalued companies in the insurance sector.
Electrical engineer Spectris soared 133p to 1648p on a Liberum Capital buy in the wake of impressive 2015 results. Management reiterated the group is well positioned for 2016.
BGEO Group, formerly known as Bank of Georgia, climbed 111p to 1837p following better-than-expected full-year results. Revenue for the year was up 40pc year on year, with profits 29p higher at £87.6m and earnings per share 18pc better at 223p per share. Peel Hunt has a target price of £26.
Shares of the London Stock Exchange touched 2367p before closing 8p up at 2340p following bullish comments from Barclays. The stock has fallen 17pc so far this year compared with the Footsie’s 9pc decline and that is unfair. Investor fears of a significant impact of a potential UK vote to leave the EU are misplaced and may be based on the fact that the LSE operates a large pan-European clearing house and owns the Borsa Italiana Stock Exchange with euro base revenues. However, Barclays highlights that the majority of these revenues are generated by subsidiaries locally regulated within the eurozone, rather than passported in. The broker therefore continues to like the LSE’s business mix with strong gearing to growth opportunities in Index Services, structural reform in Europe of clearing and settlement, and expansion of product range.
Zoopla Property, the property website in which DMG Media Investments own 31pc, firmed 4.4p to 220p. It has agreed long term strategic partnerships with four innovative property technology start-up companies. Zoopla has been at the forefront of innovation in the proptech space since its launch in 2008.
Shares in Gatwick gusher UK Oil & Gas Investments awoke from their slumber to close 0.58p dearer at 1.98p. The company announced initial results of flow testing operations at the Horse Hill oil discovery well on the northern side of the Weald Basin near Gatwick Airport. Broker WH Ireland said it is highly significant for the Horse Hill asset as it is the first- ever flow test in the Lower Kimmeridge limestone interval within the Weald basin and provides proof that moveable oil exists. It’s target price is 5p.
Current day trader favourite 88 Energy succumbed to profit-taking and closed 50pc lower at 1.35p. The jam tomorrow Aussie-based explorer has attracted an avalanche of penny share punters after waxing lyrical about its Icewine-1 well in Alaska. The company has confirmed the majority of its 272,000 acreage lies in a ‘thermal maturing sweetspot’. Bears roar that ‘they’ve heard it all before’.
SMALL mid-cap broker Cenkos Securities rose 7p to 151.5p after declaring it expected revenues and pre-tax profits would be in line with market expectations. The board also said it would pay a second interim dividend for the year of 6p per share. Impressive, considering the state of play in the stockmarket over the past few months which saw a profits warning from rival Panmure Gordon, and Daniel Stewart struggling.