Maitland Morning Monitor – Friday 12 January 2018

12th January 2018

Market Information

European equity markets are expected to nose up this morning as investors process the last of this week's earnings announcements.

Equities rose in most Asia-Pacific markets with above-average volumes in Hong Kong and South Korea, while a stronger yen weighed on Japanese stocks.

In the news

  • Big high-street stores feel chill of consumer spending freeze (Financial Times)
  • Investors shrug off bond fears (The Times)
  • Chappell found guilty of not disclosing BHS pension papers (The Guardian)

Top Financial Announcements

* Maitland Client

Bovis Homes Group PLC* Trading Statement
  • Average selling price on completions in the year increased by 7% £272k (2016: £254.9k) with private average selling price increasing by 9% to £334k (2016: £306.0k).
  • Profit before tax, one-off and exceptional items are anticipated to be in-line with management expectations.
  • Total forward sales of 2,656 units and a value of £518m as at 31 December 2017.
  • Balance sheet restructuring resulting in a £145m year end net cash balance.
  • Greg Fitzgerald, CEO, said: “The Group had a very disciplined year end and delivered against all of its financial and operational targets for 2017. There has been a step change in the quality of our homes delivered on completion and I’m pleased to see this reflected in our level of customer satisfaction which continues to improve.  We’ve made excellent progress with our balance sheet restructuring resulting in a year end cash position significantly ahead of expectations.  Our forward order position is strong, and with robust industry fundamentals, we expect the Group to deliver a significant improvement in profitability in 2018.”
B&M European Value Retail S.A.* Trading Statement
  • Group sales revenue growth in the quarter of 22.7% at constant currency, including a 3.9% increase in B&M UK like-for-like revenues.
  • UK Like-for-Like revenue growth +3.9%.
  • Continued strong sales and operational performance through the peak trading period.
  • Management is confident that the Group will meet market expectations for EBITDA for the current financial year.
  • Simon Arora, Chief Executive, said: “B&M continues to go from strength to strength. Despite the demanding comparatives from the very strong Christmas in 2016, our buying, supply chain and retail teams achieved another outstanding performance this year by doing what we do best, which is delivering great value for customers week-in, week-out. With Heron also performing well and Jawoll having a solid quarter, I’m delighted with our progress and on behalf of the Board I would like to thank all of our colleagues for their hard work and commitment.”
Mitchells & Butlers PLC First Quarter Trading Update
  • LFL sales grew 3.9% during the 14 weeks ended 6 January 2018.
  • Christmas Day was a record taking day with like-for-like sales growth of 5.4% and 225,000 meals sold.
  • On an unadjusted basis, like-for-like sales growth in the year to date was 1.1% and total sales have increased by 0.5%.
  • Phil Urban, CEO, said: “We are pleased to have delivered continued strong trading results over the important festive period in the face of difficult weather for many of our guests, indicating the attractiveness of our offers in a competitive market”.
GCP Infrastructure Investments Ltd Placing under Placing Programme
  • Following the announcement of a placing targeting gross proceeds of £60m under the 2017 Placing Programme, today the Placing has been significantly oversubscribed and the Board has exercised its discretion to increase the size of the Placing to £100m.
  • This will be achieved through the issue of 81,967,214 new Ordinary Shares, subject to Admission.
  • It is expected that Admission will become effective and dealings in the new Ordinary Shares will commence on 16 January 2018.