Stephen Rawlinson
20 January 2017 · 1 min read

Market Commentary - Housing, Infrastructure, Construction and Services 20th January 2017

Short version today as there is little new to add. The departure of Neil Cooper as FD at Barratt after roughly a year in the role, announced at 4pm yesterday is an odd one. The explanation that the chemistry was just not working after around a year in the role is understandable and a swift break is best in that situation. Berkeley continue to buy back their own company shares, a process started around a week ago. Tony Pidgley and his board would only do that if they regarded the shares as good value.

Read more...
Alexandra West
19 January 2017 · 7 min read

2017…the year of the rooster, Trump and flying cars

What does the year have in store for Aerospace & Defence stocks?

The Aerospace & Defence sector has two distinct sides to it, with civil aerospace and defence often proffering very different investment narratives. Historically, terrorism and political instability have tended to cause the two sides of the sector to diverge, with defence valuations surging and civil valuations falling. This happened most notably after 9/11 in 2001. At the end of 2016 though, a year defined by terror attacks and political turmoil, the situation was quite different. Defence stocks were the stand out performers during last year, driven initially by the fact global defence spending is now growing, having been in decline from 2011 – 2015, and more latterly by Donald Trump’s US election victory. However, civil stocks have also performed well. Although there have been a high number of terror attacks during 2016, improved airport security measures have forced terrorists to seek new targets and so aerospace stocks have been largely unaffected, and in fact have continued to benefit from the structural growth of passengers numbers which continues to drive output growth. So what does 2017 have in store for aerospace and defence?

Read more...
Stephen Rawlinson
19 January 2017 · 2 min read

Market Commentary - Housing, Infrastructure, Construction and Services - 19th January 2016

Workspace is the only sector related stock to provide news this morning with an IMS which informs us that it is seeing strong demand for its rental space in London and for its developed sites. The main move yesterday was at Mitie, as you might expect but the stock ended the day down just 4.9% to 195p.

Read more...
Richard Windsor
19 January 2017 · 1 min read

Twitter – Event horizon

Sale of Fabric collapses Twitter’s horizons.

Read more...
Mel Jenner
19 January 2017

The Merchants Trust announces benchmark change

Performance measure moved from FTSE 100 to FTSE All-Share index

The Merchants Trust (MRCH) has announced that it will be changing its benchmark with effect from 1 February 2017.

Read more...
Elaine Reynolds
18 January 2017

Norway awards 56 new licences

Norway has awarded 56 new production licences under the 2016 Norwegian APA (Awards in Pre-defined Areas) Licence Round, which covered the more explored areas of the Norwegian Continental Shelf . Interest was strongest in the North Sea area with 36 awards, while 17 were awarded in the Norwegian Sea. Only three awards went in the Barents Sea, reflecting the frontier nature of the basin. Link to awards maps

Read more...
Stephen Rawlinson
18 January 2017 · 2 min read

MITIE CONFERENCE CALL FEEDBACK 18th January 2017

The main talking point in the call was about accounting Rinky Dinkies that few knew about. We discuss those below but first the main substantive points.
Our contention that within Mitie there exists a business capable of £2bn+ a year revenue, 5% margins and 3-5% pa growth is unchanged

Read more...
Alexandra West
18 January 2017 · 3 min read

SFO shows its metal with £497m fine for Rolls-Royce

Black cloud over engine manufacturer should now start to lift

The Serious Fraud Office’s (SFO) five year investigation of Rolls-Royce has finally come to a conclusion, with a verdict that shows the SFO is getting tough on corruption, but one which should hopefully allow the dark cloud over Rolls-Royce to start lifting.

Read more...
Stephen Rawlinson
18 January 2017 · 2 min read

Market Commentary - Housing, Infrastructure, Construction and Services 18th January 2017

The unexpected update from Mitie, along with the replacement of FD Suzanne Baxter are the main issues of the day. The moves yesterday saw Babcock rise 1.4% to 955p which is not substantial but the stock has steadied in a 920-870p range which is a positive. Mitie has a few things to tell us today about trading, none of which are good and that the FD is to be replaced. The company tell us that operating profit for last year will be £60-70m versus earlier expectations that the out-turn would be nearer to last year’s £129m at around £90m.

Read more...
Elaine Reynolds
17 January 2017

2017 Senegal appraisal to kick off in January

Cairn Energy confirmed today that it will return to drilling offshore Senegal by the end of January this year, with two firm wells designed to further evaluate its 473mmbbl SNE discovery. The Stena DrillMax is contracted for these two appraisal wells together with multiple follow on options yet to be confirmed but which could include exploration wells in addition to further appraisal.

Read more...