With MPs set to vote on the UK's Brexit deal with the EU in a special Saturday sitting investors are sitting on their hands today. Click here for The Trader Nicole Elliott's latest thoughts on the markets.
IC TIP UPDATES:
InterContinental Hotels (IHG) reported a 4.7 per cent increase in net system size to 865,000 rooms during the third quarter, and is on track to exceed 5 per cent by full-year. Revenue per available room was down 0.8 per cent during the quarter, as chief executive Keith Barr said the company was impacted by tougher trading conditions in the US and China and ongoing unrest in Hong Kong. Despite this, Mr Barr said he remains “confident” for the remainder of the financial year. Buy.
Shares in Phoenix Spree Deutschland (PSDL) are up 4 per cent in early trading, after the real estate group confirmed the beginning of a share buyback programme in a bid to close its discount to net asset value. This has been supported by a new €240m term loan on improved terms and an acceleration in condominium sales – achieved at an average 21.6 per cent premium to their half-year carrying book value. Buy.
KEY STORIES:
No mention of a certain would-be acquirer in London Stock Exchange’s (LSE) third quarter results today, though chief financial officer David Warren has announced his intention to retire by the end of 2020. By that point, the bourse expects to have completed the Refinitiv deal, which we are told remains on track. Trading momentum has also stayed strong, with growth in over-the-counter products and subscription revenues to FTSE Russell powering a 12 per cent rise in third quarter income to £587m.
Eddie Stobart Logistics (ESL) confirmed that it has given Wincanton (WIN) due diligence access to determine the merits of a potential combination. A formal offer has not yet been made, and there is no guarantee to that happening. Shares in Eddie Stobart have been suspended at 71p since 23 August after a review of the company’s practices prompted the immediate departure of former chief executive Alex Laffey. Shares in Wincanton were up more than 1 per cent following the announcement.
OTHER COMPANY NEWS:
Avast (AVST) has reported a 5 per cent rise in adjusted revenues to $220m for the third quarter to September 2019. Excluding discontinued business and at constant currencies, the growth rate was 9 per cent. Over the nine months year to date, adjusted continuing revenues rose by 9.1 per cent at constant currencies. Third-quarter adjusted cash profits rose by 8.7 per cent to $122m. For the year to date, adjusted cash profits rose by 6.6 per cent to $359m. The shares were up 7 per cent this morning.
Ofgem has published its final decision on electricity distribution funding requests under the RIIO-ED1 price control which runs to 2023. The regulator has approved £16m in funding for SSE’s (SSE) networks business to facilitate the electrification of the Great Western Railway line. However, a £30m request for cable replacement at Pentland Firth East has been rejected as Ofgem believes SSE “has not demonstrated that the proposed solution is economic and efficient”.
Shares in easyHotel (EZH) were up 11 per cent in early trading after the hotel chain reported a 28 per cent increase in total system sales to £47.8m during the year to September. Revenue was up 56 per cent to £17.6m, with an increase in revenue per available room at owned hotels making up for a decline at franchised locations. The company is reviewing its dividend policy to consider whether it is appropriate to continue to pay a dividend, and instead focus on investing in its hotel estate.
Elegant Hotels Group (EHG), which owns several upmarket hotels in Barbados, has announced an agreed takeover offer from Marriott at 110p a share, which values the hotels group at around $130m.
