The FTSE 100 continues its recovery, up 0.6% to 7,277,72, after a solid showing for stocks on Wall Street and in Asia overnight and ahead of official UK retail sales data.
Industrial properties landlord Segro (SGRO) cranks 3.4% higher to 574.2p as it posts a 26% increase in adjusted pre-tax profit to £194m. The health advance was underpinned by the solid dynamics for the warehousing sector, with a shortage of space driving demand for its sites.
Part of the company’s strategy has been to tap into a growing need for warehouses near transport hubs as the retail market moves online. Chief executive David Sleath says the prospects for rental growth in 2018 ‘remain good’.
Construction outfit Balfour Beatty (BBY) ticks up 1.2% to 276.8p as the LAX Integrated Express Solutions consortium of which it owns 27% wins a £1.4bn contract to build a train network at Los Angeles International Airport. This award is significant as the first major public-private partnership deal to build infrastructure in the US.
Mining firm Rio Tinto (RIO) is flat at £41.40 as it says it has been told by the Mongolian authorities to find a domestic power source for a $5.3bn expansion at the Oyu Tolgoi mine by 2022. The company has set aside $250m a year in its 2019 and 2020 capital expenditure forecasts for the development of a power station.
Vet services provider CVS (CVSG:AIM) falls 11.5% to £10.80 as it reports revenue up 21.9% delivering adjusted profit 15.5% higher at £18.3m. The reason for the fall is a proposed fundraising at ‘not less than 1050 pence per placing share’. The proceeds will be used to fund future acquisitions from an identified £40m pipeline.
Agrichemical business Plant Impact (PIM:AIM) gains 66% to 9.75p as it announces a recommended cash offer of 10.57p per share. The bid, worth around £10m, is at a 79.9% premium to the previous close.
Also on AIM Chinese chemicals business Haike Chemicals (HAIK:AIM) reveals its intention to delist from AIM but offers investors an exit facility at 30p per share. The stock trades 48.7% higher at 27.5p.
