A 5.2 PER CENT dividend yield and the prospect of further returns of cash to shareholders helped Topps Tiles to rebound from recent selling.
The retail chain, which has a 20 per cent share of the UK ceramic tiles market, has endured volatility in its shares since last month’s first-half figures, partly because of fears over the effects of higher UK interest rates on the DIY market. But Arden Partners drew interest yesterday with a strong “buy” recommendation, noting Topps should have net cash of £29 million by its September 30 year end, raising the prospect of an increased or special dividend, or share buybacks. Topps rose 7p to 215p, with the FTSE 250 off 8.0 at 9,093.8.
Debenhams, up 4¼p at 196p, and QinetiQ, 1¼p off at 171p, were heavily traded ahead of their inclusion in the FTSE 250 from Monday. The fact that both recently floated stocks are entering the mid-cap index from outside the FTSE all-share index has triggered heavy demand from tracker funds.
A 350p target from Bridgewell Securities saw Sthree add 15¾p to 300p. Associated British Ports eased 2½p to 869p as a consortium led by 3i began formal due diligence of the ports operator. It is expected to decide next week whether to mount a counterbid to Admiral’s 840p cash offer.
Caledon Resources held steady at 5½p on talk of a “transformational” acquisition next week. The deal is understood to entail the injection of up to £50 million of Australian assets — currently owned by a major — into the £19 million company, so turning it from an explorer into a producer.
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Cambridge Mineral Resources added 18p to 3¾p as Michael Thomsen was eased out as executive chairman after pressure from institutions, including RAB Capital, which holds 18.8 per cent. Apart from a dismal share price performance — the stock peaked at 18¾p two years ago — investors have been unhappy at Mr Thomsen’s presentational style and the fact that he has not bought stock. MicroEmissive Displays, the maker of light-emitting displays backed by 3i and Germany’s BASF, tumbled 33½p at 40½p as a mystery seller offloaded a rumoured 300,000 shares at 34p. That fall took the shares below the company’s last stated cash position — as at the end of last year — of £8.1 million, or 47p a share. ASOS put on 2¾p at 92¼p as Bill Currie, the former BZW retail analyst, declared a raised 7.1 per cent stake.