Economic survey data on a weakening trend outside US
The fly in the ointment for investors trying to look through political developments
Following a difficult autumn, investors are likely to be weighing whether 2018’s risks are almost in the rear-view mirror. Brexit could conceivably be settled by January, with minor changes to the Withdrawal Agreement; the Italian budget stand-off could be resolved by a telephone call. In terms of financial conditions, the Fed may raise rates in December but could guide to a pause, reflecting economic or market turbulence. Similarly, the ECB could acknowledge that the weakening trend in eurozone data warrants a continuation of QE, or at least some very doveish forward guidance. Finally, following the mid-term elections, rebel Trump’s politically motivated trade war on China is now without a cause, at least in the short-term. Speculation of a US/China trade “deal” at the upcoming G20 meeting in Argentina is rising, which could perhaps at least represent a cease-fire in hostilities. Such a shift in sentiment may seem far-fetched, but should at least be considered alongside more bearish scenarios.
Read more...Fuller’s (FSTA); invests in its pubs ahead of the Christmas period
Interim results to September were stable rather than exciting
It may seem counter-intuitive for a pub company to be reporting a fall in profit after the summer we’ve just had, but in Fuller’s case this is the result of a conscious decision to invest in its pubs ahead of the Christmas period, with an impact of £0.9m, or 4% of pre-tax profit.
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Palace Capital (PCA); exchange contracts worth £18.2m for the sale of 50 residential properties
The residential units are debt-free and uncharged
Palace Capital exchanged contracts worth £18.2m with the London Borough of Barnet for the sale 50 units, reflecting 97% of their book value. The 50 units, three of which were sold in February 2018 for £1.25m, are part of the 65 residential units acquired in October 2017 as part of the RT Warren (Investments) Ltd portfolio.
Read more...Oxford BioMedica (OXB); announces new digital framework initiative for next-generation medicines
The company plans to invest £4m in the project
Oxford BioMedica announced a new digital framework initiative to streamline the production of next-generation medicines. The company will invest £4m in total, $2m of which is allocated to support a grant from UK innovation agency Innovate UK.
Read more...Majestic Wines (WINE); revenue increased 14% compared to 1.9% in the first half
The company notes that trading in the UK has continued to be tough
Majestics’ interim results demonstrate that Naked Wines continues to be a growth engine for the business, with revenue increasing by 14% compared with 1.9% for the retail division in the first half. Overall, group revenue increased by 5.4% to £229.1m but higher customer investment and fixed costs resulted in a loss before tax of £(0.2)m.
Read more...Euromoney Institutional Investor (ERM); underlying PBT up 8% in FY18
Adjusted operating profit margin increased 200bps during the year to 27%.
For the year ending 30 September 2018, underlying revenue rose 3% year-on-year, excluding the Global Markets Intelligence division, which was sold in April 2018. Underlying subscription revenue, which accounted for 56% of overall revenue, increased by an underlying 2%, largely driven by strong performance in the company’s price reporting agency, Fastmarkets.
Read more...Rotork (ROR); expects results FY to be robust after positive trading in October’s quarter
The Far East exhibited strong growth for Rotork
Rotork today reported a strong order book of £204.1m, a 6% increase from last year. The group order intake decreased by 4% or 2% on an organic constant currency basis in the comparable period, while revenue increased by 8.4%. The cumulative order intake was up by 3.6% with a 9.8% increase in revenue.
Read more...Ebiquity (EBQ); expects organic revenue growth of about 2% for FY
Ebiquity anticipates its operating profit to be lower than market expectations
Despite the challenges in the US and Germany, the Media, Analytics and Tech practices (the retained business following the disposal of the Advertising Intelligence business) is progressing well in the UK and Ireland, French markets and others, with overall revenue growth in line with expectations at around 8%.
Read more...GVC Holdings (GVC); acquires Neds International for AUS$68m
Stock flat at 775.50p at 8:00
GVC Holdings announced the acquisition of Neds International for an initial consideration of AUS$68m (c£37m). The total maximum consideration for this deal could go up to AUS$95m (c. £52m).
Read more...Princess Private Equity (PEY): interim results reveal NAV total return of 9.3%
Princess Private Equity’s shares closed at €11.44 per share for the period
Princess Private Equity announced second interim dividend of €0.28/share and NAV total return at 9.3%, in line with its objective of distributing 5-8% of opening NAV pa. Direct investments in Action, Permotio and Ceridian Corporation were the largest contributors to NAV growth, with valuation developments at 11.9% YTD.
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