Insurance claims to top £1bn
Customers hit by Covid-19
Initial estimates from the Association of British Insurers (ABI) show that its members expect to pay out more than £1.2bn in claims to support businesses and individuals hit by the Covid-19 crisis. Of that figure, £900m pertains to business interruption claims, a record £275m paid to customers in travel cancellation claims and £25m across wedding insurance, school trips and events. This is on top of the estimated £363m to be paid out to customers after Storms Ciara and Dennis earlier in 2020. Only a small number of businesses have policies that could provide coverage against the virus.
“Aggressive rent collection” ban
“Undue pressure”
The UK government has introduced temporary new measures to protect the high street from aggressive debt recovery actions during the coronavirus outbreak. To stop some landlords putting “undue pressure” on tenants, Westminster has banned the use of statutory demands between 1 March and 30 June 2020 and winding-up petitions from 27 April through to 30 June where a company can’t pay its bills because of the virus. Government is also preventing landlords from using Commercial Rent Arrears Recovery unless they’re owed 90 days of unpaid rent.
Pharma giants maintain guidance
Strong first quarter
AstraZeneca’s (AZN) first-quarter revenues climbed by 16 per cent to $6.4bn. The pharma giant estimated a low-to-mid-single-digit percentage benefit from short-term inventory increases, longer prescriptions and improved treatment-regimen adherence as indirect effects of the coronavirus pandemic. This should reverse “in the coming months”. But while the impact of Covid-19 is “highly uncertain”, the group has retained its full-year guidance for 2020. GlaxoSmithKline (GSK) has also maintained its outlook. Revenues here rose 19 per cent to £9.1bn, or by 10 per cent on a pro-forma basis.
NMC delisting
Problem after problem
Troubled hospital group NMC Health (NMC), whose shares have been suspended since February, is set to de-list from the London Stock Exchange. NMC has faced problem after problem in recent months, following the publication of a bearish report by short-seller Muddy Waters in December 2019. The group said in a statement that the continued listing of the shares “incurs significant cost and adds complexity in a situation where decisions need to be made quickly in partnership with the Group's stakeholders”. Alvarez & Marsal were appointed as administrator on 9 April.
Imperial sells premium cigars
Reducing debt
Imperial Brands (IMB) has sold its ‘Premium Cigars’ business for £1.1bn. The proceeds are to be used to reduce debt. Joint interim chief executives Dominic Brisby and Joerg Biebernick said in a statement that it had been a “complex transaction involving joint ventures and assets across multiple geographies.” The sale will take place in two separate transactions: one for the US division to Gemstone Investment Holding Ltd, and another for the larger rest-of-the-world business to Allied Cigar Corporation.
‘Stay at home’ shares
Investors flocking
The Share Centre has seen a surge in the popularity of ‘stay at home’ stocks as consumers look to match their own spending patterns to their investment strategy. Netflix (US:NFLX) has seen a ninefold increase in purchase activity compared with the same period last year. Communications company Zoom (US:ZM) has seen a 550 per cent uptick, followed by Ocado (OCDO) and Amazon (US:AMZN), up 336 per cent and 200 per cent, respectively. According to the Share Centre, around one in six UK adults already invest in companies they buy from regularly.
Amigo: board overhaul?
Founder calling meeting
Richmond Group – the majority owner of Amigo Loans (AMGO) – has told the group that it plans to call an extraordinary general meeting to remove the entire Amigo board. Richmond – whose chief executive is James Benamor, founder of Amigo – plans to propose a replacement chairman and chief executive. Amigo said it was consulting with its regulators and advisers about the implications of this notification, and the appropriate next steps. Richmond has also told the company that it intends the formal sales process to continue.
Annual UK city house price inflation was 1.8 per cent in March, but monthly growth from February was just 0.1 per cent – the lowest rate for a year.
The lockdown is yet to impact house prices. That said, according to Zoopla – with data powered by Hometrack – demand for homes fell by 70 per cent during March. And while it increased over the three weeks to 19 April, demand remains 60 per cent lower than in early March.
There are an estimated 373,000 sales held up by the lockdown, for homes worth £82bn.
