Maitland/AMO Morning Monitor – Thursday 23 June 2022
In the news
- Talks to avert a second national rail strike collapsed yesterday.
- Chancellor Rishi Sunak defended the government's decision to raise the state pension in line with inflation, which today hit 9.1%, as teaching unions threaten strikes over pay this autumn.
- Rail workers in Liverpool were given a 7.1% rise, after Merseyrail agreed the deal with the Transport Salaried Staffs' Association, whose leader said that it set a path for other unions to negotiate similar agreements. Merseyrail, one of the few franchises run without government money, is ultimately controlled by the Labour local authority and Labour mayor.
- The UK Health Security Agency found samples of the Polio virus in sewage in London, the first suspected outbreak since 1984. Family doctors have been put on alert for patients with unexplained paralysis, but experts claim the risk is low.
- Rob Perrins, CEO of housebuilder Berkeley, warned the number of new homes being built in London could halve in the coming years due to rising construction costs and development taxes.
- The House of Commons sits from 9:30am with Defra questions, followed by any UQs. Commons leader Mark Spencer has the weekly parliamentary business statement next. After any other ministerial statements, the main business will be a backbench debate on the impact of the pandemic on people with heart and circulatory diseases.
- The House of Lords sits from 11:00am with questions on the Diabetic Prevention Program, barriers preventing families with disabled children from accessing support services and the Convention on Human Rights. The main event will be debates on behaviour and honesty in public life, and on stresses upon the U.K. constitution.
Stock market moves
- In the US, the S&P 500 fell 0.1%, while the Nasdaq 100 fell 0.2%.
- In Asia, Japan’s Topix index was little changed, South Korea’s Kospi index fell 0.7%, Hong Kong’s Hang Seng Index rose 1.7% and Shanghai Composite Index rose 1.1%.
- In Europe, the FTSE 100 is trading down 54% in the early hours of the morning.
Corporate announcements* Maitland Client
Urban Logistics REIT PLC Results for the Year Ended 31 March 2022
- Property valuation uplift of £153m, 25.4% growth on a like for like basis.
- Net rental income of £36.5m (+59.8% on FY21).
- IFRS profit before tax of £172m (+261% on FY21).
- Debt of £239m includes an £88m facility with sustainability linked metrics.
- Richard Moffitt, CEO, today commented: “Our strategy of focusing on mid box, last mile, single let logistics assets has continued to deliver with the company having produced a total accounting return of 29% in the year and 16.4% averaged over the years since IPO. This strategy has been executed by buying well; our acquisitions in the year have an average net initial yield of 5.3% and have provided the opportunity for us to enhance income and value through our asset management initiatives.”
- 888 today announces a current trading update and provides further detail on its financial performance for the twelve months ended February 2022.
- 888 generated revenue of £690m and Adjusted EBITDA of £109m for the twelve months ending 28 February 2022.
- The international (non-US) business of William Hill generated revenue of £1,366m and Adjusted EBITDA of £238m for the 52 weeks ending 22 February 2022.
- 888 currently expects to report revenue of between £330-335m for the six months ended 30 June 2022.
- William Hill revenue for the 26 weeks ended 28 June 2022 is currently expected to be between £620-630m.
- Grainger PLC today announces that it has exchanged conditional contracts to forward fund and acquire the build-to-rent element of the second phase of ‘Redcliff Quarter’ in Bristol which comprises 374 private rental (PRS) homes, as well as 94 affordable homes and six commercial units.
- Grainger has agreed to acquire the scheme from Redcliff MCC LLP, backed by ICG Real Estate in partnership with Madison Cairn.
- Winvic Construction Limited has been appointed as contractor for the scheme. Winvic built Grainger’s Brook Place development in Sheffield and is also delivering the Copper Works in Cardiff for Grainger.
- Construction is expected to commence in Q3 2022, with practical completion of the final element targeted for early 2025. It is anticipated that the scheme, including the commercial element, will generate a gross yield on cost of c.6% once fully let and stabilised.
- Helen Gordon, Chief Executive Officer of Grainger, said: “We are very pleased to acquire our third build-to-rent scheme in Bristol which will further strengthen our city cluster, bringing our total investment in the city to nearly 900 homes when complete and driving operational efficiencies, whilst also enabling us to deliver 94 new affordable homes via Grainger Trust, our in-house affordable housing arm.”
- Trainline announces that Shaun McCabe, Chief Financial Officer (CFO), has informed the Board that after six years with the Company he has decided to step down, effective 15th September 2022, in order to assume the role of CFO at boohoo group plc.
- Shaun will continue as CFO of Trainline until that time.
- Peter Wood, Vice President of Finance, will assume the role of interim CFO whilst the process to appoint a successor is underway.
- Peter has been with Trainline for seven years. In that time, he has played a central role in financial control, planning and analysis, as well as our engagement with industry and regulatory stakeholders.
- Brian McBride, Chair of Trainline, commented: “I would like to thank Shaun for his outstanding leadership as CFO. He has navigated Trainline through a period of significant challenge, including the impact of COVID-19, and leaves a business well placed to grow strongly in the UK and in Europe.”
- Cranswick PLC announces the appointment of Yetunde Hofmann as an independent Non-Executive Director of the Company and of Christopher Aldersley as an Executive Director of the Company, both with effect from 1 August 2022.
- Yetunde is the Managing Director of Synchrony Development Consulting, an international leadership and change consultancy that partners with leaders to facilitate strategy, change, diversity and inclusion and the founder of Solaris Global Executive Leadership Development.
- On appointment, Yetunde will become a member of the Audit, Remuneration, Nomination and ESG committees.
- Chris joined Cranswick in 1998 and since then has undertaken a variety of senior management roles, becoming the Group’s Chief Operating Officer in 2015. Chris has responsibility for managing the operations at the Group’s four primary processing and sixteen added value facilities and also for its agricultural operations, which support the Group’s vertically integrated supply chain strategy.
- On appointment, Chris will become a member of the ESG committee.
- Tim Smith, Chairman of Cranswick plc, commented: “I am delighted that Yetunde and Chris will join our Board. Yetunde’s experience will complement our existing Board. She has an established track record of mentoring and developing performance, talent and leadership strategies across a range of organisations, which will be invaluable to Cranswick. Chris’s role at Cranswick has grown with the rapid development of the Group and he has been central to facing the challenges presented in recent times by Brexit and the COVID-19 pandemic.”