BREXIT BOOST: Forget Project Fear! UK firm’s stocks SKYROCKET

Daily Express :: Politics Feed
BREXIT BOOST: Forget Project Fear! UK firm’s stocks SKYROCKET
Mon, 04 Feb 2019 17:21:00 +0000

Japanese car maker Nissan has announced it is pulling production of its X-Trail model from Sunderland while European plane manufacturing giant Airbus has said it could move production of wings parts out of the UK amid no-deal fear. However IT firm Kainos Group has seen its stock surge in the two-and-a-half years since the Brexit referendum and is set to post results that will exceed analysts expectations. The London stock exchange based government contractor has seen “very strong” growth in digital services, according to Bloomberg.

Kainos provides software solutions for businesses in the public, healthcare and financial services sectors and currently has ongoing projects at the Home Office and Department for Environment, Food and Rural Affairs in relation to Britain’s withdrawal from the EU.

The company, which is headquartered in Belfast, saw its stocks skyrocket by almost 11 percent on Monday after executives said full-year results will be better than expected.

The firm also cited positive ongoing demand from government and commercial clients.

Kainos’s success since Britain voted to leave the EU has put it in the FTSE All-Share Index’s top 10 best performing equities since the June 23 vote.

The company is building software to help provide citizens and businesses with smoother access to the government’s online data and services.

Martin O’Sullivan, analyst at Shore Capital Markets, said he expects Brexit will be a “net positive” for the company because it has been involved in government Brexit projects from the beginning.

Mr O’Sullivan added there is “much more to do” to improve the government’s web access and that Kainos has “strong credentials” to deliver, meaning their services are likely to be retained in the long term and will see further success.

Kainos’s results come as it was revealed Nissan will still receive most of the £61 million given by the government to persuade it to keep operations in the UK, despite choosing to manufacture its flagship 4x4 in Japan instead of Britain.

Nissan said in October 2016 it would continue to make the X-Trail and Qashqai models in the UK after receiving “support and assurances” from Number 10.

However yesterday the firm announced it was pulling production of the X-Trail from its Sunderland plant.

Nissan’s European chairman, Gianluca de Ficchy, blamed Brexit for influencing the decision.

Mr de Ficchy said: “The continued uncertainty around the UK's future relationship with the EU is not helping companies like ours to plan for the future.”

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