Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on CARILLION PLC. We currently have 5 research reports from 1 professional analysts.
|02Feb17 16:25||RNS||Holding(s) in Company|
|02Feb17 07:00||RNS||Carillion Extends Openreach Framework Agreement|
|30Jan17 15:42||RNS||Carillion refinances maturing debt facilities|
|23Jan17 15:25||RNS||Holding(s) in Company|
|20Jan17 12:46||RNS||Holding(s) in Company|
|19Jan17 09:20||RNS||Directorate Change|
|04Jan17 07:00||RNS||Carillion JV awarded £160 million contract|
Frequency of research reports
Research reports on
05 Jan 17
US equities closed higher once again yesterday evening, with broad gains led primarily by consumer stocks, despite release of the FOMC minutes from the December meeting which detailed blatantly frank discussions regarding the potential economic impact of Trump's campaign pledges. While many market pundits still remain sceptical that the President-elect will actually make good on his 'miracle growth rhetoric', Fed officials felt obliged to contend with the real impact delivery of his proposed near-term hike in infrastructure spending and protectionist measures together with major personal and corporate tax cuts might potentially have. An overheating economy could most certainly generate a severe inflationary shock, but right now 'considerable uncertainty' regarding timing leaves them with the all but impossible task of communicating the likely future for Fed rates. This uncomfortable scenario overnight appeared only to have been noticed by a weakening US$. And while this a dose of realism may well hinder European market openings today, Asian equities continued to make good ground in early morning trading, with only the Nikkei choosing to give back some of the large gain it chalked up on Wednesday. Chinese equities by comparison basked in the reflection of strong Caixin China services PMI figures for December, confirming its economy had accelerated further in the fourth quarter, although evidence of rising input costs and product pricing also appear to provide evidence of early inflationary pressures already being felt in the west. Equities in London are seen making a softish start this morning, with the FTSE-100 down perhaps 5 or so points in early trade, as economists try to interpret the minutes along with the deepening Brexit fog created by Tuesday's resignation of the UK's Ambassador and chief negotiator to the European Union. Although Ivan Rogers has rapidly been replaced by career diplomat Tim Barrow, such news injects concern that the Government is perhaps less prepared for the forthcoming momentous events than investors might otherwise have wished. Macro data from the UK today includes December Markit Services PMI, while the EU delivers its Producer Price Index for November, followed this afternoon by December Composite PMI numbers from the US. UK corporates providing earnings or trading updates include Costain Group (COST.L), IG Design Group (IGR.L), Persimmon (PSN.L) and PureCircle (PURE.L).
08 Dec 16
"Having backed Brexit with an overwhelming majority yesterday, voting in favour of triggering article 50 by 31st March 2017, MPs also supported the labour motion calling for the government to unveil its proposals ahead of this date in order to permit minister to 'properly scrutinise' the plans. Accepted the motion was Theresa May's concession to keep her timetable on track, but has it made the likely outcome any clearer? No really is the answer. The government is still awaiting the result of its appeal at the Supreme Court, which is expected in January, which will require MPs to separately approve the issue if it loses. Meanwhile, of course, the EU's lead Brexit negotiator, Michel Barnier, has conveyed three principal messages regarding the process of this divorce, namely: (i) that negotiations should be shorter than the prescribed two years, lasting less than 18 months; (ii) the EU-27 remain his overriding priority and; (iii) the final outcome will be financially worse for the UK than under its existing EU membership. While not mentioning the UK's outstanding financial liabilities to the EU in his recent deliberations, Mr Barnier told colleagues he estimated the British exit bill wcould be as much as EUR60bn, and settling this matter would be a necessary first step toward building a new partnership. Not that European woes will be on the minds of investors first thing this morning. US equities surged once more overnight, as the Dow Jones burst through to another record high and all other major indices surged well in excess of 1%. Traders were unable to point at a specific trigger for this buying, other than pointing at a large number of futures contracts that had been placed by automatically by program trading algorithms which, in turn, accelerated purchases in the cash markets, as strategists across New York recommended sharp increases in equity weightings while suggesting that the Trump-inspired bear market in government bonds still has some way to go. Asian equities mostly rode again on Wall Street's coat-tails, with the ASX leading the way as its commodity-heavy index continued to drive higher on spiking minerals prices and the expectation of increased global activity. The Nikkei also put in a strong performance, despite reporting growth figures quite sharply below first estimates, leaving only the Shanghai Composite to record a fractional loss. Europe today is due to make its interest rate decision, followed by a press briefing by ECB president, Mario Draghi; bond investors are already betting that he will confirm a 6-month QE extension, although they will remain sensitive to any suggestion of a future timetable beyond September 2017 to commence tapering. No significant macro data is expected from the UK today, but later this afternoon the US is due to release its jobless claims numbers. UK corporates due to report earnings or trading updates include Capita (CPI.L), DS Smith (SMDS.L), Mulberry Group (MUL.L), Ocado (OCDO.L), Servoca (SVCA.L), Sports Direct (SPD.L) and TUI (TUI.L). Traders will also remain aloof for further details regarding the overnight transaction between Russia and a consortium formed by Glencore (GLEN.L) and Qatar, in which a 19.5% stake in the state-controlled oil giant, Rosneft, was sold in a deal valued at US$11.3bn. Such a disposal of part of the country's 'crown jewels' will quite possibly be seen as a sign of financial stress from Putin's government, and lead investors to consider what other valuable assets might also be put on the auction block. London equities will again ride the bullish wave coming from across the Atlantic, with the FTSE-100 seen rising some 15 points in early trade." - Barry Gibb, Research Analyst
06 Sep 16
Lacking direction from the US markets following yesterday's Labor Day holiday, London is left to reflect on a somewhat contradictory mix of macro releases, international pledges and lacklustre overnight equity markets. The record rise in Britain's August PMI for its dominant services sector yesterday has been enough for politicians and bankers to suggest in this morning's press that UK recession fears have been significantly overdone. Whether this surprising momentum is a seasonal or statistical blip, or can be sustained into Q4'16, however, is the real question, particularly given the British Retail Consortium's subsequent disclosure that like-for-like UK sales for the same period fell by 0.9% year-onyear, after 1.1% growth reported in July. And if growth is to exceed expectations does that mean the Bank of England's possibly rash post-Brexit decision to cut interest rates and provide significant new stimulus to the financial markets might even need to be reversed? Just how much inflation will be imported by Sterling's dive relative to the wider basket of international currencies and most particularly, of course, the US$ remains to be seen, although crude oil prices are one of the index's major components and these climbed quite dramatically yesterday as traders assessed the likelihood of a genuine supply cut following pledges of cooperation from key contributors to the current global glut, Saudi Arabia and Russia. Light sweet crude for October delivery spike sharply on the news before calming to rise about 2% to US$45.3/bbl by the Globex close; November prices also lifted to US$47.7/bbl. Traders have been burnt by such stories before, so scepticism will remain high until some tangible multi-national agreement actually emerges and inventory levels are seen to decline. Against this background, Asian markets put in a mixed modest performance with the Nikkei the principal focus, building further on last week's gains as Yen weakness continued to support the export-driven index. Chinese equities also ended modestly firmer without particular trend, while the ASX succumbed to profit taking across commodity stocks as its central bank left interest rates unchanged following the scheduled policy meeting. With no major results or macroeconomic releases due in the UK, the FTSE-100 is expected to open modestly firmer this morning, rising around 14 points in early trading. During the session, however, markets will remain sensitive to further outbursts from Hilary Clinton's presidential camp regarding accusation that Russia is using cyber-attacks to influence the election against her, while awaiting further details from Bayer concerning its raised offer for Monsanto.
25 Aug 16
"Traders are now unlikely to take any large market bets until the Federal Reserve Bank of Kansas City's two-day Monetary Policy Symposium at Jackson Hole, Wyoming has concluded. Top of the bill of course is Chair, Janet Yellen, who is formally scheduled to speak at 09:00hrs local time on Friday, but given the hype that has surrounded this event anything she finally divulges is likely to be considered something of an anti-climax as far as investors are concerned. Indeed, most probably she will continue to walk a fine line, offering positive but uncommitted descriptions of the current state of the US economy while keeping options open regarding a rate hike at the central bank's September meeting. That would leave the markets to tread water for a little longer yet. Overnight the US markets closed modestly weaker across all principal indices, giving back more than the previous day's gains, as concerns circulated in the media about possible political actions to tame escalating drug prices following the sharp increase imposed by Mylan Inc. on Epistem, its sever allergies treatment; crude oil also weakened again on further reflection of yesterday's surprisingly big build-up of US stockpiles, which was also seen to pressurise other recently well supported commodity prices. A lack of new stories in Asia left the regions equity markets to simply track the US, with the Shanghai Composite ending the session's the main casualty as the PBOC was seen injecting additional funds to stimulate otherwise lacklustre investor enthusiasm. Other than today's start of the Jackson Hole Symposium, macro releases due includes the CBI Distributive Trades Survey and the CML mortgage lending figures, while UK corporates due to publish earning numbers are Anglo Pacific Group (APF.L), CRH (CRH.L), Henry Boot (BHY.L), Jimmy Choo (CHOO.L), John Laing (JLG.L) and Spire Healthcare (SPI.L). The FTSE-100 is seen opening around 12 points lower in early, relatively low volume, trade." - Barry Gibb, Research Analyst
20 Feb 17
Hayward Tyler Group* (HAYT): Trading update and financial position (CORP) | Petra Diamonds (PDL): Interim results (BUY) | Gemfields* (GEM): Interim results (CORP) | Premaitha Health* (NIPT): Middle East momentum (CORP) | Sound Energy (SOU): Acquisition update and TE-8 well spud (HOLD) | Proactis* (PHD): Interim trading on track (CORP) | 7digital* (7DIG): Automotive contract win (CORP)
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
Emerging from the clouds
16 Feb 17
Rolls-Royce’s underlying performance in FY16 was ahead of both its own and market expectations. Media focus on the non-cash £4.4bn headline FX loss is missing what looks to be the basis for optimism. As the civil model starts to move from investment in engines for the A350 and A330neo into the aftermarket delivery phase over the remainder of the decade, we think cash flow is likely to improve, particularly if supported by an eventual recovery in Marine.
15 Feb 17
At the current market capitalisation of £29m, we believe the shares are significantly undervalued. We estimate that the highly profitable Maritime business is alone worth at least £40m. With net cash of £9m at end-2016, this implies that the market is currently ascribing a combined negative value of £17m to the rest of the group, which together account for c.54% of group revenues. This is very harsh given the management actions to transform TP Group to a profit-driven Tier 2 specialist services and engineering company are bearing fruits across the divisions. TPG Managed Solutions is expected to more than double its profits in 2017, while TPG Engineering and Design & Technology are on course to deliver sustainable profits from 2019. Even if we ascribe zero value to Engineering, Design & Technology and Managed Solutions, the shares are worth 9.5p a share, a 38% upside from the current share price. BUY.
Taking the bull by the horns
15 Feb 17
Avon Rubber announced this morning that CEO Rob Rennie has left and been replaced with Paul McDonald, formerly managing director of Avon’s Dairy division. This news comes as a surprise and is likely to raise some questions over the CEO and CFO transition, with the CEO only being in post for just over a year. However, the group has appointed an executive already known to many who have followed the business, and as such should be seen as a good appointment with a track record of decisiveness and getting things done.