Maitland/AMO Morning Monitor – Monday 13 December 2021

13th December 2021

In the news

  • Boris Johnson last night announced that 1m Coronavirus booster jabs a day will be offered in an emergency programme to head off the risk of a lockdown in the new year.
  • The FCA is recruiting private law firms to help process applications and has spent almost £1m on headhunters this year as it scrambles to plug staffing gaps as reforms spark backlash.
  • Volumes of goods handled at UK ports are expected to be down 13.5 per cent on 2019, after declining North Sea oil production and Brexit put a large dent in cargo volumes.
  • The Greek central bank is planning an appeal for the country’s bonds to remain eligible for new European Central Bank purchases after March when the vast bond-buying scheme launched in response to the pandemic is expected to end.
  • The cost of flying cargo globally has reached record levels, with prices almost doubling on crucial air freight routes as companies attempt to meet surging demand in the run-up to Christmas.

Politics today

  • The House of Commons sits from 2.30 p.m. with work and pensions questions followed by considerations of amendments to the Armed Forces Bill.

Stock market moves

  • In the US, the Nasdaq 100 and S&P 500 rose 1.1% and 1% respectively.
  • In Asia, Japan’s Topic Index gained 0.2% while Hong Kong’s Hang Send Index rose 0.6% and Shanghai’s Composite Index gained 0.7%.
  • In Europe, the FTSE100 has opened flat.

Corporate announcements

* Maitland Client

BHP Group PLC Update on all-cash offer for Noront Resources
  • The Group announced today that discussions with Wyloo Metals Pty Ltd regarding potential support of BHP’s offer to acquire Noront Resources Ltd. have ended.
  • BHP Lonsdale and Noront encourage Noront shareholders to tender to BHP Lonsdale’s all-cash offer of C$0.75 per Noront share.
  • The offer is the only offer available to Noront shareholders and it continues to have the support and recommendation of the Board of Directors of Noront.
  • Shareholders have until 14 January 2022 to accept the offer and tender their shares.
Capita PLC Pre-close update & proforma historical financial info
  • Group revenue for the 11 months to 30 November 2021 increased by 0.6% to £2,882m.
  • Post-IFRS 16 net debt at 31 December 2021 is expected to be broadly in line with the £894m reported at the half year, as previously guided.
  • Solid performance from most businesses within Capita Portfolio but slower than expected recovery from Covid.
  • Jon Lewis, CEO, said: “We have delivered our disposals programme, which now totals more than £620m proceeds for the year, strengthening our balance sheet and providing the funds to further reduce our outstanding financial debt in 2022.”
Dunelm Group PLC Directorate Change
  • The Group announced that Laura Carr, CFO, has informed the Board that she will be leaving her role to take up a new opportunity outside of retail and the public markets.
  • Laura will remain in the business until the beginning of June 2022 to ensure an orderly handover of her responsibilities.
  • A search for Laura’s successor is being initiated and the Board will update as appropriate.
  • Nick Wilkinson, CEO, commented: “Laura has made a tremendous contribution to Dunelm in her three years with the business, a period in which we have significantly built our digital capabilities and navigated a global pandemic, whilst producing very strong financial results.”