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...
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...
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...
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...
Stephen Rawlinson
13 January 2017 · 2 min read

Market Commentary - Housing, Infrastructure, Construction and Services 13th January 2017

Forterra, SIG and Grafton have issued updates this morning for the year just ended and all three contain no surprises. Lavendon has also issued an update which helps to explain why TVH and Loxam have been so interested but probably not why the Directors initially recommended the 230p bid.

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

Market Commentary - Housing, Infrastructure, Construction and Services 12th January 2017

Barratt Developments and Savills have issued trading updates today. Barratt report that in the first half of the year to end December trading has been in line but there is an increased level of caution, reading between the lines.  Savills 2016 performance benefitted from the timing of several transactions near to its year end and FX so the out-turn for the year was “meaningfully ahead” of previous expectations. Barratt’s update is likely to be greeted with a mixed response. There is a conference call at 8.30. One of the key talking points will be London demand which the company states is a headwind affecting margin growth and ASP

Read more...

Tags