In line numbers, growth slowed further from the May IMS but was expected. At the May IMS, organic growth was +7.0%, now H1 organic +6.3%. Minerals and Europe are the challenge, as expected. Guidance was for FY13 group margin to be broadly stable at the May update, now talking about H2 margins being flat which means margins down YoY (a downgrade from flat), street expecting a 10bps decline. The declines seen will therefore ease in H2, restructuring being stepped. So perhaps some small downgrades but growth is expected to improve in H2. No call, only an analyst presentation. Having removed it from the HQGB in April we then turned a trading seller. At the time of doing so we said we would look for better levels to re-enter this name on the long-side. We could be approaching this, as on the roll-forward the FCF yield would rise above 5% making it eligible again for re-entry to the HQGB. Back with more.
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