UK construction services group Carillion (CLLN) has lost its CEO Richard Howson after warning on profits and suspending dividends because of difficult markets. Howson has stepped down with cash now tight on several large projects, on which Carillion is taking a £845m provision. That sends the share price crashing 35% in early trade on Monday to 126.3p, wiping £300m off the company’s market value.
The FTSE 100 trades in positive territory in early deals, 13 ponts, or 0.18% higher at 7,364. Financials are a firm feature, while resources lead on the downside.
That confidence seems to fly in the face of latest surveys that predict lower chances of a pick-up in the UK economy. According to Reuters, major companies have curtailed investment plans while falling consumer credit card spending could put Britain's high streets under pressure, an issue Shares looked at in-depth last week.
MORE CHANGE AT TALKTALK
Chief financial officer of broadband and calls supplier TalkTalk (TALK) plans to stand down later this year as the group’s boardroom reshuffle continues. Iain Torrens will be succeeded by Kate Ferry, the current director of investor relations and corporate affairs at Dixons Carphone (DC.). TalkTalk stock remains flat at 185p.
Pharmaceutical group Shire (SHP) has obtained a preliminary injunction in a Hamburg court against rival Roche over its haemophilia drug emicizumab. The quibble comes over allegations of incomplete and misleading statements surrounding the treatment. Shire shares remain largely unchanged in early trades, nudging 12p higher to £43.365.
GROWTH FUNDS
Engineering components business TP Group (TPG:AIM) is gearing up for an acquisitions push as it looks to build on recent growth. The company has raised £23.9m, £20m through a firm placing and £3.9m in an open offer, to fund plans to push annual revenues to its targeted £90m to £100m by 2020. TP reported sales of £21.2m in the year top 31 December 2016. The dilutive effect of the cash call puts the share price under pressure, down 5% at 6.88p.
Training software minnow Pennant International (PEN:AIM) unveils £600,000 worth of new contracts, pushing its share price a little more than 2% higher on Monday to 94p. That values the firm at around £31m.
