Highland Gold, Safestay and Empiric Student Property

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“The FTSE100 was virtually flat in early trading following minor gains in Asia markets. Investors are keeping their powder dry ahead of a raft of UK inflation data due out tomorrow,” says AJ Bell Investment Director Russ Mould.

Highland Gold swung to a net profit in the year to the end of December despite a fall in output. The group produced 261,159 oz of gold and gold equivalent and while this was in the upper half of its guidance range of 255,000-265,000 oz, it was down from 262,485 oz in 2015 but average gold prices increased to $1,136 per oz from $1,062 a year ago. Investors, though, will have noted that all-in sustaining cash costs were 1.8% higher at $652 per oz. Highland Gold’s shares were down by more than 1.9% in early trading.

“Hostel group Safestay was an early riser after it reduced full-year pre-tax losses following a strong uplift in revenues. The business has expanded significantly and the systems and infrastructure to support this growth are in place and are capable of managing current capacity as well as future plans for expansion. A recent restructuring and refinancing have transformed the financial base of the business and provided the necessary resources to support the group’s ambitions. Safestay’s shares were up by 0.95%.

Empiric Student Property saw continuing growth in the second half of 2016 with its portfolio valuation rising by 37.7% to £721.3m at the end of December. The group invested in or committed to a further 14 buildings with 1,142 beds in eight towns and cities across the UK, of which 10 buildings were operational.”

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