It’s no secret that utilities can offer refuge to investors during times of crisis, and the Covid-19 pandemic is no exception. Drax (DRX) offers an income stream underpinned by government subsidies for its biomass power generation and growth from the hydro and gas assets it acquired from Scottish Power in 2018. The group has yet to update the market on any financial impact from coronavirus, which means there’s no official word on whether the final 9.5p dividend declared for 2019 remains intact. But it’s worth noting that out of the major listed utilities, only Centrica (CNA) has cut its payout so far, and that’s partly because it’s battling its own set of challenges.
Drax does have some vulnerability as an electricity and gas supplier to UK business customers. The lockdown measures have seen more electricity being used at home, but industrial and commercial demand have dropped. Drax’s customer-facing activities are therefore likely to come under pressure. But while they accounted for just under half of group revenue in 2019, this translated to only 4 per cent of adjusted cash profits (Ebitda).
The shares haven’t been immune to the wider market sell-off and are down over two-fifths so far this year. Against this backdrop, some directors have spotted a buying opportunity. This includes chief executive Will Gardiner who has increased his holding by a third, purchasing 97,500 shares worth a little under £150,000. He has been joined by the chief financial officer, Andy Skelton, who has scooped up 50,824 shares for just shy of £80,000. Three executive committee members have also bought an aggregate 79,705 shares worth a little under £120,000.
| Buys | ||||||
| Company | Director/PDMR | Date | No. of shares | Price (p) | Aggregate value (£) | Comments |
| 3i | Simon Borrows (ceo) | 27 Mar 20 | 100,000 | 771.34 | 771,000 | |
| 3i | Julia Wilson | 27 Mar 20 | 31,900 | 769.97 | 245,620 | |
| 3i | Julia Wilson | 27 Mar 20 | 295 | 765.31 | 2,258 | |
| The Restaurant Group | Kirk Davis (cfo) | 30 Mar 20 | 276,797 | 35.93 | 99,453 | |
| Volex | John Molloy | 30/31 Mar 20 | 126,921 | 109 | 138,344 | |
| 3i | Peter Wirtz | 31 Mar 20 | 45,000 | 780 | 351,000 | |
| Drax | Will Gardiner (ceo) | 31 Mar 20 | 97,500 | 153.07 | 149,243 | |
| Hostelworld | Carl Shepherd | 31 Mar 20 | 20,000 | 56.1 | 11,220 | Converted from $. Remaining Hostelworld trades conducted in £ |
| Spire Healthcare | Simon Rowlands | 1-3 April 20 | 258,000 | 77.19 | 199,150 | |
| Hostelworld | Michael Cawley (ch) | 2 Apr 20 | 45,000 | 54.5 | 24,525 | |
| Drax | Andrew Koss | 2 Apr 20 | 32,247 | 154.49 | 49,818 | Aggregate price |
| Volex | Daren Morris | 2/3 Apr 20 | 20,000 | 111 | 22,200 | |
| Norcros | Susan Kelsall | 3 Apr 20 | 200,000 | 121 | 242,000 | Wife of Nick Kelsall, CEO |
| Norcros | Shaun Smith | 3 Apr 20 | 15,000 | 121 | 18,150 | |
| Hostelworld | Eimear Moloney | 3 Apr 20 | 40,000 | 54.5 | 21,800 | |
| Meggitt | Guy Berruyer | 6 Apr 20 | 25,000 | 251.32 | 62,830 |
| Sells | ||||||
| Company | Director/PDMR | Date | No. of shares | Price (p) | Aggregate value (£) | Comments |
| Diageo | Sylvia Saller | 31 Mar 20 | 5,000 | 10,462 | 523,022 | American Depositary Shares |
