Maitland/AMO Morning Monitor – Monday 21 October 2019

21st October 2019

Market Information

The FTSE, DAX and CAC are all expected to open down this morning.

In Asia, stocks generally struggled for direction amid limited news flow.


In the news

  • KPMG draws up £100m cost cutting plan codenamed 'Project Zebra'
  • Citigroup CEO signals confidence in London after Brexit
  • Asia-focused logistics company ESR Cayman looking to raise $1.45bn in revived IPO

The political day

  • Government to put forward new meaningful vote on its Brexit deal

Top Financial Announcements

* Maitland Client

JUST EAT PLC Q3 Results
  • Revenue growth of 25% to £248m.
  • Group orders up 16% to 62m.
  • UK orders increased by 8% to 33m, driven by rapid growth in the group’s delivery proposition, offset by slower growth in the group’s marketplace business, on the back of a broadly softer consumer spending backdrop and changing consumer preferences.
  • The Board remains confident in the current performance of the Group and is reconfirming its guidance for full year 2019 revenue in the range of £1.0bn to £1.1bn and uEBITDA in the range of £185m to £205m.
  • Peter Duffy, Interim CEO, said: “We are seeing strong growth in many of our markets, including Canada, Europe and pleasingly Australia, where we are starting to reap the benefits of our turnaround plan. Our UK marketplace business is a strong and clear leader; however, we are seeing a structural shift, with increasing demand on our platform from customers for broader cuisine choice and more meal occasions, led by quick service restaurant chains. The strong growth in our UK delivery business shows that we can successfully meet these needs.”
Smith & Nephew PLC Directorate Change
  • Smith+Nephew today announces that Namal Nawana will step down from the Board and his position as Chief Executive Officer by mutual agreement on 31 October 2019 to pursue other opportunities outside of the UK.
  • The Board is pleased to announce that Roland Diggelmann has been appointed as the Company’s new CEO and will take on his new responsibilities on 1 November 2019.
  • Roberto Quarta, Chairman, said: “On behalf of the Board, I am delighted to welcome Roland Diggelmann as Smith+Nephew’s incoming CEO. I am certain that Roland’s leadership qualities, combined with his excellent track record of delivering results in an innovation-led business, his deep expertise in the medical devices industry, and his knowledge of Smith+Nephew, make him the right person to build on the Company’s success into the future. During his time with Smith+Nephew, Namal has substantially transformed the business with a new strategy, purpose and culture, and renewed commitment to innovation, returning it to an improved growth trajectory. I would like to thank Namal for his leadership and many contributions to the Company, our employees, customers and stakeholders.”
  • Roland Diggelmann said: “I am honoured to have been asked to lead Smith+Nephew at an exciting time for the business. As Non-Executive Director I have seen first-hand the strength of the Group’s people and its portfolio of leading technologies. I look forward to playing my part in shaping the future of the company and driving the next stage of growth.”
CYBG PLC Part VII transfer completed
  • CYBG PLC is pleased to announce that it has completed the Part VII banking business transfer process. This means that the group now serves its customers from a single authorised and regulated banking entity.
  • This is a significant milestone for the Group as it means that it can now begin the integration of its customer propositions which will enable it to offer the full range of products and services from across the combined business.
  • It also enables the group to proceed with the platform integration activities that support the delivery of its targeted cost savings and to commence the full re-brand of the Group, including a re-launch of the Virgin Money brand in the coming months.
  • The Group will also be changing its name from CYBG PLC to Virgin Money UK PLC and this is expected to be effective by 31 October 2019.
Mind Gym PLC* Half Year Trading Update and Notice of Results
  • Reported revenue is expected to be c.24% ahead of the comparative period last year having grown to around £23.9m.
  • On a constant currency basis revenue is expected to be c.20% ahead of the comparative period last year, with both the US and EMEA regions performing well and as a result, on a full year basis, the group expects revenue to be slightly ahead of expectations.
  • The group’s strategy to focus on deepening key client relationships is paying off with an increased proportion of revenue from top 25 accounts and an increased proportion of repeat revenue from existing clients.
  • The Board’s strategy of investing for growth is already delivering returns and this first half performance gives the group the opportunity to make further investments to ensure continued, strong results.
  • Octavius Black, CEO, said: “The market for business cultural change is ripe for disruption. Our strong revenue performance in the first half shows how leaders of big businesses are increasingly switching to our new, behavioural science-based solutions.  As a result, we are making significant investments in commercial capacity, infrastructure, our digital proposition and senior leadership, most recently with the appointment of Wei-Li Chong as President Mind Gym US.  We are pleased with the first half results and very focused on what needs to be done to deliver long term, sustainable growth.”
Adamas Finance Asia Limited* Conditional Investment into Infinity TNP and Issuance of Corporate Bond
  • Adamas Finance Asia Limited is pleased to announce that it has signed a conditional share sale and purchase agreement with Infinity Capital Group Limited for the Company to acquire 40% of ICG’s wholly owned subsidiary, Infinity TNP. 
  • ICG is a real estate developer of premium residential projects in the Asia Pacific region, including in Hirafu Village, a world-class ski resort in Niseko, Japan – one of the world’s most popular winter travel destinations and regularly recognised as a top ten global ski area.
  • On completion of the Transaction, ICG will transfer to ICG TNP (a newly formed special purpose vehicle) seven property units in a luxury hotel condominium being built by ICG, Tellus Niseko. 
  • John Croft, Chairman, said: “This Transaction further enhances the Company’s capacity to generate regular cash income from an attractive investment in its portfolio and, when coupled with the issuance of shares in the Company at a significant premium to the current share price, it helps to support the underlying valuation of the Company and its growth strategy. This Transaction illustrates the Company and its investment manager’s approach to building strong relationships with its portfolio companies following investment. We look forward to working with ICG and supporting the next phase of its attractive growth story. This Transaction is in line with ADAM’s investment policy and helps to ensure the Company commences dividend payments to shareholders in due course, whilst also providing investors with the potential for capital and income growth from the Company’s asset portfolio.”
  • Adamas Finance Asia Limited also announces that it has successfully raised gross proceeds of approximately US$1.9m through the issuance of a US Dollar-denominated corporate bond to family offices in the Middle East, representing the first close of a corporate bond issuance programme of up to US$10m.