Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
Bovis Homes [LON:BVS] has finally agreed terms to buy Linden Homes from Galliford Try [LON:GFRD] and as such has also today announced a share placing to help fund the deal. In addition to this dilution, a dividend that was due to investors is set to be paid out in equity rather than cash, so some volatility in the company’s share price may well be see this morning as a result. The deal is however expected to result in some quick cost-saving synergies, which could help provide some support.
There’s a Q3 trading update from G4S [LON:GFS] out this morning, which shows the company making reasonable progress. Revenue growth is up almost 5% from a year ago. A refusal to get drawn into low priced contracts has left income for Europe in its secure solutions division being squeezed but otherwise the outlook remains positive with further growth being forecast.
There’s something of a mixed bag in Halford’s [LON:HFD] interims which have been published today. Revenues are down, reflecting the difficult retail trading backdrop, but margins are up. That may however not be sufficient to let investors look beyond the 16% drop in earnings per share. The full year outlook has however been affirmed with profits still expected to come in around the £50-£55m level.