Market Commentary - Housing, Infrastructure, Construction and Services 25th May 2017
Updates from two small sector companies, Van Elle the piling contractor and Henry Boot the developer and contractor, point to market conditions remaining positive. Van Elle’s update is to its year end 30th April. It came out with a small warning on 22 March due to workflow timing in Network Rail but that has not changed further and the year has started well with new work arising in all division. Henry Boot has told us quite early in the year that it expects to exceed previous market expectations for the current year, especially as by its own admission it is a transactions led business and timings are not always in its control.
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HBM Healthcare Investments benefits from takeover of True North Therapeutics
Blood disorder specialist Bioverativ to pay up to $825m including milestones
HBM Healthcare Investments (HBMN), a Swiss-listed public/private equity healthcare investment company, is set to benefit from the acquisition of privately held True North Therapeutics by NASDAQ-listed Bioverativ for up to US$825m (including contingent payments).
Read more...Altamir – Merger of top 10 portfolio holding Melita and Vodafone Malta
Combination will create a new fully integrated provider of mobile, fixed line, broadband and TV services
Altamir (LTA) has announced the merger of Maltese telecoms operator Melita, in which it holds a 28.9% stake through the Apax France VIII fund, with Vodafone Malta to create a fully integrated communications company, which will operate under the Vodafone brand, distributing a wide range of services including Vodafone’s global portfolio of products. Announced in December 2015, the acquisition of Melita by Apax France VIII fund and Fortino Capital was completed in early 2016. At end-2016, Melita had been held in Altamir’s portfolio for less than one year and so was valued at its residual investment cost of €33.9m, representing 3.9% of portfolio fair value. At completion, Apax France VIII fund and Fortino Capital will own 51% of the combined company and Vodafone will own the remaining 49%.
Read more...We do not think that it has ever been Microsoft’s intention to take market share away from its
Microsoft gives the PC makers room to breathe. Microsoft updated its Surface Pro at an event in Shanghai but left plenty of space for its partners to innovate within the fledgling tablet-PC category.
Read more...FY18 US Defense Budget
Not as radical a departure from Obama as the headlines suggest
President Trump released his first full US Defense Budget yesterday. It requests a base budget of $574bn for FY18, and $65bn in Overseas Contingency Operations funding (OCO), making a total request of $639bn (as shown in the chart below). This would be a 3% increase year on year, and it is 3% higher than Obama requested for FY18. Whilst I acknowledge that the market environment looks better for the defence industry under the Republicans compared to the Democrats, I think the headlines this morning are focusing on the bullish rhetoric rather than understanding the nuances of the numbers. This budget is positive for the overall trajectory of defence spending and there is clearly going to be a focus on providing good equipment for troops, However, most of the uplift is consumed by higher troop costs and the Budget Control Act means there is uncertainty over whether this budget will ever come to fruition. In today’s blog I examine what I consider to be the three key questions; what has changed in this budget from Obama’s plans? Where will the extra money be spent? And how likely is it that the proposed budget is enacted by Congress?
US base defence budget and Overseas Contingency Operations funding ($m) FY01 – FY22 (Source: FY17 DoD Green Book & FY18 Budget materials)
Market Commentary - Housing, Infrastructure, Construction and Services 24th May 2017
There is a substantial amount of news today from Babcock with its finals, Ibstock and Polypipe with AGM updates, HSS has issued a Q1 trading update and Berendsen has issued a punchy rejection of the approach from Elis that includes forecasts for operating profit for this year and next.
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Premier spuds Zama-1 offshore Mexico
The spudding of Zama-1 marks the first offshore exploration well to be drilled in Mexico by an international company in over 80 years. The Talos Energy operated well, partnered by Premier Oil and private Mexican company Sierra Oil and Gas was on our list of wells to watch in 2017. Click here for report.
Read more...Market Commentary - Housing, Infrastructure, Construction and Services 23rd may 2017
Renew Holdings has delivered its interims to end March today and Homeserve has told us its finals. In both cases the results are good. Morgan Sindall scorched ahead again today with a 5.7% increase to 1257p.
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