Builder’s dividend hike as it targets £220m profit

CONSTRUCTION group Galliford Try gave investors reason to cheer as it hiked its dividend 23pc to 32p a share.

shares soared when the market opened as profit climbed 19pc to £63m. revenue in the six months to December 31 was up 3pc to £1.3bn. Much of the growth came from its house-building business Linden Homes.

Galliford set out ambitious plans for the next four years, targeting profit of £220m. shares have now recovered past their pre-Brexit levels – the stock plunged more than 40pc in the weeks after the referendum vote in June to lows of 785p – but experts say there could still be further to go.

Yesterday shares finished up a nudge at 0.9pc, or 14p, to 1502p. infrastructure firm Balfour

Beatty has agreed to sell off its joint ventures in the Middle East.

the group is selling its stakes in Dutco Balfour Beatty and BK Gulf for a total of £31m.

Balfour, which has also come out of indonesia and Australia over the past two years, is focusing its business on the UK, us and Far East. shares edged up 0.9pc, or 2.4p, to 275.5p.

the FTSE 100 finished down 0.34pc, or 25 points, to 7274.8.

Among the greatest fallers of the day was Mediclinic International, which tumbled after poor trading in Abu Dhabi hit full year figures.

the private healthcare provider operates across the UK, switzerland, Middle East and southern Africa and also has an interest in spire Healthcare. Mediclinic said performance had been good in Dubai but patient volumes and performance continued to fall below expected in Abu Dhabi.

the firm has carried out performance reviews and implemented a recruitment programme.

But it now expects a steeper revenue fall and lower earnings in the region for the full year. shares dropped 6pc, or 48p, to 754p.

John Wood Group had its worst day in more than five years after profits plunged at the energy services firm. revenue fell 15.7pc to £3.95bn in 2016 while profit plummeted 62pc to £27.6m for the year.

Wood said lower oil prices for much of the year had made for a challenging time and only modest improvements are expected this year. the group has cut costs further – headcount at the firm is down more than a third over the past two years. shares plunged 7.9pc, or 65p, to 753p.

Bacanora surged as it snapped up a 50pc stake in a lithium project in south east Germany.

it is buying the interest in the Zinnwald Lithium Project saxony from solarWorld, the largest solar panel producer in Europe.

the site is reported to have produced lithium carbonate in the 1950s. Bacanora will pay £4.2m for the stake and contribute £4.2m towards a feasibility study on the project, which should take up to 24 months.

it has the option to acquire the remaining 50pc from solarWorld for £25.4m within 24 months.

Demand for lithium, which is used in electric cars and clean energy, is expected to rise steeply in coming years. shares soared 9.1pc, or 7p, to 84p.

Floor covering firm Airea plummeted as delays hit the business and it warned of uncertainty ahead.

But the carpet firm saw operating profit increase 51pc to £1.15m in the six months to December 31, while revenue edged up £100,000 to £12.8m for the period.

stronger performance was largely driven by product launches aimed at residential properties.

Airea said exchange rates and commodity prices were putting pressure on prices and the longterm effect was difficult to predict. shares spiralled down 13.5pc, or 5.25p, to 33.5p. MARKET REPORT