Maitland/AMO Morning Monitor – Thursday 14 March 2019

14th March 2019

Market Information

The FTSE is expected to open up this morning, with the French CAC and German DAX also expected to open up.

In Asia, markets have generally fallen overnight, with the Shanghai Composite, Hang Seng and Nikkei all marginally decreasing.

In the news

  • MPs reject a no-deal Brexit in a House of Commons vote yesterday evening
  • The pound has eased on Thursday morning following yesterday's 9-month high
  • The US announces that it will ground all of its Boeing 737 MAX airplanes after growing international pressure

Top Financial Announcements

* Maitland Client

OneSavings Bank PLC Preliminary Results 2018 and Recommended all-share combination
  • Underlying profit before tax increased 15% to £193.6m (2017: £167.7m). 
  • Loan book growth of 23% to £9.0bn (2017: £7.3bn).
  • Underlying basic earnings per share grew 14% to 58.5p (2017: 51.1p).
  • Andy Golding, CEO, said: “I am delighted that OneSavings Bank delivered excellent shareholder returns in 2018. Our core Buy-to-Let segment continued to grow, attracting our target professional landlords, and our commercial business is flourishing, reflected in strong new business volumes in the year. The Group’s organic originations grew by 15%, supporting 15% growth in underlying profit before tax to £193.6m and an attractive return on equity of 26%. OneSavings Bank is exceptionally well placed to continue to generate attractive returns for our shareholders regardless of potential political scenarios that may take place and we look to the future with confidence.”
  • The Boards of OneSavings Bank PLC and Charter Court Financial Services Group PLC are pleased to announce that they have reached agreement on the terms of a recommended all-share combination to be effected by means of a scheme of arrangement between Charter Court and the Charter Court Shareholders under Part 26 of the Companies Act 2006.
Charter Court Financial Svs Grp PLC Preliminary Results 2018
  • Profit before tax rose to £158.2m (2017: £111.7m).
  • Basic earnings per share rose to 50.5p (2017: 35.0p).
  • Loan book growth of over 24% to £6.7bn (2017: £5.4bn).
  • Ian Lonergan, CEO, said: “In our first full year as a listed company, we again continued to meet or exceed all our guidance and targets as we demonstrated the capability of our specialist lending platform to drive significant growth from the increasing sophistication and professionalisation of demand in our chosen buy to let and specialist residential mortgage markets. Reflecting this strong performance, the Board has proposed a final dividend of 9.9p per share, bringing the total 2018 dividend to 12.7p per share, which represents an inaugural payout ratio of 25%, ten percentage points higher than initially proposed at the time of our IPO in 2017. With a resulting CET1 Ratio of 15.7%, against 15.6% last year, we continue to generate significant capital and remain strongly positioned for future growth in our specialist markets. “
Just Group PLC Results for the Year
  • Underlying operating profit up 31% to £315m. 
  • IFRS loss before tax was £86m (2017: profit £181m). 
  • Earnings per share fell 5% to 18.26p (2017: 19.15p).
  • Rodney Cook, CEO, said: “2018 has been a year of contrasts.  We have achieved significant new business profit growth, strong margins and higher sales despite significant uncertainty during the Prudential Regulation Authority’s consultation into equity release mortgages. I want to acknowledge the challenges our shareholders have faced during this period and to assure them we remain focused on delivering value for them by developing our highly effective new business franchise. We operate in highly attractive growth markets in which we hold leadership positions and despite the challenging current macro environment we remain confident of the outlook for our Group.”
Cineworld Group PLC Preliminary Results 2018
  • Revenue rose 259.1% to $4,119.1m (2017: $1,147.0m).
  • Profit before tax rose 125.0% to $349.0m (2017: $155.1m).
  • Diluted earnings per share rose 7.1% to 22.4c (21.0c).
  • Anthony Bloom, Chairman, said: “2018 was a transformative year for Cineworld Group. The acquisition of Regal on 28 February made us into a global operator and the second largest cinema chain in the world. By the end of 2018, the Group was operating 9,518 screens in 790 sites across 10 countries. This significant achievement would have been difficult to imagine when we began operations in 1996. It is particularly pleasing to report that over the past 10 years the Company’s shares on the London Stock Exchange have generated +847% total shareholder return. Looking to 2019 and beyond, it is clear to me that it will be another exciting time for the Group. Our well diversified cinema estate, along with continued investment in the UK and ROW circuits and our development plans for the US leave us well placed to take advantage of multiple opportunities to generate cashflow and grow earnings.”
Savills PLC Preliminary Results 2018
  • Group revenue up 10% to £1.76bn (2017: £1.6bn).
  • Underlying profit up 2% to £143.7m (2017: £140.5m).
  • Statutory basic earnings per share decreased 4% to 56.2p (2017: 58.8p).
  • Mark Ridley, CEO, said: “Savills delivered both revenue and underlying profit growth in 2018, driven by a robust second half of the year. In addition to maintaining or growing our share of transactional markets, the performance of our less transactional business lines was key to this performance. We have made a solid start to 2019; however, the year ahead is overshadowed by macro-economic and political uncertainties across the world. It is difficult accurately to predict the impact of these issues on corporate expansionary activity and investor demand for real estate. At this stage, we expect to see declines in transaction volumes in a number of markets and growth in our less transactional business lines; accordingly we retain our expectations for the Group’s performance in 2019.”
Marshalls PLC Preliminary Results 2018
  • Revenue up 14% to £491.0m (2017: £430.2m).
  • Operating profit up 21% to £64.8m (2017: £53.4m).
  • Basic earnings per share up 22% to 26.29p (2017: 21.52p).
  • Martyn Coffey, CEO, said: “The Group delivered a strong result in 2018 and continues to outperform the Construction Products Association’s growth figures, despite ongoing macro-economic and Brexit uncertainty. The CPA’s recent Winter Forecast predicted a decrease in UK market volumes of 0.2% in 2018, followed by an increase of 0.3% in 2019. However, our recent trading has been strong and the underlying indicators in the New Build Housing, Road, Rail and Water Management markets remain supportive to our growth strategy and plans. Good progress has been made during the year, notably the successful integration of CPM and the ongoing self help programme to drive organic growth and these have been enhanced by the acquisition of Edenhall. The Group’s focus remains the delivery of long-term sustainable growth, whilst maintaining a strong balance sheet and a flexible capital structure.”
Capita PLC Full Year Results 2018
  • Revenue down 5% to £3,867.6m (2017: £4,091.8m).
  • Operating profit down 25% to £335.3m (2017: £447.5m).
  • Earnings per share down 42% to 16.37p (2017: 27.99p).
  • Jon Lewis, CEO, said: “We’ve successfully completed year one of our multi-year transformation, fixed the basics and are firmly on track. We’ve strengthened our balance sheet, achieved cost savings, and invested in our people. On top of that, we’ve improved our governance, introduced a ‘One Capita’ operating model, and started turning around challenging contracts. I am particularly proud of our new corporate purpose and refreshed values. The lion’s share of our business is providing digitally-enabled services and software solutions, using a combination of technology, data and insight to help deliver better outcomes for clients. This gives us a strong platform for significant, long-term structural growth. Our transformation still has some way to go. But I am very pleased with our progress. Our targets remain on track, and I’m excited about the prospects for a simplified and strengthened Capita.”