Maitland/AMO Morning Monitor – Tuesday 25 August 2020
In the news
- India moves to cut Huawei gear from telecoms network
- Tesco to create 16,000 permanent jobs to bolster online business
- McLaren flags end of road for petrol engines by 2030
- Police shooting of black man in Wisconsin sets off fresh wave of US unrest
- Boris Johnson will be visiting a business in the south west to repeat his “build back better” mantra.
- Foreign Secretary Dominic Raab is in Israel this morning and has held talks with U.S. Secretary of State Mike Pompeo, who is also there.
Stock market moves
- In Europe, the FTSE 100 has opened up 0.3% and the STOXX 600 is up 0.5%.
- In Asia, Japan’s Topix added 1.3% in early trading on Tuesday and Australia’s ASX 200 gained 0.7%. Mainland China’s CSI 300 index of Shanghai and Shenzhen-listed stocks rose 0.8% while South Korea’s Kospi index jumped 1.3%. Hong Kong’s Hang Seng slipped 0.2%.
- Wall Street’s S&P 500 closed up 1% on Monday to hit its highest ever level with shares of airlines and retailers among the best performers.
- S&P 500 futures were up 0.5% in morning trading in Asia.
Corporate announcements* Maitland Client
AstraZeneca PLC Ph I trial begins for COVID-19 monoclonal antibody
- The first participants have been dosed in a Phase I trial of AZD7442, a combination of two monoclonal antibodies (mAbs) in development for the prevention and treatment of COVID-19.
- The trial will include up to 48 healthy participants in the UK aged 18 to 55 years and is funded by the Defense Advanced Research Projects Agency (DARPA), part of the US Department of Defense, and the Biomedical Advanced Research and Development Authority (BARDA), part of the Office of the Assistant Secretary for Preparedness and Response at the US Department of Health and Human Services.
- Mene Pangalos, Executive Vice President, BioPharmaceuticals R&D, said: “This trial is an important milestone in the development of our monoclonal antibody combination to prevent or treat COVID-19. This combination of antibodies, coupled to our proprietary half-life extension technology, has the potential to improve both the effectiveness and durability of use in addition to reducing the likelihood of viral resistance.”
- The Group announces that it has reached agreement on the terms of an acquisition of OSIsoft at an enterprise value of $5.0bn.
- OSIsoft is a global leader in real-time industrial data software and services.
- Schneider Electric SE, which currently indirectly holds approximately 60% of the issued ordinary shares of AVEVA, has irrevocably committed to vote in favour of the Acquisition and fully subscribe for shares pursuant to the Rights Issue on a pro rata basis.
- Subject to satisfaction of the conditions to the Acquisition, completion of the Acquisition is expected to occur around the end of the year.
- Adjusted NAV grew back to over €1bn at 30 June 2020, at €1,060.7m, with Adjusted NAV per share of £1.96.
- H1 2020 Total NAV Return was broadly flat at (0.5)% (0.6% constant currency).
- Contributions to Total NAV Return of (0.5)% were: Private Equity 2.0%; Derived Debt (0.2)%; Derived Equity (0.9)%; Costs, FX and other movements (1.4)%.
- Interim dividend of 4.87 pence per share declared, equivalent to 2.5% of the euro NAV as at 30 June 2020.
- Tim Breedon CBE, Chairman, said: “As we look into an uncertain economic future, we draw confidence from the resilience our portfolio has shown during the crisis to date and believe that the sector-focused approach provides long-term value generation opportunities and an attractive yield to our shareholders.”
- The Board announces that Lucio Genovese, an existing Non-executive Director of the Company, will today become Chairman of the Board in place of Steve Lucas, who will retire from the Board and step down from the role of Chairman as previously announced following the AGM on the 28 May 2020.
- Mr Genovese has had a long association with the Company and re-joined the Board in February 2019.
- Jim North, Acting CEO, said: “The Board and management of the Company would like to thank Steve Lucas for his leadership and guidance over the past four years. Through his extensive experience, he has helped lead the Company to the strong position it is in today. In succeeding Steve, Lucio Genovese brings a deep understanding of the Company, and over 30 years of experience of the mining and metals sectors, including through his current positions on the boards of Mantos Copper and Nevada Copper Inc. and until recently also as Chairman of Firestone Diamonds.”
- Revenue decreased 10% to £258.1m (H1 2019: £286.9m).
- Underlying operating profit decreased 20% to £19.5m (H1 2019: £24.5m).
- Statutory diluted EPS decreased 62% to 9.9p (H1 2019: 33.6p).
- Eoghan O’Lionaird, CEO, said: “James Fisher is well diversified by geographical sector and end market. The resilience of the Group, our strong liquidity position combined with swift actions taken to reduce costs, position James Fisher well for any improvement in market conditions in the second half and beyond. Whilst the financial performance in 2020 will be lower than 2019, the Group remains well placed to deliver future growth for its shareholders.”