Maitland Morning Monitor – 2 October 2018

2nd October 2018

What really matters... COVID-19

The FTSE is set to open lower. The German DAX and French CAC both opened up.

In Asia on Tuesday, the Japanese Nikkei 225 index is up 0.1%. Markets in China are closed this week for the National Day Golden Week holiday, though the Hang Seng index in Hong Kong opened from Monday’s holiday to trade 2.0% lower on Tuesday.

Stock market moves

In other news

  • GE replaces Flannery as CEO
  • Hammond proposes digital tax on tech giants
  • May to reduce freedom to strike trade deals as part of "grand bargain"

Corporate announcements

* Maitland Client

Ferguson PLC Results for the year ended 31 July 2018
  • Revenue $20,752m (2017: $19,284m).
  • Ongoing trading profit increased to $1,507m (2017: $1,307m).
  • Basic EPS increased to 515.7c (2017: 366.1c).
  • John Martin, Group CEO, said: “The Group delivered a good result in the year, revenue increased to $20.8bn and ongoing trading profit increased by $200m to $1.5bn. In the USA, which generated 90 percent of Group trading profit, all businesses grew well and continued to gain market share, with the Industrial business having a particularly strong year. Markets in the USA and Canada have remained good throughout the year despite recent inflationary pressures, though the UK remains tough.”
Royal Dutch Shell Shell gives green light to invest in LNG Canada
  • Announced it has taken a final investment decision on LNG Canada, a major liquified natural gas project in Kitimat, British Columbia, Canada, in which Shell has a 40% working interest.
  • Shell’s 40% share of the project’s capital cost is within the company’s current overall capital investment guidance of $25-$30bn per year.
Baillie Gifford Japan Trust PLC Final Results
  • NAV increased 22.1%.
  • Share price increased by 20.2%.
  • Revenue gain per share was 2.54p (2017: 2.80p).
  • Nick AC Bannerman, Chairman, said: “The economy has grown for six successive years and, despite some distressing and damaging natural disasters this year, the signs are encouraging for 2019. There also remain some political, tensions in the region, especially over US-China trade relations, however we remain positive on the outlook for investments in the Baillie Gifford Japan Trust portfolio.”
Energean Oil & Gas PLC Appointment of Chief Operating Officer
  • Appointment of Iman Hill as Chief Operating Officer effective 1 November 2018.
  • Mathios Rigas, CEO, said: “Iman is a highly experienced oil and gas professional with a proven track record and we are delighted to welcome her to the team. She brings a wealth of operational and technical expertise and we look forward to working closely with Iman across all of our global operations as we continue to grow production, profitability and deliver shareholder value.”
Revolution Bars Group Preliminary Results
  • Sales of £141.9m (FY17: £130.5m).
  • Adjusted operating profit £8.5m (FY17: £9.6m).
  • Final dividend maintained at 3.3p per share (FY17: 3.3p per share).
  • Rob Pitcher, CEO, said: “This is a fundamentally good business which has seen significant disruption over the past year and factors outside of its control. The group’s strategy is sound and with a stable management team and better execution the company can rapidly return to growth. The performance of our new sites is encouraging, in line with our expectations and set to deliver good returns underpinning our strategic view of the business. Our confidence in the potential of the Group is undiminished.”