The outsourcing specialist Capita issued a trading update this morning. Covering the first four months of the year, the company noted revenues up 2.9% against the same period a year ago, whilst the sale of its private sector contact centre business is proceeding on track and expected to complete before the publication of H1 results. The dominant public sector division has experienced an uptick, more than covering the value of contract hand backs last year and this seems to be fuelling investor enthusiasm. The Capital share price was up 3% in early trade.
Shares in Eco Atlantic jumped in early trade after the company provided an update on its all share acquisition of JHI. The deal now has complete shareholder support and is reliant on only a small number of remaining conditions, including a license transfer from the Falklands government, a $1m cash balance for the acquisition target and the relevant exchange approvals. The Eco Atlantic share price was up around 4% shortly after the open.
The mining giant announced this morning that it had agreed the sale of its steelmaking coal business for up to $3.875bn. However with the proceeds being used to pay down debt and simplify the business structure ahead of the company’s merger of equals with Canada’s Tauk, the market reaction has been somewhat muted. There’s also some further possible downside for the stock and indeed peers following an environmental ruling from Chile over the Collahuasi copper mine project. Anglo has stated it believes there’s no immediate impact on production but this remains one to watch. The Anglo American share price was down more than 2% by 8.45am
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