Maitland/AMO Morning Monitor – Wednesday 10 June 2020
In the news
- The funeral of George Floyd took place in Houston Texas, after which Mr Floyd was buried beside his mother. During the service his niece Brooke Williams pleaded for “No more hate crimes” and called for a change in laws which she said disadvantaged black people.
- The CEO of CrossFit, Greg Glassman, is stepping down following remarks about the death of George Floyd. In recent days, gyms and sportswear firms have cuts ties with the company after the CEO made comments on twitter and was reported to say on a private zoom call that he was not mourning for George Floyd, “I don’t think me or any of my staff are”.
- Vodafone has warned that the UK's hopes of leading the world in 5G technology would be lost if the government removes Huawei from the country’s telecoms infrastructure. Scott Petty, chief technology officer of Vodafone UK, told the FT that the company was working with a range of providers but that: “The U.K.’s leadership in 5G will be lost if mobile operators are forced to spend time and money replacing existing equipment.”
- Mayor of London Sadiq Khan has ordered a review of the capital’s statues and street names after the toppling of the statue of an English slave trader by anti-racism protesters triggered a debate about Britain’s imperial past. A further 150 Labour councils have announced that they will be consulting local communities about such monuments.
- Boris Johnson and Keir Starmer face each other at Prime Minister’s Questions today with Conservatives and Labour and their respective leaders now level pegging in the polls, following a fall in the PM’s approval ratings in the last fortnight.
- The NHS Confederation has warned that waiting lists could double to 10 million by the end of the year as the NHS grapples with ongoing treatment for Covid 19 patients, restarting critical care services and dealing with the existing backlog of procedures put on hold.
- Midday - Prime Minister’s Questions
- 5pm - Boris Johnson leads Government’s daily press conference
Stock market moves
- Asian markets are lower today as Chinese and Hong Kong shares fall. The Shanghai Composite is off 0.51% while the Hang Seng is down 0.06%.
- European markets finished lower on Tuesday with shares in London leading the region.
- The FTSE 100 and Eurostoxx 600 are both trading up 0.5% and 0.6% respectively in early hours.
- US Futures as of 8:15BST point toward a positive open this afternoon.
Corporate announcements* Maitland Client
LondonMetric Property PLC Annual Results
- Contracted income up 37% to £123.3m.
- Dividend progression of 1% to 8.3p, 112% covered, including Q4 dividend declared of 2.3p.
- Notwithstanding the uncertainty from COVID-19, the company remains excited by the outlook for the portfolio.
- Patrick Vaughan, Chair, said: “we continue to believe that the most attractive characteristic of real estate is its income compounding qualities over the longer term. The ability to generate reliable, repetitive and growing income returns makes certain property sectors a perfect asset class in which to deploy capital.”
- Underlying profit £57.2m (2019 H1: £79.8m).
- £27.7m of Covid-19 related charges (£3.7m income, £24.0m impairments).
- Paragon’s prudent credit approach, strong balance sheet and management experience have placed the Group in a strong position to meet challenges arising from Covid-19 and to grow lending volumes in its chosen markets when customer confidence returns.
- Nigel Terrington, CEO, said: “We have a high-quality loan book, 98% of which is secured, and strong capital and liquidity, and our business stands ready to meet the changing needs of our customers throughout this challenging period and into the next business cycle.”
- Underlying net property income, before Covid-19 related provisions, up 2.1% to £49.6m (31.3.2019: £48.6m). After Covid-19 related provisions: £46.2m.
- Loss after tax: £287.6m (31.3.2019: profit £38.7m). Decrease due to revaluation deficits in the current period.
- Valuation: £3.5bn; down 7.9% following increase in yields reflecting current economic uncertainties, Covid-19 impact on near-term income and occupancy assumptions, and softening of residential values.
- Brian Bickell, CEO, said: “We believe our proven strategy will continue to deliver sustainable long-term returns for our shareholders, benefits for our stakeholders, and make a long-lasting contribution to London’s West End.”