Mining major BHP (BHP) has held onto metallurgical coal assets given they are tidy earners and fit nicely with its focus on the steel industry. But the Big Australian still wants its mines to be the best quality, so announced publicly in February it was moving on its 50 per cent stakes in the Blackwater and Daunia operations in Queensland. This was through a relatively transparent process given the demand for the mines: out of four suitors to make it to the data room, Whitehaven Coal (AU:WHC) emerged the winner, with a bid of $2.1bn in cash upfront, another $1.1bn over three years after completion and potentially another $900mn through a “price-linked earnout” also over three years.
Meanwhile, BHP reported a mixed bag for operations in its Q1, which ended 30 September. Iron ore came 1mn tonnes under consensus forecasts at 63.2mn tonnes, a 3 per cent drop on a year ago, while copper was up on consensus and 11 per cent ahead of last year. AH
Read more: BHP remains compelling despite profit and payout drop
Barratt expects slow rebuild
Barratt Developments (BDEV) said trading since its June year-end remained difficult, with potential buyers “still facing mortgage challenges” given the higher interest rate environment. Forward sales over the 14-week period were down by 31 per cent in volume terms, or 34 per cent in value.
The company expects “the backdrop will continue to be difficult over the coming months” and forecasts home deliveries of between 13,250 and 14,250 homes this year. This works out at a decline of between 17-23 per cent on last year’s numbers. Barratt’s shares fell by 3 per cent in early trading but trade off a forward price-to-earnings ratio of 14. The FactSet consensus forecast is for the company’s earnings per share to slide by 60 per cent this year. MF
Read more: Barratt cuts dividend amid housing slump
Whitbread returns more capital as profits surge
Whitbread (WTB) continues to benefit from the contraction in independent hotel supply following the pandemic and a lack of new hotel construction. The Premier Inn owner raised its dividend by 40 per cent and announced a new £300mn share buyback programme, as year-on-year revenues rose by 17 per cent in the six months to 31 August. Accommodation sales rose 15 per cent in the UK and by 82 per cent in Germany, where the company still expects to break even in 2024. Pre-tax profits came in at £395mn, up 29 per cent.
Management kept full-year guidance steady, other than increasing its gross capex forecast to a range of £500-£550mn from £400-£450mn. The shares rose by 4 per cent in early trading. CA
Just Eat ups cash profit guidance
Shares in Just Eat Takeaway.com (JET) were marked up in early trading after the online food delivery marketplace increased its cash profit guidance to €310mn (£269mn) – up from €275mn.
Rising gross transaction value (GTV) in the UK and Ireland – up 5 per cent in constant currency terms through the September quarter – was set against a pronounced fall in North American GTV. Takeaway volumes continue to drift following the pandemic-linked surge and the group has taken measures to reduce its cost base. It now expects that free cashflow will reach the breakeven point in H2 2023 “and positive thereafter”. The launch of a new €150mn share buyback programme was also confirmed. MR
Marshalls avoids further nasty surprises
Building materials company Marshalls (MSLH) said like-for-like revenue for the nine months to September was 12 per cent lower – a slight improvement on the half-year given a more gradual third quarter contraction. It also said “decisive actions” taken earlier this year, which included the closure of a factory and around 250 job cuts, were now largely complete. Net debt at the end of September was £190mn, a slight uptick from the £185mn recorded three months earlier, but management said reducing leverage was an “ongoing priority”. Profit is expected to be “in line” with expectations that were lowered earlier this year on the back of two profit warnings. The shares jumped by 7 per cent in early trading. MF
