Maitland/AMO Morning Monitor – Friday 14 January 2022

14th January 2022

In the news

  • Government bond prices have jumped to their highest level since before the pandemic as investors prepare for central banks to increase interest rates and end large-scale asset purchases to contain surging inflation.
  • TPG shares gained more than 15 per cent in their first day of trading, lifting its market capitalisation above $10bn.
  • Google has said it will spend $1bn to purchase its office building near Tottenham Court Road despite ongoing uncertainty around the willingness of workers to return to the office.
  • Russia has said that talks with the US and Nato have failed to address security grievances, casting doubt on whether a diplomatic push will defuse Moscow’s threats against Ukraine.
  • Brussels is prepared to withhold more than €100m from Poland to cover unpaid fines imposed by the EU’s top court, the bloc’s justice commissioner has warned.

Politics today

  • The House of Commons sits from 9.30 a.m. with a day of private members’ bills, starting with Tory MP Mark Jenkinson’s bill aimed at extending entitlement to careers advice in schools.

Stock market moves

  • In the US, the Nasdaq 100 fell 2.6% while the S&P 500 lost  1.4%.
  • In Asia, Japan’s Topix Index slid 1.4% and Hong Kong’s Hang Seng Index shed 1%.
  • In Europe, the FTSE 100 is trading down 0.3%.
  • The yield on 10-year Treasuries rose two basis points to 1.72%.

Corporate announcements

* Maitland Client

Experian PLC Q3 FY22 Trading Update
  • In the UK and Ireland, organic growth in Consumer Services and B2B revenues was 13% and 6% respectively.
  • Total revenue growth in North America was 16% including acquisition contributions in targeting, verification services and insurance marketplaces.
  • Organic revenue growth across EMEA/Asia Pacific was flat and total revenue growth was 6% at constant exchange rates, including the contribution from the bureau acquisition in Spain.
  • Brian Cassin, CEO, commented: “We now expect organic revenue growth for the full year to be in the range of 12-13%, with total revenue growth now expected in the range of 16-17%, at constant exchange rates. We continue to expect strong EBIT margin accretion, also at constant exchange rates.”
Currys PLC Peak Trading Statement 2021/22
  • UK and Ireland Peak online sales grew 29% while international online sales were up 79%.
  • Group full year adjusted PBT expected to be around £155m.
  •  Net exceptional cash costs guidance of around £50m, compared to previous guidance of £70m.
  • Alex Baldock, Group CEO, commented: “[…] All this is on top of a much stronger balance sheet, and bodes well for our medium-term goals, for which we remain on track. We’re showing this confidence by starting £75m of share buybacks today.”
Cineworld Group PLC Trading Update
  • Steady growth in performance and attendance resulting in revenue growth.
  • The Group generated positive cash flow in Q4 as a result of improvements in revenue and the cost measures implemented.
  • December was particularly strong supported by the success of “Spider-Man: No Way Home”, the first film to gross more than $1.5bn at the box office since the start of the pandemic.
  • Mooky Greidinger, CEO, commented: “Whilst there are challenges ahead, we are excited to welcome customers to our cinemas to enjoy the highly anticipated slate of movies throughout 2022. We are continuing to implement guidelines to ensure our cinemas are a safe environment for our customers […]”
Vivo Energy PLC Resignation of CFO
  • The Company announced that Doug Lafferty has resigned as CFO to take up the position of CFO at Aston Martin Lagonda Group Holdings plc.
  • Lafferty will remain a Director of the Company until he leaves, which will be no later than 13 July 2022, and remains focussed on delivering the Company’s full year results 2 March 2022.
  • The search for a new CFO is underway and further updates will follow in due course.
  • Christian Chammas, CEO, commented: “Doug has made a big impact on our business, contributing significantly to the development of our strategy and helping drive the continued recovery following the impacts of COVID-19.”
Aston Martin Lagonda Global Holdings PLC Appointment of CFO
  • The Company has announced the appointment of Doug Lafferty as CFO who joins from Vivo Energy plc.
  • He will be appointed to the Board as an Executive Director in summer 2022.
  • Lafferty was previously the CFO at Williams Grand Prix Holdings plc and held various senior finance and leadership roles at British American Tobacco.
  • Tobias Moers, CEO, commented: “Doug is a high-calibre CFO who will be a fantastic asset to Aston Martin and is going to be a great fit for our team.  I look forward to working closely with him when he joins the business this summer.”