Construction, transformation and hires

Wednesday 9 December 2015

The headline index regained some ground in early trading despite poor overnight performances in the US and Asia as falling commodity prices continued to take their toll on global markets.

“Carillion (LSE:CLLN) delighted investors with a bullish update which shows the construction and support services group is on target to hit its full year targets,” says AJ Bell Investment Director Russ Mould.

“Carillion had a relatively quiet start to the year due to a lull in public sector spending in the run up to the General Election but the pace has quickened since then and it announced new deals today worth around £1bn. Much of this work reflects its continuing success in winning repeat business from long-term customers and it continues to see some improvements in market conditions, especially in the UK.

“Meanwhile, Balfour Beatty (LSE:BBY), which rejected a takeover by Carillion, expects to be net cash positive at the year end. The group remains focused on managing the historic problem projects across the business but its 'Build to Last' transformation programme is gaining traction and the group is winning new contracts on improved terms.

“Equipment hire company Ashtead (LSE:AHT) headed the blue chip index in early trading after first half pre-tax profits rose by 20%. The interim dividend is up 33% with the prospect of more good news for investors as the group now expects its full year figures to be ahead of previous forecasts.”

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