YP 75: Uncertainty abounds as global markets struggle for direction

Global equity markets once again struggled for direction over a week characterised by continued low volumes and an uncertainty among traders to the macro economic outlook. The FTSE 100 finished up 90 points over a week in which the market swung 155 points between the highest and lowest points, highlighting the uncertainty.
By The Newsroom
Published 28th Sep 2010, 14:26 BST
Updated 28th Sep 2010, 14:27 BST

On Monday, Avacta Group, a biophysics company based in York, announced it had entered into an agreement with EV (Medical Screening) Limited for the exclusive rights to Avacta's laser-based breath diagnostics technology, although no financial details were disclosed.

Animalcare Group, a supplier of veterinary medicines and other products to the veterinary and agricultural markets, confirmed the sale of Fearing International (Stock Aids) Limited along with the business and assets of Ritchey Limited, for 3.25m, to Tru-Test UK Limited.

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The disposals will allow Animalcare to focus all its attention on its core veterinary medicines business and, over the next few weeks, the company will consider the most appropriate use of the proceeds from the sale. The company is also conducting a strategic review of its loss-making Travik Chemicals business.

It was confirmed on Wednesday that Redhall Group, the Wakefield-based engineering services company, had agreed to acquire Mount Engineering Plc for 16.4m cash, in order to boost its presence in the oil and gas sector.

The transaction means that Redhall Group will be paying 70p per share to Mount Engineering shareholders, which represents a 26 per cent premium to Tuesday's closing share price.

Redhall Group said the deal will boost earnings in the first year after the deal closes and also improve the company's operating margin.

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Inditherm, a provider of heating solutions, reported a first-half pre-tax loss and stated it has decided to focus only on medical sectors.

Revenue for the half-year ending June 30 was 972,000 compared with 555,000, and the pre-tax loss of 177,000 had narrowed from 635,000. The company said there is no sign of any upturn in market conditions and had, therefore, made the decision to exit the process solutions part of the industrial business.

Shipley-based Slingsby, one of the UK's market leaders in the distance selling of industrial and commercial equipment, released a half-yearly report on Friday, which highlighted a 28 per cent fall in first-half pre-tax profit, although last year's figure was distorted by a 700,000 exceptional gain.

The company continues to have a strong balance sheet and despite the difficult global economic conditions, the board remains positive that the company is well placed to take advantage of any upturn

Turnover for the half-year ending June 30 was 8.41m and the company increased the interim dividend to 5p from 4p in 2009.

Adrian Wasson Assistant Investment Manager at Brewin Dolphin, Leeds

Related topics:Uncertainty