Stephen Rawlinson
27 February 2017 · 3 min read

Market Commentary - Housing, Infrastructure, Construction and Services 27th February 2017

Persimmon, Gleeson and Keller opening the batting today in what promises to be a very busy week for the sector. The Berkshire Hathaway/Warren Buffet annual letter to investors, published late last week, puts accounting adjustments, a very common feature of UK HICS stocks into a managerial context. The results round so far has been one of virtually two opposites.

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Stephen Rawlinson
24 February 2017 · 2 min read

Market Commentary - Housing, Infrastructure, Construction and Services 24th February 2017

St Gobain released its 2016 results last night and provides the best guide to UK HICS stocks this morning. Aside from Morgan Sindall’s 8.6% increase yesterday most moves were in a tight range. MGNS has been indicating for some time that it enjoyed a very good 2016 and more importantly provided indications that there was much good revenue and margin growth to come. Closing at 982p last night the shares are 30% YTD.

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Stephen Rawlinson
23 February 2017 · 2 min read

Market Commentary - Housing, Infrastructure, Construction and Services 23rd February 2017

Morgan Sindall, Howden Joinery and Rentokil have released their 2016 Finals this morning. We did not expect to see Serco decline 20% yesterday to close at 119p. We attended the meeting which provided few reasons for such a dip, in our view.

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Stephen Rawlinson
22 February 2017 · 2 min read

Market Commentary - Housing, Infrastructure, Construction and Services 22nd February 2017

Serco’s progress in 2016 on its road to redemption is reported today. Barratt Developments has also reported its results for the half year to end December. The moves yesterday saw Mitie fall by around 2%, the largest faller and G4S and Galliford dip by 1%.

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Stephen Rawlinson
21 February 2017 · 3 min read

Market Commentary - Housing, Infrastructure, Construction and Services 21st February 2017

Interserve was the back marker yesterday, quite predictably as the warning was a bit of a shocker. Balfour Beatty has unexpectedly announced that it has sold its Middle East JV to its partner for £11m; Capita has announced that it will take £90m, non-cash, asset impairment to its P&L for last year; Wolseley has announced that it is to merge its Swiss operations with a locally based business, Walter Meier and Galliford Try has announced some solid numbers at the halfway stage of its financial year.

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Stephen Rawlinson
20 February 2017 · 2 min read

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

Bovis Homes tells us of its results for 2016 this morning and Interserve provides an unexpected update on its troubled waste to energy business. Interserve’s news is bad and there is no guarantee it will not get worse. Bovis has come out with the best it can do in the circumstances and promised it will press the reset button on the way it approaches the production process and customer service. The sector performed well last week with an outcome a head of the markets 0.5% rise at around a 1% increase. The housebuilders were the best performers in the group, up by near 1.5%.

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