Carillion, Capital Drilling and Flowtech Fluidpower

The FTSE100 opened on the front foot following gains in Asia. Later in the week, traders will be looking to UK jobless, house price and credit conditions data,” says AJ Bell Investment Director Russ Mould.

Carillion’s shares plummeted after the group suspended dividend pay-outs. Carillion has warned that first half operating profits will be below forecasts and the full-year picture is not much better with the board revising its guidance. Chief executive Richard Howson has stepped down with senior independent non-executive director Keith Cochrane taking the helm on an interim basis until a permanent appointment is made. Carillion’s cash flows have dwindled as construction contracts have dried up and a thorough review of the business is now under way. Carillion’s shares were down by more than 39.1% in early trading.

Capital Drilling’s shares were down in early trading despite its strongest first half since 2013 with revenues up 49% at $62.3m. Investors will have noted that levels of tendering activity marginally declined in the second quarter and that recent legislative developments in Tanzania have also added an element of uncertainty. Capital Drilling's shares were down by over 9.5%.

Flowtech Fluidpower was an early riser after first half revenues rose by 24.7% and the group strengthened its process division through the acquisition of Orange County Ltd. Flowtech’s strong performance has been driven by the continued momentum across all its divisions and enhanced by the contribution from new subsidiaries. OCL, an exclusive UK supplier and distributor of high-quality products for the storage and movement of fuels, liquids and gases, will operate as an independent sister company within the group and will continue to be managed by the current executive management team. Flowtech’s shares were up by more than 2.3%.

These articles are for information purposes only and are not a personal recommendation or advice