fastjet, Lamprell and Caffyns

“Blue-chips were in negative territory in early trading ahead of UK gross domestic product data this morning,” says AJ Bell Investment Director Russ Mould.

“Africa low-cost airline fastjet went into a tailspin after chairman Colin Child quit as the company confirmed it planned another fundraising exercise. Child, who led the company’s last fundraising in July, has decided to fall on his sword rather than go to the well again and much sooner than originally expected. The airline’s stabilisation plan, which involves switching from 145-seat A319 aircraft to smaller planes, is cutting overheads but the cost of returning leased aircraft is more onerous than anticipated. fastjet’s shares were down by more than 15.6% in early trading.

“Lamprell topped the FTSE-All Share Index in early trading after winning new contract from ScottishPower Renewables for the fabrication of multiple jackets and piles for the East Anglia One offshore wind farm. Fabrication work in the group’s Jebel Ali and Sharjah yards in the UAE is scheduled to start in March but the contract will also create jobs in the UK with Lamprell working closely with Harland & Wolff in Belfast on this project. The project gives Lamprell an opportunity to demonstrate how its fabrication skills are transferrable to other areas of the energy industry and beyond its traditional sweet spot in the oil and gas sector. Lamprell’s shares were up by over 6.2%.

“Car dealer Caffyns had a solid first half with like-for-like new and used car sales up. The group finished the period with cash reserves and low gearing and is now well placed to exploit future business opportunities.”

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