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ISEQ turns gold as Kerry punches

Thursday, August 09 17:38:34

The ISEQ rose today, lifted by a surge in Kerry Group's shares after it posted a strong set of results and a robust forecast for the full year despite economic headwinds.

The index finished up 30.22 points to 3,227.60.

Kerry Group reported strong H1 results this morning. Adjusted EPS increased by 14.3pc. Revenues rose 10pc at overall group level and 2.5pc on a like-for-like (lfl) basis. The company has also increased its full year guidance and now expects adjusted EPS growth of 8-12pc, having previously guided growth of 7-10pc. ANALYSIS: Group sales revenue increased 10pc on a reported basis to E2.9bn, in-line with our estimates. This growth was boosted by acquisitions (4.1pc) and FX (3.4pc), but there was also solid lfl growth of 2.5pc at group level. Volumes on a continuing basis increased 1.8pc, in-line with its performance at the Q1 stage. Group EBITA margin excluding non-trading items increased by 20bps. The company has increased the interim dividend by 10.2pc to 10.8c. Revenues and profits grew strongly in the company's Ingredients and Flavours division. Revenues increased 14pc on a reported basis and 3.7pc on a lfl basis. Volumes increased by 2.4pc, a credible performance although lower than recent years. Trading margin increased 30bps year-on-year. Kerry's shares surged 215c to E38.45.

Shares in DCC were up 7c at E20.57. Yesterday, DCC announced that it has agreed to acquire BP's UK liquefied petroleum gas (LPG) business. Completion of the acquisition is expected to occur at the end of September 2012. The business to be acquired has commercial and domestic customers with an annual volume of approximately 87,000 tonnes of bulk and cylinder LPG. It has 116 staff and operates from a network of 13 locations throughout Britain with a fleet of 62 delivery vehicles (haulage services are principally outsourced). The footprint of the business is highly complementary to Flogas, DCC's existing LPG business in Britain (which has annual sales volumes of approximately 190,000 tonnes). The total consideration for the BP business is E51.3m on a cash free/debt free basis to be satisfied in cash at completion. The net tangible operating assets of the business at December 31st 2011 were approximately E38m.