Updates from Rolls-Royce, Caledonia Investments and Wood Group

Updated
savings, tax, stockmarket, pensions, cash, investment FTSE 100, Rolls-Royce, Caledonia,  Wood Group
savings, tax, stockmarket, pensions, cash, investment FTSE 100, Rolls-Royce, Caledonia, Wood Group

The FTSE 100 ended Friday with more negativity, down 50 points to 6,052.4. BG Group and BT Group took endured the most negative sentiment, down 4% and 2.6% to 908p and 458p. Primark owner Associated British Foods was down 2.2% to 3327p and there was bad news for Dixons Carphone, down 2.2% to 477p. Anglo American was the biggest riser, up almost 6% to 278.50p.

US stocks were badly bruised on Friday with the Dow taking a tumultuous 2.1% hit, down 367 points to 17,128.5 - its biggest hit since the start of September. Boeing and Goldman Sachs were down 4.1% and 3.9%.

We start with more anxiety around Rolls Royce. The FT this morning claims the company's chief exec, Warren East, has warned of new concerns for the aerospace diesel engine business - though it's thought another profit warning - RR has issued five in 20 months - is not on the cards.

East has reiterated that Rolls-Royce remains a fundamentally strong business but worries from the oil and mining industry, for which the company is a large supplier, is causing some disquiet.

"If you look," East told the FT, "at our competitors in our reciprocating engines part of the business, there have been some fairly serious downgrades on next year".

Next, Caledonia Investments has completed its Gala Bingo Holdings Limited valued at £241m. The acquisition was conditional on change of control approval by the Gambling Commission, now granted.

Caledonia claims it has invested more than £92m in cash for 98.9% of Gala Bingo's equity. The balance of the costs has been funded by £155m of debt from Intermediate Capital Group plc.

The new deal gives Caledonia ownership of 130 bingo clubs and a 30% market share. Its nearest rival remains Rank-owned Mecca Bingo.

Finally, energy services player Wood Group - it recently won a $400m Statoil contract - says it has snapped up privately-owned US-based construction and energy field services company Kelchner. In 2014 Kelchner generated sales of approximately $93m says Wood Group.

Kelchner operates out of Ohio plus other locations on the eastern side of the US. CEO Todd Kelchner will continue to lead the existing management team and around 375 staff.

"Kelchner's construction and energy services strongly complement," says the company, "Wood Group's engineering capabilities, positioning both companies well for continued success in the region."

Breaking news: Toshiba forecasts a record $4.5bn annual loss

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