The main equity indices in London were in positive territory in mid-morning trading as Chinese growth data, while more muted than previous years, hit expectations and reassured investors. Click here for The Trader Nicole Elliott's latest thoughts on the markets.
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Dotdigital (DOTD) has appointed Mike O’Leary to its board as executive chairman, effective immediately. Mr O’Leary is a non-executive director of Epwin Group and is due to retire from his role as non-executive chairman of Emis in May 2020, after a nine-year tenure there. Buy.
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GVC’s (GVC) adjusted cash profits for the year to December 2019 will land towards the top end of its upgraded third-quarter guidance of £670m-680m. The sports betting and gaming group cited strong growth in online with net gaming revenue (NGR) up 13 per cent. Trends in UK retail are ahead of initial guidance, with like-for-like NGR down 12 per cent. European retail NGR was up 4 per cent, with total group NGR up 2 per cent.
Hastings (HSTG) has warned that adjusted operating profits for 2019 will be around £110m, 13 per cent below previous market consensus, as elevated claims costs during the fourth quarter had forced the claims cost ratio up to between 81 and 82 per cent, up on the 75-79 per cent guided to in October. The insurer therefore expects to pay a dividend below the 13.5p a share paid for 2018, although the payment will be above the group’s payout ratio of 65-75 per cent.
Ruby and emerald miner Gemfields is coming back to London. Gemfields left Aim in 2017 when former major shareholder Pallinghurst took over the whole company. In 2018, Pallinghurst changed its name to Gemfields Group. Chief executive Sean Gilbertson said the return to London was to improve liquidity and grow the investor base. Mr Gilbertson’s father Brian served as Gemfields Group chairman until November 2019, when he quit following advice listing authorities would not sign off on a company with a father-son duo as chairman and chief executive.
Cranswick (CWK) is guiding that adjusted pre-tax profit for the year ending 31 March will be higher than current market forecasts. With strong trading over the Christmas period, revenue grew across all four of the group’s product categories and African Swine Fever continues to be a boon for export sales. The ramp-up phase for the new £75m primary poultry processing facility is now underway. On the back on ongoing capital investment, higher seasonal working capital and the previously announced acquisition of Packington Pork Limited, full year net debt is expected to increase. Shares are up 6 per cent this morning.
Experian (EXPN) saw 7 per cent organic revenue growth at constant currencies during the third quarter, with North and Latin America up 10 per cent and 18 per cent respectively. The UK and Ireland recorded a 3 per cent decline in organic revenue with a flat performance in consumer services offset by a weaker performance from the business-to-business segment. With clients deferring decisions for large software implementations and data quality services, domestic organic sales for ‘decisioning’ dropped by 12 per cent. In EMEA/Asia Pacific, decisioning organic revenue plunged by 29 per cent against strong prior year comparables and the phasing of contract wins, although the group anticipates a return to growth in the fourth quarter.
Gym Group (GYM) expects to deliver full-year results for 2019 in line with management’s expectations. Total year-end membership numbers were ahead by 9.7 per cent to 794,000. Average members were up 14.9 per cent to 796,000. Revenues grew by 23.6 per cent to £153m, and year-end non-property net debt landed at £47.4m - up from £46m year-over-year.
