Contract boost for Wincanton
WINCANTON’S shares were full of beans, trucking ahead to 159p before closing 2.5p better at 154.75p on news of a major contract renewal. Heinz, one of the world’s most iconic food brands, has agreed to let the Wiltshire-based group continue to handle its transport, warehouse and repack operations until at least 2019. The contract takes their business relationship beyond the 20-year milestone.
Wincanton will remain responsible for delivering its tasty tins of baked beans, soups and sauces to customers throughout the UK and Europe. It handles around 35,000 loads a year, equal to more than 90m cases.
2015 began well for Wincanton with it being awarded a new contract with major defence manufacturer BAE Systems to provide full logistics and warehousing services in support of its UK shipbuilding operations. Kitchens group Magnet also renewed its national home delivery and transport contract.
Chief executive Eric Born is stepping down to become the boss at a global business outside the transport sector. He will be replaced by Adrian Colman, currently Wincanton’s chief financial officer, on August 1. Broker Liberum Capital remains a buyer and has a target price of £2.
On General Election eve, the likely prospect of a hung parliament, political uncertainty and months of policy paralysis kept the shackles on the Footsie. It lost a 46-point gain to close 6.16 points up at 6933.74.
Wall Street exerted late downward pressure in London as it opened 67 points down following disappointing data including weaker than expected private jobs numbers. ADP payroll data showed US private employers added 169,000 jobs last month, the fewest since January 2014 and far below expectations.
The price of Brent crude oil edged toward $70 a barrel yesterday – a new 2015 high after a surprise reduction in US stockpiles. The price reached $69.63 during trading following an update yesterday from the US Energy Information Administration which showed that stocks had fallen unexpectedly to 487m barrels in the week to the beginning of May, down nearly 4m barrels.
Heavyweight constituent Vodafone buzzed 3.65p higher to 232.2p on a Deutsche Bank recommendation and target price of 250p. The broker believes the fourth quarter is likely to see the group back to organic service revenue growth for the first time in almost three years. It is important as it marks a ‘more gentle era’ of less price pressures, lower regulatory drag, and recovering economies which should allow the secular, mobile data story to flourish.
As rumours of a private equity bid at £24 a share intensified, design software group Aveva jumped 125p more to 1875p.
Reports of a pending bearish circular dragged bull semen group Genus down 110p to 1274p.
Further nervous selling ahead of tomorrow’s AGM left hedge fund giant Man Group 10.6p lower at 172.9p.
AO World, the online retailer of domestic appliances, was a washout at 172.5p, down 7.5p. The stock has fallen from a February peak of 336p following a profits warning and subsequent sale in March by non-executive chairman Richard Rose of 5.58m shares at 180p a pop, raising £10m.
Talk of an imminent upbeat trading statement helped fashion retailer Ted Baker rise 102p to 2962p.
Shopping centre owner Intu Properties edged up a fraction to 340p after stating the UK letting market is continuing to improve and Spain was an increasingly encouraging growth opportunity as the economy improves. It has signed 44 new long-term leases with retailers since the start of the year, representing £7m of new passing rent, up an average 10pc. Some 15 of these were restaurant lettings, including Byron, Joe’s Kitchen, Zizzi, Wagamama, Coast to Coast and Five Guys.
Inter-dealer broker Tullett Prebon firmed 5.8p to 359.5p following the AGM. The company said trading conditions in the wholesale market for over-the-counter financial instruments were subdued, albeit stable, at the start of 2015.
Entrepreneur Nigel Wray, once described as Britain’s Warren Buffett, continues to wheel and deal in small-cap stocks. Tekcapital, an international provider of technology and intellectual property services, closed flat at 21.75p following a £2.15m placing of 10.75m shares at 20p masterminded by Allenby Capital and Optiva Securities. Wray splashed out £1.2m in the placing, acquiring a 17pc stake.
Last month Tekcapital acquired the exclusive worldwide licence to a portfolio of 13 optical technology patents from the University of Central Florida. It was the fourth technology licence acquisition completed since January.