UK pre-market stocks update

[MongiIG]

BHP Group, M&S, Hochschild Mining, IAG

By Samuel Indyk, 22nd November 2021

Investing.com – At 07:30GMT, FTSE 100 futures are trading higher by 0.4% at 7237.

In FX markets, GBP/USD is trading at 1.3434, EUR/GBP is trading at 0.8390. The US Dollar Index is up 0.2%.

Today’s calendar highlights include UK CBI Industrial Trends Orders, US Existing Home Sales, Eurozone Consumer Confidence.  

Economy

Bank of England Governor Andrew Bailey said risks to the inflation outlook are both ways. Bailey added that the central bank will have to raise rates if the economy evolves as expected but that the situation is “febrile”.

Stocks

BHP Group PLC (LON:BHPB) - To merge oil & gas portfolio with Woodside Petroleum. Woodside is to the entire share capital of BHP Petroleum in exchange for new Woodside shares. On completion, the merger will create a global top 10 independent energy company by production and the largest energy company listed on the ASX. BHP has also approved $1.5 billion in capital expenditure for the development of the Scarborough upstream project in Western Australia.

Hochschild Mining (LON:HOCM) - The company is aware of meeting minutes signed by the Peruvian Head of Cabinet that state that a commission has been constituted in order to negotiate the timetable and terms for the closure of certain mining projects in southern Ayacucho, including the Company's Pallancata and Inmaculada mines. Hochschild said it has not received any formal communication from the government regarding this matter.

IAG (LON:ICAG) – The UK Competition & Markets Authority (CMA) is looking at whether IAG's planned €500 million purchase of Spain's Air Europa would harm competition in the UK.

Marks and Spencer (LON:MKS) - CEO Steve Rowe could step down from the role within the next 18 months. (The Times)

Smiths Group (LON:SMIN) - New CEO Paul Keel has defended the company’s conglomerate structure, following GE and Toshiba’s plans to break up. (FT)

Diploma (LON:DPLM) - FY revenue up 46% to £787.4 million. Adjusted operating profit up 71% to £148.7 million.Total dividend increased to 42.6 pence per share. 2022 outlook unchanged. Expect circa 10% reported revenue growth, including mid-single digit underlying revenue growth. 

Edinburgh Investment Trust (LON:EDIN) - Net asset value in total return terms up 9.8%, compared to 8.0% rise for FTSE All-Share. Share price discount to NAV widened from 4.5% to 9.3%. First interim dividend of 6.0p per share to be paid on 26 November 2021.

[MongiIG]

AO World, Severn Trent, CRH, Pets at Home

By Samuel Indyk, 23rd November 2021.

Investing.com – At 07:37GMT, FTSE 100 futures are trading lower by 0.8% at 7197.

In FX markets, GBP/USD is trading at 1.3400, EUR/GBP is trading at 0.8400. The US Dollar Index is down 0.1%.

Today’s calendar highlights include Eurozone, UK, and US PMI readings.  

Stocks

Severn Trent (LON:SVT) - H1 group turnover up 8% to £958 million. Group PBIT up 13.8% to £256 million. Interim dividend of 40.86 pence per share. Increasing customer ODI guidance to at least £75 million for the full year.

CRH (LON:CRH) - 9-month sales up 11% to $22.8 billion. EBITDA up 15% to $3.9 billion. Expect full-year EBITDA to be in excess of $5.25bn; well ahead of prior year.

Ao World (LON:AO) - H1 total group revenue up 6% to £760 million, up 67% on 2019. Group adjusted EBITDA down 84% to £5 million. Reported operating loss of £11 million. Continue to see meaningful supply chain challenges with poor availability in certain categories. Current peak trading period is significantly softer than anticipated only eight weeks ago. Now expect full year Group revenue to be flat to minus 5% year on year, with Group Adjusted EBITDA in the range of £10-£20 million.

Pets at Home (LON:PETSP) - H1 total group revenu up 18% to £677.6 million. Group like for like revenue up 22.2%. Underlying profit before tax up 77.2% to £70.2 million. Increased interim dividend 72% to 4.3 pence per share. Maintains full year guidance with FY22 Group underlying pre-tax profit anticipated to be at the top end of the current range of analyst expectations.

Compass Group (LON:CPG) - FY underlying revenue down 6.3% to £18.1 billion. Underlying operating profit up 55.4% to £811 million. Reinstated annual dividend of 14 pence per share. FY22 organic revenue growth expected to be 20%-25%. FY22 underlying operating margin anticipated to be over 6%, with an exit rate of circa 7%.

Softcat (LON:SCTS) - Delivered year-on-year growth in revenue, gross profit and operating profit in Q1. Progress to date has met the board’s expectations.

Reach (LON:RCH) - Group revenue in period from 28th June to 21st November up 1.2%, with digital up 17.2% and print down 3.5%. Revenue currently trading ahead of full year expectations, enabling digital investment.

Cranswick (LON:CWK) - H1 like for like revenue up 6.4% to £993.1 million. Adjusted group operating profit up 12.3% to £69.6 million. Interim dividend increased 7% to 20.0 pence per share. Outlook for the current year is unchanged.

Caledonia Investments (LON:CLDN) - CEO Will Wyatt intends to retire at the company’s AGM in July 2022. Will is to be succeeded as Chief Executive by Mathew Masters, who is currently Head of Caledonia Quoted Equity. NAV up 16.1% in the first half. Caledonia Quoted Equity returned 13.5%, reflecting positive movement in global equity markets and careful stock selection.

Coats Group (LON:COA) - Group quarterly organic revenue up 22%, up 6% on 2019. Anticipate performance for the full year 2021 to be in line with expectations.

International Public Partnership (LON:INPP) - NAV fell to 145.1 pence at end of June 2021 from 147.1 pence at end December 2020. Maintaining previously announced dividend targets of 7.55 and 7.74 pence per share in respect of 2021 and 2022, respectively.

Bodycote (LON:BOY) - Group revenue for 4-month period from 1st July to 31st October up 3% to £200.1 million. Now expect that our full year Group revenue will be up to £10 million lower than our previous expectations as a result of lower automotive revenues.

Telecom Plus (LON:TEP) - H1 revenue up 6% to £371.3 million. Adjusted profit before tax of £26.2 million. Seen significant increase in activity following recent energy crisis and paradigm shift in the retail energy market. Net customer growth in October of 15,000. Expecting around 10% growth in customer base during H2 with double-digit annual percentage growth thereafter.

River and Mercantile Group PLC (LON:RIV) - Premier Miton has approached River and Mercantile to explore a takeover.