A tumultuous week politically for the UK looks set to end with traders sitting on their hands as London's indices were flat in mid-morning trading. Click here for The Trader Nicole Elliott's latest thoughts on the global markets.
KEY STORIES:
SIG (SHI) shares dropped 5 per cent in early trading after the supplier of building materials reported a 3.8 per cent like-for-like sales drop over its first half, which it attributed to “weaker market conditions and focus on profitability over volume”. The business is well-advanced in its review of its Air Handling division, for which house broker Peel Hunt suggests a sale in SIG’s second half looks likely.
Berkeley (BKG) reported a stable forward sales position of £1.8bn at the end of August and anticipates a flat net cash position of £975m at the end of September. Over the six years to April 2025, the housebuilder is targeting the delivery of £3.3bn of pre-tax profit, with the profit in any one year ranging between £500m and £700m, depending upon the timing of delivery.
Emerging-market focused investment manager Ashmore (ASHM) posted a 24 per cent increase in assets under management in the year to June, thanks to strong inflows and a positive investment performance. Perhaps more encouragingly, the group’s funds continued to outperform the market, with 90 per cent above their benchmarks on a one-year view, and 97 per cent ahead on a three- and five-year timescale. And while performance fees sank from £21.9m in 2018 to £2.8m this time round, a positive movement in foreign exchange, coupled with a rise in finance income helped to push pre-tax profit up by 15 per cent, to £220m.
Shares in Motorpoint (MOTR) have dived 13 per cent this morning after co-founder and non-executive director David Shelton sold 11m shares in the company, raising £22m to fund divorce proceedings. The group has used its buyback authority to participate in the placing, buying 2,575,000 of the available shares for more than £5m. Mr Shelton now holds 2,396,726 shares.
Randall & Quilter (RQIH) reported a 13 per cent rise in net tangible assets per share during the first-half, helped by five new legacy acquisitions and three legacy reinsurances. Income was also boosted by a stronger investment return of 2.3 per cent, up from 0.7 per cent the same time the prior year. The interim dividend was raised by 6 per cent to 3.8p a share.
OTHER COMPANY NEWS:
Ahead of its annual general meeting Greene King (GNK) reported a 1.8 per cent decline in like-for-like sales at its pub company over the past 18 weeks, facing a tough comparative period that included the World Cup and sunny weather. This has ticked up in the last seven weeks, with sales up 1.5 per cent. Like-for-like net income from pub partners fell 4.2 per cent over the 16 weeks due to softer comparable beer sales. Beer volumes in brewing and brands were down 6.5 per cent and own-brewed volumes down 7.9 per cent. The company is the subject of a takeover bid announced in August, with CK Noble offering 850p per share in cash.
Connect Group (CNCT) has announced that Smiths News has agreed a long-term distribution contract with The Telegraph that will run until September 2024. Securing annual revenues in excess of £100m (at current market values) the deal will account for around 15 per cent of Smiths’ newspaper sales. With renewal of publisher contracts a key strategic priority, Smiths News has now tied up 80 per cent of its total newspaper and magazine revenues under new long-term contracts until at least 2024.
