Acquisition activity, asset sales and financial distress driving the headlines.
Knights Group was among the standout movers after agreeing
to acquire the commercial and private wealth service lines of Moore Barlow LLP
for £27m. The deal adds around £30m of revenue and 160 fee earners,
strengthening Knights' presence across the South East and South Central
regions. Investors are likely to view the acquisition positively given
management's track record of consolidating the UK legal services market and the
expectation that the transaction will be earnings enhancing.
PPHE Hotel Group attracted attention after completing the
sale of its New York development site. Asset disposals are often welcomed where
they crystallise value and improve financial flexibility, and the market is
likely to focus on how management redeploys the proceeds across its hotel
portfolio and development pipeline.
Trellus Health was firmly in the spotlight for less positive
reasons after announcing its intention to appoint administrators. The move
highlights the continued funding challenges facing smaller growth companies and
leaves considerable uncertainty over the future of the business and shareholder
value.
A tale of two markets:
investors rewarding strategic expansion and balance sheet management, while
remaining unforgiving towards companies facing liquidity pressures.
