Maitland/AMO Morning Monitor – Monday 22 June 2020
In the news
- UK tourists are now able to visit Spain without having to quarantine. The country’s foreign minister said the decision was “out of respect” for the 400,000 Britons with second homes in Spain.
- Up to 2,400 jobs could be under threat as the Go Outdoors store chain teeters on the brink of collapse. The chain, which has 67 stores and is owned by JD Sports, is understood to have lined up restructuring experts from Deloitte and could be the latest in a series of retailers to be forced into radical action.
- Around 40,000 frontline staff at Lloyds Bank are to share a £10m bonus. The £250-a-head pay-out is designed to reflect the “hard work and dedication” of staff supporting customers during the pandemic.
- 10.00: Minute’s silence held for victims of this weekend’s terror attack in Reading. Home Secretary Priti Patel visits the scene of the attack
- 12:30: Coronavirus in Scotland - Nicola Sturgeon daily briefing
- 13:45: Readying the NHS and social care for COVID-19 peak - senior Department of Health and NHS officials at Public Accounts Committee session
- 17:00: UK government - daily coronavirus briefing
Stock market moves
- The FTSE 100 and STOXX 600 Europe both opened down 1%.
- In Asia-Pacific trading on Monday, Hong Kong’s Hang Seng was down 0.8 per cent and Seoul’s Kospi dropped 0.4 per cent. Stock benchmarks in Tokyo and Sydney were flat while China’s CSI 300 index of Shanghai- and Shenzhen-listed stocks added 0.4 per cent.
- On Friday, the S&P 500 erased early gains to close down 0.6 per cent after Apple said it would temporarily close stores in US states including Arizona and Florida due to rising virus cases.
- Futures markets tipped the S&P 500 to rise 0.2 per cent when trading begins later today.
Corporate announcements* Maitland Client
JD Sports Fashion PLC Speculation re Go Outdoors
- JD Sports has confirmed that it has considered a number of strategic options for Go Outdoors and has lodged a Notice of Intention to appoint Administrators in Court.
- Administrators have not yet been appointed.
- The Company takes announces that Adrian Sainsbury has been selected to succeed Preben Prebensen as CEO.
- Mr Sainsbury will take up the new position, and become an Executive Director of the group, with effect from 21 September 2020.
- Sainsbury ‘s appointment follows an extensive search process undertaken by the Board, considering both internal and external candidates, following the announcement in September 2019 of Mr Prebensen’s planned departure.
- Mr Sainsbury has been Managing Director of Close Brothers’ Banking division and a member of the group Executive Committee since November 2016, having joined Close Brothers in 2013 as CEO of the Commercial division.
- NAV per share down 13.8% to 119.7p (2019: 140.6p).
- Share price total return of -16.5% ending the year at 111p.
- Dividend up by 3.0% at 1.70p.
- Anthony Townsend, Chairman, said: “Giving an outlook for market performance at this stage with any degree of conviction is very tough. A large number of companies held in the portfolio have withdrawn earnings guidance for 2020, rendering near term valuation metrics redundant. The harsh reality is that profits will be sharply down for many companies this year. Against this, the dramatic scale of Central Bank and government intervention is providing a great support to financial markets and seems set to stay. With the lockdowns being eased back, share prices have enjoyed a bounce at the start of the new financial year.”
- The Group has agreed with a group of private institutional investors the terms of a new $250m secured debt facility with a maturity of 2023.
- This, together with the covenant amendments and revolving credit facility increase of $110m announced on 28 May 2020, further strengthens the Group’s balance sheet as cinemas begin to re-open around the world.
- The Board of Aston Martin today announces the appointment of Kenneth Gregor as Chief Financial Officer.
- Lawrence Stroll, Aston Martin Lagonda Executive Chairman, said: ” I am delighted to welcome Ken to Aston Martin Lagonda. He is a seasoned financial professional with a strong leadership track record during his years at Jaguar Land Rover. He supported the successful execution of its growth plans, through product expansion, with robust financial planning and capital allocation policies. He is the right finance leader for Aston Martin as we implement our strategy for the business to achieve its full potential.”