Maitland/AMO Morning Monitor – Wednesday 15 September 2021

15th September 2021

In the news

  • Scientists are urging Prime Minister Boris Johnson to "go hard and go early" with Covid restrictions if cases surge over Autumn.
  • The headline annual CPI rate of inflation rose to a higher-than-expected 3.2 per cent in August, up from 2 per cent in July.
  • Widespread lapses in climate risk reporting have been found in company accounts.
  • Job vacancies hit a record 1.1m as staff shortages bite.
  • SSE is ripe for break-up, says activist hedge fund.

Politics today

  • The Prime Minister's new health and social care tax was passed by the House of Commons with a majority of 56.
  • The House of Commons sits from 11.30 a.m. with Wales questions, followed by PMQs at noon. After any UQs or statements and a Ten Minute Rule Motion on creating a new offense for abuse of public-facing workers from Labour’s Olivia Blake, its opposition day. Labour has debates on the ending of the £20 Universal Credit uplift and another calling for a joint committee inquiry into Afghanistan.
  • The House of Lords sits from 3 p.m. with questions on visiting arrangements in hospitals, reforming council tax and Afghanistan, followed by Day 4 of the Environment Bill’s report stage.

Stock market moves

  • In the US, the Nasdaq 100 fell 0.33% while the S&P 500 fell 0.06%.
  • In Asia, Japan’s Topic Index was down 1.06% and Hong Kong’s Hang Seng Index fell 1.69% while China’s Shanghai Composite Index fell 0.30%.
  • In Europe, the FTSE 100 and Stoxx 600 have opened flat.
  • West Texas Intermediate crude was at $70.99 a barrel, down 0.71%.

Corporate announcements

* Maitland Client

Trustpilot Group PLC Results For The Six Months Ended 30 June 2021 ("H1 Fy21")
  • Revenue equalled $62m in H1 FY21, an increase of 31% on the same period last year ($47.7m in H1 FY21).
  • Adjusted EBITDA equalled $3.8m in H1 FY21, an increase of 134% on the same period last year ($1.6m in H1 FY21).
  • Loss for the period equalled $17.2m in H1 FY21, an increase of 195% on the same period last year ($5.8m in H1 FY21).
  • Peter Holten Mühlman, CEO, said: “On the back of stronger H1 FY21 performance, we now expect to achieve a rate of constant currency revenue growth for the full year consistent with H1 FY21. As noted, the bookings performance in H1 reflected an element of recovery and re-acceleration from the disruption caused by COVID a year ago, hence bookings in H2 will face a tougher comparison and the rate of growth in the period is likely to be a little lower than in H1.
Restaurant Group PLC The Restaurant Group PLC ("TRG" or "The Group") Interim results for the 27 weeks ended 4 July 2021 (H1)
  • Total sales of £216.8m in H1 FY21 (£227.2m H1 FY20).
  • Adjusted EBITDA profit of £11.2m H1 FY21 (loss of £18.3m H1 FY20).
  • Loss before tax of £58.8m H1 FY21 (loss of £234.7m H1 FY20).
  • Andy Hornby, CEO, said: “Whilst there are some well documented sector challenges to navigate in the short-term, particularly around labour availability and supply chain, we believe the Group is well positioned for the long- term.”
Tullow Oil PLC Tullow Oil Plc - 2021 Half Year Results
  • Sales revenue of $727m in H1 FY21 ($731m H1 FY20).
  • Gross profit of $321m in H1 FY21 ($164m H1 FY20).
  • Net debt of $2290m in H1 FY21 ($3019m H1 FY20).
  • Rahul Dhir, CEO, said: “Through our operations, Tullow continues to deliver Shared Prosperity and to be an engine for economic and social change in the developing economies in which we work. Furthermore, by targeting Net Zero by 2030 and an emphasis on responsible operations, we are ensuring that the oil and gas resources of our host countries are developed efficiently and safely, whilst minimising our environmental impact.”
Redrow PLC Final Results
  • Revenue of £1.94bn in FY21 (£1.34bn in FY20).
  • Profit before tax of £314m in FY21 (£140m in FY20).
  • Net cash/(debt) of £160m in FY21 ((£126m) in FY20).
  • Matthew Pratt, CEO, said: “Our sales rate in the first 11 weeks of the new financial year was 0.66 (2020: 0.84). This reduction was due to our record forward order book and therefore limited availability of homes for sale that can be delivered within the next six months. This strong order book, however, provides certainty going forward as our teams continue to increase production levels and look to bring more sites on stream to satisfy ongoing high demand.”
Tullow Oil PLC Directorate Change
  • Tullow Oil PLC announces that Les Wood, Chief Financial Officer (CFO) and Executive Director, has mutually agreed with the Board that he will step down from Tullow.
  • A search process to find a new CFO will be launched and is expected to conclude in the first quarter of 2022.
  • Wood is expected to leave the Group at the end of March 2022.
  • Rahul Dhir, CEO, said: “Les has been a great support to me since I joined Tullow and he has been integral to the Group’s financial turnaround. In particular, Les led the Tullow team through the delivery of $1 billion of self-help and our transformational $1.8 billion bond offer in May this year which placed the company on far stronger financial footing and will allow our Business Plan to take effect. I am very grateful for all that he has done for Tullow and wish him well.”
The Renewables Infrastructure Grp PLC* Results of Issue and PrimaryBid Offer
  • TRIG will issue 161.3m shares at 124p per share, raising gross proceeds of £200m.
  • The issue was significantly oversubscribed and a scaling back exercise has taken place.
  • The purpose of the raise is to repay TRIG’s Revolving Credit Facility which, following the completion of the acquisition of the four solar sites in Iberia, is expected to be approximately £200m drawn.
AssetCo PLC* Director Appointment and CEO Change
  • Campbell Fleming will be joining the board of directors and take up the role of Chief Executive Officer with effect from 2 October 2021.
  • Peter McKellar will continue on as Deputy Chairman of the Company.
  • Campbell Fleming said: “I am excited to be joining Martin, Peter and the AssetCo team, whose focus on clients, industry experience and commitment to innovation attracted me. There are a number of structural shifts taking place within the asset and wealth management industry, such as digitisation and changing investing habits. As an agile business, AssetCo can capitalise on these shifts to deliver value for investors and shareholders. I am really looking forward to building on the excellent momentum AssetCo has established in such a short period, as well as working with Martin, Peter and the wider team.”
Tritax EuroBox PLC* Forward funding acquisition nr Stockholm, Sweden
  • Tritax EuroBox has announced that conditional contracts have been entered into to acquire the land and provide forward funding for the development of a new high specification and sustainable logistics asset for a total consideration of €27.9m in a prime location just north of Stockholm.
  • This is the Company’s second acquisition in Sweden and comprises a 13,181 sqm logistics facility consisting of two separate units of 8,204 sqm and 4,977 sqm to be constructed between November 2021 and December 2022.
  • This acquisition is structured as a forward funding development opportunity, where the Company will buy the land initially and then fund the construction of the buildings. The total development cost is capped at €27.9m. From completion of the land purchase and during the construction phase, the Company will receive from the developer an income return equivalent to the agreed net initial yield.
  • The Company will also benefit from a 12-month rental guarantee of €1.18m from completion of construction which is estimated to be in December 2022.
  • Alina Iorgulescu, Assistant Fund Manager, said: “We are delighted to acquire our second asset in Sweden, following the acquisition of the Gothenburg asset in June this year, building up our presence in this important market, which we expect to continue to perform well due to strong fundamentals. Tenant demand is strong and land supply is constrained in the prime markets in Sweden such as Stockholm and Gothenburg where we are investing.”