London’s FTSE 100 trades modestly higher on Thursday, up 3.9 points to 7,529.1 following a fall on Wall Street and a mixed session for Asian markets in a quiet day as global markets get set for Christmas.
Infrastructure giant Balfour Beatty’s (BBY) shares bounce 3.2% higher to 290.7p as it raises its 2017 pre-tax profit forecast and net cash estimates after agreeing to sell a 12.5% stake in Connect Plus, the company which operates the M25 orbital motorway, to Dalmore Capital.
Expecting a £53m profit from the disposal, Balfour Beatty CEO Leo Quinn says ‘this transaction emphasises the ongoing attractiveness of our infrastructure assets and is in line with our declared intent to maximise value for shareholders.'
Heading south is retirement housebuilder McCarthy & Stone (MCS), marked down 10% to 153.5p as investors consider the negative implications of the Government’s proposal to reduce ground rents on new long leases to zero.
CEO Clive Fenton comes out fighting however, arguing the proposal ‘will result in a disruption of housing supply and contradicts the Government's stated objective of seeking new sources of housing. We understand and support the need for action to address leasehold housing and aggressive escalation clauses for ground rents, however this blanket approach will result in reduced housing delivery as well as choice for ordinary people.'
In demand is Civitas Social Housing (CSH), the first Real Estate Investment Trust (REIT) offering pure play exposure to social housing in England and Wales. It is bid up 2.5p to 112.75p on the £3.9m acquisition of a portfolio of East Midlands-based specialist supported living properties which will immediately boost the fund’s income.
Homewares retailer Dunelm (DNLM) softens 7.5p to 686.5p, concerns over the outlook for Christmas consumer spending seemingly overshadowing the appointment of former Evans Cycles boss Nick Wilkinson as its new CEO.
City-focused fibre broadband operator CityFibre Infrastructure (CITY:AIM) sparks up 1.7% to 59p after announcing its biggest public sector deal to date. It has inked a £15.7m, 19-year agreement with telecommunications provider Commsworld for Glasgow City Council worth £15.7m.
Corero Network Security (CNS:AIM) slumps 9% to 6.4p on a warning full year revenues will be hit by delays in customer implementation schedules. Corero is ending the year strongly, with record final quarter order intake for its SmartWall threat defence system. But the majority of revenues on two major projects is now expected in the first half of 2018.
Video games developer Sumo (SUMO:AIM) skips 18% higher to 118p in debut AIM dealings, having raised £38.45m of fresh growth funding at 100p per share to pay down debt and inject working capital into the business.
