Vox Markets

Thursday, March 15, 2018

	Unilever (ULVR) to quit Britain: FTSE giant set to abandon its City HQ because UK can’t protect it from foreign takeovers
	Prudential (PRU) splits in two: Giant insurer will create US arm with M&G to become UK business
	Morrison (Wm) Supermarkets (MRW) leads the fight against Aldi and Lidl under boss Dave Potts: Grocer issues special dividend as profits leap
	GKN (GKN) automotive arm considers listing in both London and New York, dealing further blow to Melrose Industries (MRO) bid.
	Engineer Balfour Beatty (BBY) suffers a £44m hit from bust Carillion but still more than doubles annual profits
	Bargain Booze owner Conviviality (CVR) shocks shareholders after revealing it has a £30m tax bill
	InterContinental Hotels Group (IHG) snaps up a majority stake in a luxury Taiwanese hotels business for £28m
	Bets are off takeover of football pools firm Sportech (SPO) with shares crashing 51.8% and no buyers coming forward
	A glowing report from Goldman Sachs boosted London-listed miners. The investment bank confirmed that the miners were ‘on their strongest footing for many years’, on the back of a boom in demand for commodities. It says the sector is attractive to investors as it upgraded Anglo American (AAL) from ‘Neutral’ to ‘Buy’ and and Antofagasta (ANTO) from ‘Sell’ to ‘Neutral’.
	Shares in Hikma Pharmaceuticals (HIK) rocketed despite the firm posting big losses. Revenues were ahead of brokers’ forecasts, which had a positive effect on its share price.
	Burford Capital (BUR) shares went through the roof after the company more than doubled its profits.
	A new collaboration with crisis-ridden cycling outfit Team Sky caused shares in engineering firm Versarien (VRS) to slide. Graphene is thought it could be used to make bike frames lighter and more durable and riders’ helmets safer. It might also be used in clothing and tyres.
	Shares in Dairy Crest Group (DCG) dived after broker Peel Hunt cut its 2019 earnings forecast from £74million to £68.5million as it expected additional marketing spend to drive growth in a ‘tough consumer environment’.
	An upgrade from ‘Sell’ to ‘Hold’ from Societe Generale sent shares in satellite operator Inmarsat (ISAT) to the stars.

Thursday, March 15, 2018

	Britain loses as Unilever (ULVR) picks Rotterdam as its new base.
	Versarien (VRS) is to work with Team Sky, the professional cycling team whose top rider is Chris Froome, to explore adding graphene to its bike frames, tyres, helmets and other equipment.
	Prudential (PRU) split into two ‘will result in full-scale break-up’. Prudential, one of Britain’s oldest insurers, has embarked on an ambitious plan to break itself up in the latest overhaul of the insurance market.
	Revitalised Morrison (Wm) Supermarkets (MRW) rewards investors with special dividend.
	Melrose Industries (MRO) – New pension questions are raised in GKN (GKN) battle. The proposed new owner of GKN’s automotive business offloaded its UK pension liabilities into the industry lifeboat scheme, it has emerged.
	BT Group (BT.A) moved to strengthen its management team yesterday with the appointment of Michael Sherman to a newly created role of chief strategy and transformation officer, as the FTSE 100 telecoms giant battles to draw a line under a difficult period for the group.
	Sportech (SPO) lost more than half its value after the betting and gaming technology operator issued a profit warning. The shares fell by 51.8% to 37½p after the company said that it had identified “a number of write-offs and restatements”.
	The City watchdog has quizzed Aviva (AV.) over its decision to cancel £450 million of preference shares, enraging the thousands of retail investors who own the stock.
	Error-prone Conviviality (CVR) ‘finds’ £30m tax bill. Trading in Conviviality shares were suspended yesterday as Britain’s biggest franchised off-licence chain issued its second profits warning in a week, cancelled its dividend and said that it had discovered an unexpected tax bill of £30 million payable within two weeks.
	Hikma Pharmaceuticals (HIK) – One of the London market’s biggest generic drugs companies has plunged into the red amid delays launching a key medicine.
	Local cinemas are enjoying a lucrative revival under the stewardship of Everyman Media Group (EMAN). The cinemas group has reported annual pre-tax profit up threefold last year to £1.6 million from £0.5 million previously. Revenues rose 37% to £40.6 million as it opened three venues to bring its total to 22.
	Balfour Beatty (BBY) beats downturn in construction. Britain’s largest construction group defied the downturn in the sector last year thanks to a turnaround strategy that helped to almost treble its profits.
	Dignity (DTY) calls in consultants amid funeral price war.
	Dairy Crest Group (DCG) slips on Peel Hunt’s warnings over rising debt.
	Fevertree Drinks (FEVR) fizzed 212p higher to £28.07, reversing the previous day’s losses when strong full-year results sparked some profit taking.
	InterContinental Hotels Group (IHG) buys majority of Regent. Intercontinental Hotels Group made good on its promise to add a new super-luxury brand yesterday when it acquired a 51% stake in Regent Hotels and Resorts for $39 million plus the right to buy the rest from 2026 for up to $100 million.
	Tempus – Gem Diamonds Ltd. (DI) (GEMD): Buy. Gem is taking rational steps to ensure performance continues to shine.
	Tempus – Sportech (SPO): Hold. As a play on US betting market, Sportech’s share fall could revive bid interest.

Thursday, March 15, 2018

	Prudential (PRU) unveils radical overhaul as it splits itself in two FTSE 100 firms.
	BT Group (BT.A) closes in on deal to shut final salary pension.
	Conviviality (CVR) cancels dividend after surprise £30m tax bill prompts second profit warning.
	Funerals giant Dignity (DTY) plans shake-up as it struggles against tough competition.
	Profits up at Balfour Beatty (BBY) as construction giant rebuilds after ‘near-death experience’
	Fears mount over future of GKN (GKN) Redditch base as £4.4bn tie-up with Dana looms.
	Persimmon (PSN) to name Roger Devlin as new chairman.
	Goldman Sachs analysts argued that miners are on their “strongest footing for many years” with any softening of Chinese growth likely to be offset by healthy economies elsewhere. Upgraded to “buy”, Anglo American (AAL) climbed 57.8p to £17.89, while peers Glencore (GLEN) and Antofagasta (ANTO) gained 6.9p to 383.6p and 31.6p to 946.2p respectively.
	Hopes that Ocado Group (OCDO) would tie up a deal with Walmart were dashed by the US supermarket announcing plans to expand its own delivery service, knocking the FTSE 250 firm 18.8p to 578.2p.
	GKN (GKN) inched 7.7p higher, to 437.7p, amid reports that Dana, the US company merging with its automotive business, is open to a secondary listing in the UK to persuade the FTSE 100 engineering giant’s shareholders to reject Melrose Industries (MRO) hostile takeover bid.
	CRH (CRH) advanced 30p to £24.66 after Exane BNP Paribas upgraded the building materials giant to “buy”, citing rising infrastructure spending in the US and earnings being bolstered by higher cement prices.
	Morrison (Wm) Supermarkets (MRW) bets on local produce as turnaround continues.
	Questor – Indivior (INDV): maker of opioid addiction drugs stays one step ahead of the competition.

Wednesday, March 14, 2018

	Prudential (PRU) breaks up 200-year old empire to unleash Asia growth. Insurer Prudential unveiled a dramatic break-up of its global empire on Wednesday by announcing that it would demerge its UK unit, M&G Prudential, and then turn itself into a standalone Asian-focused giant.
	Marshalls (MSLH) road to wealth is paved by pensioners ‘as they have more money to spend’
	Balfour Beatty (BBY) thriving as profits more than double despite Carillion hit.
	Everyman Media Group (EMAN) staging a cinema revival in Crystal Palace.
	SMALL CAP SPOTLIGHT: Sportech (SPO) is tanking on profit warning while Graphene maker Versarien (VRS) announces tie-up with Team Sky

Wednesday, March 14, 2018

	Capita (CPI) plans to cut reliance on UK market. Struggling UK outsourcer to target English-speaking countries overseas.
	Greencore Group (GNC) sheds third of its value on profit warning. UK group says CEO to take direct role after woes at US arm hit earnings.
	Dana woos GKN (GKN) shareholders with dual-listing option. US group’s $6bn automotive offer crucial to UK engineer’s defence against Melrose Industries (MRO) bid.
	Lombard – TP ICAP (TCAP) runs into Brexit and dollar headwinds. Two unavoidable obstacles caused an uncomfortable fall in full-year earnings per share.
	TP ICAP (TCAP) reveals sharp rise in costs from acquisition. World’s largest interdealer broker says £27m in savings from ICAP deal cost £79m to achieve.
	Shares in sandwich maker Greencore Group (GNC) drop 24% after warning. FTSE 250 company says earnings will be below expectations after problems in US.
	Close Brothers Group (CBG) boosts profit but faces loan competition.
	French Connection Group (FCCN) reveals takeover approach by US group.
	Legal & General Group (LGEN) snaps up remaining stake in Cala Homes.

Wednesday, March 14, 2018

	Melrose Industries (MRO) – Now US workers say GKN (GKN) takeover should be probed on national security grounds.
	Fashion chain French Connection Group (FCCN) believes it’s ‘very close ‘ to becoming profitable as its posts yet another annual loss.
	Investor panic as Aviva (AV.) plots to axe bonds paying 8.5%: Insurer may buy back preference shares in bid to save £38m a year.
	Posh tonic maker Fevertree Drinks (FEVR) hopes new range of low calorie mixers will get shares fizzing again.
	Legal & General Group (LGEN) snaps-up the rest of housebuilder Cala Homes in a deal valuing the company at £605million.
	£391m sliced from sandwich firm Greencore Group (GNC) as struggling US arm takes a big bite out of profits.
	Record profits and sales certainly put the bounce into shares.
	Shares in Minoan Group (MIN) flew after revealing it is close to selling its 13 travel agencies to an anonymous buyer.
	Bango (BGO) payments software may be used by the likes of Amazon, Google, Samsung and Microsoft but it’s still struggling to make a profit. Despite increasing revenue by 62% to £4.2million, the AIM-listed firm made a loss of £1.6million last year, although that is better than the £2.8million loss it made the year before.
	A major deal with a US biotechnology firm for Hemogenyx Pharmaceuticals (HEMO) pushed the lift-off button on its share price. Hemogenyx will work with the unnamed firm to develop treatments for blood diseases, such as leukaemia, in a deal worth around $250,000 (£179,000).

Wednesday, March 14, 2018

	Rio Tinto (RIO) subsidiary Turquoise Hill Resources in Mongolia corruption inquiry.
	$40m stone puts a twinkle Gem Diamonds Ltd. (DI) (GEMD) eye. The 910 carat stone, dubbed the Lesotho Legend, is of very high quality with few impurities.
	Holiday Inn operator InterContinental Hotels Group (IHG) joins £1.2bn race for luxury hotels. Intercontinental Hotels Group has teamed up with a property investor to participate in the £1.2 billion auction of the company behind the Principal and De Vere hotel brands.
	Tonic maker Fevertree Drinks (FEVR) profits get a mixed response. Although the mixers group reported full-year results a shade better than recently upgraded forecasts yesrerday, by lunchtime the shares had fallen by almost 8% to to £24.81 for no obvious reason.
	Melrose Industries (MRO) can’t be trusted to run our pensions, GKN (GKN) warns shareholders.
	Antofagasta (ANTO) in driving seat as copper demand outstrips supply.
	Cairn Energy (CNE) has acquired rights to drill off South America, where it hopes to replicate its oil discoveries off West Africa thanks to their proximity in a prehistoric supercontinent.
	Britain’s biggest pawnbroker had a “milestone year” in which its profits were boosted by personal loans and online jewellery sales. H&T Group (HAT) said that its pre-tax profit rose by 45 per cent to £14.1 million last year, with revenue rising from £96.6 million to more than £110 million.
	New pitches pull in players but net sales fall at Goals Soccer Centres (GOAL). The five-a-side football operator plans to upgrade the rest of its pitches this year
	Computacenter (CCC) faces a challenging year ahead with its margins under pressure, despite reporting record group revenues of £3.79 billion. Computacenter said that the business mix had become skewed towards lower margin software sales.
	French Connection Group (FCCN) has reported its sixth year of losses and revealed it received an unsolicited takeover approach from an unnamed America buyer last year.
	Greencore Group (GNC) plans to stir up US division. The boss of Greencore will spend half his time in the US after problems in its American division led the sandwich-maker to issue a profit warning.
	Morgan Stanley’s cut brings Inmarsat (ISAT) down to earth. Inmarsat slashed its dividend by nearly two thirds last week, arguing that it would use the saved capital to invest in providing in-flight wifi for commercial flights. As it cut its price target for Inmarsat shares from 550p to 500p, Morgan Stanley said that the cut was far deeper than it had expected and complained that the company’s leverage levels were still rising.
	Legal & General Group (LGEN) was out of favour, as it became even less of an insurance and investments group by taking full ownership of Cala Homes in a deal that valued the housebuilder at £605 million.
	A downgrade to a “hold” from a “buy” by Deutsche Bank also pushed down Direct Line Insurance Group (DLG).
	Senior (SNR) jumped 8½p to 309¾p after the engineer announced plans to build a new 180,000 square foot aerospace facility near Kuala Lumpur in Malaysia.
	888 Holdings (888) was a gainer, adding 5½p to 299½p after analysts at Peel Hunt predicted that the gaming company would be upbeat at next week’s results and report an 11% increase in profits before tax and other items to $99.6 million.
	IWG (IWG) slipped 9½p to 238½p even though at least two brokers upped their price targets for the shares.
	Witan Inv Trust (WTAN) warns of dangers ahead. The rapid global growth forecast for this year should be good news for corporate profits, Witan Investment Trust said, but bond and equity markets could be vulnerable if inflation unexpectedly takes off.
	Tempus – Close Brothers Group (CBG): Hold. Little room for Close to overshoot expectations as it is already highly valued.
	Tempus – TP ICAP (TCAP): Buy. Cost reductions remain on track.

Wednesday, March 14, 2018

	Greencore Group (GNC) warns on profits as US business runs into trouble.
	Anti-corruption body turns eye to Rio Tinto (RIO) Mongolian copper mine.
	Cairn Energy (CNE) returns to profit as North Sea alliances pay off.
	The world’s largest interdealer broker, TP ICAP (TCAP), suffered its worst day of trading since its creation via a merger 15 months ago, after the costs of the deal doubled.
	Computacenter (CCC) year-long share price rally came to an abrupt halt after warning investors that 2018 would be a “challenging” year for the IT strategy and technology infrastructure firm.
	Direct Line Insurance Group (DLG) slipped 9.9p to 383.3p after Deutsche Bank warned impatient investors in a downgrade to “hold” that it will be years until it feels a tangible benefit from its strategy revamp.
	Conviviality (CVR) tumbled a further 13.6p to 101.2p after confirming that the error in its financial forecasts would hit earnings this year by around 20%.
	Scandal-hit Telit Communications (TCM) secures new bank covenants after tough 2017.
	Fevertree Drinks (FEVR) brushes off Schweppes push as profits fizz.

Tuesday, March 13, 2018

	TP ICAP (TCAP) meets watchdogs for post-Brexit hub talks.
	Wall Street hedge funds bet on Melrose Industries (MRO) victory in tussle for GKN (GKN)
	Immersive VR Education Holdings plc (VRE) joins AIM just as Facebook’s launches its Oculus Rift headsets.

Tuesday, March 13, 2018

	Lex – Clarkson (CKN)/shipping: good tides. The business has shown it can stay afloat, even in choppy waters.
	Lombard: Melrose Industries (MRO) final bid for GKN (GKN). Company describes hostile takeover move as a ‘job interview’
	Melrose Industries (MRO) adopts Napoleonic tactics with new GKN (GKN) bid. New £8bn offer emulates conqueror’s ‘action and speed’ methods.
	Barclays (BARC) pays top managers over £20m in shares. Awards mostly to compensate several senior executives for payouts forfeited on leaving JPMorgan Chase.
	Melrose Industries (MRO) higher bid for GKN (GKN) fails to quell worries. Labour tells government time is running out for it to step in and prevent any deal.
	GKN (GKN) rejects ‘final’ £8bn hostile bid from Melrose Industries (MRO). Turnround group raises offer as fierce battle for UK engineer enters last stages.