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BHP, Persimmon and Burford Capital

Some recent updates from the IC Companies team
August 21, 2019

We’re drawing to the close of the principal half-year reporting season as news reaches us that UK dividends grew by almost 9 per cent year-on-year in Q2 to a quarterly record $35.0bn. The step-up in pay rates has been achieved against a slowdown in global economic growth and continuing uncertainties linked to the US/Sino trade dispute, not to mention Boris Johnson’s attempts to strike a new trade deal with the EU. You must wonder about the mainstream media’s priorities on news reporting when we’ve heard more about Donald Trump’s pitch to buy Greenland than we have about the decision to strip Indian-administered Kashmir of its autonomous status.

Happily, priorities at the IC are more clear cut. James Norrington, mindful of the barriers that have been put up in the private rental market, has been looking at alternative means of tapping collective investment schemes. Click here to get James’s take on the market.

You can get another angle on the market through Emma Powell’s breakdown of half-year figures for Persimmon (PSN). Click here to find if Emma thinks we should move away from our existing negative stance.

The claims and counter-claims from Muddy Waters and Burford Capital (BUR) continue apace, effectively forcing the litigation finance specialist to shake-up its c-suite and board. As ever, Alex Newman has been keeping up with events.

Half-year results from John Wood Group (WG.) show the engineering services group has been working to improve margins, whilst bolstering the balance sheet. Click here to get the good oil from Alex Hamer.

Needless to say, Alex has been going over performance figures for BHP (BHP), coming to the conclusion that “the strong iron ore price overcame the resource major’s operational struggles in its financial year ending 30 June”. Click here to get Alex’s overall assessment.

John Laing (JLG) had already warned about the group’s renewable energy assets in Europe and Australia. Consequent write-downs weighed on statutory earnings in the half-year to June. Click here to get the lowdown from the IC’s Nilushi Karunaratne.

Harriet Clarfelt has been looking at how CRH (CRH) have fared in the half-year to June. Fairly well, judging by record cash profits of €1.54bn – up by 36 per cent. Click here to read Harriet’s full analysis.