Maitland/AMO Morning Monitor – Thursday 23 January 2020
The FTSE, CAC and DAX are expected to open up.
In Asia, markets are down, with Chinese stocks having had their worst day in more than eight months as the coronavirus spreads.
In the news
- Johnson's EU withdrawal bill clears parliament
- Tesla hits $100bn market value for first time
- Democrats present case in Trump impeachment trial
The political day
- The Commons considers Lords amendments to the Withdrawal Agreement Bill
- Labour leadership contender Emily Thornberry will face Andrew Neil in a BBC Two interview
Top Financial Announcements* Maitland Client
NCC Group PLC* Interim Results
- Group revenue increased by 5.3%, with encouraging growth in North America and UK Assurance at 10.6% and 6.9% respectively.
- 28.6% increase in sales orders to £149.2m compared to H1 2019.
- Adjusted operating profit on a like-for-like basis increased 11.5% to £16.5m.
- Adam Palser, Chief Executive Officer, commented: “We are now at the mid-point of our three year transformation programme and while work remains to be done, we are on track and I am pleased with the progress we are making towards NCC Group’s vision to become the leading cyber security adviser globally. Our performance strengthened over the course of the period, and we enter the second half with positive momentum and a robust order book across our businesses. We remain excited by the Group’s long term prospects and are confident in delivering full year performance in line with expectations.”
- NAV per share of 1,140.4p with a total return of +9.7% over the nine months; -2.5% over the quarter.
- Continued positive underlying performance across the portfolio.
- Cash generative portfolio with healthy level of realisations at significant uplifts to carrying value and multiples of cost.
- Continued development of new high-quality manager relationships and highly selective co-investment programme.
- The Group also announces that non-executive director Jane Tufnell has been appointed Chair-designate of the Company. She will succeed Jeremy Tigue, who will step down from the Board at the 2020 AGM.
- Olivier Brousse has tendered his resignation from his position as CEO of the Company in order to take up a senior position at Veolia Group.
- Mr Brousse will remain as CEO of the Company whilst he assists the Company to effect an orderly transition.
- The Company is in the process of identifying a new CEO and will provide updates, as appropriate, in due course.
- Will Samuel, Chairman, said: “On behalf of the Board, I would like to express our sincere thanks to Olivier for his valuable contribution to the Board and the Company, particularly in delivering the successful IPO and his leadership in evolving the Group’s geographic footprint and the diversification of the portfolio. Olivier will leave behind a strong management team and a Company that is in good shape. We will continue to work closely with him in the months ahead to ensure a smooth transition to the new leadership. He leaves with our best wishes for the future”.
- The Board remains comfortable with the upper end of current market expectations for the 2019 financial year.
- Total revenue for the Group grew by 16% and by 17% in constant currency.
- Excluding the effect of recent acquisitions, particularly the US and the Netherlands businesses purchased in 2018, organic revenue grew by 3% and by 4% in constant currency.
- The Group goes into 2020 with confidence, helped by the strong Company momentum and the broader market.
- LFL Group room revenue for the year grew by 6.3% to £249m (2018: £234m).
- Reported Group room revenue for the year increased by 5.9% to £250m (2018: £237m).
- The Group expects to deliver full year results in-line with Board expectations following a solid performance through the final quarter.
- Boris Ivesha, CEO, said: “We are on-course to continue our track record of delivering growth and results in-line with expectations. Our continued success is underpinned by our unique owner-operator model which distinguishes us from industry peers. PPHE is able to access the most attractive sites for our hotel brands, capture substantial development profits and participate across the full hospitality value chain. We are well positioned for future growth as we drive the performance of our well-invested estate and build out our more than £300m planned development pipeline across the UK, Europe and the US.”
- The Group has made a good start to the year with its performance in the period in line with management expectations.
- For the quarter ended 31 December 2019 revenues were up 7% on a LFL basis reflecting strong trading conditions.
- As a result of the transformation of the Group, Q1 is expected to yield less-than-average revenue.
- Despite uncertainty both economically and geopolitically across many of our markets, the Group remains confident in achieving its full year expectations.
- Total completions of 1,097 homes (Q1 2019: 1,094 homes).
- Net reservation rate up 29% at 0.81 (Q1 2019: 0.63) driven by a strong market along with the quality of open outlets.
- Private average selling price of £394,000 (Q1 2019: £395,000).
- The Group enters the second quarter with a record forward order book which positions it well for the remainder of the current year.
- Iain McPherson, CEO, said: “The business is performing well and we enter the second quarter of FY 2020 with strong customer demand across all tenures and a record forward order book. We have had another excellent quarter for new business wins across all regions, further strengthening the foundations for future growth. Our modular panel factory is performing well and we are pleased to be progressing plans for a second modular panel factory. We continue to remain focused on quality, safety and high levels of customer satisfaction and look forward to the rest of the year with confidence.”
- Underlying group net revenue increased by 4.2% to £32.7m (£31.4m).
- Service fee grew strongly by 32.8% to £3.5m (£2.6m).
- UK parcel volumes increased by 12.6% to 7.6m.
- Nick Wiles, CEO, said: “Overall our results for the quarter reflect resilience in our bill payments business, growth in our parcels activities during the important peak parcels period and continued progress in the rollout of PayPoint One and our retail services activities. Romania has performed well with a steady increase in transactions and good control of costs.”