Updates from Manchester United, SVG Capital and Tata


The FTSE 100 climbed +5.59 points yesterday to 5,851 points. Standard Chartered, for a second day, saw a recovery in its share price, rising +3.61%. AMEC was the biggest faller, down -4.83%.

Weak trade numbers jolted Asian markets overnight, with the Hang Seng trading -0.7% down; the Nikkei slipped -1.0%.
We start with Manchester United's share flotation. Until recently the club said it would likely be selling shares at between the $16-$20 range. But this has now switched to the sub $14 mark on worries about finding investors for the higher price.

At $14 or so a share, the club will still be valued at around $2.3bn or £1.5bn in total. But there remains worries how the float will go, given the recent Facebook IPO wobble, not to mention concerns about how much of the money raised will actually be directed at clearing the club's debts.

The Glazers - who bought the club for £800m in 2005 - look set to collect around $100m of the float proceeds. The club was recently boosted by a $600m sponsorship deal from US car maker General Motors.

Next, SVG Capital. The private equity player has seen a 12.3% climb in net assets per share for the first half of 2012. Substantially ahead of most other market indexes. It claims a 27% and 35% increase in its portfolio's weighted average revenue and earnings growth for the 12 months to June 2012, year-on-year.

SVG claims total capital of £87.4 million has been returned to shareholders since its strategic update in December 2011. "The majority of companies in the portfolio continue to demonstrate resilient earnings growth," says Lynn Fordham, CEO of SVG Capital.

"We remain mindful," she says, "of the uncertainty in the macroeconomic environment and the impact this may have on our portfolio companies. However, we feel positive that our exposure to an underlying portfolio of high quality assets and the progress we are making on our strategy will continue to deliver value for our shareholders over the shorter and longer term."

Finally, Tata Motors. It has reported net profits of £260m for the last quarter, supported by a 34% climb in sales from Jaguar Land Rover, boosted strongly by the new Evoque model. However there remain concerns about passenger car sales in India, which fell 10%.

Global car sales concern, especially in markets such as China, has seen Credit Suisse Group AG slash its rating on Tata. Tata shares slipped -3% down on the news. European sales also continue to be a worry for the company.

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