Shares in London's main indices rose marginally by mid-morning after a brighter session overnight in Asia. Click here for The Trader Nicole Elliott's latest thoughts on the markets.
IC TIP UPDATES:
Unilever (ULVR) has opted to have its headquarters in Rotterdam, instead of London. The consumer goods giant reasoned that 55 per cent of its share capital is already based in the Netherlands and the market there is more liquid. Unilever will continue to be listed in the Netherlands, London, and New York, and no jobs will be affected. It’s also reorganised its structure into three divisions – food and refreshment, beauty and personal care, home care – with the latter two based in London. Shares fell less than 1 per cent in early trading. Buy.
Phoenix Group (PHNX) generated £653m in cash last year and now expects cash generation for 2017 and 2018 to be at the top-end of its £1-1.2bn guided range. Its shareholder capital coverage ratio improved to 164 per cent, from 139 per cent the previous year and management also issued a new cash target range for the four years to 2022 of £2.5bn. Buy.
Just Group (JUST) reported new business profit jumped by more than a third last year. Sales of defined benefit derisking products were up 6 per cent, while individual annuity revenue was up 5 per cent. What’s more it achieved cost synergies of £52m from its merger, one year ahead of schedule. Buy.
OneSavings Bank’s (OSB) loan book increased by almost a quarter last year, led by buy-to-let lending. Its net interest margin was stable at 3.16 per cent, while the loan loss ratio improved to 7 basis points from 16 basis points. Buy.
Experian (EXPN) has announced it is acquiring Clearscore to expand its offering to UK customers. The group will pay £275m for the credit services business, with additional payments contingent on future financial performance. It will be funded from Experian’s committed bank facilities and is expected to close later this year. Buy
Shares in John Menzies (MNZS) are up this morning after the group announced a share purchase programme. Beginning today, it will begin purchasing 500,000 ordinary shares for 25p each, the programme ends on 17th May this year. Buy.
KEY STORIES:
Shares in PZ Cussons (PZC) fell by nearly a fifth after the consumer goods company warned that profits for the full year would fall short on the previous year. At the interim results management was cautious on the trading environment for the UK and Nigeria, and so far no recovery appears to have been made during the second half. Pre-tax profits are expected to fall in the range of £80m and £85m, compared to £104m in FY2017. The company is working on initiatives like saving costs and reassessing the group’s operating model.
Portmeirion (PMP) reported a 10.6 per cent increase in sales to £84.8m during 2017 with pre-tax profits up 13 per cent to £8.8m. The candle making business Wax Lyrical has now been fully integrated into the business and more than 200 home fragrance products were launched over the year. Shares were up 1 per cent in early trading.
Cineworld (CINE) reported a 11.6 per cent increase in sales to £891m with pre-tax profit up 22.7 per cent to £120.5m. Admissions were up 3.5 per cent and nine new sites were opened over the year. Shareholders have approved the $3.4bn (£2.4bn) takeover of US-based Regal Entertainment Group, funded through a rights issue. The deal will make Cineworld the second largest cinema chain in the world by number of screens. Shares were up nearly 4 per cent in early trading.
OTHER COMPANY NEWS:
Curtis Bank (CBP) reported a 47 per cent rise in operating revenue to £43.6m for the year to December 2017, with adjusted operating profit up by more than a half to £10.7m. Assets under administration climbed by just over a fifth to £24.7bn, and the group lifted its dividend by 56 per cent to 6.25p. Curtis has consolidated during the year, integrating Suffolk Life into its business.
