Redrow
Housebuilder Redrow announced this morning that it had
agreed to an all
share merger with peer Barratt
Developments, along with half
year numbers. The earnings report was – shall we say – “reflective” of the
current macroeconomic environment but the prospect of becoming part of a bigger
group left shareholders with something to cheer. By late morning, Redrow’s
shares were sitting 13% higher although the gains would arguably have been even
more impressive had Barratt not taken such a hammering…
Barratt
Developments
Again with half
year numbers out, the other half of the new housebuilding compact saw its
shares in focus, although the reception was less kind. Revenues for H1 fell by
a third compared with a year ago, whilst profits were down by two-thirds.
Despite full year guidance for completions being narrowed into the middle of
the previously stated range, with margins squeezed and the risk that the bid
for Redrow may look too generous, shares were down 8% heading towards midday.
The recovery for housebuilders won’t be a quick one.
Helium
One Global
The East-African helium driller had a stellar start to the
year, with the stock adding as much as 900% off the back of successive
positive announcements.
Management however took the decision to initiate a funding
round, which was done at a 30% discount to last night’s closing price. The
fact that losses by late morning were just 15% suggests that there’s still a
positive outlook in play here although long term investors are still likely
offside at these levels. The move has added a further £4.7m to bolster working
capital.
