Stephen Rawlinson
30 June 2017 · 2 min read

Market Commentary - Housing, Infrastructure, Construction and Services 30th June 2017

Serco has released its trading update today and Interserve has told us that FD Tim Haywood will leave the business at end November. Serco’s top team is however, being cautious in its approach. In conclusion on Serco, management is doing what it said it would do. However, it is taking longer than they and many others might prefer as there appears to have been many weak contracts in the portfolio.

Kier’s site visit to Reading created a positive impression on us. The sector moves yesterday were mainly down, only Mears and Homeserve were in positive territory with rises of 3.5% and 0.5% respectively.

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Stephen Rawlinson
29 June 2017 · 2 min read

Market Commentary - Housing, Infrastructure, Construction and Services 29th June 2017

Babcock has announced it has won a contract and Civitas has spent some more of its equity on social housing stock and Utilitywise has a new FD and an accounting issue has been identified. Kier was the best performer yesterday as its update was seen as reassuring.

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Stephen Rawlinson
28 June 2017 · 2 min read

Market Commentary - Housing, Infrastructure, Construction and Services 28th June 2017

Kier’s trading year end update ahead of a CMD tomorrow is the main news this morning. The one-offs will attract attention but should not be allowed to overshadow what appear to be positive results to come in most areas of the operations. The moves yesterday were almost all downwards. The reality that interest rates are going up at some point, the UK economy is slowing and that political uncertainty is creating delays is starting to be realised.

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Stephen Rawlinson
23 June 2017 · 2 min read

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

Workspace has the floor to itself this morning with its £159m acquisition of Salisbury House in Finsbury Circus. Moves yesterday were in a tight range with Grafton leading the way rising just 1% to 733.0p and Balfour Beatty suffering a little, along with other contractors, down 1.6% to 277.8p.

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Stephen Rawlinson
22 June 2017 · 2 min read

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

James Latham, a £200m revenue a year timber merchant, reported its finals to end March 2017 this morning. Capita topped the leader board again yesterday with a 3.8% rise to 696p as big brokers start to change view. Are there other examples of stocks that are substantially out of favour but have strong market positions you may ask?

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Stephen Rawlinson
21 June 2017 · 2 min read

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

Berkeley’s finals for the year to end April are as candid as usual. The key message is that Berkeley is doing a good job of building new homes and making valuable contributions to society (e.g. apprenticeships, social housing units, taxes paid, charities to which the company has donated) despite the headwinds being created by the politicians (e.g. stamp duty, mortgage relief on BTL loans, Brexit, planning system). The moves yesterday included only small changes.

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