The Morning Call - Patisserie Holdings shares jump on the back of strong results.

Highlights of the Day

Asian Markets

Asian stock markets tumbled as investors looked ahead to a possible U.S. Senate vote on proposed tax changes and data announcements from major economies.

U.S. Markets

U.S. stocks closed high after a half-day session, with major gains by tech companies like Amazon leading the trend.

Today's News

Ultra Electronics has won a brace of contracts, one in the UK and one with Sweden’s Saab, two weeks after the defence and security supplier issued a profit warning due to a slowdown in UK defence spending. The group’s West London-based Communication & Integrated Systems arm has been awarded a £16.6m UK contract to help set up a surveillance system and provide ongoing support services until 2019. It has been won a £9m contract from Saab, the Swedish defence and security manufacturer, to supply its HiPPAG airborne compressor system for the new Gripen E/F fighter aircraft.
LondonMetric Property has exchanged on the sale of an Odeon Cinema in Derby and a retail asset in Guisborough for £18.6m, it announced on Monday, reflecting a blended net initial yield of 4.8%. The firm said that at Derby, the 10 screen, 37,000 square foot cinema formed part of a portfolio of 10 Odeon Cinemas acquired in 2013 at an overall yield of 7.3%. It continued to own five Odeon cinemas with a weighted average unexpired lease term of 21 years, and rents that rose annually in line with RPI between 1% and 5%.

AstraZeneca announced the submission of a supplemental new drug application (sNDA) to Japan’s Pharmaceuticals and Medical Devices Agency. It said the Japan sNDA was based on data from the Phase III FLAURA trial, in which Tagrisso “significantly improved” progression-free survival compared to current first-line EGFR-TKIs, erlotinib or gefitinib, in previously-untreated patients with locally-advanced or metastatic EGFRm NSCLC.

Cerillion reported strong full year results reflecting buoyant software revenue growth. Revenue for the 12 months to the end of September rose by 8.3% to £16.0m (annualised 2016: £14.8m) with recurring revenues up by 9.6% to £4.4m. The back order book stood at £13.1m (2016: £9.3m) – up 40.8% – and EBITDA rose by 17.8% to £3.6m (annualised 2016: £3.1m). Adjusted pre-tax profit was up 8.4% to £2.5m (annualised 2016: £2.3m).

Patisserie’s pre-tax profits rose by 17.1% to £20.2m in the 12 months to the end of September. Revenue was up 9.7% at £114.2m with online sales increasing by 26% to £4.8m. Gross profit of £89.3m was up by 9.8% and gross margin edged up to 78.2% from 78.1%. EBITDA of £25.6m was up 15.7%. Executive chairman Luke Johnson said: ‘We have delivered another year of excellent financial results, achieving our targets in a challenging environment.

Gold crept up as the dollar held close to a two-month low hit in the previous session, with investors noting the U.S. Federal Reserve’s cautious view of inflation.

Oil Prices dipped, easing from two-year highs on the prospect of increased U.S. output, although global markets were slightly better supported by expectations an OPEC-led supply cut would be extended.

Companies Reporting this week

Day	Companies
Monday:	Cerillion Patisserie Holdings
Tuesday:	Topps Tiles Greencore Group UDG Healthcare Public Limited Company Shaftesbury
Wednesday:	Britvic Brewin Dolphin Holdings ZPG Plc LondonMetric Property Pennon Group Redcentric RPC Group Telford Homes
Thursday:	Marston’s Grainger Greene King PayPoint Go-Ahead Group

Early Market Movements

Market	Index	Change	% Change
UK 100	7,398.6	-11.0	-0.2%
UK 250	19,918.6	-26.2	-0.1%
GER 30	13,035.5	-24.3	-0.2%
FRA 40	5,379.1	-11.3	-0.2%
U.S. 30	23,557.99	+31.81	+0.1%
U.S. 500	2,602.4	+5.3	+0.2%
OIL (BRENT)	63.64	-0.22	-0.3%
GOLD	1,291.98	+3.61	+0.3%

UK Risers & Fallers (8:15am)

Company	Price	Change	% Change
Aviva	505.5	+6.1	+1.2%
GlaxoSmithKline	1310.5	+13	+1.0%
Carillion	17.25	+0.75	+4.6%
Marshalls	436.2	-23.9	-5.2%
Pearson	695.5	-12.5	-1.8%
Provident Financial	873.75	-14.25	-1.6%

Latest Broker Views

Company	Broker	Recommendation	Price	Target
National Grid	Credit Suisse	Neutral	867.8	860
Reckitt Benckiser	Barclays	Equal Weight	6431	6600
Sage Group	Goldman Sachs	Buy	805.5	880
Centrica	RBC Capital	Sector Perform	137.77	150