Maitland/AMO Morning Monitor – Wednesday 30 June 2021

30th June 2021

In the news

  • Didi’s New York IPO China’s ride-hailing app Didi will begin trading on the NYSE today.
  • Foreign business leaders will no longer need to quarantine when arriving in England if their trip is likely to have a significant economic benefit to the UK.
  • Declan Kelly has resigned as head of the communication firm Teneo, days after allegations of drunken misconduct at a charity concert.
  • Google will require all financial services to verify their identity with the FCA before advertising on the platform, following pressure from the regulator.
  • UK-based space start-up OneWeb has received a cash injection of $500m from Indian firm Bharti Global.

Politics today

  • The UK government will set out plans today for a post-Brexit system of state subsidies.
  • OECD meets in Paris today to finalize a proposal to overhaul global minimum corporate taxation.

Stock market moves

In the US, the S&P 500 was little changed while the Nasdaq rose 0.3%.

Most Asian stocks rose with China’s Shanghai Composite Index increasing 0.2% and South Korea’s Kospi index rising 0.5%.

In Europe, the FTSE100 is up 0.097% and the STOXX600 is up 0.1%.

Corporate announcements

* Maitland Client

Dixons Carphone PLC Final Results
  • Group total revenue up 2% at £10,344m.
  • Profit before tax of £33m (2019/20: £140m loss).
  • Year-end net cash £169m (2019/20: net debt of £204m).
  • Alex Baldock, CEO, said: “This year, we move to one brand in the UK (as we have in each international market), and Currys can become ever-more the first choice for all things tech, electrical and mobile, products and services alike. The start of the financial year has seen continued strong trading in all our markets and I’m more confident than ever in our prospects.”
Serco Group PLC* Closed period trading update
  • Reported revenue growth of 19%; organic revenue growth of around 15%.
  • Underlying Trading Profit more than 50% higher than the first half of 2020 at £120m-£125m.
  • All four regions trading ahead of last year. Underlying Trading Profit margin likely to be greater than 5%.
  • ~£3.8bn of order intake, a book-to-bill ratio of around 170% in the first half, and just under 120% on a rolling 12-month basis.
  • Robust financial position with adjusted net debt expected to be around £275m; leverage towards the bottom end of our target range of 1-2 times net debt : EBITDA.
  • Rupert Soames, CEO, said: “Serco’s performance in the first half underlines the trust governments around the world place in us, and our ability to respond at scale and pace to rapidly-changing requirements. We expect to deliver revenue growth in the first half of nearly 20%, and Underlying Trading Profit growth of more than 50%; just as pleasing, our order intake will be at record levels at almost £4bn, including large new contracts with the UK Ministry of Defence, the Department of Work & Pensions and the Royal Canadian Airforce.  Despite being exceptionally busy responding to strong demand for our services, we also completed two important acquisitions in the United States and Australia in the period.”
Chrysalis Investments LD Interim Results to 31 March 2021
  • NAV per share of 206.15p up 28.1% over the first half of the financial year.
  • £249.9m of net investment gains.
  • Total net assets up 108.1% at £1.128bn.
  • Andrew Haining, Chair, said: “Chrysalis has achieved another period of strong growth and in March completed a further successful fund raise, once again demonstrating the attractiveness of its investment proposition to investors, based on its proven ability to identify and deliver on exciting late-stage disruptive opportunities. Shareholders have more than doubled their money since Chrysalis launched in November 2018 and, with the value of its existing portfolio being substantially underpinned by recent portfolio company funding rounds and a strong pipeline of new investments identified, we believe the company is well placed to continue to generate material growth.”
Civitas Social Housing PLC Annual Results
  • Portfolio value is at £915.6m (IFRS) (2020: £878.7m).
  • Annualised rent roll at £50.8m (2020: £48.4m).
  • EPRA earnings per share (diluted) at 4.93p per share.
  • Michael Wrobel, Non-Executive Chairman of the Company, said: “The Board views the future with confidence based on the strength of our portfolio and financial position, such that we have raised the dividend target for the coming year to 5.55 pence per share, an increase of 2.7%.”
LXI REIT PLC* Increase in Placing Size
  • Further to the Company’s announcement on 24 June 2021, the Board of LXi REIT has reviewed the strong level of support received from potential investors in the Placing and the depth of the Investment Advisor’s pipeline of investment opportunities, and decided to increase the target size of the Placing from approximately £75m to £100m.
  • The Board will cap the Placing at £100m and any over-subscription will be dealt with by a scaling back exercise.
  • The Placing is being conducted under the Company’s existing Share Issuance Programme in accordance with the prospectus dated 18 February 2021, as supplemented by the supplementary prospectus dated 23 June 2021.
  • The timetable for the Placing remains unchanged, with the latest time for the receipt of commitments under the Placing being 4 p.m. on 30 June The results of the Placing are expected to be announced on 1 July 2021.