Security, cars and oil

The headline index opened in positive territory despite downbeat performances on Wall Street and in Asia overnight with global growth concerns and volatile oil prices continuing to temper any major directional shift.

“Security group G4S failed to woo investors with an increased dividend as attention remained fixed on losses on its Government contract to house asylum seekers,” says AJ Bell Investment Director Russ Mould.

“The group’s results have been hit by write-downs on onerous contracts which includes the loss-making one with the Home Office over asylum seekers. And with the number of asylum seekers continuing to grow, it could stand to lose a further £57m.

“Car dealer Lookers was an early riser following record results and its seventh successive year of profit growth. Both the motor and its parts divisions produced excellent results and the group is confident of another improved performance this year

“Cairn Energy led the FTSE250 list following further successful test well results offshore Senegal with flow rates of up to 5,400 barrels of oil per day. Cairn is delighted with the results which validate the scale and growth potential of the SNE field.”

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