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Beaufort Securities Breakfast Alert - Carillion to go into liquidation

Beaufort Securities Breakfast Alert - Carillion to go into liquidation


The FTSE-100 finished Friday's session 0.20% higher at 7,778.64, whilst the FTSE AIM All-Share index was up 0.04% at 1,065.86. In continental Europe, the CAC-40 finished 0.52% higher at 5,517.16 whilst the DAX was up 0.32% at 13,245.03.

Wall Street
Last Friday in New York, the Dow Jones added 228.46 points (0.89%) to close at 25,803.19. The S&P-500 gained 18.68 points (0.67%) to end the week at 2,786.24 and the Nasdaq closed 49.28 points (0.68%) higher at 7,261.06.

In Asian markets this morning, the Nikkei 225 was 61.06 points (0.26%) higher at 23,714.88 and the Hang Seng was up 239.11 points (0.76%) at 31,651.65. Meanwhile, the Shanghai Composite was 12.76 points lower at 3,416.18.


In early trade today, WTI crude had advanced by 0.31% to $64.50 per barrel and Brent was up 0.17% at $69.99 per barrel.



Carillion to go into liquidation
Construction giant Carillion (LON:CLLN) is to take steps to go into liquidation, threatening thousands of jobs. The move came after discussions between Carillion, its lenders and the government failed to reach a deal to save the company. However, the government will provide funding to maintain the public services run by Carillion. The firm is involved in major projects like the HS2 high-speed rail line, as well as managing schools and prisons. Carillion is the UK's second largest construction company and has 43,000 staff worldwide - 20,000 in the UK. It is not clear yet how those staff will be affected. Some of Carillion's contracts will be taken on by other firms and some could be renationalised.
Source: BBC News


Company news
Harvest Minerals (LON:HMI) 13.88p – Speculative Buy
Harvest Minerals has published a very positive announcement, reporting that it is “substantially expanding operations” at Arapua, its 100% owned fertiliser project. The main changes are the enlargement of the processing plant to take it to 320,000 tonnes per annum, and expansion of the sales force which will broaden the “geographical focus”. The plant will be ready by early 2Q18 and is fully funded. Other news is the application to have KPfértil certified as a remineralizer will be processed by the authorities this quarter.

Our view: The Harvest investment case is based on selling a direct application fertiliser (KPfertil) into the huge farming industry in central Brazil. Its Arapua deposit requires no blasting or processing and sits at surface. All that is required is free dig mining, milling and bagging. The plant currently being built has a primary mill and four knife mills, nothing more. We are very encouraged by the scale of the plant being built and, like management, anticipate an excellent 2018 for Harvest as sales grow throughput the year. We reiterate our Speculative Buy recommendation.

Beaufort Securities acts as a corporate broker to Harvest Minerals plc



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