Maitland/AMO Morning Monitor – Friday 11 September 2020

11th September 2020

In the news

  • New data from the ONS has revealed that GDP grew 6.6% in July compared with the previous month
  • Mike Corbat will be stepping down as CEO of Citigroup and will be succeeded by Jane Fraser, who will be the first woman to lead a Wall Street bank
  • The European Commission has threatened legal action unless Boris Johnson withdrew controversial clauses in the UK's internal market bill
  • Jean-Sebastien Jacques will step down as CEO of Rio Tinto by the end of March over the Juukan Gorge incident

Politics today

  • Covid-19 infection survey pilot results to be published by the ONS

Stock market moves

  • In Europe, the FTSE 100 is trading up 0.3% in early hours.
  • Shares on wall street dropped as doubts grew over new support measures and indications that a Covid-recovery was stalling. The S&P fell 1.8% and the Nasdaq Composite 2%.
  • Following this shares across Asia-Pacific seemed to follow suit and lack momentum with China’s CSI 300 index falling 0.2%.

Corporate announcements

* Maitland Client

LondonMetric Property PLC Disposal of six warehouses for £57.3m
  • LondonMetric Property announces the disposal of a portfolio of six distribution warehouses for £57.3m to Canmoor and Canadian institutional investor, AIMCo, reflecting a blended NIY of 5.3%.
  • The disposal will crystallise an £8.8m profit on cost and an ungeared IRR of 11% pa.
  • Completion of the sale is delayed until 25 March 2021, allowing LondonMetric to receive c. £1.5m of additional rent.  Total receipts upon completion will be 3.8% above March 2020 book value.
  • Andrew Jones, CEO, said: “Whilst we seek to avoid unnecessary asset turnover, we will always take advantage of strong approaches for our assets. These proceeds will be reinvested into other quality opportunities in the strongest geographies where rental growth over the long term will be superior.”
Ashmore Group PLC Final Results
  • Adjusted net revenue increased by 5% YoY, driven by 7% growth in net management fees.
  • Lower operating costs delivered 10% YoY growth in adjusted EBITDA to £222.5m and higher margin of 68%.
  • Profit before tax of £221.5m increased 1% YoY and diluted EPS increased 3% YoY to 25.7 pence.
  • Mark Coombs, CEO, said: “The Group’s business model, based on a consistent global operating platform, has proven its resilience in this challenging period and, after the initial negative impact in Q3, the investment processes are delivering outperformance as markets recover and client flows have continued to stabilise.”
Provident Financial PLC Senior Management Update
  • The Board of Provident Financial wishes to announce that Malcolm Le May, Group CEO, will be taking a short leave of absence from late September to undertake a planned heart procedure.
  • Malcolm is expected to return to his position in November.
  • During this interim period, Patrick Snowball, Group Chairman, will assume the role of Executive Chairman.