Serco Group (SRP) was on the rise after releasing a surprise trading update to tell investors it had performed better than expected. Serco had previously said profit would be around £80million. It has now upgraded this to between £90million and £95million. It said a strong performance, cost-cutting and ‘other commercial negotiations’ would contribute to a 2018 financial outcome that was better than the market was expecting.
Increased losses weren’t putting off investors in oil and gas firm Savannah Petroleum (SAVP), as it released half-year results. Shares climbed 2.7p, to 32.5p as the company said it was ready to test its new Amdigh well in Niger. Operating losses widened from £4.6million in the first half of 2017 to £14.5million this year. But chief executive Andrew Knott reasoned it had been a ‘busy first half’ after the company, which focuses on exploring oil sites in Niger and Nigeria, made two discoveries.
National Grid (NG.) had good news as the industry watchdog Ofgem allowed it to recover millions from consumers. The money will be used to replace a gas pipeline across the Humber Estuary, which is critical to the supply of North Sea gas. National Grid had previously wanted to claw back £140million, which Ofgem had refused on the grounds it was too expensive. But the regulator yesterday overturned its decision, allowing the company to claim the slightly lesser sum of £111million, after seeing evidence suggesting ‘that the resilience of the energy system could be impacted if the pipeline isn’t replaced’.
Shaftesbury (SHB) brushed away gloom in the retail sector by saying it had seen ‘robust trading and footfall’. Its Central Cross centre, based in Chinatown between Covent Garden, Leicester Square, Soho and Tottenham Court Road, was 76% let or under offer. The Thomas Neal Warehouse in Seven Dials, a former 1980s shopping centre, was under offer from a single retailer who wants to make the giant location its flagship store. And its 57 Broadwick Street property, in Soho, was fully let.
SpaceandPeople (SAL) plummeted 33.3%, or 10p, to 20p after it announced revenue was down 20% to £3.85million in the first half of the year. The firm swung to a loss of £0.1million from a profit of £0.2million last year, despite cutting jobs.
Tesco (TSCO) bosses to be grilled on new Jack’s venture as the supermarket giant lifts the lid on half-year results. City watchers will be eager to hear how new chain Jack’s is trading. Tesco expected to unveil a 3.3% rise in UK half-year like-for-like sales. Its interim numbers will be boosted by the warm weather and Booker deal
SHARE PUNT OF THE WEEK: Cambridge-based Xaar (XAR) is a global player in industrial inkjet printing. Despite its woes, a host of big-name City fund managers are banking on Xaar’s shares to pick up, including Axa, Legal & General, M&G and Baillie Gifford.
