Shares across the board in London are in positive territory on the back of a 'wait and see' statement from the US Federal Reserve last night over a return to rate cuts.
KEY STORIES:
Shares in Dixons Carphone (DC.) fell more than a tenth this morning after management said profit in the year to April 2020 would come in around £210m, versus previous consensus expectattions of £300m. The group fell into a statutory pre-tax loss of £259m for the year, down from £289m profit last year, following a series of sizable impairments related to the UK & Ireland mobile business. Chief executive Alex Baldock warned the business was still suffering from a changing market, meaning there will be more pain in the coming year.
Unite (UTG) has gained planning approval for its 913-bed student accommodation development in Middlesex Street in London. The scheme will generate a development yield in line with the group’s target returns for University Partnership schemes in London - disclosed as 6.3 per cent in 2018 - and is expected to be delivered for the start of the 2021/22 academic year.
Dunelm (DNLM) revealed that it expects results for the year to 29 June to be ahead of the board’s expectations, prompting a further 5 per cent rise in the shares. The home retailer said it had seen very good year-on-year total like for like growth, particularly in May and June, reflecting both the soft comparable period and the unseasonably favourable weather conditions this year. Pre-tax profits are expected to be between £124m and 126m for 2019, up on £93.1m in 2018.
Shares in Premier Technical Services Group (PTSG) are up 140 per cent this morning upon announcement that a subsidiary of Australian investment bank Macquarie has struck an agreement to acquire the group for approximately £265.3m. The all cash takeover offer is for 210.1p per share – a 141.5 per cent premium to PTSG’s 87p closing price on 19 June and 304 per cent premium to the 52p listing price from 2015. Recommending the deal to shareholders, chairman John Foley said: “[a]gainst an increasingly competitive market…Macquarie's deep access to funding will better position PTSG to continue with its acquisitive growth strategy.”
Ceres Power Holdings (CWR) has announced a new fuel cell product launch with Japan’s leading industrial boiler manufacturer Miura Co. Targeting the commercial building sector in Japan, a 4.2kW combined heat and power unit will operate on the mains gas supply and provide clean energy and hot water in an efficient and low carbon manner. The culmination of a joint development programme first announced in December 2016, field trials are underway and the first commercial launch with a select number of customers is expected from October 2019. Shares are up 7 per cent in early trading.
Shares in BCA Marketplace (BCA) are up 23 per cent this morning after the group confirmed that it is in advanced discussions with TDR Capital regarding a possible offer to acquire the group for approximately £1.9bn. An all cash offer is for 243p per share – a 29.5 per cent premium to BCA’s volume weighted average price of 187.7p for the month ending 19 June and a 25 per cent premium to the 195p closing price yesterday. Should TDR announce a firm intention to make an offer, BCA’s board intends to recommend the deal to shareholders.
OTHER COMPANY NEWS:
Shares in N Brown (N.) were up 2 per cent this morning following a trading statement. The clothing retailer reported digital revenue growth of 3 per cent for the 13 weeks to the start of June, but total sales fell 3.8 per cent as product revenue dipped. Digital now accounts for 83 per cent of total sales, a 9 percentage point increase.
Meggitt (MGGT) announced a tie-up with aircraft maintenance provider Lufthansa Technik for commercial aircraft services in mainland China.
HomeServe (HSV) has confirmed its entry into the North American whole home warranty market - its total home protection product will be supported by the acquisition of American Home Guardian, also announced today. Performance in the new financial year is in line with expectations and the guidance given in May. Shares are up 1 per cent this morning.
The ongoing shake-up of Allied Minds’ (ALM) board continues apace. The intellectual property group today said that chairman Peter Dolan and independent director Kevin Sharer will step down at next week’s annual general meeting, to be replaced by non-executives Jeff Rohr and Harry Rein. The move, which will presumably help the group to bring down its costs, comes after chief executive Jill Smith stood down earlier this month. She has been replaced by general counsel Michael Turner and chief financial officer Joseph Pignato, who now serve as co-chief executives.
UK-based foreign exchange service provider Argentex (AGFX) has conditionally raised £14m as part of a listing on London’s junior market, which is due to complete next Tuesday. The sale, at 106p per share, values the group at £120m. Deducting £1.5m for listing costs, the group will use £10.5m to increase trading capacity, with another £2m set aside to pay down borrowings. Co-chief executives Carl Jani and Harry Adams will each have 12.2 per cent of the company.
