The morning news update with Pearson, Cobham and Solo Oil

FTSE 100

Pearson (PSON) – Full year guidance reiterated: Adjusted earnings per share expected to be between 62p and 67p in 2014.

Rolls Royce (RR.) – has signed a final agreement to create a jointly-owned company that will design, develop, produce and support accessory drive train transmissions (ADT) for all of Rolls-Royce’s future civil aircraft engines.

Shire (SHP) – revenues up by 33% at $1.552 million in Q£.

FTSE 250

Cobham (COB) – has secured a contract with Australian Maritime Safety Authority (AMSA) to provide an airborne search and rescue capability in Australia for 12 years from 2016, with aircraft modification and mobilisation activity to commence later this year. The contract, secured through open industry competition, has a value including estimated flying charges of AUD $640 million over 12 years.  If three additional optional years are exercised by AMSA, the full value would exceed AUD $700 million.

Spectris (SXS) – now expects that EBITA performance for the full year will be modestly below the current consensus of £200 million.

Vesuvius (VSVS) – trading performance for the third quarter of this year has been in line with the Board’s expectations, despite some softening in market conditions in certain regions.

Small caps

John Lewis of Hungerford (JLH) – expects to report sales for the year to 31st August 2014 of £7.4 million, up from £6.6 million. 

Solo Oil (SOLO) et al – the Horse Hill-1 well has discovered an oil accumulation in the conventional Upper Jurassic Portland Sandstone. A preliminary most likely estimate of 3.1 million barrels of gross in place hydrocarbon volume has been calculated within the upper Portland, with a further gross unrisked in place prospective hydrocarbon volume of 16.8 mmbbls of oil in a separate lower sand in the Portland interval located in an untested fault block to the south. 

Dart Group (DTG) – reported operating profit for the six months ended 30th September will be approximately 10% ahead of the same period in the previous year. However, increased losses are expected in the second half, which are a function of the continued expansion of seasonal leisure travel operations.

Omega Diagnostics (ODX) – management expects that this year’s financial performance will be below that previously envisaged due to no sales of the Visitect® CD4 product.

Avation (AVAP) – has taken delivery of a new ATR 72 aircraft from the factory in Toulouse, France and the aircraft has been leased to UNI Airways Corporation, the largest regional domestic airline in Taiwan.