Europe Earnings: Bellway, Hornby, Kcom, Severn Trent

Nigel Thomas
07 Jun, 2013
New York City

Bellway reservations in the last four months soared 31%. Hornby revenues dropped and net swung to a loss. Kcom revenue slid to

[R]3:20 PM Frankfurt – Bellway reservations in the last four months soared 31%. Hornby revenues dropped and net swung to a loss. Kcom revenue slid to £372.9 million and increased dividend by 11%. Severn Trent soared after consortium is said to have raised its takeover bid.[/R]

In London trading, FTSE 100 index rose 0.6% or 35.59 to 6,372 and in Frankfurt the DAX index gained 0.6% or 52.77 to 8,151.

In Paris, CAC 40 index increased 0.5% or 17.98 to 3,832.

Bellway Plc climbed 2.7% to 1,351 pence after the UK based homebuilder reported reservations in the last four months soared 31% to 160 per week.

The group continued to invest in new land with minimum gross margin of 20% and spent £270 million on land and land creditors. The group had net bank debt of £95 million at the end of May.

Hornby Plc jumped 3.6% to 82.90 pence after the UK based entertainment products maker said revenues in the year ending in March dropped 10.9% to £57.39 million from £64.45 million in the year ago period. Loss for the year after taxation swung to £2.50 million or 6.39 pence per share compared to profit of £3.16 million or 8.12 pence per share same period last year.

Kcom Group Plc surged 8.5% to 83.35 pence after the UK based communications solution provider reported revenues in the year ending in March slid 3.7% to £372.9 million from £387.3 million in the year ago period. Profit for the year edged up £37.9 million or 7.39 pence per share compared to £37.73 million or 7.13 pence per share same period last year.

The Kcom declared full year dividend of 4.44 pence per share, an increase of 11% as pre-tax profit and earnings per share increased and the company reaffirmed commitment to grow dividend at 10% a year to 2016, although revenues declined for a fifth straight year.

Severn Trent Plc soared 4.5% to 2,110 pence on media reports that a consortium of investors increased the offer for water utility to £22 a share from £21.25 or £5.3 billion.