SDCL Energy Efficiency Income Trust acquires 50% of recycled energy project

SDCL Energy Efficiency Income Trust (LON:SEIT) announced on Wednesday that it had acquired a 50% interest in Primary Energy, a which is a portfolio made up of recycled energy and cogeneration projects. The projects are located in Indiana, USA, and the 50% stake is being bought from a consortium headed up by Fortistar LLC, for an equity cash sum of around US $110 million.

“The 298MW portfolio consists of five operating projects which generate low-cost, efficient energy, comprising three recycled energy projects, one natural gas combined heat and power project and a 50% interest in an industrial process efficiency project.” The company’s statement said.

The group said it would finance the acquisition through cash reserves. It added that its existing project debt finance facilities remained in place post-acquisition.

SDCL Energy Efficiency Income Trust comments

Jonathan Maxwell, CEO and Founder of Sustainable Development Capital LLP, said:

We are delighted to have completed this acquisition. This opportunity involves a proven operational portfolio of industrial energy efficiency projects with strong environmental benefits.

This investment further diversifies SEEIT’s portfolio, in terms of geography, technology, counterparty and application. We are confident that this acquisition will make a significant contribution to SEEIT’s total returns.”

Investor notes

Following the announcement, the SDCL Energy Efficiency Income Trust shares rallied modestly by 0.91% or 1.00p, to 111.00p per share 05/02/20 16:45 GMT. The company has a target dividend per share of 5.00p, with this set to increase to 5.50p for the year ended March 31 2021. Its estimated NAV is 99p.

FTSE and Sterling quashed by proposed MiFID II concession removal from London

After being given a boost by Tuesday’s PMI results, Sterling was knocked down a peg on Wednesday by the news that the EU was moving to amend its MiFID regulations in order to remove concessions from the UK. The MiFID II was designed as a standardising regulatory package to improve protections for investors and restore trust in financial institutions across the EU, following the 2008 crash. By amending the framework, the EU would seek to remove some of the privileges currently afforded to London, and impose rules that exclude the City from the efficiencies of being part of a unilateral bloc. “There is a risk that the Mifid review could be misused for political ends, which could ultimately, and regrettably, serve to frustrate access to EU markets by City firms,” Nathaniel Lalone, partner at law firm Katten, told Bloomberg. It should come as little surprise to any, though. Not because, as the British press will likely frame it, the EU are being vindictive. But simply because the bloc has a track record of protectionism. The substantial tariffs placed on the import of manufactured goods and services from the African continent should tell us all we need to know about the EU’s practices. Like it or not, they are prepared to implement frameworks which systematically maintain poverty, in order to protect the bloc’s collective interests (in this case, protecting EU members’ secondary and tertiary sectors). The news that the MiFID II could be adjusted also meant that while the FTSE rallied, it lagged behind its European counterparts. Speaking on market movements during the Wednesday session, Spreadex Financial Analyst Connor Campbell stated,

“Despite the World Health Organisation downplaying reports of a coronavirus treatment coming out of Chinese media, investors couldn’t resist the temptation to keep the market rebound going.”

“While the NASDAQ hit a fresh all-time high, the Dow Jones added 260 points, crossing 29000 for the first time in a week and a half. Echoing those gains, the DAX rose 1.3%, with the CAC nearing 6000 as it reclaimed another 0.9%.”

“Interestingly the FTSE couldn’t keep up the pace with its Eurozone and US peers, instead rising just 0.6%. What made the UK index’s performance especially curious was that the pound was down 0.4% against the dollar and 0.1% against the euro.”

“Sterling reversed its post-service PMI gains following reports that the EU could amend its Mifid II financial regulations to remove the concessions originally granted to the UK when the rules were first put into place. That would, presumably, be in order to combat the fact the continent’s biggest financial market – London – now sits outside the European Union.”

“It also didn’t help the FTSE that Imperial Brands (LON:IMB) was down close to 8%, after issuing a profit warning related to the crackdown on vaping.”

Where does British Politics stand? A few thoughts on a Wednesday afternoon

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British Politics has never been in such a unique moment, the current negotiations of Brexit are circulating news headlines whilst PM Johnson looks to gain trade deals with states such as Brazil, Russia, China and India. Coupled with this, the rise of extremism, party politics and austerity measures have all taken their toll, and here I want to share a few of my thoughts. Where does this leave the state of British Politics? Well, I don’t think that there is one straight forward answer if I am quite honest and certainly there are many balls to juggle for the newly elected Prime Minister. Brexit is a topic which has almost worn the British public down, after so many elections, pledges and false hopes I think that the British public are now rather disenfranchised with the whole idea of Brexit and just want it to be over and done with. Indeed, Friday was a historic day for British Politics but did the people really engage with the “Brexit Deadline Day”? I am not sure if the answer is yes – certainly from personal experience I would say no. Being a former Politics and International Relations student, I can’t count the amount of times I have been asked questions such as “What will happen with Brexit?”, “What will happen after Brexit is done?” and “Was Brexit the right decision?”. Brexit is not something which will just change overnight, and even if all the paperwork and formalities had been completed the moment we voted to leave the EU on that sunny Friday in June, I don’t think that it would all be done even today nearly three and a half years on. There are still so many formalities of Brexit that need to be cleared up, negotiated and debated in both Westminster and Brussels. Putting the process of “Brexit” aside, I feel like the management from politicians, legislators and the government has been handled rather poorly. The British people – including myself do not know what will happen when Brexit is finally done, will we be able to get a deal which allows us to stay within the Single European Market?, or will we have to forge new trade links with other countries. The information has simply not been there. Whereas the decision to leave the EU was a joint venture which involved the British people – that has been the only point where the public had any clue of what they were actually voting for, or the views that they actually represented. There is no need for me to dig into the Brexit campaign issues, as the public know that they had been deceived from both sides where false promises, incorrect statistics and to be honest absolutely absurd claims had been made by both the “leave” and “remain” campaigns. The government need to address the wider issue – which concerns the views and opinions of the British public who are not interested currently in British Politics as they do not have the resources or information. Endless debates in Westminster take place everyday, countless Prime Minister’s Questions have happened since Brexit and methods of Parliamentary scrutiny onto the Executive are not involving the British people – which goes against the principles of democracy. It really does make sense that the British people are not holding much interest in British Politics – and it not even a case of the party leaders or central figures being an issue. Outside of Brexit, PM Johnson has many issues to tackle outside of Britain’s fragmented relationship with the EU. A few days ago, another fatal terrorist attack took place in Streatham following another episode of political extremism. The rise of the “political right” in England has meant that communities have never been more isolated – and many members of far right political groups such as the British National Party or the English Defense League are quick to blame Political Islam as the reason for these attacks happened. Looking into this however, the reasons are not so apparent. This is only meant to be a round up piece – and I would love to sit here and write thousands of words about the history of political extremism and the recent rise of terrorism in the UK, however there is too much ground to cover. The simple answer is that we need to create a society of involvement, not one that promotes isolationism, not one that separates minority groups and makes them feel excluded. The British Government need to pay more attention on promoting both racial and ethical harmony in the UK, as there is still so much ignorance faced towards split communities, whether this be British Muslims, British Sikhs or even the LGBTQ+ community. It is important to stress that this is not an issue that requires attention from just the government or legislators. Political education has to become more available for the British public, and progressive politics and ideology has to be an open part of pluralist British society. It is very easy for many in the UK to point fingers at the immigration system or the actions of extremist minorities, however this is just one small aspect of many that need to be tackled to promote a fairer and more diverse society. I am a firm believer that the British people want to know more about British Politics and are keen to learn more about Parliamentary processes and the idea of Parliamentary democracy. However when the resources are not there and things go wrong – it is easy to point fingers and play the blame game. British Politics needs to become a universal entity – rather than split into partisan factions. This has been see throughout Prime Minister’s question as Jermey Corbyn attacked Theresa May or Boris Johnson every week rather than discussing the wider issues that need to be solved. Again – the answer is not something that can spring from a new Prime Minister or a new candidate promoting a hybrid party between the Conservatives or Labour. British Politics has become more and more partisan – following the polarization of the parties at both ends of the political spectrum and arguably this is one of the reasons as to why nothing is “actually” being done in Westminster. There is a lot going on for PM Johnson, and this is certainly not a criticism of him. The December election gave both parties a chance to express their intentions, and relate to the British people on a level that they can engage with Westminster officers. Neither party really did so in my opinion – if someone was to tell me that Boris Johnson played a master stroke and won the election against the odds then this would be far from the truth. Instead, the British people sided with Johnson over fears that Labour could not deliver and the so called ‘red wall’ of the North collapsed. In reality, the answer to the question posed initially does not really have an answer. Political writers and commentators will continue to speculate over Brexit, Political extremism and a reformed immigration system however the British public have seen some extreme divisions which is worrying to think about. The first job for British Politics is to heal the wounds of a fragmented society, and try and make the House of Commons a chamber of legislation making, not partisan rule breaking. Once this is done, we will hopefully see a British Political progression and a more universal society, which tackles issues such as Brexit in a more informed manner.

GlaxoSmithKline round off excellent 2019 with bullish fourth quarter update

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GlaxoSmithKline (LON:GSK) have seen their profits rise across 2019 as the pharmaceutical titan updated the market on its 2019 and fourth quarter operations. Glaxo alluded to the improvements particularly in its vaccines and consumer health segments, and also the benefits exploited from its mutual venture with Pfizer (NYSE:PFE). The pharmaceutical giant said that it had reported a £6.22 billion pretax profit across 2019, which sees a 30% surge from the 2018 figure of £4.8 billion. The rise in profit was one of headline statistics from today’s update. Revenue was £33.75 billion, rising 9.5% from £30.82 billion in 2018 . This higher year-on year improvement was driven by strong performance in the vaccines market , where revenue rose 22% to £7.16 billion from £5.89 billion, following the success of its Shingrix shingles vaccine. Consumer Healthcare revenue also rose 17% from £7.66 billion to £9 billion, which was driven by a strong partnership with Pfizer. The joint venture agreement between the two firms seem to have benefitted both parties, as Pfizer reported in November that they had smashed both analyst and market expectations. In this agreement, Pfizer hold a 32% equity whilst GlaxoSmithKline hold the rest. Within three years, the firm expressed their intentions to demerger and create a new listing on the London Stock Exchange. The FTSE 100 listed firm declared a final dividend of 23 pence for the fourth quarter, which takes total dividend to 80p which was consistent from the 2018 figure. Looking forward, GlaxoSmithKline expressed their strategy to keep dividends flat at 80 pence across 2020. The firm said ” We set out below earnings guidance for 2020. This reflects our expectations for growth in key new products, and the start of a two-year period in which we will continue to increase investment in these products and in our R&D pipeline, alongside implementation of our new programme which will prepare the Group for separation.” In 2019, the firm saw its adjusted earnings per share totalled 123.9p, rising 3.8% from 119.4p in 2018, a 1% rise at constant currency. Adjusted figures exclude intangible amortisation, intangible impairment, major restructuring, and other costs. Emma Walmsley, Chief Executive Officer, GSK said: “GSK delivered a good performance in 2019 with growth in sales and earnings, together with strong cash generation. We also made excellent progress in all three of our long-term priorities: Innovation, Performance and Trust, strengthening our pipeline, improving operational execution and reshaping the company. “In 2020, our first priority remains Innovation, to progress our pipeline and support new product launches. Recent data readouts underpin our decision to further increase investment in R&D and these new products. At the same time, we are again focused on operational execution, including delivering a successful integration in Consumer Healthcare, and we are also preparing for the future, starting a new two-year programme to get GSK ready for separation. “All of this aims to support future growth, deliver significant value creation, and set up two new leading companies in biopharma and consumer healthcare, each with the opportunity to improve the health of hundreds of millions of people.”

GlaxoSmithKline raise annual profit forecast in October

In October, the firm raised its annual profit forecast following a strong run of results. The drugmaker told the market that it expected full-year profit to be roughly flat compared to last year at constant currency, up from a previous forecast of a fall of 3% to 5%. Sales of Shingrix, launched in 2017, rose 76% to £535 million, beating analysts’ expectations of £464 million, leading vaccines unit sales to rise 15% to £2.31 billion. Additionally, turnover rose 11% to £9.39 billion in the three months ended Sept. 30 from a year earlier.

Developments in the US

A few weeks on, GlaxoSmithKline said that iViiV Healthcare has completed submission of a new drug application to the US Food & Drug Administration, seeking approval of fostemsavir. ViiV Healthcare is majority owned by GSK, with rival firms Pfizer Inc and Shionogi Ltd (TYO:4507) as a minority shareholders. “Fostemsavir may provide an important treatment option for the group of people living with HIV who, for a variety of reasons, are not able to suppress their virus with other medicines and could be left with few or no treatments available to them,” said ViiV Healthcare Chief Executive Deborah Waterhouse.

Positive Benlysta Phase 3 Tests

In the January update, the firm said that the results for the phase 3 study of Benlysta were “positive”, with regulatory submission scheduled for next year. GSK said that Benlysta is on track for regulators submission to be completed in the first half of 2020, as progress is made swiftly. The drug also demonstrated “statistical significance” compared to placebo across its four major secondary endpoints. The update from GSK today reinforces their status in the pharmaceutical market. Following a strong run of updates and results, both the firm and shareholders should be impressed with trading in the fourth quarter and across 2019. Shares in GlaxoSmithKline trade at 1,778p (-2.01%). 5/2/20 13:56BST.

Lookers set to meet expectations despite “challenging” financial 2019

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Lookers PLC (LON:LOOK) have told the market that they expect their profit results to meet company expectations.

Shares in Lookers trade at 56p (+3.53%). 5/2/20 13:02BST.

The firm alluded to a challenging trading environment in the fourth quarter of 2019, however it seems that the firm has managed to overcome these to deliver strong results.

For the three months to the end of December, Lookers said like-for-like sales of new vehicles declined by 6.6%, compared to a 3.2% fall in the third quarter, due to a contracting UK new car market, and a reduction in lower margin fleet volume.

Like for like sales increased by 3.8%, which saw growth compared to the 2.6% figure reported in the third quarter.

Lookers also alluded to a forecast predicting a further decline in the UK new car market in 2020, and Lookers joined a number of firms who have cited political tensions as a dampener on business.

Mark Raban, Chief Executive Officer said:

“2019 was a challenging year for Lookers. The declining new car market, political and economic uncertainty and increased operating costs were all factors in the Group’s decline in profitability. Over recent weeks the Board has instigated a number of clear and decisive actions to stabilise and improve operational and financial performance.

The Board remains confident about the long-term prospects for the Group, benefitting from excellent OEM relationships, strategic trading locations and a strong freehold property portfolio.”

The UK car market is still trying to bounce back from external shocks which have affected consumer confidence and have caused lower output from automobile manufacturers.

Lookers also announced a change in their senior management board this morning. Chief Financial Officer Mark Raban will become chief executive officer with immediate effect, alongside the promotion of Franchise Director Cameron Wade to be chief operating officer.

Raban and Wade will be replacing former CEO Andy Bruce and COO Nigel McMinn, both of whom stepped down in November after Lookers saw a tough few months of trading, which led to the issuance of a profit warning.

Griffin Mining suspend Chinese operations following coronavirus warning

Griffin Mining Ltd (LON:GFM) have suspended their operations in China following fears that the coronavirus could disrupt operations and supply chains.

Griffin said that work at its Caijiaying mine has been held following an announcement from the Chinese Government telling businesses to suspend “non-essential business”.

The mine, which provides gold, zinc, silver and lead has been stopped temporarily following the turn of the Chinese new year.

The firm said:

“Further to the announcement made by Griffin Mining Limited on 29th January 2020 concerning operations at the Caijiaying Mine, Chinese Government decrees have now restricted all non-essential businesses activities until 9th February 2020 as efforts are made to contain the Coronavirus outbreak in China.

As advised in the previous announcement, pursuant to past normal operational practices, mining operations were suspended at the Caijiaying Mine during the lunar Chinese New Year festivities with effect from 22nd January 2020, whilst milling operations continued until the 30th January 2020.

Underground workings at Caijiaying are being maintained on a care and maintenance basis with essential services, including pumping and ventilation, ongoing. As planned, the opportunity has been taken to undertake maintenance work at the mill, which has now been completed and the mill placed in care and maintenance. Whilst all essential and senior Chinese staff remain at Caijiaying, all non-essential local staff have been sent home and placed on standby with the expectation of operations recommencing on 9th February 2020 as mandated by the Chinese authorities.”

There have been thousands of people now affected by the coronavirus, and it was reported that the virus had spread into Hong Kong.

Yesterday, Hong Kong reported that they had seen their first death following a diagnosis of coronavirus, and certainly this is not an issue that global governments will want to stretch out.

Beside the fact that the coronavirus has become a global health disaster, the global economy is now suffering major setbacks over the potency of the lethal disease.

Not just for the sake of Griffin, but for the global economy and the health of the world population, the coronavirus will have to be addressed before lives are lost and global trading stumbles.

Shares in Griffin Mining trade at 63p (-2.69%). 5/2/20 12:43BST.

Oil prices spike as hopes of a coronavirus fix reach global news

Oil prices have remained volatile across the last few months, as both political and economic factors have been influencing oil indices. Prices have spiked this morning following hopes of a coronavirus cure which has left the globe in a state of shock.

On Wednesday, Oil prices jumped over 3% as news broke through on a potential short term solution for the ongoing coronavirus crisis, which is continuing to take its toll on Chinese business.

The coronavirus has had disastrous effects not just for Chinese businesses and stocks but also massive health implications, as fears surge following the vast spread and potency of the lethal illness.

Both Brent Crude and US West Texas Intermediate jumped more than 3% on Wednesday morning, as investors remained optimistic from the medical breakthrough’s that had been reported to battle the coronavirus.

The price of Brent Crude currently is $55.25, and has seen day lows of $54.05 and highs of $55.85.

Looking at West Texas Intermediate, the current price is $50.71 which has seen a jump of 2.55%. Once again, West Texas Intermediate has been up and down today seeing highs of $51.19 and lows of $49.47.

A Chinese newspaper, which covers news from the City of Wuhan told global media outlets that a team of researchers had concluded that that drugs Abidol and Darunavir can inhibit the virus in vitro cell experiments.

Yesterday, the World Health organization said that this would be a real window of opportunity for the global community to come together and fight, and that measures will be made to tackle the ongoing crisis.

Global media has criticized both the Chinese Government and the Chinese Health departments for not handling the initial outbreak of coronavirus with adequate response, and yesterday it was reported that almost 4,000 new cases were confirmed in China.

Certainly the price of Oil does remain up and down over the renewed hope that there will be a short term fix to the coronavirus, however it will take much more than a short term fix to stop the outbreak and ensure safety of the global population.

PrettyLittleThing “overly sexualised” ad banned

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A Youtube advert for PrettyLittleThing (LON:BOO) was banned on Wednesday as a result of its “overly sexualised” nature. PrettyLittleThing is owned by Boohoo Group alongside boohoo, boohooMAN, Nasty Gal, MissPap, Karen Millen and Coast. The brands have signed several Love Island stars recently to boost sales and drive social media activity. However, the Advertising Standards Authority said on Wednesday that the advert for PrettyLittleThing “must not appear again” because it is likely to cause “serious offence”. The Youtube advert, seen in October of last year, opened with a woman wearing black vinyl, high waisted chaps-style knickers and a cut-out orange bra, dragging a neon bar and looking over her shoulder. The advert continued to illustrate women posing seductively in various lingerie style clothing. PrettyLittleThing’s advert received a complaint questioning whether it was offensive and irresponsible because it objectified and sexualised women. The Advertising Standards Authority banned the advert, and told the online fashion brand “not to use advertising that was likely to cause serious offence by objectifying women”. “We considered that the cumulative effect of the scenes meant that overall, the products had been presented in an overly-sexualised way that invited viewers to view the women as sexual objects,” the Advertising Standards Authority said. “We therefore concluded that the ad was likely to cause serious offence and was irresponsible.” Boohoo recently posted an impressive set of results in January, and it raised its annual guidance following strong revenue growth. Shares in Boohoo Group plc (LON:BOO) were up on Wednesday, trading at +1.31% as of 11:52 GMT.

Grainger see private rental sector growth as share rise over 2%

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Grainger PLC (LON:GRI) have made progress in their financial year, as the firm alluded to growth in rental business. Grainger praised the strong performance of its private rented sector portfolio, at a time where the property market has been hit by external shocks and political complications. In the four month period, which ended on January 31 Grainger said that overall like-for-like rental growth was 3.5%, with a 3.0% rise on a like-for-like basis on the residential landlord’s PRS homes. The property investment firm said that its private rental sector had continued to perform well, with occupancy at 97.5% and a strong sales performance in the period, with pricing 0.8% ahead of valuations. Grainger’s PRS development pipeline as at January 31 stands at 24 schemes, representing 9,104 homes and around £2.00 billion in investment, an impressive stat for shareholders to note within today’s update. From the total portfolio, £845 million is related to internal company investment, £600 million from a joint venture deal with Transport for London and £570 million from opportunities in the planning and legal stages. Grainger looked forward to their business potential in 2020, and updated shareholders on four new schemes planned for 2020. The firm said “We have made good progress on our schemes in the planning process, including Exchange Square in Birmingham (375 PRS homes, c.£77m), and the redevelopment of one of our regulated tenancy assets in Waterloo, London, where we secured planning consent to increase the site from 69 homes to 215 PRS homes.” Grainger senior management have continued to praise the growth and development of their PRS portfolio. Helen Gordon, Chief Executive, said: “I am pleased to report a period of continued momentum in our PRS growth strategy, as the UK’s leading provider of private rental homes. We have made good progress on a number of schemes in our pipeline, including those in the planning process and new acquisitions. Lettings on our recently launched schemes are progressing well and ahead of underwriting, a testament to the quality of the design of our buildings and customer service offering. We are seeing a growing customer demand for our rental homes across the portfolio with 97.5% occupancy and 3.5% like-for-like rental growth. Supporting our new build investment, sales from our regulated tenancy portfolio are transacting well, reflecting positive market sentiment. “Since our last financial year end, we have secured two further schemes in line with our targeted investment strategy: Capital Quarter (307 PRS homes) in Cardiff for c.£57m, and our third scheme in Canning Town (132 PRS homes) for c.£55.5m. In addition, we have received planning consent for the redevelopment of one of our regulated tenancy assets in Waterloo, London. “Investment in our CONNECT technology led platform, which provides a leading differentiated experience for our customers and enhances our operational capability, is delivering early results on our new schemes, with wider roll out of the platform anticipated later this year. Grainger remained confident for their business in 2020, and shareholders will take much hope and optimism for the firm to bring consistency across 2020. “The outlook for Grainger in 2020 is positive. Grainger is in a strong position to benefit from the market opportunities following the clear result of the General Election which is already driving improved housing market sentiment. The business is ready and equipped to deliver on our PRS growth strategy, which in turn will deliver attractive, sustainable returns to shareholders and, importantly, enable us to provide great homes and great service to our growing customer base.”

Grainger break political constraints

In November, the firm updated the market saying that it had seen income rental growth across its financial year. The FTSE250 said for the financial year to September 30, its net rental income grew 45% to £63.5 million from £43.8 million in 2018. The strategic focus on the UK private rented sector continues to deliver real growth in the business, underpinned by strong demand for rental homes across the country. Profit before tax rose 30% to £131.3 million from £100.7 million, the company said. As a result, the company proposed a final dividend of 3.46p per share, which showed a 9% rise from 2018. Total dividend for the year was 5.19p, which again saw a climb from 4.75p in 2018.

Welsh acquisitions

Following on from the impressive update in November, Grainger announced that they had made two new acquisitions as part of their strategy to grow and expand. Grainger alluded to the new acquisition of a capital quarter in Cardiff Wales for a reported £57 million. The terms agreed include a forward funding and the acquisition of a 307 home project in the capital of Wales. Grainger alluded to the growing nature of the Welsh property market due to its strong economic prospects and growth potential. The home is currently being developed by IM Properties, with Winvic Construction Ltd acting as contractor. The residential property provider said, apart from private rental homes, the scheme will deliver a range of amenities for residents, including a rooftop lounge and terrace. Grainger said it expects this investment to generate a gross yield on cost approaching 7% once stabilized, with completion anticipated in mid-2022. Grainger have managed to overcome numerous hurdles in the last year, and the property market has been hit by Brexit complications. Shareholders will pleased from today’s update, and certainly this shows the hungry nature of the firm to grow in a property market that still seems to be recovering from external shocks. Shares in Grainger trade at 305p (+2.62%). 5/2/20 12:01BST.

Redrow book stable half year, as Brexit takes it toll on British homebuilders

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Redrow PLC (LON:RDW) have noted a slump in performance in the first half of its financial year but has remained confident for future expectations amid wider macroeconomic and political complications. “Redrow has once again delivered a robust operational and financial set of results for the first-half of the financial year and traded strongly despite an uncertain political and economic background. The results are consistent with our expectations highlighted in September, that returns will be considerably more weighted than usual to the second-half due to constrained outlet growth last year and the timing of apartment block completions.” The FTSE 250 lister alluded to political tensions as a constraint on strong performance, something which has been felt by many British businesses. It is indeed the case that we have formally left the EU, as the vote to leave passed on Friday 31st January, however this is just the paperwork. Analysts and market traders have speculated over the volatility that may be experienced over the next 12 months, as Brexit negotiations and a withdrawal deal is set to unfold as PM Johnson’s takes his terms to Brussels. Looking at the figures for Redrow however, the house builder reported revenue of £870 million for the six months to the end of 2019, which saw a 10% slump compared to £970 million a year ago, which lowered pretax profit by 15% to £157 million from £185 million. Redrow said revenue was hurt by legal completions reducing from 2,970 to 2,554. Private completions were down by 99 and social completions were 317 lower, showing the external shocks that the firm faced over the last few months of trading. The firm noted that average selling price remained consistent being £387,000 versus £391,000 a year ago. The company said it achieved a record number of private reservations in the six months to the end of December with the value of reservations up 18% at £936 million year-on-year. Despite the slight slow down in performance, Redrow decided to increase their interim dividend by 5% to 10.5 pence compared to 10 pence earlier in the year. John Tutte, Executive Chairman of Redrow, said “Redrow has once again delivered a robust operational and financial first-half performance consistent with our expectation that revenue will be considerably more weighted than usual to the second half. The Group delivered a record value of first half reservations at £936m (2019: £795m), a pre-tax profit of £157m (2019: £185m) and ended the period with net cash of £14m (2019: £101m). Given our confidence in the full year performance we have declared an interim dividend of 10.5p, up 5% on the previous year. The market in the first five weeks of the second half has been resilient with the value of reservations up 15% at £180m (2019: £156m). Current market conditions, combined with our very strong order book give me confidence this will be yet another year of progress for Redrow and our expectations for the full year remain unchanged.”

Redrow slow down from September

In September, the firm booked a strong set of figures for the full-year, with growth across profit indices and operational progress. The Company posted revenue growth of 13% on a year-on-year comparison for the full year ended 30 June 2019, up to £2.1 billion. This pushed operating profit up 8% on-year and profit before tax up 7%, to £411 million and £406 million respectively. The Group’s headline fundamental though, was its 13% on-year growth in legal completions, up to 6,443. The Group added that it had added 7,379 plots to their current land holdings, and delivered 1,712 affordable homes, up 55%. Redrow are not the only homebuilder that have struggled amid Brexit complications. As negotiations unfold and more clarity is given, there could be renewed optimism not just for names in the building industry but the wider British business sector as well. Shares in Redrow trade at 825p (+0.36%). 5/2/20 11:48BST.