Updates from Babcock, ICAP and Wood Group

Updated: 

The FTSE 100 saw 17 points knocked off it yesterday to 6,598.3. SSE slumped 2.78% to 1469p with Shire down 2.52% to 2945p. Babcock International however soared 4.26% to 1347p; Pearson also climbed, up 2.31% to 1063p.

The Dow Jones ended Monday up 0.82% to 16,457.66, closing the first quarter of 2014 roughly flat.

We start with a trading statement from ICAP for the full year up to 31 March. Overall trading activity levels in the Global Broking division dipped, consistent with market trends says ICAP since the time of the Group's Q3 interim management statement in early February.

A reflection, says ICAP, of a continued slowdown in some financial markets and customer activity. During February and March revenue in Global Broking contracted by 14% compared to the same period last year.

"Overall results for the year," said the company in a statement, "are expected to be in line with current market consensus forecasts, which is also reflective of the weaker dollar exchange rate."

Next, Wood Group says it has bought Sunstone Projects Ltd of Calgary, Alberta, Canada for C$14.5 million. Sunstone is a pipeline consulting company providing engineering and construction management services, generating sales of C$21 million in 2013.

Sunstone will be rebranded as Wood Group Mustang and operate within its Canadian operations, led by the existing management team.

Wood Group recently saw its Outperform rating reiterated by equities analysts at BNP Paribas in a research note.

Lastly, news that London's Fire and Emergency Planning Authority (LFEPA) has named BabcockInternational as a preferred bidder on a 21 year contract to manage London Fire Brigade's (LFB) vehicle fleet. The contract is expected to become operational on 13 November 2014.

It follows delivery of an interim fleet management contract awarded to Babcock by LFEPA in November 2012. The impending contract involves 500 vehicles and 50,000 pieces of specialist equipment.

Investment will be made in operational premises at an existing site in Ruislip and a new facility in Greenwich providing state-of-the-art facilities for the management and maintenance of the fleet, Babcock says.

ICAP
Wood Group
Babcock International