Brownfields, vets and commodities

The FTSE 100 opened the shortened trading week on the back foot with the volatile oil price continuing to influence sentiment and despite US markets closing out last week on a high.

“Brownfield regeneration specialist Inland Homes had a record first half with margins increasing following a change in the mix between houses and apartments,” says AJ Bell Investment Director Russ Mould.

“Inland sold 93 homes in the period compared with 199 a year ago but average prices rose to £325,000 from £242,000 and margins improved to 24.1% from 22%. Revenues from home sales fell to £30.3m from £48.1m but the group generated £21.5m through the sale of building plots compared with nil a year ago. Earnings per share soared by 314.9% and investors will be encouraged by the increasing value of its land bank with the group focused on regenerating sites in the lucrative South East.

“Veterinary services provider CVS Group’s shares were down in early trading after operating profits fell in the first half due to a £1.7m increase in the amortisation of intangible assets following the high level of acquisitions in the past year. Trading since the half year is in line with forecasts with like-for-like sale growth in January and February.

“Brady’s shares slumped as it suspended its dividend following lower revenues and a full year pre-tax loss of £1.4m against a profit of £1.1m in 2014. The group, which provides trading, risk management and settlement solutions to the energy, recycling and commodities sectors, had a weaker than expected second half. Customer confidence was hit by further a further fall in commodity prices following the downgrade of Chinese growth which led to a deferral of expected contract decisions towards the end of the year.”

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