The London Stock Exchange Group (LSEG) this morning released its trading statement for Q321. Total income was bang in line with expectations, as was the gross profit. However, the stock is down about 3.5%, probably on concerns that, according to management, the strong YoY growth in Q321 will not be sustainable going into Q421. Concern regarding the supply chain pressures impacting the timing of some technology spend this year is another reason for profit-taking.
Companies: London Stock Exchange Group plc
The LSEG released this morning its numbers for H1 21. These were overall better than expected, especially the adjusted EBITDA. The key takeaway from the release is the confirmation of the financial targets following the integration of Refinitiv. This had been questioned following the Q4 20 earnings, especially on the costs side. Management still expects mid-single-digit growth in costs but confirmed the 50% EBITDA margin in the mid-long term. This should be supportive of the share price followin
The London Stock Exchange Group released this morning a trading statement for Q1 21.
The overall picture is mostly reassuring regarding revenues, even if the mix is of a weaker than expected quality (small miss in the data & analytics division). Cost synergies are well on track and even ahead of the guidance on an annualised basis. The LSEG share price has fallen sharply since the Q4 20 earnings release and a profit warning. These new numbers will give it a floor.
The London Stock Exchange Group’s (LSEG) share price is down another 3% this morning. It follows a sharp fall of 13% last Friday following the FY2020 earnings release.
The FY2020 results were not the cause of the sharp fall. The sluggish guidance regarding the costs for 2021 and following years and the recent sharp drawback in growth stocks (rich P/E or EV/EBITDA) have contributed to this (almost) 15% decrease in the company’s share price.
This morning the LSEG released its numbers for H120. The bottom line was above expectations driven by higher income (treasury income especially) offsetting higher-than-expected expenses. Most importantly, the company has « commenced exploratory discussions which may result in a sale of MTS or potentially Borsa Italiana ». We had expected this to happen as covered in Latest of late June (« Refinitiv or Italy »).
The London Stock Exchange Group (LSEG) released this morning its FY2019 numbers. Revenues and expenses were roughly in line with expectations (slightly lower than our own forecasts). The key anticipation was to discover more about the Refinitiv deal. Management did not elaborate other than “regulatory approvals processes ongoing and on track for completion in H2 2020”. It did not comment either during the conference call.
The London Stock Exchange Group (LSEG) is down about 6% this morning as the Hong Kong Exchange and Clearing (HKEX) eventually simply dropped its offer on the UK market venue. While the odds in the last few days was for a rather higher price (with a higher amount of cash), the dropping the deal is not so surprising as it would have been scrapped either by the majority of LSE’s shareholders (probably) or by the regulators involved in the potential deal.
HKSE made a £32bn takeover bid for the London Stock Exchange yesterday.
We believe the probability of this deal succeeding is close to zero. However, this should feed speculation regarding other giant market venues (ICE or CME, for instance) bidding on the UK market venue. It will support LSEG’s share price in the short term. In any case, we remain positive on the stock (even on a standalone basis).
LSEG released this morning its numbers for Q2 19. But, most importantly, it confirmed its ambitions to acquire Refinitiv in an all-share transaction for a total enterprise value of c.$27bn. According to management, the deal will be 30% earnings accretive in the first year after completion (expected in H2 20).
We have been buying (add at worst) LSEG for more than four years. We will adjust our numbers and maintain our Buy recommendation on the company.
The LSEG is in talks with Blackstone and Thomson Reuters about a possible acquisition of financial data analytics provider Refinitiv. LSEG would acquire the company for a $27bn enterprise value. The deal would mark a strong push into the data business (currently branded Information Services within LSEG) and make the company less dependent on volatile capital markets (trading and clearing). Its share price is up almost 15%.
As part of Edison’s accessing the global capital markets interview series, Rachel Carroll, President and Managing Partner of Edison Inc., asks Chris Mayo, Head of Primary Markets (Americas) for the London Stock Exchange, for his views on the health of the UK IPO market post the EU referendum, and how UK corporates can most effectively access global pools of capital via a London listing, with a particular focus on the United States.
Sarah Baker, head of North American strategic engagement at the London Stock Exchange, and Ian McLelland, global head of natural resources for Edison Group, discuss how North American resources companies are increasingly seeking access to the diverse and sophisticated pools of investment capital in the UK. They outline recent examples and offer advice on how to best unlock additional pools of accessible capital.
According to the FT, Euroclear is exploring some options to allow its shareholders to sell their shares in the company.
As we have been repeatedly saying, it is a natural prey for the LSEG which currently lacks solid collateral management expertise.
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Palace Capital has released a good trading update of for the 6 months to 30 September. The Group has achieved good progress both across the portfolio and in sales achieved at Hudson Quarter. With cash reserves rising, the Group continues to look for value creative opportunities to recycle capital which should realise value for shareholders. Buy
Companies: Palace Capital plc
Companies: Plus500 Ltd.
We see the UK Government’s Net Zero Strategy as being overall helpful but not especially definitive. Amongst our coverage group, Drax Group (DRX LN) and Velocys (VLS LN) benefit from the Humberside CCS cluster prioritisation and Velocys from SAF support. The amount of renewables is likely to boost the need for flexibility solutions where Drax, Gore Street (GSF LN) and SIMEC Atlantis (SAE LN) can benefit. Hydrogen companies ITM (ITM LN) and Powerhouse Energy (PHE LN) are likely to find support. T
Companies: ADN DRX GSF ITM NESF PHE SAE SIT STRLNG TLG VLS
The third quarter continued to enjoy record CIB revenues and loan provision recoveries. Consensus expectations have now largely aligned with our projections, thus leaving limited upside potential in our view.
Companies: Barclays PLC
Non-Standard Finance (‘NSF’), one of the leading providers of unsecured credit to UK adults, published interim results for the half year to 30 June 2021 on 28 September. Overall, these showed a significantly lower loss before tax due to improved operational performance and lower below the line charges. The group also reported that current trading was ahead of plan primarily due to strong collections performance. Discussions with the FCA regarding the redress programme for guarantor loans custome
Companies: Non-Standard Finance Plc
What’s new: Tatton’s interims trading update confirm it has “delivered strong growth in all its key metrics during the period including revenue, profits and assets under management” (AUM). It is “trading in line with expectations”.
Companies: Tatton Asset Management Plc
AuM pushed on in Q2, hitting £10.8bn – including the acquisition of the Verbatim funds (+13% in H1 organic only). Crucially, net inflows have remained strong through the whole of H1 at £109m avg pcm. This flow momentum underpins an encouraging outlook, both near and medium-term. We leave our forecasts unchanged although note risk to the upside heading into H2. We will review our model again at the Interims. Given the pace of growth and scale of opportunity from already established relationships,
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Devolver Digital to join AIM, an award-winning digital video games publisher and developer in the indie games space. Recently awarded indie 'Publisher of the Year 2021' by GamesIndustry.biz. Offer TBA. Due early Nov.
Life Science REIT to join AIM raising up to £100m. This will be the first London listed real estate investment trust (REIT) focused on UK life science properties providing investors with exposure
Companies: SYS1 ARE SO4 SNG TMG TMT OHG IDE KIBO MRL
Updating at the end of H1, Urban Logistics REIT (“ULR”) continued to deploy capital, with 2 further transactions in the last weeks of H1 bringing the total to £103m since the last raise (£109m in Jul-21). There is a further £50m in advanced stages and a £400m pipeline beyond that. Yields are in line with expectations and assets are pregnant with active management opportunities, which ULR thrives on. The board is seeking to move to Premium List to facilitate future growth. We leave forecasts unch
Companies: Urban Logistics REIT plc
Gore Street’s trading update confirms expectations of a strong trading environment for batteries in both the GB and Irish markets. Driven principally by high gas prices creating electricity market volatility and with tight capacity margins likely to remain, we see the company continuing to generate excess cash returns in this financial year at least.
Companies: Gore Street Energy Storage Fund PLC
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Arrow Exploration Corp. (AIM: AXL ; TSXV: AXL) , the oil and gas exploration and production company, has conditionally raised approximately £8.8m and is due to complete its dual listing on AIM on 25 Oct. Market cap c£13.1m.
Devolver Digital to join AIM, an award-winning digital video games publisher and developer in the indie games space. Recently awarded indie 'Publisher of the Year 2021' by GamesIndustry.biz.
Companies: ZYT CIC DMTR GILD LMS MMAG PYC SMRT SBI
Currently, Gore Street Energy Storage Fund (GSF) primarily relies on revenue from frequency response services, including Dynamic Containment (DC), to estimate near-term returns. The dislocation in the UK power market has led to a sharp rise in returns available from energy arbitrage leaving GSF’s assets well placed to benefit from this increased volatility. In September, those of GSF’s GB storage assets that participated in the actively-traded GB power markets generated revenues that were signif
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Companies: FOUR BLV DSCV
Companies: Chrysalis Investments Limited
Today's news & views, plus announcements from BHP, MGGT, RIO, BWY, MONY, BGO, YOU, AVAP, PCA & SOLG.
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