Why FTSE industrial stocks Capita Plc and Ferguson Plc trended today?

Summary

• Capita Plc shares rose to over 6 per cent after it announced its stake sale from Axelos, a joint venture company with the UK government, for £380 million to certification company PeopleCert International.
• Ferguson Plc was among one of the highest risers in the sector following the share buyback of 52,879 ordinary shares priced at £96.780 per share.
• Ferguson had announced in March a US$ 400 million share buyback program.

Two FTSE listed industrial stocks were trending today on the LSE, namely Capita Plc (LON:CPI) and FERGUSON PLC (LON:FERG). Let us have a closer look at why these 2 FTSE listed stocks in the industrial support services sector on a roll:

1. Capita Plc (LON:CPI)

FTSE 250 listed Capita Plc is a consulting and digital services business. The company announced today that it had agreed to sell its stake in Axelos for £380 million to certification company PeopleCert International.

Axelos is Capita’s joint venture with the UK government’s Cabinet Office. Capita holds a 51 per cent interest in the joint venture. The sale will result in 1. Capita getting up to £172.5 million in cash upon completion of the deal and up to £11.1 million in cash dividends.

The funds from the deal will help CPI meet its upcoming debt maturity obligations and aid in its ongoing business transformation plan.

(Image Source: Refinitiv)

The news caused CPI’s shares to rise over 6 per cent in the morning trading session, making it one of the highest risers in the industrial support services sector today. CPI’s shares were trading at GBX 39.93, up by 6.08 per cent on 21 June at 10:49 AM GMT+1.

CPI’s market cap stood at £ 633.96 million, and its year-to-date returns were at 2.35 per cent. 

Also Read: Capita Plc Shares Take a Hit Despite Progress on Transformation

2. FERGUSON PLC (LON: FERG)

FTSE 100 listed company Ferguson is involved in the plumbing, heating, ventilation and air conditioning distribution business based in the UK. The company announced today that it had purchased 52,879 ordinary shares on 18 June of a face value of 10 pence per share, as part of its share buyback program.

FERG paid a price of £96.780 per share. The remaining number of issued ordinary shares is 222,958,961. FERG had announced its share buyback program worth up to $400 million on 16 March. 

The buyback program started on 14 June and is set to end on 30 July. The goal of the share repurchase program is to reduce FERG’ capital.

(Image Source: Refinitiv)

FERG’s shares were trading at GBX 9,758, up by 0.83 per cent on 21 June at 10:58 AM GMT+1. FERG’s market cap stood at £21.587 billion, and its year-to-date returns were at 9.82 per cent.

Meanwhile, the FTSE 100 index was trading at 7,028.69, up by 0.16 per cent; comparatively, the Industrials Sector index was trading at 6,817.44, up by 0.74 per cent.

Also Read: FTSE 100 listed Ferguson raised FY21 guidance boosted by strong third-quarter