LondonMetric purchases warehouse development, Kainos acquires Blackline

London open

The FTSE 100 was being called to open 24.7 points higher ahead of the bell on Tuesday after the index closed 0.53% weaker on Monday at 7,445.25.

Stocks to watch

Real estate investment trust LondonMetric has acquired a long let cold storage and logistics warehouse development in Huntingdon for £53.4m.

LondonMetric said on Tuesday that the 300,000 square foot building was pre-let on a 25-year lease to AM Fresh Group, an international agri-tech company that supplies UK supermarkets with fruits, plant-based fresh goods and flowers. The rent of £2.0m per annum equates to £6.70 per square foot and will be subject to five-yearly CPI+1 linked reviews.

Digital technology company Kainos Group has bought Washington-based Blackline Group for an undisclosed sum.

Kainos said the acquisition of Backline, a speciality services firm that focuses on procurement, will further enhance its Workday strategic sourcing business' presence in North America and Europe by adding over 50 spend management and procurement consultants from Blackline, who will support the expansion of its capabilities, client base, and expertise.

Newspaper round-up

KPMG has apologised for misconduct and misleading the UK's accounting regulator after former auditors were accused of "forgery" related to audits including that of Carillion, the major government contractor that collapsed four years ago. Jon Holt, the chief executive of KPMG UK, said it was "clear" that misconduct had occurred, in a statement published to mark the start of a disciplinary tribunal on Monday. – Guardian

London could become mired in gridlock because of a shift towards driving as a means of transport during the Covid pandemic, the city's mayor, Sadiq Khan has said, warning that it risks creating a new health crisis from increased pollution. While levels of walking and cycling have risen in the capital, the overall proportion of people making sustainable journeys has fallen as a result of the collapse in numbers using public transport. – Guardian

Michael Gove has clashed with the Treasury over plans to overhaul British manufacturing because of concerns about the costs involved, in a blow to his levelling up agenda. The Housing Secretary has been warned not to go ahead with a White Paper meant to map out the future of the industry as this would suggest new investment that is not coming, The Telegraph understands. – Telegraph

A $131.0m legal claim brought by Barclays against the founder of two former FTSE 350 companies that collapsed amid a fraud scandal can be enforced in the UK, after a court judgment yesterday. Barclays launched the claim against Bavaguthu Shetty, the founder of NMC Health and Finablr, in October 2020 after a dispute over a personal guarantee that the tycoon was alleged to have given on debts at part of Finablr, the foreign exchange business. – The Times

The City watchdog is close to deciding whether to take enforcement action over the suspension of a fund run by Neil Woodford, the former star stock-picker. The Financial Conduct Authority said it was finalising its investigation into the £3.0bn LF Woodford Equity Income Fund. It was suspended in June 2019 after it ran short of cash to repay investors who wanted to withdraw their money following a string of losing bets on privately-owned companies. Soon after the fund closed its doors, the Financial Conduct Authority opened an investigation into the suspension. – The Times

US close

The Dow Jones closed 162.79 points lower on Monday as market participants awaited testimony from Jerome Powell at his confirmation hearing on Tuesday, as well as the beginning of earnings season and key inflation data - both of which were scheduled for later in the week.