Maitland/AMO Morning Monitor – Tuesday 15 October 2019

15th October 2019

What really matters... COVID-19

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

Asia Pacific markets traded cautiously on Tuesday, following the previous day’s rally, as new doubts emerged overnight about the partial U.S.-China trade deal. The Shanghai composite slipped 0.4%, the Shenzhen composite was down 0.6%. The Shenzhen component dropped 0.61%.

Stock market moves

In other news

  • Neil Woodford sacked from his flagship fund, which is to be shut down
  • Trump imposes sanctions against Turkish officials
  • Third of biggest banks fail to sign up to BoE-backed climate initiative

Politics today

  • Chief Brexit negotiator Michel Barnier updates EU ministers on Brexit talks
  • MPs are due to debate the contents of yesterday's Queen's Speech
  • The Treasury Committee will question Bank of England Governor Mark Carney

Corporate announcements

* Maitland Client

Schroders PLC Q3 2019 update
  • Total Asset Management AUM increased to £398.8bn (1 January 2019: £363.5bn).
  • Institutional AUM increased to £268.8bn (1 January 2019: £242.3bn).
  • Intermediary AUM increased to £130.0bn (1 January 2019: £121.1bn).
  • Wealth Management AUM increased to £52.0bn (1 January 2019: £43.7bn).
Marston's PLC Year End Trading Update
  • Group turnover was up 3% to £1.2bn.
  • The Group anticipates EBITDA broadly flat year on year and underlying PBT of around £101m.
  • Total pub sales increased 3% including LFL sales growth of 0.8%.
  • Taverns saw a managed and franchised LFL sales growth of 1.9% including growth of 5.4% in the last 10 weeks.
  • Ralph Findlay, CEO, said: “Our drinks businesses have performed well, achieving further growth against an exceptionally strong 2018.  Wet-led pubs have led the charge continuing their positive trajectory and food pubs have achieved modest sales growth. Operationally, we remain focused on further improving our proposition and plan to make additional investment in both our pub teams and digital marketing in the forthcoming year. Our principal focus is on reducing our net debt by £200 million and creating a high quality business that is cash generative after dividends and capital expenditure.  We are making encouraging progress and have decided to increase the pace of our disposal programme this year to accelerate the achievement of this target.”
Bellway PLC Preliminary Results
  • Revenue increased 8.6% to £3,213.2m (31 July 2018: £2,957.7m).
  • Operating profit increased 3.5% to £674.9m (31 July 2018: £652.9m).
  • The growth in earnings has enabled the Board to propose a 5.2% increase in the total dividend per share to 150.4p (31 July 2018: 143.0p).  A favourable cash position provides further opportunity for dividend growth in the year ahead.
  • Paul Hampden Smith, Chairman, said: “The Group has consistently exercised strong financial disciplines, resulting in net cash at 31 July of £201.2 million (2018 – £99.0 million).  The strength and efficiency of the balance sheet will not only provide Bellway with significant flexibility and capacity for future investment, but it also ensures that the Group can respond positively should there be any unexpected changes in the economic environment.”
Renishaw PLC Trading update for the three months ended 30 September 2019
  • Revenue decreased to £124.6m (30 September 2018: £154.0m).
  • Adjusted PBT decreased to £4.3m (30 September 2018: £32.6m).
  • The Group has net cash balances of £98.5m compared to £106.8m at 30 June 2019.
  • Adjusted PBT includes restructuring provisions of £2m following the decision to close the Group’s additive manufacturing facility at Stone, Staffordshire.
Hays PLC First Quarter Trading Update
  • United Kingdom & Ireland net fees down 4%, with Temporary flat and Permanent down 8%, in increasingly difficult markets. Net fees in the Private sector down 7%, with the Public sector up 6%.
  • Rest of World: solid net fee growth of 4%. EMEA net fees increased by 2%. Good growth of 7% in the Americas and Asia, led by record net fees in both the USA, up 12%, and China up 7%.
  • Good net cash position of c.£90m, in line with the Group’s expectations (30 September 2018: c.£80m).
  • Alistair Cox, CEO, said: “Over many years we have built a highly diversified business which gives us access to the world’s most exciting markets and sectors. Looking ahead, our strong market positions, combined with our highly experienced management teams and financial strength, means I am confident we will continue to appropriately balance investing for the long-term while managing the more challenging markets we currently face.”
Rank Group PLC Trading Statement
  • Total Group LFL revenue increased 8%.
  • Digital LFL revenue increased 15%
  • Grosvenor venues LFL revenue increased 10%.
  • Mecca venues LFL revenue remained flat.
  • International venues LFL revenue increased 4%.
  • John O’Reilly, CEO, said: “We are pleased with the growth achieved across our businesses in this key part of our financial year, as well as with the ongoing progress we are making with our transformation programme.  The acquisition of Stride marks a pivotal moment in the development of our digital offering and having completed on 4 October 2019, we are now starting the execution of all our plans for integration and delivery of synergy benefits.”