Shares in London's main indices are up, but only cautiously so as the Brexit impasse continues. Click here for The Trader Nicole Elliott's latest thoughts on the markets
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Ever the optimist, Metro Bank (MTRO) founder Vernon Hill today informed the lender’s staff, customers and shareholders that “as always, the best is yet to come”. But he has now decided to accelerate his retirement, and steps down as chairman with immediate effect. He will remain as non-executive director until the end of 2019 and has “agreed to accept the honorary position of Emeritus Chairman”, though the board will now be headed by Sir Michael Snyder until a full-time replacement is found. The shares, up in early trading, remain a sell.
Advice-led wealth manager Quilter (QLT) saw its assets under management move sideways in the three months to September, as gross sales of £3bn and positive market movements of £1.7bn were offset by gross outflows of £4.4bn. Chief executive Paul Feeney acknowledged that the group had been set back by “uncertain political and economic backdrop coupled with some Quilter-specific factors, in particular, the loss of a certain cohort of investment managers in Quilter Cheviot last year”. The shares, off 3 per cent this morning, remain a long-term buy.
Fuller, Smith & Turner (FSTA) has acquired Cotswold Inns & Hotels for £40m. The deal includes seven freehold country inns and hotels and eight freehold staff cottages in the Cotswolds, as well as two leasehold bars in Birmingham. The business being acquired generated revenue of £17.5m during the financial year to 30 September 2018, with site cash profits of £3.4m with a gross asset value of £31.5m. Fuller’s chief executive Simon Emeny said the deal enhances the company’s portfolio of premium hotel accommodation. Buy.
IFA-focused platform provider Integrafin (IHP) saw its funds under management rise 4 per cent in the final quarter of its year to September, capping an increase of 14.2 per cent over the financial year. For the 12-month period, net flows came to £3.5bn, while market movements reached £1.2bn, which chief executive Ian Taylor described as “positive indicators for the coming year”. Buy.
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Softcat (SCT) saw revenue growth of 24.4 per cent to £992m for the year to July 2019 (reporting under new accounting rules pertaining to revenue recognition). It also reported gross invoiced income – reflecting gross income billed to customers, adjusted for deferred and accrued revenue items – of £1.4bn, up 30.7 per cent. Gross profits rose by 20.5 per cent to £211m. The group has raised its final dividend by 18.2 per cent to 10.4p, and proposed a special dividend of 16p. Trading over the first eleven weeks of the current financial year has been “on track”.
Two new mining companies are planning to list in London. TSX-listed copper miner Taseko Mines aims to join the Main Market by the end of the year and ASX-listed titanium, vanadium and iron ore developer TNG will run a roadshow next year before listing. Taseko runs the Gibraltar mine in British Columbia, which will produce just under 60,000 tonnes of copper this year. The miner said it would not raise cash upon joining the LSE. TNG is developing the Mount Peake project in Australia’s Northern Territory, and needs to raise £454m to build the first phase of the mine. It is currently in the permitting and design stages of the project.
Planning permission for the development of a 209 hotel at Paris Charles de Gaulle airport has now been granted to easyHotel (EZH). The hotel will be let on a 24 year lease with annual rent of around €1.1m (£m), and is anticipated to open during the 2020/21 financial year. The company has also signed a franchise agreement for the development of a 110 room hotel in Derby, and a 20 year exclusive franchise agreement for three hotels in Tel Aviv.
