Stocks to watch: Briscoe, Burger Fuel, Millennium, Telecom, Windflow

Friday 5th November 2010

Briscoe's reported a 6.5% rise in sales to $89.8 million, Burger Fuel secures a site for its new Dubai outlet and Telecom lifts first-quarter underlying earnings by 3.6%.

Briscoe Group (BGR): The retailer reported a 6.5% gain in sales to $89.8 million for the 13 weeks ended Oct 31, or a gain of 6.1% on a same-store basis. Managing director Rod Duke said the company is “cautiously optimistic” heading into its busiest quarter and reiterated that full-year profit, excluding a $2.6 million tax adjustment taken in the first half, will exceed last year’s $21.03 million. The shares rose 3 cents to $1.43 yesterday.

Burger Fuel (BFW): The burger chain expanding into the Middle East said has secured a site for its fourth outlet on Sheikh Zayed Road, the busiest road in Dubai. The second Dubai store should open within nine months, the NZAX-listed company said. The shares were at 42 cents yesterday.

Millennium & Copthorne Hotels (MCK): The hotel chain said the Copthorne Hotel Christchurch Durham Street, closed since the Canterbury earthquake, is expected to reopen in 2011, with repairs already underway. The hotel has insurance cover for business interruption and material damage and an initial progress payment has been made, it said yesterday. The shares were unchanged at 41 cents yesterday.

Telecom (TEL): The country’s second-biggest listed company lifted first-quarter underlying earnings by 3.6% by curbing costs and revenue continues to slide from its fixed-line network. EBITDA rose to $463 million in the three months ended Sept 30, though net income fell 37% to $103 million reflecting a larger tax bill. The shares rose 5 cents to $2.11.

Windflow Technology (WTL): The wind turbine maker said it has made it to the finals of the UK Market Entry (UK-ME) competition, which will help raise the profile of its Windflow 500 model. Its UK distributor, Ventus Green Energy, has received 370 expressions of interest from Scottish farmers wanting information about the Windflow 500 and 29 have sought planning consent to install the turbines. The shares last traded at 99 cents on Nov 2.

Themes of the day: The New Zealand dollar edged close to 80 US cents, soaring about 1 US cent overnight as global stocks rallied and the greenback weakened in wake of the Federal Reserve’s quantitative easing measures, which sent investors searching for higher yields elsewhere. At home, Telecom posted a 37% drop in first-quarter profit on increased tax and the continual loss of customers from its copper wire network.

Businesswire.co.nz

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