Stocks and Shares with John Phelps

Stocks and Shares with John Phelps

Bowleven

Shares in Edinburgh-based oil and gas company Bowleven soared as investors added £40 million to its market capitalisation on news it had made another discovery off West Africa. Bowleven announced that the Sapele well off Cameroon had found a third area of hydrocarbon-bearing sands. Chief executive Kevin Hart said the equity placing would provide “financial flexibility” across the group’s portfolio in 2011”. Shares closed at 325p.

Weir Group

Weir Group has joined forces with a Far East firm to provide high-pressure well-service pumps and related flow-control equipment to China’s developing shale gas industry. The Glasgow engineering company’s joint venture with Shengli Oilfield Highland Petroleum Equipment Company is expected to be operational in the first half of 2011, subject to regulatory approvals. Chief executive Keith Cochrane said Weir expects to invest £3.9 million in the first two years. Shares closed at £17.56.

Compass Group

Catering group Compass reported better-than-expected annual profits, helped by rising revenues from North America. Underlying pre-tax profits for the year to September 30 rose by 18% to £922 million. Compass, which serves four billion meals each year in over 50 countries and provides services including cleaning and main-tenance, saw revenues in the UK and Irish Republic fall by 2.6% to £1.78 billion. But in North America revenues were up 9.7% to £6.37bn. Shares closed at 555p.

Thomas Cook

Travel group Thomas Cook revealed plans to enter Russia’s fast-growing tourist market after agreeing to create a joint venture with Russia’s Intourist, which sells both domestic and foreign holidays. Russians are increasingly enjoying beach holidays in countries like Egypt and Turkey. The UK operator will take a 50.1% stake and pay $45 million (£29m) in cash and shares, and has an option to purchase the remaining shares over the next five years. Shares closed at 193.8p.

Balfour Beatty

With news that construction group Balfour Beatty has struck a deal to pay off a £375 million deficit in its pension scheme, the City will be showing considerable interest in its share price. Shares rose nearly 2% as news of the deal ended uncertainty over its pension funding. An eight-year plan means the company will pay an initial £40m followed by annual deficit contributions of £48m. The final-salary scheme was closed to new joiners in 2007 but still has 40,000 members. Less than a fortnight ago, Balfour acquired part of the insolvent Rok building group, taking over 380 staff.

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