Maitland/AMO Morning Monitor – Tuesday 23 June 2020
In the news
- Japan gives the UK just six weeks to strike a post-Brexit deal
- Donald Trump expands US immigration restrictions, including a ban on green card applications until the end of the year
- Apple announces transition away from Intel chips
- EU welcomes UK move to share criminal suspects’ DNA data
- 12:30: Boris Johnson Commons statement on the next phase of lockdown
- THEN: Home Office Commons statement on Windrush. Motion on establishment of Independent Expert Panel to consider cases raised under the Independent Complaints and Grievance Scheme
- 13:45: Coronavirus: The impact on prison, probation and court systems - Robert Buckland at Justice committee session
- 17:00: UK government - daily coronavirus briefing
Stock market moves
- The FTSE 100 opened up 0.5% and Europe’s STOXX 600 opened up 0.6%.
- In Asia, Tokyo’s Topix benchmark was up 1 per cent on Tuesday afternoon in Asia while Hong Kong’s Hang Seng index gained 0.9%. Mainland China’s CSI 300 of Shanghai- and Shenzhen-listed shares rose 0.2 per cent while Australia’s S&P/ASX 200 slipped 0.1%.
- Overnight, the S&P 500 rose 0.7% as investors bet that governments across the globe would respond to recent increases in coronavirus infections with new economic support measures.
- S&P 500 stock futures to point to losses of 1.3% when trading begins in New York later on Tuesday.
Corporate announcements* Maitland Client
Intu Properties PLC Update on Creditor Discussions
- On 18 May 2020, intu gave an update on lender discussions, in particular looking to achieve stability through standstill-based agreements with relevant financial stakeholders across its structures, at both the asset and group level.
- Since this update, intu has been in discussions with key stakeholders to progress this standstill strategy ahead of the revolving credit facility covenant waiver deadline of 26 June 2020.
- This all remains subject to further negotiations, with no certainty as to whether intu will achieve a standstill, or on what terms or for what duration. Further announcements will be made as appropriate.
- Notwithstanding the progress made with lenders, intu has also appointed KPMG to contingency plan for administration. In the event that intu properties plc is unable to reach a standstill, it is likely it and certain other central entities will fall into administration. In this situation, all property companies would be required to pre-fund the administrator to provide central services to the shopping centres.
- If the administrator is not pre-funded then there is a risk that centres may have to close for a period.
- The Group has communicated its continued support to its Agency customers in England by offering a 60% discount for August and 40% for September.
- Sales agreed are currently over 10% higher in England than a year ago, albeit that some of this is the result of activity being paused due to lockdown.
- New property listings are returning to the market and in the last seven days the number of properties added to Rightmove in England is over 10% higher than the same period last year.
- Overall membership at 31 May of 19,054 is down 3.8% since the end of 2019. This decline is made up of 620 fewer agency branches, together with a reduction of 135 New Homes developments.
- Traditional agents have thus far generally proven to be resilient, with the number of traditional agency members only falling by around 2% since the start of the year.
- Gross inflows for May of £0.98bn (May 2019: £1.24bn).
- Net inflows for May of £0.67bn (May 2019: £0.73bn).
- Closing funds under management of £112.58bn (May 2019: £105.83bn).
- Andrew Croft, CEO, said: “We remain encouraged by the inflows we are continuing to experience and expect June gross inflows to be similar to May, though the short to medium-term impact of COVID-19 and economic volatility on our flows remains uncertain.”
- The Group confirms that Barbara Gibbes has been appointed as CFO by the Board of Diploma PLC at its meeting held yesterday, Monday 22 June 2020.
- At the same time and a s previously announced, Nigel Lingwood has stepped down from the Board on 22 June 2020 and will continue to facilitate a successful handover until he leaves the Group on 30 September 2020.
- Statutory PBT 20.2% higher at £104.0m (2019: £86.5m).
- Statutory EPS up 17.4% to 159.1p (2019: 135.5p).
- Full year dividend increased by 8.1% to 60.4p (2019: 55.9p), reflecting 30 years of unbroken dividend growth.
- Adam Couch, CEO, said: “There has been a positive start to trading in the new financial year, though we remain mindful of the uncertainty around the longer-term effects of the COVID-19 crisis and Brexit negotiations. Nonetheless, our outlook for the current year is unchanged and we have a solid platform from which to continue Cranswick’s successful long-term development.”
- The Group today announces an additional share buyback program for $100m of PSH’s outstanding Public Shares on the London Stock Exchange and Euronext Amsterdam.
- The Program will commence following the completion of the previously announced $100m share buyback program, which, as of 22 June 2020, was 84.5% complete.
- The Program is accretive to NAV per share and will reduce PSH’s capital.