Peacock's fine display

By GEOFF FOSTER FOR MAILONLINE
Updated:

 

GURCHAIT and Gurnaik Chima, the super-rich Huddersfield-based Sikh brothers who netted almost £40m in cash and shares last year when they sold their 70% stake in womenswear fashion chain Bonmarche to value retailer Peacock, made another £ 10m-plus yesterday.

Broker Investec easily placed 5m of their shares in Peacock at 208p with various institutional investors. The brothers retain around 5%.

They sold after Peacock announced impressive interim results that pleased the market and left the close 8 1/2p higher at a peak of 225 1/2p.

They came in well ahead of analysts' expectations with pretax profits, pre-exceptional and goodwill, up a staggering 158% to £11.5m.

Peacock offers fashionable clothing for the 25-45 age group, while many of its older customers have been transferred to Bonmarche, which accommodates the over-45s.

Investec upgraded its forecast for the year to end-March 2004 from £34.5m to £35.3m, up from £23.1m last time. The next update will be its Christmas trading statement in January.

Department store James Beattie edged forward 1p to 137 1/2p on vague whispers that House of Fraser ( 1/4p dearer at 104p) could be lining up a bid.

Dealers heard that with Icelandic investor Baugur, which owns 10% of the company, Scottish businessman Tom Hunter, and Terry Green at Allders all rumoured to be interested in buying HoF, the Fraser management is contemplating making a defensive move for Beattie.

Puffed up by confirmation of Bats' (77 1/2p better at 720p) proposed merger of its US operations with those of rival RJ Reynolds, the Footsie closed 21.6 points higher at 4272.9.

Wall Street traded 66 points higher in the early stages and extended again to more than 100 points later as the Fed copper-fastened the US recovery by leaving interest rates on hold at 1%.

Sterling held at $1.696, but cheapened-against the euro to 68.9p and $1.1689.

Revived speculation that Bats will soon pounce helped rival tobacco group Gallaher jump 26p to 596p. Imperial Tobacco, which dealers believe is destined to stay independent, cheapened 12 1/2p to 976p.

Strong third-quarter results from Verizon Wireless prompted a gain of 4 1/4p to 124p in mobile phone giant Vodafone. Rival mmO2 buzzed 2p higher to 64p.

Believing the stock has been oversold, Merrill Lynch reiterated its positive stance on Jarvis, 16p better at 242 1/2p. The broker admits the shares remain high-risk and speculative, but its 12-month target price suggests potential upside of 37%.

Investment bank Singer & Friedlander rose a further 7p to 190 1/2p on hopes that Kaupthing-Bunadarbanki, the Icelandic bank, will add to its 5.96% stake. Jupiter Asset Management has also been active of late and now holds

10.4%.

EMI, still locked in merger talks with AOL Time Warner's music division, gained 6 1/4p to 174 1/4p.

Medical Marketing jumped 5 1/2p to 54p after the European Patent Office granted a patent for one of its anticancer therapies. Placed on Aim at 100p, shares of private equity group Melrose closed at 130p.

Dealers expect plenty of action in the coming months as major shareholders include co-founders of mini-conglomerate Wassall, Chris Miller and David Roper, and former Whitbread boss Miles Templeman.

Despite the appointment of David Sebire as chairman, Aerobox eased

1/4p to 25 3/4p. Several airlines have been holding trials of containers made from the group's patented lightweight material, which is ideal for air freight. Rumours suggest Sebire will soon be able to announce a lucrative contract.

Business information group Datamonitor rose 2p to 116p. Investec placed 7.4m shares at 110p with institutions.

• SPARKS should fly on Friday when Ocean Power Technologies, which supplies US Marines in Hawaii with electricity generated by waves, begins trading on Aim. Placed at 125p by broker Evolution, the shares are likely to scorch to a premium of around 20p. Over the coming months, OPT is expected to sign contracts and Memoranda of Understanding with global power companies.

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