Maitland/AMO Morning Monitor – Friday 17 December 2021

17th December 2021

In the news

  • The Bank of England has raised interest rates from 0.1% to 0.25%, the first increase in more than three years.
  • UK hospitality industry trade has fallen by a third in the lead up to Christmas.
  • Asset Manager GAM has been fined £9.1m by the FCA for failing to manage conflicts of interest.
  • The former CEO of McDonald's, Steve Easterbrook, has returned his $105m severance package after settling a law suit in which the company claimed he lied about sexual relationships with employees.
  • The Conservative party have suffered a parliamentary by-election defeat in North Shropshire, a Tory safe seat for almost 200 years.

Politics today

  • Parliament is now in recess until 5 January 2022.

Stock market moves

  • In the US, the S&P 500 and NASDAQ 100 both closed downwards, dipping 0.8% and 2.6% respectively.
  • In Asia, Japan’s Topix index ended its trading down 1.4%, whilst China’s Shanghai Composite index closed -.1%. Hong Kong’s Hang Seng Index also dipped by 1.2%.
  • In Europe, the FTSE has opened 1.2%.

Corporate announcements

* Maitland Client

Sanne Group PLC Year end and Acquisition update
  • The Group’s acquisition of the European fund administration business of PraxisIFM Group Ltd completed during the fourth quarter.
  • The Group’s platform has yielded an impressive new business performance during the year.
  • It expects to report annualised new business wins for 2021 in excess of £32 million for the full year, an increase of more than 40%.
Johnson Matthey PLC Johnson Matthey announces sale of Health
  • Sale is announced of Health business to Altaris Capital Partners, an investment firm focused exclusively on the healthcare industry, for £325m enterprise value.
  • Health will be sold for a total consideration of £325m representing an implied transaction multiple of 9.8x underlying EBITDA of £33.0m  for the 12 months.
  • JM will receive £150m cash on completion and will retain approximately a 30% equity stake in the business.
  • Robert MacLeod, CEO, said: “While Health has good long-term prospects, near term trading has been challenging, and the business requires significant capital investment. Health operates in different markets from the rest of JM, and we believe Altaris is the best partner to drive its future value.”
Ibstock PLC New Carbon Reduction Targets
  • Target for the business to be net zero carbon by 2040.
  • Continued goal to achieve a 40% reduction by 2030.
  • Commitment will cover scope 1 & 2  emissions and will include investment in more efficient production processes and in high quality environmental projects to offset residual carbon.
  • Joe Hudson, CEO, said: “I am proud of our colleagues across the business who are driving forward our sustainability agenda and securing its place at the core of our purpose as a business and I look forward to presenting our ambitions and targets in March 2022.