UK shares are firmly on the up in early trade on Tuesday ahead of Philip Hammond's first Autumn Statement due tomorrow. SOme of this strength is likely down to Monday's jump in the value of Sterling. The FTSE 100 index rallies 55 points, or about 0.8%, to 6,833, after a largely flat finish to trade on Monday.
In corporate news. Construction equipment group Lavendon (LVD) soars 41% to 196p as it receives a takeover approach. But the pitched 205p maximum offer has already been turned down by management, which appears to be fishing for a much higher offer, either from potential buyer TVH or perhaps another party.
Insurance takeover specialist Chesnara (CSN) confirms speculation that to hopes to seal a deal to buy British insurer Legal & General's (LGEN) Dutch operations. Talks are siad to be at an advanced stage. But investors are fairly non-plussed by the deal, Chesnara shares edhing just 0.6% higher to 305p, with Legal & General's stock similarly little changed.
Multi-utility reseller Telecom Plus (TEP) posts interim results to 30 September showing adjusted pre-tax profits up 11% to £25.1m on revenues down a warm weather-hit 0.9% to £291.3m. The profit improvement appears to be due entirely to a £4.2m recovery of smart meter costs from the energy supplier. The company also plans to add insurance services and water supply to its offerings. The shares edge 15p higher to £12.19.
BGEO (BGEO), the holding company of JSC Bank of Georgia, reports a 75% increase in third-quarter profit, helped by higher income in its banking and healthcare businesses. That sparks a 2.4% rise in the share price to £28.66. The group is also hosting an investor day today.
Half year results give engineering group Severfield (SFR) a boost, the stock rallying nearly 8% at 70p. Underlying pre-tax profit is shown jumping 69% on flat revenues.
Balance sheet stretched walkie talkies techy Sepura (SEPU:AIM) continues to concern investors as it posts a huge plunge into the red at the half year stage on revenues that have halved. Net debt is another major concern, even if it has come down more than €25m to €89.2m.
A discounted £640,000 cash call by mining minnow URU Metals (URU:AIM) sparks a 22% share price collapse to 0.42p, valuing the business at little more than £1.5m. The funds will be used to progress its work programme for the Zebediela Nickel Project.
The volatile pound and ongoing Brexit worries hang heavily on car seller Cambria Automobiles (CAMB:AIM) despite impressive full year results. The shares slump 12.5% to 59.5p presumably because of uncertainty over new car sales going forward.
Full year results as also not cheered from rugged electronics kit manufacturer Solid State (SOLI:AIM), sparking a near 7% share price decline to 420p. The company talks up a £14.8m order pipeline and robust balance sheet although investors seem to be focusing on declining revenues and earnings and a flat dividend of 4p per share.
