The idea is to apply these same principles of outsourced property to corporate clients, and sure enough, the Land Securities-Trillium combine is preferred bidder for two very big contracts involving BT and the BBC.The reason why Land Securities had to reform its ways was clear from yesterday's full-year results the West End and the City portfolio performed but everything else was very unexciting. Group net asset value edged up 3.9 per cent to 1154p a share.The company's shares have had a great run since early last year. It would be nice to think this was because the City saw how the company had got its act together, but the truth is that it is a defensive stock, and anxious fund managers simply piled in when the technology universe collapsed. The macro environment is also the reason why investors should now be wary of the stock, already well off the year's high, closing yesterday up 3p at 890p.
There are signs that investors are plucking up the courage to exit defensives now, looking for more exhilarating opportunities elsewhere.The current year is likely to again see uninspiring performance at Land Securities. Teather & Greenwood, the broker, is forecasting 2002 NAV at 1,190p a share. The new earnings-orientated shape of the company will take time to feed through to the figures and City consciousness In the meantime, the shares are likely to tread water. Take profits.Imagination TechnologiesImagination technologies, which develops 3D graphics technology for specialised microprocessors, has had a rather rough time of it. The decision by Sega, Imagination's best-known customer, to pull out of computer games consoles and a difficult PC market, have taken a toll.Since the company's stock rocketed 10-fold in late 1999 and early 2000, Imagination has proven a bust for investors.
The ensuing fall-back has still left early buyers sitting on a profit.Yesterday, the company reported pre-tax earnings in the year to March were almost cut in half to £2.6m Sales, however, managed to inch ahead 6 per cent to £17.8m. Though both turnover and earnings were disappointing, the figures were in line with revised guidance the company issued earlier. But Imagination is not out of the woods yet.A good chunk of this year's sales rely on the PC market, and the company is still trying to break into new markets Imagination should not be written off, however It is profitable and has around £12.5m cash in the bank. Moreover, the firm has high hopes for its new audio chip, with some reckoning Hitachi might be interested in licensing the design. Imagination's partnership with ARM Holdings is also likely to be a winner.Customer wins in either area would give Imagination a leg-up, though entry into the mobile phone market, via ARM, probably holds the most potential. Unfortunately, licence wins in either area are not expected in the immediate future.Analysts predict pre-tax profit of about £4.2m this year, on sales of around £20m-£21m.
