Updates from Amec and Domino's Pizza
The FTSE 100 dipped -1.08% yesterday slipping to 6,420 points. Standard Life saw the biggest dip, down -6.45% while John Wood Group saw the biggest surge, up +1.74%. Other indices were also down including a -111 point dip from the Dow Jones, finishing Wednesday at 14,550.
Overnight, Japan's central bank has opened the cash taps with the Nikkei surging +1.99%.
We start with a trading update from engineering services player Amec. Chief exec Samir Brikho says performance is in line with expectations with good growth in conventional oil & gas sectors. New contract awards - a £68 million contract to deliver services for the two new Clair Ridge platforms for BP - are claimed highlights.
"The acquisitions made in 2012 are integrating well and the pipeline of further acquisition opportunities remains good. We remain on track to achieve our targeted EPS of greater than 100 pence ahead of 2015."
Amec recently had its Buy rating reiterated by Nomura research analysts; Nomura has a 1300p price target on the stock; currently Amec's share price is 1079p.
Next, Domino's Pizza and an interim for the 13 week period to 31 March 2013. Sales climbed +12.3% to £164.1m (2012: £146.2m) driven by like-for-like sales growth in the latter part of the quarter. Like-for-like sales in the UK in 670 mature stores are up +6.6% (2012: 4.1% in 615 mature stores).
Online sales represented 61.9% of all UK delivered sales (2012: 49.8% of UK delivered sales) with sales taken through all online platforms up 38.4% to £82.4m (2012: £59.5m); mobile phone sales are sharply up: 25.2% compared with 16.4% in 2012.
European sales are on the climb: "Like-for-like sales, in Euros," says the company, "in the six mature stores are showing encouraging progress from a low base and are up 40.3% in the period (2012: 3.7%). High performing UK franchisees are continuing to lead the way in the German expansion."
Lastly, a trading update from processed food operator Cranswick. Underlying sales increased +5% in the year to 31 March 2013. Total sales for the year to 31 March 2013 were +7% higher after taking into account the contribution from Kingston Foods, acquired on 29 June 2012.
Operating margins are expected to be broadly in line with those reported in the previous financial year. In terms of the last quarter, underlying sales in the three months to 31 March 2013 were 13% higher.
"Development of the new pastry facility in Malton, North Yorkshire remains on schedule and to budget, with first commercial production expected in quarter one of the new financial year," says the company.