Stocks tied to construction have not fared well as the economic downturn has taken hold, so all the more reason for shareholders in Rok to cheer a five-year framework agreement with BAA, the Spanish-owned airport operator.

The contract will give Rok work on a number of building improvement contracts valued at between £2 million and £20 million, which could tot up to about £130 million. Under the deal, the group will carry out alterations, refurbishments and building work in service areas, as well as those used by the public, at airports such as Gatwick, Heathrow and Stansted.

David Phillips, an analyst for Teathers, said that with end markets likely to remain tough for the near future, this type of contract would differentiate the sector’s winners. He added that he continued to see Rok’s share price as substantially undervalued. The shares rose 8p to 88p.

In contrast, Wagon, the car parts group, has not avoided the slowdown. Yesterday the company asked for its shares to be suspended after giving warning that annual profits would be lower than expected amid a sharp deterioration in the automotive market. The group, which raised £49 million via a rights issue over the summer, also said that it was in talks with its lenders and a major shareholder over funding. The shares were suspended at 1¼p.

Helius Energy rose 2p to 22p after signing an option to lease an 18-acre site within Avonmouth Docks on the Bristol Channel for the proposed construction of a 100MW biomass power plant. Cadogan Petroleum was flat at 78½p after receiving confirmation from Ukraine’s Ministry of Environmental Protection that its Pirkovskoe and Zagoryanska permits are valid.

Explore Markets

• United States

• Europe

• Japan

• China

• Russia

• The Gulf

• India

• Africa

Times Recommends

• C&G axed - 1,660 jobs to be lost
• UK house prices rise 1.1% as buyers return
• Mixed reaction to US banks repaying bailouts