Serco Group (SRP)

UK stock markets responds to new record highs for US shares overnight as trade tensions loosen between the US and China ease off ahead of the 4 July holiday in the States. The S&P 500 finished the session up 0.3% at 2,973.01 while the technology heavy Nasdaq Composite closed 0.2% up at 8,109.09. That mood leaks across the pond to UK stocks with the benchmark UK index FTSE 100 rallying ...

Shares in outsourcing firm Serco (SRP) hit a two-year high, up 8% to 147p, after it delivers an upbeat first half trading update. Thanks to strong order intake in the last six months, full year revenues are now expected to be at the top end of the forecast range of £2.9bn to £3bn. THREE YEARS ON THE BOUNCE New orders in the first half were more than £3bn which is higher than the ...

The FTSE100 is nudging higher after a report in the South China Post hinted that the US and China had reached a tentative truce in their on-going trade dispute. The index of the top 100 shares gains three points to 7,419 in early trade. Banks, builders and miners are leading the index, up 0.72%, 0.63% and 0.95% respectively, while tobacco, down 1.2%, and personal goods, down 0.82%, are a drag ...

Shares in aerospace and defence firm Babcock International (BAB) gain 4% to 483p after the company confirmed weekend press reports that it has been approached by outsourcing group Serco (SRP). According to today’s press release, Babcock received an ‘unsolicited and highly preliminary proposal’ from Serco in late January regarding a potential all-share combination between the two ...

UK investors begin the week with takeover talk to digest after defence contractor Babcock (BAB) admits it turned down approaches of a tie-up from outsourcing peer Serco (SRP). There is also a strategy overhaul reported by troubled construction firm Kier (KIE) and a profit warning from German airline Lufthansa to mull, the latter hurting UK listed airlines that have been struggling with rising ...

Investors were excited by the prospect of merger activity potentially heating up across the UK housebuilding sector with shares in Galliford Try (GFRD) gaining 5.6% to trade at 568.5p on 28 May after the Uxbridge-headquartered company rejected an approach for its Linden Homes and regeneration businesses from rival Bovis Homes (BVS). Apparently, ‘preliminary’ talks took place between the ...

Shares in outsourcing group Serco (SRP) rally 10% to 133p, their biggest one-day gain this year, after it announces the acquisition of US ship and submarine design company Naval Services Business Unit (NSBU) for $225m. The deal, which is being financed through a mix of new shares and debt, is expected to be completed in the second half and to add to earnings straight away. READ MORE ABOUT ...

UK stocks are in sharp reverse in early trade on Thursday as growing tensions between the US and China, and doubts over Theresa May's government leadership because of Brexit continue to gnaw away at investor confidence. The benchmark FTSE 100 slumps more than 80 points, or roughly 1.2%, to 7,247.66, although a swathe of companies going ex-dividend today (when new shareholders lose the right to ...

One of the market’s smaller UK funds at £64m is the somewhat unheralded FP CRUX UK Fund (B5839S6). Managed by CRUX Asset Management’s Jamie Ward, mathematics whizz, former equity analyst and sole manager since March 2018, the fund aims to preserve and enhance the real value of investors’ money over time. While sentiment towards UK stocks is presently poor – and understandable given ...

London’s FTSE 100 firms 66 points to 7,345 on Monday, with the surprise news overnight that China’s manufacturing sector returned to growth in March providing a boost for miners and global advertising group WPP (WPP) in demand due to a broker upgrade. Budget airline EasyJet (EZJ) loses altitude, shares marked 7.25% lower to £10.37 as the low-cost carrier issues a more cautious outlook for ...

The FTSE 100 starts the week on the front foot up 0.6% to 7,228 points with Miners making the biggest contribution after Asian markets rally on hopes of a positive outcome to US-Chinese trade talks. There is little company news but sportswear retailer JD Sports (JD.) makes the headlines with an agreed cash offer for Footasylum (FOOT) at 82.5p per share or a 77% premium to Friday’s closing ...

Markets are steady at the start of the new week with sterling rising against the euro and US dollar. The FTSE 100 advances 19 points higher to 7,039.2 led by Royal Dutch Shell (RDSB) and BP (BP.), which are lifted by a stronger oil price. Belfast-based IT business Kainos (KNOS) sparks up 7.8% to 458p on the very welcome news results for the year to March will be ahead of market ...

It can be hard to change your opinion of a stock or a fund manager if you have an established view of something or someone. Having an open mind can, however, lead to better investment decisions if there is information that warrants rethinking your view. This theme is central to our article on housebuilders in this week’s edition of Shares. We correctly said to sell last summer and now we’re ...

Chancellor Philip Hammond’s last Budget before Brexit is being sold in some quarters as the biggest giveaway from the Treasury since 2010. The financial market response to Hammond’s apparent spending splurge was modest, perhaps reflecting a view this could all be subject to change in the event of a no-deal Brexit. Arguably the door was left open for this potential situation by the ...

An unscheduled and positive trading update from outsourcing business Serco (SRP) has driven a 15% surge in its share price to 101.7p. The statement itself is relatively light on detail but the salient detail is that results will be ‘meaningfully’ ahead of consensus expectations. Investors will naturally be wondering if this puts the business in a stronger position to resume ...

With the stock market a bit juddery of late, London’s FTSE 100 trades down 9 points at 7,536.4 on Friday, with the FTSE 250 off 28.1 points at 20,346. Bucking the trend among second liners however is public sector outsourcer Serco (SRP), which surges 15% higher to 101.3p on a surprise, positive trading update, confirming full year trading will be stronger than previous guidance on ...

The FTSE 100 is ending a turbulent week on the front foot - taking its cue from strong trading in Asia and the US overnight to gain 1% to 7,692.20. The US appearing to dial back some of its more aggressive rhetoric on trade for now. In corporate news, the market chooses to focus on a first half revenue slide at outsourcer Serco (SRP) despite a guided increase of up to 20% in underlying ...

Shares in British engineering company Babcock (BAB) are starting to recovery after a terrible period on the stock market. The £3.9bn company saw its share price fall by more than 40% between September 2016 and February 2018 (from £10.90 to 626p) as investors feared it would be the next outsourcing company to fall foul of contract delays, political intervention and financial ...

European markets are off to a strong start on Valentine’s Day, the FTSE 100 continuing to show resilience in the face of yesterday’s high inflation figure and trading 42.2 points up at 7,210.2 early on. Distinctly unloved however is housebuilder-to-construction firm Galliford Try (GFRD), which slumps 14.8% lower to 841.5p despite posting robust half year results with its Linden Homes arm in ...

Outsourcing companies have been thrust into the spotlight by the demise of Carillion (CLLN). The high profile corporate failure raises the question of whether this type of business can ever be a good investment. On the face of it, winning large, long-term contracts from a government should be great for revenue visibility. However, these companies operate on thin margins as strong competition ...