Today's news & views, plus announcements from LAND, VOD, PHNX, BNZL, FOUR, BVIC, AGR, EBOX, AQX, WJG, BGO, HDD
Companies: Bango plc (BGO:LON)Land Securities Group PLC (LAND:LON)
Today's news & views, plus announcements from JD, JET, LAND, BAB, DLN, ECM, HAS, PLUS, BOOM, RBG, CLG
Companies: Land Securities Group PLC
Today's news & views, plus announcements from KGF, JMAT, LAND, GFTU, VTY, PTEC, BME, YEW, APP, BLV
Companies: LAND APP YEW
Today's news & views, plus announcements from LAND, SGE, TSCO, BBY, GFS, HWDN, BBOX, EBOX, VTY, SUS, SBIZ
Companies: Land Securities Group PLC (LAND:LON)S&U plc (SUS:LON)
Today's news & views, plus announcements from Land Securities, Frasers Group, Games Workshop, THG Holdings & *Randall & Quilter.
Companies: Land Securities Group PLC (LAND:LON)Randall & Quilter Investment Holdings Ltd. (RQIH:LON)
Today's news & views, plus announcements from Associated British Foods, Flutter Entertainment, Land Securities, SSE, Hipgnosis Songs Fund, Randall & Quilter & the Downing Renewables & Infrastructure Trust.
Whereas retail’s GAV unsurprisingly accelerated its degradation in H1 20, reaching c. -25% on an annual pace, Offices were eroding at c. 4% (-1.9% lfl in H1 20). The Offices market has been still quiet until now, according to end-market sources (October 2020). Offices’ resilience explains why Land Securities’ performance was not that horrible. Do not forget that due to lag effects, empty offices (end-market) will weigh on FY 21 in our view, but not in H1 20.
Values have been down 10-28% in the UK in FY 19 (retail). We now explore the impact of the crisis on Offices in the City of London, where prices have been stable until now. It contributed to the Land Securities’ resistance until now and it fully explained the peristence of a low 32% LTV ratio in FY 19.
Regional retail was the usual victim in H1 19. However, LandSec’s assets in the City of London resisted pretty well.
Although Brexit is no longer a daily question, wait for September for this and 2020 for its consequences, the fragile UK retail segment continues to show great signs of sickness. Land Securities balances the risks with its strong development in London. Let’s hope that the Brexit consequences will not contradict this contrarian with its smart strategy to focus on the most robust British area for now.
Land Securities released relatively strong H1 18 results, despite a weak retail market. Revenue was up by +10.3% to £224m. Profit before tax for the period increased by +24% yoy to £42m. This is explained by net rental income rising (+1.65%) to £308m, driven mainly by the London Portfolio (+7.6% yoy to £155m) and less so by the Retail Portfolio (-3.7% yoy to £153m). This has led to an improvement in the adjusted EPS, which has risen by +17.9% to 30.3p (vs. 29.6p consensus), also pushed by a lowe
Due to a change in sector focus Cenkos Securities plc has suspended coverage on the following stocks (see table 1). Our previous recommendation and forecasts can no longer be relied upon.
Companies: BLND CAPC DLN GPOR HMSO CCRGF LAND WKP LMP SGRO SHB UTG
LandSec released its FY17/18 results, posting a £-252m loss, after £113m one year ago. This loss mainly reflected the cost of a major refinancing round (over £1.5bn) and a stagnating retail sector. Its shopping centres’ valuation fell by 3% yoy.
Land Securities published its FY16 (end March) results. Profit stood at £362m, up 10% yoy, or an adjusted EPS of 45.7p and the dividend was increased by 9.9% to 35p. Basic NAV gained 10.3% yoy to 1482p.
Occupier conditions remained strong, with footfall up 3.4% vs a decrease of 1.3% at the national level, and same store sales gained 1.5%, also ahead of the benchmark.
Interim results (March close). Footfall achieved record highs of 1.7% beating the benchmark -2.3%. Occupier conditions remained strong with a sales increase of 2.1% yoy vs. 1.5% for the benchmark and vacancy rates continued to be at their lows over the period.
The financial situation maintains momentum: a low LTV at 24% was published (the best in our coverage) and net debt at £3.5bn and a cost of debt at 5%. A third interim dividend of 8.15p to be paid in April has also been announced.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Land Securities Group PLC.
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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
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
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
NextEnergy Solar Fund’s investment in NextPower III opens up geographic opportunities in Latin America, Asia and other parts of Europe much earlier than could have been delivered by direct project investment. Additionally, the JV announcement with energy storage system (ESS) developer Eelpower is also an attractive way to accelerate portfolio diversity as well as opening up the door to further asset growth. By working with partners experienced in different geographies and the energy storage segm
Companies: Nextenergy Solar Fund
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,
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
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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What’s cooking in the IPO kitchen?
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
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Gymshark has started to put together plans for a stock market listing according to City A.M. The company hit a £1bn valuation just over a year ago and boasts customers in more than 130 countries. Gymshark was founded by teenager Ben Francis in 2012 in his parents’ garage with products that appeal to Gen Z consumers. Timing TBA
Rubix Group Holdings, the market leading pan-European distributor of industrial main
Companies: ZOO CUSN ECHO IDEA PURP TEK
Companies: Chrysalis Investments Limited
Today's news & views, plus announcements from BHP, MGGT, RIO, BWY, MONY, BGO, YOU, AVAP, PCA & SOLG.
Companies: AVAP BGO RIO SOLG
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
TMT Investments PLC have provided a portfoloio update. We have published research on this which is attached and a snapshot of the research is below.
The venture capital company investing in high-growth technology companies has moved one step closer to its first IPO driven exit. In a portfolio update announced this week TMT noted that its portfolio company Backblaze, Inc. publicly filed with the SEC on 18 October 2021. TMT currently holds a 9.97% interest in Backblaze, Inc. (pre its expected fun
Companies: TMT Investments
Companies: NewRiver REIT plc