Maitland Morning Monitor – Wednesday 16 May 2018

16th May 2018

Market Information

The FTSE is expected to open higher; the German DAX opened higher and the French CAC opened flat.

Asian stocks fell over fears that the warming US-North Korea relations had hit a road bump, and as the Japanese economy showed signs of slowing down considerably.

In the news

  • US wins right to hit EU with tariffs (Financial Times)
  • Economy ‘at menopausal moment’ (The Daily Telegraph)
  • MPs savage rotten state of Carillion (The Times)

Top Financial Announcements

* Maitland Client

Burberry Group PLC Final Results
  • Revenue decreased 1% to £2,733m (2017: £2,766m).
  • Adjusted operating profit increased 2% to £467m (2017: £458m).
  • Marco Gobbetti, CEO, said: “In a year of transition, we are pleased with our performance as we began to execute our strategy. With Riccardo Tisci now on board and a strong leadership team in place, we are excited about the year ahead and remain fully focused on our strategy to deliver long-term sustainable value.”
Paddy Power Betfair PLC Statement re Press Comment
  • The Company confirms it is in talks regarding a potential combination of its US business and FanDuel.
Mondi PLC Trading Update
  • Underlying profit for the first quarter of 2018 increased 15% to €295m.
  • Like-for-like sales volumes were stable.
  • The estimated impact of maintenance shuts on operating profit was €35m (2017: €10m).
National Express Group PLC* Trading Statement
  • Revenue from continuing operations increased 6.2% on a constant currency basis, up 1.7% on a reported basis.
  • The Company reported double digit growth in profit before tax year-on-year, on both constant currency and reported bases, with improved profit margin.
  • The Company reported that the revenue and profit performances have benefited from both organic growth and the bolt-on acquisitions made last year.
  • Dean Finch, CEO, said: “We continue to focus on operational excellence to drive growing shareholder value by both delivering high quality services for our customers and generating cash to invest in future expansion. These opportunities will continue to be sought in a disciplined manner and we will only pursue them if they meet our strict financial criteria. We remain on track to meet our full year profit and cash flow expectations.”
Speedy Hire PLC Final Results
  • Revenue increased 2.2% to £377.4m (2017: £369.4m).
  • Profit before tax increased 25% to £18m (2017: £14.4m).
  • Russell Down, CEO, said: “We are delighted with these results which reflect a strong operational performance, robust capital management, the benefits of the strategy which was launched in September 2015, the impact of our recovery initiatives and some earlier than expected acquisition synergies.”
Micro Focus International PLC Pre-Close Statement
  • The Company expects to report revenues better than the management guidance of minus 9% to minus 12%.
  • This performance includes a licence deal of approximately $40m, which closed earlier than expected.
Crest Nicholson Holdings PLC Trading Update
  • Unit completions increased 17.6% to 1,251 (2017: 1,064).
  • Patrick Bergin, CEO, said: “The group has delivered a good sales performance in the first half of the year. The business continues to increase the number of homes built and carries positive momentum into the second half of 2018.”
Cineworld Group PLC Trading Statement
  • Total revenue increased 10.1%.
  • Group admissions increased by 1.1% on a pro-forma basis.
  • The Group acquired 558 sites through the acquisition of Regal Entertainment Group.
Coats Group PLC Trading Update
  • Group year-on-year reported sales increased 8%.
  • Industrial sales at constant exchange rate increased 9%.
  • Outlook: The Company expects 2018 full year results in line with management’s expectations.
Brewin Dolphin Holdings PLC Interim Management Report for the Half Year
  • Total funds increased to £39.7bn (2017: £37.8bn).
  • Adjusted profit before tax increased 19.8% to £38.8m (2017: £32.4m).
  • David Nicol, CEO, said: “We continue to deliver against our strategy and build on the positive momentum across the business. We remain positive in our outlook and confident in the strength and increasing relevance of our advice-led service.”
Mitchells & Butlers PLC Half Year Results
  • Total revenue increased to £1,130m (2017: £1,123m).
  • Profit before tax decreased to £69m (2017: £75m)
  • Phil Urban, CEO, said: “This strong performance comes from the progress we continue to make in our three priority areas: building a more balanced business; instilling a more commercial culture; and driving an innovation agenda.”
TI Fluid Systems PLC Q1 2018 Trading Update
  • Revenue decreased 3.8% to €869m (2017: €903.1m).
  • William L. Kozyra, CEO, said: “We have delivered a strong first quarter of results, in line with our expectations. We successfully outperformed the global light vehicle production market and aim to continue this momentum as we progress through the year.”
Marston's PLC Interim Results
  • Underlying revenue increased 20% to £528.1m.
  • Profit before tax increased 8% to £36.3m.
  • Ralph Findlay, CEO, said: “We are pleased to report another period of good growth. Strong trading in Brewing and Taverns and Leased pubs offsets the adverse impact of poor weather. We are confident that the medium-term outlook for the eating-out and wet-led pub sectors remains good.”
SSP Group PLC Half-Year Report
  • Revenue increased 9.8% at constant currency to £1,177.8m (2017: £1,072.5m).
  • Underlying profit before tax increased 40.3% to £48.7m (2017: £34.7m).
  • Like-for-like sales increased 2.8% (2017: 2.9%).