Maitland/AMO Morning Monitor – Thursday 24 June 2021

24th June 2021

In the news

  • Documents reveal that every loan provided by Greensill Capital under the government’s pandemic loan scheme went to companies linked to Sanjeev Gupta.
  • Warren Buffett has resigned as a Gates Foundation trustee, casting further uncertainty on the world’s largest private philanthropic organisation.
  • Germany will borrow a further €100bn in 2022, up €18.2bn on previous estimates, signalling the pandemic’s strain on the public finances.
  • The Climate Change Committee has said ministers are failing to match their goals for net zero by 2050 climate with meaningful action.
  • Angela Merkel last night demanded that EU countries introduce mandatory quarantine for British travellers.

Politics today

  • The largest US banks will learn the results of their latest stress tests from the Federal Reserve.
  • Boris Johnson will announce the latest countries to join the UK's "green list" for international travel.

Stock market moves

  • In Asia, Japan’s Nikkei index stayed stable, while Hong Kong’s Hang Seng index rose 0.22% and China’s Shanghai Composite index lost 0.01%.
  • In the US, the S&P 500 lost 0.11%.
  • In Europe, the FTSE 100 and STOXX 600 are trading marginally down in the early hours of the morning.

Corporate announcements

* Maitland Client

Wood Group (John) PLC Trading Update for the six months ended 30 June 2021
  • Revenue on a like for like basis of c$3.2bn, down c21% on H1 2020.
  • Adjusted EBITDA will be $255m to $265m, down c12% on H1 2020 on a like for like basis.
  • Expected net debt at 30 June 2021 of around $1.15bn.
  • Robin Watson, CEO, said: “Our full year outlook is unchanged with trading momentum and growth in our order book, which is up c6% year-to-date driven by Consulting and Operations, giving us confidence that the group will return to growth in the second half, compared to both H1 2021 and H2 2020. In line with our strategic objective we anticipate growth in EBITDA margin.
Crest Nicholson Holdings PLC Half-year Report
  • Revenue in the period increased to £324.5m (HY20: £240.0m).
  • Adjusted profit before tax (APBT) for HY21 of £36.1m (HY20: £4.5m).
  • Net cash at £130.4m (HY20: net debt £93.3m).
  • Peter Truscott, CEO, said: “We are making good progress in all five of our strategic priorities. Our balance sheet has been transformed and positions us strongly to grow in the future. Having completed the first part of our turnaround strategy, and implemented our operational efficiency programme, our focus now moves to rebuilding operating margins and delivering sustainable growth. We are evaluating options to enter new geographical markets and look forward to outlining these future growth plans and our long-term financial targets later this year.”