Greig Middleton rates the shares forecasting profits will move from pounds 1
Greig Middleton rates the shares, forecasting profits will move from pounds 1.3m to pounds 1.7m this year and stretch to pounds 2m next year.Tadpole Technology recovered much of Thursday’s decline, gaining 8p to 99p. Chiltern, firm this week on the media ownership changes, added 8p to 308p with GWR holding at 138p. The group displayed its German operations to analysts this week.Brick maker Blockleys jumped 11p to 71p on hopes that the Ibstock Johnsen/Tarmac deal will lead to further brick industry consolidation.Radio shares gave a mixed reception to the first of what is expected to be a string of bids.GWR made a share exchange offer for Chiltern Radio, pricing the shares at around 325p. Fisons shaded to 177p.On an idle day vague rumours of a bid for WH Smith appeared with Boots and Thorn EMI put in the frame. Smith, weak since last week’s profit warning, edged forward 10p to 348p.BBA’s strike at Holvis, the Swiss paper group, captured the market’s imagination, lifting the shares 17.5p to 235.5p.
In recent weeks Medeva has fallen back on suggestions it had been unable to agree a price with Fisons and the talks were deadlocked. The move should provide a further 19 months shelter for Zantac.US buyers returned to Medeva, lifting the drug group’s shares 5p to 239p and providing much needed encouragement for the emergence of a Fisons takeover bid.The Medeva/Fisons story first appeared in America and it was largely US buying that fuelled Medeva before confirmation appeared that talks were taking place. The American Food and Drug Administration has come into line with most of the world, increasing its patent protection period to 20 years. It is said the failure to clinch a US takeover has caused the disquiet.Electricities dimmed on the proposed Powerhouse retailing sell-off. Powerhouse’s backers, forced to make substantial provisions, were the main casualties, with Eastern off 9p at 644p; Midlands 11p at 647p and Southern 9p to 660.
On the water front Thames rose 7p to 514p.Glaxo Wellcome added a few coppers to 729p on the expected US patent extension for its lucrative ulcer drug, Zantac. Gestetner’s Canadian problems lopped the shares another 3p to 66p. Danka Business Sytems, which hit 434p earlier this year, fell 19p to 359p. The proposed tax changes, as well as currency volatility, were blamed for the setback.Among leading equities, Storehouse continued its impressive progress following results but Cable and Wireless remained depressed by its disappointing performance. New management is in place and intends to make assets sweat.QMH, with SEAQ putting volume at 10.8 million shares, continued to retreat from the heady levels achieved earlier this week, falling 0.75p to 11.25p.Government stocks had a poor session, falling by up to pounds 5/8. Indeed but for the appearance of Wembley in its revamped form turnover would have looked derisory.The shares held at 2.75p as trading started in the millions of new shares issued to rescue the group from a fate described as a “controlled receivership”.The self proclaimed “venue of legends” now has 5.5 billion shares in issue, nearly 70,000 for each seat in the stadium, and 194.6 million of them were printed as some disillusioned shareholders decided to cut and run.There are suggestions that Wembley, like fellow struggler Queens Moat Houses, represents a realistic recovery play.The group has cut debts dramatically and the underlying business is in good shape.
