Maitland/AMO Morning Monitor – Thursday 11 July 2019

11th July 2019

Market Information

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

In Asia, the Shanghai Composite, Hang Seng and Nikkei have all risen today as the falling dollar boosted wider risk appetite.

In the news

  • British navy rejects Iranian attempt to impede BP tanker
  • Swiss Re pulls the £3bn flotation of ReAssure, its UK life insurance business
  • Bjorn Kjos, CEO of Norwegian Air Shuttle, is to step down after 17 years

Top Financial Announcements

* Maitland Client

Reckitt Benckiser Group PLC* Agreement to resolve all federal investigations
  • Reckitt Benckiser today announced it has reached agreements with the U.S. Department of Justice and the Federal Trade Commission to resolve the long-running investigation into the sales and marketing of Suboxone Film by its former prescription pharmaceuticals business Indivior, a business that was wholly demerged from the Group in 2014.
  • Under the terms of the agreements, RB will pay a total of up to $1.4bn to fully resolve all federal investigations into RB in connection with the subject matter of the Indivior indictment and claims relating to state Medicaid programs for those states choosing to participate in the settlement.
  • The resolution will also protect the Group’s participation in all U.S. government programmes.
  • While RB has acted lawfully at all times and expressly denies all allegations that it engaged in any wrongful conduct, after careful consideration, the Board of RB determined that the agreement is in the best interests of the company and its shareholders.
Land Securities Group PLC Directorate Change
  • Landsec announces that Robert Noel, Chief Executive, has informed the Board of his intention to retire from Landsec during 2020.
  • The Board will commence a formal search process to identify and appoint his successor. Robert will continue in his role until his successor is appointed and for an appropriate handover period.
  • Robert Noel, CEO, said: “I’ve been fortunate to lead talented and dedicated teams as we’ve transformed the portfolio, culture and financial strength of the business over the last decade. Next year I will have spent ten years at Landsec, eight as Chief Executive. With the business well positioned for the current market, a growing pipeline and a clear strategy for the future, it’s the right time for me to move on.”
  • Cressida Hogg, Chairman, said: “On behalf of the Board, I would like to thank Rob for the energy and commitment with which he has led the company through a period of change and growth, transforming the portfolio and strengthening the balance sheet. Under his leadership Landsec has developed iconic buildings, especially in Victoria, in the City and at Westgate in Oxford. We respect his decision to retire after nearly eight years as Chief Executive and look forward to continuing to work with him until a successor is in place.”
Workspace Group PLC First Quarter Business Update
  • Good level of customer demand in the first quarter with enquiries averaging 1,060 per month (Q1 2018/19: 1,021) and lettings of 121 per month (Q1 2018/19: 88).
  • Two new buildings, in Hoxton and Clerkenwell, and one building extension and refurbishment in Chiswick completed during the quarter.
  • Pro forma LTV of 22% at 30 June 2019, based on March 2019 valuation, with cash and undrawn facilities of £134m.
  • Graham Clemett, Interim CEO, said: “It has been a busy and successful quarter for the Company. Our distinctive flexible offer continues to attract strong demand from a broad range of customers, despite the challenging economic environment. Our completed projects are letting up well and we are progressing at pace with the delivery of our project pipeline. Alongside this we remain well positioned to take advantage of acquisition opportunities but remain rigorous on our return criteria.”
Pantheon International PLC Monthly Performance Update
  • Pantheon announced an unaudited net asset value per share at 31 May 2019 of 2,770.6p, an increase of 169.7p (+6.5%) from the NAV per share as at 30 April 2019.
  • Valuation gains (89.8p, +3.5%), investment income (0.7p, +0.0%) and foreign exchange movements (+82.9p, +3.1%) were offset by expenses and taxes (-3.7p, -0.1%).
  • At 31 May 2019, Pantheon’s private equity assets stood at £1,450m, whilst net available cash balances were £141m.
  • Pantheon’s portfolio generated net cash of £17.4m during the month, with distributions of £28.7m relative to £11.3m of calls from existing commitments to private equity funds.