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Market Report: SCS Group predicts strong annual profits

Jamie Nimmo
Tuesday 19 January 2016 21:29 EST
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the sofa retailer kicked off a share-buying frenzy by upgrading guidance
the sofa retailer kicked off a share-buying frenzy by upgrading guidance

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Shareholders in SCS Group were sitting on a comfortable profit after the sofa retailer kicked off a share-buying frenzy by upgrading guidance.

Shrugging off the gloom on the high street, it said Christmas was so strong that annual profits would be “significantly ahead of market expectations”. Like-for-like orders over the past six months have climbed by 8.8 per cent.

The company, which returned to the market at 175p per share a year ago, jumped 25.5p to 178p, but the stock price is yet to recover fully from a disastrous profit warning. Its house broker, Investec, raised its price target to 200p and lifted its full-year pre-tax profit forecasts by 18 per cent to £9.1m.

The FTSE 100 rallied 96.88 points or 1.7 per cent to 5,876.80, after sinking for three days in a row, amid hopes China might boost its economy with new stimulus measures. That optimism pushed the miner Glencore up 3.83p to 78.98p.

Credit Suisse analysts slashed their rating on BAE Systems to underperform, causing shares in the aerospace and defence giant to fall 3p to 506p.

The market has been waiting for a big order of its Typhoon jets from Saudi Arabia, which makes up about 20 per cent of BAE’s revenues, but the Swiss broker suggests that is unlikely given tensions between the UK and the Middle East superpower.

The Quindell founder Rob Terry increased his stake in the cash-strapped stockbroker Daniel Stewart, whose shares remain suspended and which is set to delist from AIM after failing to find a replacement nominated adviser. He now owns 8.81 per cent of Daniel Stewart, even as the fraud investigation into Quindell rumbles on.

Hardy Oil and Gas ticked up 0.25p to 10.25p after serial small-cap investor Richard Griffiths raised his holding to just shy of the 30 per cent needed to launch a full takeover bid.Once a FTSE 250 listed, India-focused company, Hardy is now worth just £7.5m.

Mr Griffiths, the founder of broker Evolution Securities, has made a fortune backing Sportingbet’s owner GVC, which is taking over online gambling firm Bwin.party. He is GVC’s largest investor with an 11 per cent stake worth £31.4m.

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