The FTSE 100 and FTSE 250 indices are fairly static on a day dominated by mid to smaller company news.
A bidding war has erupted for water supply company Dee Valley Water (DVW). Having agreed a £71.2m takeover in October from Ancala Fornia, the small cap today withdraws that recommendation in favour of a £78.5m bid from FTSE 100 utility Severn Trent (SVT).
Speedy Hire’s (SDY) turnaround is taking shape with news that full year pre-tax profit is now expected to be ahead of forecasts. It announces a 10% hike in the dividend and says new customer service initiatives are being introduced to help grow profitable market share. Its share price jumps 13.6% to 41.75p.
Ocado (OCDO) slumps 5.1% to 267.75p as competition heats up in the home food delivery market. WM Morrison Supermarkets (MRW) today starts its partnership with Amazon where customers of the online retail giant will be able to order food from their local Morrisons store for same-day delivery.
Emergency power outfit Aggreko (AGK) falls 5.2% to 760p as it effectively delivers a mild profit warning, with guidance for full year numbers to be 'broadly' in line with expectations.
Housebuilder Barratt Developments (BDEV) slips 2.3% to 472p as a trading update reveals a 4.3% bump in forward sales post the Brexit vote but also warns of a more 'challenging' housing market. Like its peer Taylor Wimpey (TW.) it flags a shortage of skilled labour.
Brick maker Forterra (FORT) jumps 1.7% to 185p on a reassuring trading update. It says demand remains robust from housebuilders. A vote of confidence can also be found in its decision to increase brick capacity by 2.5% to 3% and restart some mothballed production. Sector peer Ibstock (IBST) rises 1.1% to 177.8p in response.
Avon Rubber (AVON) advances 4.6% to £10.48 on positive full year results and a return to a net cash position. Pre-tax profit is ahead of analyst forecasts at £21.6m. Shareholders will be pleased at a 30% hike in the dividend.
