Bovis Homes, Interserve and Hardide

“The FTSE100 opened on the front foot with traders looking to the House of Lords and its discussion of the UK Brexit Bill,” says AJ Bell Investment Director Russ Mould.

“Bovis Homes was the FTSE250’s biggest faller in early trading as the group’s pre-tax profits fell after a difficult year. The housebuilder is setting aside £7m for customer service and compensation with the money being spend on additional warranties and repair work. If repairs take longer than expected, customers will get compensation. Bovis slowed its production rate in January to focus on service and its current programmes have been extended to ensure each home is delivered to the high standard that customers expect. Bovis’s shares were down by more than 8.9%.

“Interserve’s shares plunged after it confirmed provisions for losses associated with its exited energy from waste business were being increased from £70m to £160m. Construction and commissioning of the projects will be substantially complete this year but Interserve’s contractual obligations in respect of warranties, and the resolution of claims will continue. Interserve’s shares were down by over 19.1%.

“Hardide’s shares jumped after the group saw an upturn in activity from its oil and gas customers. Following the recent OPEC deal on cutting output. This has raised the oil price and resulted in an increasing number of North American drilling rigs being brought back into production. The group, which develops, manufactures and applies advanced technology tungsten-carbide coatings to a wide range of engineering components, is confident about its medium and long-term prospects and this confidence is shared by investors with Hardide’s shares up by more than 17.1% in early trading.”

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