Citywatch

Jacobs profits at Bell's expense
One man's cloud being another man's silver lining, Jacobs Holdings, Michael Kingshott's transport group, has seen its share price rise on news that it is now in talks with a number of local authorities regarding various servicing contracts. These were previously held by Bell's of Richmond, one of London's leading vehicle rescue and recovery operators. Liquidators were recently appointed to handle Bell's business.

The price is right for Parkman
Parkman, the consultant engineer and facilities management company that provides advisory services for local authorities and to companies such as Railtrack, got off to a good start when it floated on the market on 5 July, selling 43.5 per cent of its equity via a placing. The price tag put on Parkman by the stock market was £53.6m and the share price rose strongly from the outset despite a stagnant stock market. Parkman, which was taken private last year via a management buyout, is raising money to finance long-term projects and repay debt by returning to the stock market. Parkman picked a good time to float as support service businesses that have a heavy public sector involvement are very fashionable in the City.

Profits warning from Chesterton
The uncertain economic climate is starting to affect the UK's property market. Chesterton, which has Chesterton Workplace Management as its facilities management operation, has warned that profits will be significantly below expectations due to a slow-down in both the commercial and mid-to-high end residential markets, which it expects to last for some time.

Savills optimistic despite warning
Savills, which has TrammellCrowSavills as its facilities management arm, also warned on profits, blaming the commercial sector. However, Savills said that the high-end residential market remains buoyant and it expects the commercial market to bounce back. The commercial market is certainly under pressure, particularly in the Thames Valley, but while the shake-out in the technology and financial sectors has knocked the market, Savills is confident of second half recovery.