Games Workshop (GAW), Intel (US:INTC), Centamin (CEY), Urban Logistics (SHED), Ascential (ASCL), Dowlais (DWL) and Energean (ENOG)
In a short update, fantasy model business Games Workshop (GAW) said that trading for the three months to February was in line with management’s expectations. It also declared a dividend of 105p a share, which means that dividends of 420p a share have been declared this financial year compared to 415p in the previous year.
There was no news on how the process to agree creative guidelines with Amazon (US:AMZN) is going in relation to creating Warhammer film and TV series, and no update on what is happening with the hunt for a new CFO with Rachel Tongue set to step down at this year’s AGM. CA
Read why we’re bullish on Games Workshop
Intel receives billions from US government
On Wednesday, President Joe Biden awarded $8.5bn (£6.7bn) to Intel (US:INTC) in the biggest grant so far under the Chips and Science Act.
The legislation was passed in 2022 to encourage semiconductor businesses to construct plants in the US. However, so far, the government has struggled to get cash into the pockets of the companies, with Intel’s plants in Ohio, Arizona, New Mexico and Oregon all running behind schedule.
In total Intel has committed $100bn to invest in the US over the next five years and hopes to receive tax credits for up to 25 per cent of this, alongside the direct funding. Melius Research analyst Ben Reitzes sees this as an endorsement of Intel’s efforts, saying “we don't think Gina Raimondo would earmark this much cash to Intel if it was going to just be incinerated”.
In the long-term, Intel hopes to become the world’s second-largest foundry and expects to increase its operating margin to around 40 per cent. Melius’s price target of $53 is 26 per cent above Intel’s current share price. AS
Read more: What TSMC's new plant tells us about Intel and the US's ambitions
CREI clear to buy API after SHED walks away
Urban Logistics (SHED) has walked away from its attempted takeover of Abrdn Property Income (API), clearing the way for the original takeover offer from Custodian Reit (CREI) to go ahead.
The decision ends the battle between CREI and SHED over API and comes amid a busy period of M&A activity in the listed real estate space as buyers look to take advantage of steep discounts to net asset value.
Custodian shareholders have already voted 97 per cent in favour of its offer to acquire API, which it made in January, and Urban Logistics confirmed this morning it "will not make a firm offer or alternative proposal for API", after jumping in with a proposed offer in February. SHED’s decision means all that is left is for API shareholders to vote in favour of the deal next Wednesday.
The CREI/API merger would own a £1bn portfolio comprising a mix of property assets. The Urban Logistics offer would have created a warehouse-focused portfolio with some other assets, such as retail warehouses.
Andrew Saunders, analyst at Shore Capital, said SHED is better off having walked away. "As we have continually said, we believe there is a highly attractive investment case with SHED as it stands as the only pure-play on last-mile urban logistics.
"While we could see the merit in acquiring the industrial and logistics assets from API, the retail warehouses component required a deeper look through." ML
Dowlais hit by £449mn impairment
Specialist engineer Dowlais (DWL) has been dragged into a £450mn operating loss by a large goodwill impairment. The group – which was spun off from Melrose Industries (MRO) last year – reported a £449mn impairment charge relating to its powder metallurgy division. It was further hampered by £120mn of restructuring costs.
Revenue grew by 6.3 per cent in 2023 to £5.5bn, however, and adjusted operating profit increased by 6.6 per cent to £355mn. In a display of confidence, management has announced a full-year dividend of 4.2p and a share buyback of up to £50mn. JS
