The Week In Review: Property firm fears shaky high street

Land Securities, Europe's largest quoted property company, - it even owns the lights at Piccadilly Circus - has had a good run since we tipped the stock a year ago. Boosted by recovery in the London office market and strength in its core retail division, the company's net asset value per share has increased by almost 11 per cent. Its shares have not quite kept pace with its peers, but they have nonetheless risen by almost 50 per cent since last November.

The concern for investors, however, is what might happen next, given the much less stable outlook for the commercial property sector. Retail, which accounts for more than half of Land Securities' portfolio, is the biggest worry. With consumer confidence already fragile, and interest rates having risen again, the high street is likely to come under additional strain in the New Year.

Still, Land Securities' outsourcing business, Trillium, which accounts for 17 per cent of group profits, is enjoying rapid growth, and has built up an impressive pipeline of future business. Meanwhile, its conversion into a real estate investment trust in January will make it a much more tax-efficient vehicle for investors. Buy.


Inmarsat offers phone services through its network of satellites, which cover 85 per cent of the earth's landmass, and third quarter results showed it could prove a very profitable niche. While revenue in the period grew 8 per cent to $129m (£68m), net profit tripled to $11.1m. Hold.


Gaming VC Holdings boasts that its online casino does not do any business with Americans. But most of its clientele are German, where the authorities are also less than keen on foreign gambling websites. Still, the business is in good health, with rising revenues and customer numbers. The company also has the support of the EU, which has been moving against gambling monopolies. Even so, avoid the shares until the regulatory situation becomes more clear.


For a British luxury goods group, Burberry sure is fond of installing American bosses. Angela Ahrendts has made it clear where her heart lies by putting the US at the centre of her expansion plans. In the half year to 30 September, pre-tax profits were £73.4m, down from £78.1m. But there is a momentum at all three of its profit streams: retail, wholesale and licensing. Don't lose faith. Buy.


The chances of anyone in London getting their morning latte from Coffee Heaven are slim because the group only operates in eastern Europe. But that's no reason to steer clear. An update this week confirmed trading is ahead of expectations. First-half revenue is up by 61 per cent and it expects a pre-tax profit of £400,000. Buy.


When BTR and Siebe formed Invensys in 1999, the former was in pretty bad shape while the latter was struggling. The combination of the two has been little short of a disaster. However, investors greeted last week's interim results enthusiastically, and the chief executive, Ulf Henriksson, seems to think the turnaround is complete. Investors have to decide whether they believe that - despite the surge in the share price, the results were only slightly ahead of market forecasts. Hold.


After the turmoil of recent years, life has settled down for Britain's biggest dairies. Robert Wiseman wound up with Tesco and J Sainsbury as its biggest customers, and reckons it's got "the two best horses in the race". Analysts at Panmure Gordon have lifted their full-year profits estimates by 7 per cent to £31m. Hold.


This year, Mecom emerged as a major owner of newspapers in Europe. While most London investors want to get as far away from newspapers as possible, Mecom has shown that conditions are more promising on the Continent. A trading update this week said that advertising revenues were growing in all its major markets - Denmark, Norway, Poland and Holland. Buy.


Gambling shares are, well, a gamble. When punters have a good run, the bookies take a hit. Such is the story at Ladbroke, which has warned investors that it had a string of bad results last month. Of 19 Champions League matches, 18 were won by the favourites, while five out of seven favourite horses won at Newmarket on Champions Day. Trading at 15 times next year's earnings, the company is fairly valued. But with the possibility of a private equity approach and potential for expansion in Europe, the shares have further to run. Buy.


South African financial services group Investec has been firing on all cylinders over the past year, with each part of its business growing at a pace. Publishing its interim results this week, the group posted an overall 34 per cent rise in operating profits, driven by a 68 per cent increase in its private client arm, and a near doubling of profits in its specialised finance division. Buy.


Sales growth at Mothercare is not proving sufficient to offset its rising costs. To tackle this, the group is taking the axe to its own estate, cutting back stores that are too big. In five outlets it has reduced its space by 40 per cent, its rent bill by 30 per cent but its sales by just 7 per cent. It is counting on the internet to make up any difference. All very sensible, but this newest Mothercare baby will take time to grow up. Take profits.

The above recommendations are taken from the daily Investment Column

Oh, bring us a figgy pudding - but avoid tasting the shares

In the next five weeks, Northern Foods will sell 26 million Christmas puddings. Which means a lot is riding on how well the food group performs over the festive season.

Investors are all too aware of the company's propensity for welcoming in the new year with a profit warning, so this week they were busy scouring its interim results for signs of something rotten. The alarm bells are already ringing over the firm's chances of getting £200m proceeds from a disposal programme that will see it shed 40 per cent of its business by a self-imposed target of next May. Profits from the businesses to be sold collapsed to almost nothing - but Pat O'Driscoll, the company's head chef, insisted this was only what it had flagged six months ago.

Following the divestments, Northern will comprise three divisions: chilled, bakery and frozen, making pizzas, ready meals, biscuits, sandwiches, salads and those figgy puddings. The interim numbers suggested its chilled business was on the road to recovery, with a 9 per cent rise in sales and a 2 percentage-point gain in margins to 3.8 per cent.

But the 38 per cent fall in interim profits before tax to £16m showed the rest of the company has some way to go. Avoid.

Arts and Entertainment
Characters in the new series are based on real people, say its creators, unlike Arya and Clegane the Dog in ‘Game of Thrones’
tv'The Last Kingdom' embraces politics, religion, warfare, courage, love and loyalty, say creators
Sergio Romero saves Wesley Sneijder's penalty
world cup 2014But after defeating the Dutch, Lionel Messi and Argentina will walk out at the Maracana on Sunday as underdogs against Germany
Scoreboard at the end of the semi-final World Cup match between Brazil and Germany at The Mineirao Stadium in Belo Horizonte
'Saddest man in Brazil' takes defeat with good grace, handing replica trophy to German fans
peopleThe Game of Thrones author said speculation about his health and death was 'offensive'
Arts and Entertainment
Martin Freeman and Lauren O'Neil in Jamie Lloyd's Richard III
theatreReview: The monarch's malign magnetism and diabolic effrontery aren’t felt
Glamour magazine hosts a yoga class with Yogalosophy author Mandy Ingber on June 10, 2013 in New York City.
newsFather Padraig O'Baoill said the exercise was 'unsavoury' in a weekly parish newsletter
people'She is unstoppable', says Jean Paul Gaultier at Paris show
Alexis Sanchez and apparently his barber Carlos Moles in Barcelona today
Arts and Entertainment
Miley Cyrus has her magic LSD brain stolen in this crazy video produced with The Flaming Lips
Arts and Entertainment
In his own words: Oscar Wilde in 1882
theatreNew play by the Oscar Wilde's grandson reveals what the Irish wit said at his trials - and what they reveal about the man
Arts and Entertainment
Unless films such as Guardians of the Galaxy, pictured, can buck the trend, this summer could be the first in 13 years that not a single Hollywood blockbuster takes $300m
filmWith US films earning record-breaking amounts at the Chinese box office, Hollywood is more than happy to take its lead from its new-found Asian audience
The garage was up for sale in Canning Place Mews for £500,000
newsGarage for sale for £500,000
Life and Style
Finacial products from our partners
Property search
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Associate CXL Consultant

    £40000 - £60000 per annum + BONUS + BENEFITS: Harrington Starr: CXL, Triple Po...

    Associate CXL Consultant

    £40000 - £60000 per annum + BONUS + BENEFITS: Harrington Starr: CXL, Triple Po...

    Financial Planning Manager, Qual Accountant, £380

    £300 - £380 per day: Orgtel: Financial Planning Manager, Banking , London, £30...

    Business Analyst - Financial Services, Trading Systems, Agile

    £60000 - £75000 per annum + BONUS + BENEFITS: Harrington Starr: A leading fina...

    Day In a Page

    The true Gaza back-story that the Israelis aren’t telling this week

    The true Gaza back-story that the Israelis aren’t telling this week

    A future Palestine state will have no borders and be an enclave within Israel, surrounded on all sides by Israeli-held territory, says Robert Fisk
    A History of the First World War in 100 Moments: The German people demand an end to the fighting

    A History of the First World War in 100 Moments

    The German people demand an end to the fighting
    New play by Oscar Wilde's grandson reveals what the Irish wit said at his trials

    New play reveals what Oscar Wilde said at trials

    For a century, what Wilde actually said at his trials was a mystery. But the recent discovery of shorthand notes changed that. Now his grandson Merlin Holland has turned them into a play
    Can scientists save the world's sea life from

    Can scientists save our sea life?

    By the end of the century, the only living things left in our oceans could be plankton and jellyfish. Alex Renton meets the scientists who are trying to turn the tide
    Richard III, Trafalgar Studios, review: Martin Freeman gives highly intelligent performance

    Richard III review

    Martin Freeman’s psychotic monarch is big on mockery but wanting in malice
    Hollywood targets Asian audiences as US films enjoy record-breaking run at Chinese box office

    Hollywood targets Asian audiences

    The world's second biggest movie market is fast becoming the Hollywood studios' most crucial
    Grindr founder Joel Simkhai: 'I've found love on my dating app - and my mum keeps trying to hook me up!'

    Grindr founder Joel Simkhai: 'I've found love on my dating app'

    Five years on from its launch and Grindr is the world's most popular dating app for gay men. Its founder Joel Simkhai answers his critics, describes his isolation as a child
    Autocorrect has its uses but it can go rogue with embarrassing results - so is it time to ditch it?

    Is it time to ditch autocorrect?

    Matthew J X Malady persuaded friends to message manually instead, but failed to factor in fat fingers and drunk texting
    10 best girls' summer dresses

    Frock chick: 10 best girls' summer dresses

    Get them ready for the holidays with these cool and pretty options 
    Westminster’s dark secret: Adultery, homosexuality, sadomasochism and abuse of children were all seemingly lumped together

    Westminster’s dark secret

    Adultery, homosexuality, sadomasochism and abuse of children were all seemingly lumped together
    A History of the First World War in 100 Moments: Dulce et decorum est - a life cut short for a poet whose work achieved immortality

    A History of the First World War in 100 Moments

    Dulce et decorum est: a life cut short for a poet whose work achieved immortality
    Google tells popular music website to censor album cover art in 'sexually explicit content' ban

    Naked censorship?

    The strange case of Google, the music website and the nudity take-down requests
    Howzat! 8 best cricket bats

    Howzat! 8 best cricket bats

    As England take on India at Trent Bridge, here is our pick of the high-performing bats to help you up your run-count this summer 
    Brazil vs Germany World Cup 2014 comment: David Luiz falls from leader figure to symbol of national humiliation

    David Luiz falls from leader figure to symbol of national humiliation

    Captain appears to give up as shocking 7-1 World Cup semi-final defeat threatens ramifications in Brazil