Financial News

LONDON (ShareCast) - Property developer Quintain Estates is to raise £191m through a deep discount right issue on a 3 for one basis at 49p.

The discount is 72% to yesterday's closing price and is a 60.2% discount to the pro forma basic NAV per share of 123p.

"The rights issue announced today is transformational, providing the means not only to reduce our debt still further and cushion the group against a possible further period of economic deterioration, but also to drive momentum in our major schemes through the bottom of the cycle and grow our fund management business," chief executive Adrian Wyatt said.

The group returned to profit of £9.5m in the half year to September, against a loss of £51.6m. Net asset value fell to 356p from 443p.

Residential property specialist Grainger (LSE: GRI.L - news) is also tapping its shareholders for a huge cash injection. The group is raising £250m through a 2 for 1 rights issue at 90p per new share.

Grainger posted a loss before tax of £170m (2008: £112m) in the half year to September, largely derived from valuation deficits, mark to market adjustments and non-recurring items

As at 30 September 2009, the Group's wholly owned portfolio of 13,259 residential properties in the United Kingdom and 7,180 primarily residential properties in Germany, together were valued at £2.1bn (2008: £2.3bn). NAV per share was 360p (2008: 520p).

Logistics group Wincanton (LSE: WIN.L - news) held its interim dividend at at 4.83p per share despite a dip in interim profits to £8.9m from £12m, as the firm expects a stronger operating profit in the second half from new business gains and restructuring benefits.

Chief executive Graeme McFaull said,"We remain on track to deliver a full year performance in line with expectations. Our UK operations remain strong and we have taken decisive action to address underperformance in Mainland Europe. We are confident that our businesses have significant growth and recovery potential as the European economy emerges from recession."

Sales in the half year to September fell to £1.08bn from £1.2bn. Underlying profit fell 16% to £18m.

IT provider RM (LSE: RM.L - news) has been selected by Hull City Council to provide ICT services for the City's BSF (Building Schools for the Future) programme. The initial contract, which is for the first phase of the programme, covers eight schools and is expected to be worth £16.5m to RM. Two subsequent phases of the programme will cover a further 15 schools.