Construction delays in France have put shares in Wolseley (WOS) into reverse. The building materials group fell 3.8% to £32.32 after European weakness overshadowed improvements in the UK and US. Charles Stanley analyst Tony Shepard notes a 59% rise in the share price over the past 12 months, helped by a sector re-rating on the back of cyclical recovery hopes. 'This has lifted the share rating to an unprecedented high level of 19 times earnings for the 2013 financial year, a level not seen for some 20 years!' He reckons the valuation is 'up with events' and has a 'hold' rating on the stock.
Continuing with the construction theme, the market gave a more bullish reaction to full-year results from equipment rental provider VP (VP.), sending the shares up 6% to 358.25p. We look at the figures and the stock in more detail here.
Defence firm Cobham (COB) fell 4.9% to 272.1p amid reports an institutional investor had sold 39.1 million shares in the company through a placing. The stock, representing 3% of the entire group, was apparently offered at a discount to the closing price on Monday.
Rentokil (RTO) advanced 2.8% to 90.9p on rumours that its facilities management arm could be acquired by private equity group Clayton Dubilier & Rice for £400 million. A deal is also thought to include the purchase of a similar business from Balfour Beatty (BBY). Analysts liked the idea of Rentokil selling another division so soon after getting shot of City Link. Even better would be the disposal of its textiles rental arm, says Mike Murphy of Numis Securities, as this would leave Rentokil focussed on pest control which he claims to offer 'excellent long-term growth potential'.
Communications group Sepura (SEPU:AIM) has released forecast-beating full-year results. Analysts eye new revenue streams from software and applications but investors were less bullish as the shares fell 4.2% to 114p after a strong run. They've nearly tripled in just over two years.
Metals recycling-to-mining group Goldplat (GDP:AIM) slumped 32.5% to 6.5p on a profit warning caused by a weak gold price and decision to streamline its business. It has suspended operations at its Kilimapesa gold mine in Kenya and decided not to buy certain raw material for processing at its industrial operation in Ghana. Anyone following the company closely should not have been surprised by these actions.
Microcap support services group Vipera (VIP:AIM) jumped 11.5% to 3.62p after forming a partnership with Equens, a large pan-European payment processor. Vipera specialises in mobile financial services.
Biomass microcap Active Energy (AEG:AIM) jumped 18% to 1.62p after striking a blockbuster deal to buy one of its chief feedstock suppliers and raise £2.77 million of fresh funds at nil discount. Full-year results still show precious little revenue and ongoing losses.
US oil firm Nighthawk Energy (HAWK:AIM) gushed up 8.8% to 5.96p after issuing £3.8 million of loan notes (which convert into new shares at a price of 5.5p) in order to fund two additional wells on its Smoky Hills project in Colorado. The group also indicated it had confirmed the presence of more oil at Smoky Hills through the Taos 1-10 well on the Arikaree Creek oil field.
Canada and UK oil and gas play Enegi Oil (ENEG:AIM) ticked up 2.3% to 9.07p after revealing an unnamed technical consultant on its Garden Hill field in Newfoundland wants to take a stake in the asset.
Private jet company Air Partner (AIP) saw shares slip 1% to 354p after the group's interim management statement reported a fall in government business from around the world. This was mitigated new business from the Tour Operator and Oil & Gas sectors and the group expects expects full-year results to meet expectations.