Maitland/AMO Morning Monitor – Monday 19 July 2021

19th July 2021

In the news

  • Three of Britain’s most senior cabinet ministers, including Boris Johnson, will be self-isolating on England’s so-called Freedom Day today.
  • Opec and its allies have reached a deal to raise oil production in response to soaring prices.
  • US oil and gas exporters have been warned that they face a further tightening of European anti-pollution rules.
  • The UK government is to allow some fully vaccinated frontline NHS staff in England to carry on working if exposed to someone with Covid.

Politics today

  • Oral questions to the Ministry of Housing, Communities and Local Government will take place in the House of Commons this afternoon.

Stock market moves

  • In the US, the S&P 500 and the Nasdaq 100 both fell 0.8% on Friday.
  • Asian shares fell with Japan’s Nikkei 225 shedding nearly 1.2% and South Korea’s Kospi slipping 0.9%.
  • In Europe, the FTSE 100 is down 1.3% and STOXX 600 is down 1.19%.

Corporate announcements

* Maitland Client

Ultra Electronics Holdings PLC Interim Results
  • Order book of £1,270.2m (2020: £1,173.2m).
  • Revenue of £404.5 (2020:  £413.1m).
  • Underlying operating profit of £62.2m (2020: £53.4m).
  • Simon Pryce, CEO, said: “Our strong first half demonstrates the benefits of Ultra’s strategic re-positioning as an agile player in growing markets, with a strong technology base focused on addressing customers’ future needs. Our operating and financial performance already reflects improved execution from our transformation programme and supports our aspiration to continue to drive above market growth and margin expansion over time.”
BB Healthcare Trust PLC* Half-year Report
  • Share price and NAV increased 6.9% and 5.7% respectively.
  • The total NAV return was 7.1%.
  • Shares traded at a premium of 1.2% to NAV over the period.
  • Randeep Grewal, Chairman, said: “Certainly, for a fund looking for innovation in healthcare, the one statement we can make about the outlook is that innovation is both necessary, and will continue.”
Admission to AIM and first day of dealings* Forward Partners Group PLC
  • Forward Partners, the London-based venture capital firm, specialising in supporting high growth, early-stage technology businesses, has announced the admission of its entire issued and to be issued share capital to trading on the AIM market of the London Stock Exchange.
  • Admission will take place and dealings will commence at 8.00 a.m. today under the ticker FWD and the ISIN GB00BKPGBB09.
  • Nic Brisbourne, CEO, said: “Today is an exciting day for Forward Partners and a true testament to the hard work our team has put in helping exceptional entrepreneurs build extraordinary companies over the last eight years. We are thrilled to be listing in London, a global centre of technology, innovation and venture capital. It is a rarity to see retail investors accessing venture capital on equal terms as institutional investors and we are pleased to have delivered on our mission to democratise access to high growth, UK technology startups. As a public company, we can now provide long term support to startups who are finding solutions to the challenges that we face, providing a critical engine of growth to turbocharge the UK’s economic recovery.”
Synthomer PLC Trading Update
  • Expects H1 2021 EBITDA to be approximately £320m.
  • Expects FY 2021 EBITDA in excess of £500m, compared to previous guidance of previous guidance of being in excess of £450m.
  • Synthomer continues to expect that the Nitrile latex business will return to more normalised levels during 2022.
Investindustrial Acquisition Corp. Ermenegildo Zegna Group, a Leading Global Luxury Group, to Become a Publicly Traded Company Listed on NYSE by Combining With Investindustrial Acquisition Corp.
  • Zegna Family to Retain Control with a Stake of approx. 62%; Merged Entity will have an Anticipated Initial Enterprise Value of $3.2 Billion.
  • Group’s Vertical Integration and Made in Italy Luxury Textile, Clothing and Knitwear Platform Ensures Highest Levels of Excellence while Maintaining Heritage of Sustainability.
  • Successful Acquisition of Iconic Thom Browne Brand Demonstrates Strength of Group’s M&A Strategy and Ability to Develop Brands.
  • Partnership with Investindustrial to Support Zegna’s Continuing Growth Plans.
  • Andrea C. Bonomi, Founder of Investindustrial and Chairman of the Industrial Advisory Board, said: “For over thirty years, Investindustrial has invested in and supported both growing and leading Italian brands. We believe in the strength of Made in Italy, which has always been recognized worldwide for quality, craftsmanship, and innovation. With Zegna we identified a group that also includes both a strong family heritage and a leading position in sustainability – one of the pillars in Investindustrial’s investment strategy. We are supporting the Zegna Group with a long-term commitment and a significant investment to back the Company’s ongoing expansion and growth, with the goal of spreading Zegna’s unparalleled heritage and luxury craftmanship more broadly to customers around the world.”