Edison Investment Research

Regional REIT (RGL); completes Wardpark sale for £26.4m

Stock down 0.11% to 94.90p at 8:03

RGL exchanged and completed the sale of multi-let industrial estate Wardpark, Cumbernauld for £26.4m.

Turkey:When risks collide

US sanctions on Turkey overlay political risk on economic fragility

Turkey has long been the beneficiary of substantial US dollar funding. However the Erdogan administration is now on the receiving end of US sanctions, having failed to agree to the release of a US pastor held under house arrest in Turkey. A 28% fall in the Turkish Lira last week has highlighted the risks to a corporate sector highly reliant on dollar borrowing. In addition, solutions now appear down to geopolitics rather than domestic economic policy. Given the already entrenched positions of both the US and Turkey, resolution in the short-term appears unlikely in our view. For investors not exposed to Turkey, the lessons are twofold. First, economic fundamentals do now “matter” as the era of cheap and plentiful US dollars draws to close. Second, the rise of populism on both sides of the Atlantic continues to translate elevated political risk into actual investment outcomes.

Card Profit releases profit warning with EBITDA down from the £93.5m consensus

Even before reaching interim results (they are due in September), Card Factory is signalling a profits downgrade for the year to January 2019. It now indicates EBITDA in a range of £89-91m, down from consensus of £93.5m.

Caledonia Mining (CMCL); 2Q18 results; higher sales and average selling prices offset by higher cost

Stock down 5.80% to 650p at 8:16

CMCL reported attributable profit of ~$2.6m for 2Q18, significantly higher than ~$0.7m reported in 2Q17, mainly due to the increase in the ECI (export credit incentive). Gold production was 1.1% higher y/y at 12,657oz, and the company anticipates higher production in the second half.

Raven Property Group (RAV); preference share dividend payment on 1 October 2018

RAV has confirmed that the quarterly payment of preference dividend in respect of the preference shares of 1p each (RAVP) will be made on 1 October 2018 for the period from 30 June 2018 to (but excluding) 30 September 2018.

Domino’s reports minor recovery following competitor Papa John’s leadership change

Despite minor recovery, Domino’s shares were still down 8% this morning compared with Monday following interims yesterday that revealed increased international losses as well as uncertainties on input costs and currency extending into 2019. They now trade on a P/E of 18.0x against updated 2018 forecasts.

Stock Spirits interims report stock grew strongly by 7.3% and constant currency EBITDA increased 4%

Management under Mirek Stachowicz continues to deliver on its promise to restore its brands to prominence despite the challenged European markets. Earnings per share grew to €6.38 and dividend was raised 5% to €2.50 per share, and trading remains in line with market expectation of 2.5% sales growth for the full year.

Low & Bonar (LWB):  Chairman Martin Flower to retire; Daniel Dayan to succeed

Stock flat at 46.6p at 8:08

LWB announced today that Chairman Martin Flower has notified his intention to retire. He will step down from the Board with effect from 11 September 2018. Daniel Dayan will succeed him as non-executive Chairman on the same date.

Share (SHRE); 1H18 results; assets under administration grow to a record £5.0bn

Stock flat at 26.00p at 8.16

SHRE revenue for 1H18 reached a record six month high, growing 15% y/y to £10.2m, driven by an 18% y/y growth in assets under administration to a record £5.0bn.The company noted that trading performance remained encouraging and expects new business opportunities to remains strong.

Secure Trust Bank(STB):H1 2018 results: profit before tax up 31.3% YOY

Stock up 5.26% to 1,700.00p at 8:03

For the six months ending 30 June 2018, STB reported profit before tax of £15.1m ,a 31.3% increase from £11.5m for the corresponding period last year. Company’s underlying EPS increased 40.9% to 74.7p (2017: 53.0p).