BRAMBLES INDUSTRIES settled at a three-year high amid confidence that next week’s first-half results will show the first effects of recent price rises from the pallet distributor.
A survey conducted by Morgan Stanley among customers of its Chep division in the UK and France found a 21 per increase in average monthly invoices. Given that Chep’s price increases began to take effect at a large number of customers only in the second half of last year, the broker thinks the benefits are likely to become evident over the next 18 months. With Richard Bennett, analyst, suggesting that next Wednesday’s interims should show a major improvement in margins, and raising his 2006 and 2007 earnings per share forecasts by up to 9 per cent, Brambles gained 10¾p to 290p.
The FTSE 250 fell 63.3 to 7,300.0. MFI Furniture put on 2½p to 139¾p as Panmure Gordon predicted that next Thursday’s full-year results will prompt substantial upgrades to consensus forecasts. In light of a recovery at MFI’s UK retail business, the broker has raised its estimates by a further 17 per cent. Carpetright shed 19p to £10.89, despite the purchase of 5,000 shares at £11.26 by Guy Weston, who this month joined as a non-executive.
Tuesday’s after-hours declaration that Cantor Fitzgerald had cut its stake in Regent Inns from 11.7 per cent to 10.6 per cent sparked concerns that Robert Tchenguiz, owner of the Laurel high street pub chains who is said to hold the related contracts for difference, had been booking profits. Regent shed 5½p to 88½p.
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Elementis gained 2¾p to 42½p after Tuesday’s declaration that Hanover Investors now holds 14.65 per cent. Mice Group rose 2½p at 38¾p on a £25 million fundraising at 34p, which also saw the departure of Mike Curley, founder and chairman of the marketing support services group.
ITM Power, the fuel cell specialist floated on AIM last year at 50p, added 6½p to 103p after this week’s round of institutional presentations. There was also excitement over the potential to install ITM’s devices in laptop computers, although any licensing deals are thought to be some way off.