Engineer’s shares climb 15pc after Carillion slide
ConstruCtion firm Kier rocketed up the FtsE 350 after issuing a bullish trading update and distancing itself from Carillion’s woes.
the company said it was trading as normal and remains on track to deliver double-digit profit growth for the full year.
the comments sent shares surging 15.3pc, or 146.5p, to 1104p, adding about £142m to its value and bouncing back from its slump last week when it was hit by Carillion’s demise.
Kier was a partner with Carillion on several contracts and saw its shares plunge more than 16pc last week despite saying it did not expect to take a financial hit.
Carillion’s collapse saw Kier take over the Highways England smart motorways scheme and take responsibility for the Hs2 major rail project, with Eiffage.
Yesterday, it said the contracts were ‘performing well, operationally and financially’.
Kier however said its debt would be higher than a year earlier at £230m to £240m, compared to £179m a year before as a result of increased investment in its property and residential arm.
the FTSE 100 was down 0.36pc, or 27.59 points, to 7615.84.
Discount retailer and education supplier Findel jumped higher after a stellar Christmas.
the firm, which counts Mike Ashley’s sports Direct as a top shareholder, enjoyed record sales in its express gifts business after building on the strength of its Black Friday campaign. it said sales in the year to January 19 were up 11pc, while its customer numbers surged 15pc to 1.8m.
under its express gifts business Findel sells discount presents that can be personalised via its website studio.co.uk. it said it had also seen encouraging trends in its education business, thanks to its strategy to boost online trading and make its courseware more price competitive.
While trading in January had been slightly slower than anticipated, it was on track to meet its full-year targets, sending shares up 4.5pc, or 9p, to 209p.
Car retailer Vertu Motors slipped 6pc, or 2.8p, to 44.2p after a disappointing sales performance.
the company, which runs dealerships for manufacturers such as Jaguar and Volkswagen, said the decline in the new car market as a result of the weak pound affected performance, and full-year earnings will be below expectations.
it posted a 13pc drop in sales for new vehicles in the four months to the end of December, and a 3.2pc drop in used vehicle custom. Group sales fell 0.1pc. upmarket pub firm Fuller, Smith
and Turner nudged up 1.8pc, or 17p, to 972p as sales in its pubs and hotels division rose 3pc in the 42 weeks to January 20 while profit in tenanted inns rose 2pc.
simon Emeny, chief executive, said: ‘these are a good set of figures in what remains a challenging trading environment.
‘they prove that a great experience in a stunning pub with excellent service, delicious food and a fantastic range of interesting drinks, continues to appeal.’
Analysts think upmarket pubs will do well this year, as they pass on cost pressures like the national Living Wage and business rate changes to customers.
Lender Close Brothers also jumped higher after revealing it expects its first-half profits to rise. the group said it had seen strong growth across its three divisions and is well positioned for the full 2018 financial year.
the FtsE 250 company said its banks continued to generate strong returns and profit growth during its first half, and its asset management division and Winterflood business continued a good performance. that sent shares up 8.1pc, or 118p, to 1569p.