Balfour Beatty, Corero and Nu-Oil & Gas

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“The FTSE100 opened lower following fall on Wall Street and mixed session of Asian markets in a quiet day on the global markets ahead of Christmas,” says AJ Bell Investment Director Russ Mould.

Balfour Beatty topped the FTSE250 board in early trading after it raised its pre-tax profit forecast. The group’s coffers will be boosted following an agreement to sell a 12.5% stake in Connect Plus, the company which operates the M25, to funds managed by Dalmore Capital for £103m in cash. Balfour Beatty continues to hold a 27.5% stake in Connect Plus although arrangements are in place with funds managed by Equitix and Dalmore which could see another 12.5% sold for a similar sum. The agreed deal underlines the attractiveness of Balfour Beatty’s infrastructure assets and is in line with its declared intent to maximise value for shareholders. Balfour Beatty’s shares were up by more than 3%.

Corero Network Security’s shares slumped after it warned that full year revenues would be hit by delays in customer implementation schedules. Corero is ending the year strongly, with record final quarter order intake for its SmartWall threat defence system. But the majority of revenues on two major projects is now expected in the first half of 2018. Corero has continued to manage its cost base and overheads are expected to be about 10% down on last time. Corero’s shares were down by over 8.9% in early trading.

Nu-Oil and Gas was an early faller after pre-tax losses doubled to £1.67m in the year to the end of June. No revenue was generated during the year and main area of expense was the continuing development of the foundations for the marginal field initiative. The company raised more than £3.3m during the year which has reinvigorated its assets in western Newfoundland and enabled it to put more effort into its marginal field strategy from which it expects to see tangible results in 2018. Nu-Oil’s shares were down by more than 2.6%.”

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