Southern Cross shares on the up

Sep 5 2008 by Peter McCusker, The Journal

AFTER a turbulent day’s trading the UK stock market ended the session in the red as the FTSE 100 Index lost 137.6 points and closed at 5362.1.

Companies in the financial and mining companies featured heavily among the major fallers, whilst the leisure and oil and gas sectors were the best performers.

In The Journal 40 Chieftain Group, the Newcastle-based provider of engineering services, insulation and fireproofing products to the oil and gas sector, released its results for the six months to June 30.

Operating profit before exceptional items rose by 29%, turnover increased to £22.8m and the group raised the interim dividend by 32% to 3.3p per share.

In April, the group secured its largest ever engineering contract and is hopeful of securing another significant deal with the same customer before the end of the year.

Bill Taylor, chief executive, stated that if the group were successful “it would significantly boost our annualised revenues going forward”.

Chieftain Group shares ended the day 19p higher at 192.5p.

Elsewhere, Darlington-based Southern Cross Healthcare announced the sale and long-term leaseback of the freehold interests of seven care homes for a total cash consideration of £20.7m.

The group also announced that chief executive Bill Colvin will be leaving the company by mutual agreement with the board of directors after the work of refinancing the company and the further sale and leaseback of its owned care homes is complete. Shares in Southern Cross Healthcare closed 8p higher at 150p.

Fergus Westwood Fergus.westwood@brewin.co.uk