Grainger see private rental sector growth as share rise over 2%
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.”
Redrow book stable half year, as Brexit takes it toll on British homebuilders
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.Donald Trump delivers his State of the Union speech
President Donald Trump has once again hit headlines on Wednesday following his State of the Union Address last night, as he hailed the “great American comeback” in his speech to Congress.
American Politics has always been known for its partisan, policy driven nature however Trump highlighted the divisions in both the House and Senate which has hindered the passing and aggregation of legislation in American Politics across his tenure.
The main case for Trump’s address last night was to fuel support for his 2020 Election Campaign, as both the primaries and caucuses fill voter enthusiasm as candidates look to rally support across all states in America.
The President delivered his speech in the House of Representatives on Tuesday, ironically in the same place where the initial stages of his impeachment took place.
The impeachment procedure is still gaining traction, and certainly there is a long way to go before Trump becomes the third US President to be impeached in office, however Trump seems more concerned about his new election campaign.
Trump did not mention his impeachment once in his delivery last night, but rather took the opportunity to address members from the Republican and Democrat party to try and convince party members that another four years of Trump would be beneficial.
Tensions got so heightened that even at one point Nancy Pelosi ripped up a copy of his speech behind him, making her opinions of Trump publicly aware for spectators to see.
Republican lawmakers chanted “four more years” as Mr Trump prepared to speak, urging him on for November’s White House election.
In the speech which lasted almost one hour and twenty minutes, the President mentioned the theory of “American Change” and how things had changed since his inauguration in 2017.
The president told his audience: “In just three short years, we have shattered the mentality of American decline and we have rejected the downsizing of America’s destiny.
“We are moving forward at a pace that was unimaginable just a short time ago, and we are never going back!”
Certainly, bookmakers are not underestimating the ability of Trump to win the 2020 election, and if elected then American Politics can expect another four years of tweets, antics and partisan driven policies.
The fun of American Politics continues, and will captivate the globe. Certainly Donald Trump has done nothing shy of that since he announced his intentions to run for the Presidency a few years back.
Domino’s boast fourth quarter growth in UK and Ireland
Domino’s Pizza Group PLC (LON:DOM) have seen fourth quarter revenue growth in their most recent trading update published today.
Domino’s, known for their mouth watering pizzas, range of sides and the notorious “two for Tuesday” deals have seen a mixed period of trading, however the update today will please shareholders.
The firm reported fourth quarter revenue growth, which was driven by better performance in the UK and Irish market.
Domino’s also noted that there are procedures that are currently taking place which involve the disposal of their international operations, which was the subject of headlines a few months back.
The firm said: “In October, we announced that Domino’s Pizza Group would be exiting our directly operated international markets, with the intention of finding more suitable owners for these businesses, ensuring the Domino’s brand remains and thrives in these countries. Since this announcement, the Board’s focus and priority has been on Norway, given the significant operating losses in this market. Once we have agreed a transaction for Norway, we will focus on progressing transactions for our businesses in Sweden, Switzerland and Iceland. We are focused on securing the best possible terms for shareholders and are working closely with Domino’s Pizza Inc throughout. We will update the market in due course.”
In the 13 weeks to December 29, group sales were 3.7% higher year-on-year at £352.0 million from £339.6 million, one impressive statistic to take from today’s update.
On an organic metric, at constant currency and excluding acquisitions and disposals, sales climbed 4.1% from the year prior.
In the UK and Ireland, sales jumped 4.4% from £312.9 million to £326.7 million, on organic measures this also showed a 4.5% rise.
Like-for-like sales in the UK alone were 3.9% higher during the quarter, though in Ireland, they were down 1.0%.
Internationally, Domino’s have struggled and business has slumped. Once again this sentiment was reflected in the figures from today’s update.
Looking at international business, sales were down 4.9% to £25.3 million from £26.6 million. Domino’s said its disposal program is “progressing” and added that it is focusing on offloading its Norway operations.
David Wild, Chief Executive Officer, said:
“I am pleased with the performance of our core UK and Ireland markets, with system sales up 4.4% and UK like-for-likes up 3.9%, against a strong comparative and a competitive backdrop. This performance was driven by the power of our brand, our strong digital capabilities and the operational expertise of our franchisee partners.
“At the end of the period we announced the tragic passing of our CFO, David Bauernfeind. David will be deeply missed by all who knew him and worked with him. He leaves behind a high-quality finance team who have shown remarkable resilience and dedication over the past month, and we are well advanced in the search for an interim CFO.
“We look forward to announcing our preliminary results next month and updating the market on strategic progress made over the last few months.”
Domino’s Chair departs
Domino’s told the market in December that chair Stephen Hemsley would step down, and the firm is set to look for a replacement. The FTSE250 listed firm said that Senior Independent Director Ian Bull will become interim chair while the search continues. Domino’s commented: “The search for a new chairman is progressing, and will be followed by the appointment of a new CEO. Further announcements will be made in due course.” The exiting from European markets may mean that Domino’s can centralize their UK and Irish business, a sector which has been blooming over the last quarter. In the long term this could prove beneficial is results continue to be strong. Shares in Dominos trade at 313p (+5.55%). 5/2/20 11:12BST.Babcock CEO announces departure after 4 year stint
Babcock International Group PLC (LON:BAB) have told shareholders about a couple of changes to their senior board on Wednesday.
The firm said that Chief Executive Officer Archie Bethel will be stepping down from his role, and will depart when a suitable replacement is found.
Bethel has held his role for four years, and has been with Babcock for 16 years since his initial appointment since 2004.
Ruth Cairnie, Chair, said: “On behalf of the Board, I want to thank Archie for his service to Babcock, during which time he was instrumental in growing Babcock from a small cap to a leading defence business. Archie has been a proven and respected leader, whose knowledge and understanding of the sector is second to none.”
Archie Bethel, Group Chief Executive, said: “Having served at Babcock for 16 years, I feel that this is the right time to retire. In the meantime, I am focused on positioning the Company for further success in the future. It has been an honour and privilege to serve at Babcock and I am proud of what the Company has achieved.”
Babcock also announced that it would be appointing United Utilities Group PLC’s Chief Financial Officer Russ Houlden as non-executive director with effect on April 1.
Houlden has held his role at United Utilities for ten years since 2010, and has also held senior roles on the reporting committee of the 100 Group.
“Russ has been an integral part of the work we have done in recent years to transform the organisation, helping us to deliver best ever levels of customer service, a more resilient network and real gains in operational performance and efficiency. Alongside this, Russ has helped secure a robust and sustainable financial profile for the company, including securing a fully funded pension scheme on a self-sufficiency basis,” said United Utilities Chief Executive Steve Mogford.
Transition period for Babcock
Babcock have seen a steady period of growth across the last few months, and in November the firm saw interim profit growth. For the six months to September, the firm reported pretax profit of £152.5 million, which was a huge rise from the £65.1 million figure a year ago. However on an underlying basis the figure dropped by 18% to £202.5 million from £245.5 million. Revenue meanwhile dropped by 2.7% to £2.19 billion from £2.25 billion the prior year, with underlying revenue also slipping by 4.7% to £2.46 billion from £2.58 billion. Babcock said that the revenue dropped because of the step downs in its Queen Elizabeth Class aircraft carriers contract, which contributed heavily to the falling revenue figures. Statutory pretax profit benefited from the lack of exceptional charge of £120.4 million, which alluded to the restructuring of the oil and gas division. Bethel leaves at a time where Babcock look like they are in good footing and in a period of transition, and the firm will take rigorous checks to make sure a suitable successor is found. Shares in Babcock trade at 598p (-0.63%). 5/2/20 10:57BST.Smurfit Kappa bounce back and swing to a profit in 2019
Smurfit Kappa Group Plc (LON:SKG) have swung to an annual profit and given shareholders an impressive update on Wednesday.
The Dublin based firm said that it had reached an annual profit across its financial year and as a result has lifted its final payout.
Notably, the firm said that one of costs across 2018 and issues with its Venezuelan business didn’t repeat, which allowed a strong performance across 2019.
Smurfit Kappa reported a pretax profit of €677 million, swinging from 2018’s €404 million loss, certainly impressive considering the struggles that the firm faced in 2018.
Looking at its 2018 business, the FTSE 100 lister said that it reported €1.34 billion in exceptional items relating to structural and operational issues in Venezuela.
Following these problems, the Venezuelan government took control of Smurfit Kappa Carton de Venezuela in the third quarter of 2018.
As a result, the firm dissolved its operations in the country, which seems to have been a blessing in disguise from the update today.
Smurfit raised its final dividend by 12% to 80.90 cents a share, taking its full-year payout to 108.80 cents, up 21% from 89.90 cents.
Smurfit bounce back in 2019
Following the strong results posed this morning, CEO Tony Smurfit commented “2019 represents another period of strong delivery and performance for SKG. EBITDA was €1,650 million, a 7% increase on 2018 with an increased EBITDA margin of 18.2%. Our vision is to be a globally admired company, dynamically delivering secure and superior returns for all stakeholders. Our recent performance shows progress towards the realisation of our vision. “Across 35 countries, we continue to create market leading innovative solutions for over 65,000 customers, delivering sustainable and optimised paper-based packaging. The 2019 outcome also reflects our performance culture, which has, at its core, an unrelenting customer focus. “During the year, we continued to strengthen our integrated model, following the acquisition of Reparenco in 2018, and our more recent acquisitions in France, Bulgaria and Serbia. These acquisitions significantly enhance our business and further expand our geographic reach. As with previous mergers and acquisitions, the new teams have integrated well and further strengthen the depth and quality of the Group. “Our European business continued to perform strongly, delivering an EBITDA margin of 19.0%. Demand growth was ahead of the market and in line with our expectations for the year with particularly good performances in Iberia and Eastern Europe. “The Americas region continued to perform well, delivering an increased EBITDA margin of 17.5% up from 15.7% in 2018. Our three main countries of Colombia, Mexico and the US had strong financial performances with demand in Colombia particularly strong. “A central element of our continued success is the quality of our people. To ensure SKG attracts, retains and develops the best talent, we partner with leading global business schools such as INSEAD to develop global training programmes across our business. In the last three years alone, over 1,400 have participated in these programmes across the Group with many thousands more on local educational training programmes. “Through our unique market offering, our ESG credentials, and a suite of industry leading applications that are impossible to replicate, SKG is increasingly well positioned to capitalise on the industry’s long-term growth potential. Our product is renewable, recyclable and biodegradable and is the most effective transport and merchandising medium for our customers, while improving their environmental footprint. The consistency of our delivery strategically, operationally and financially, through our recent Medium-Term Plan, reflects both the quality of our people and our world-class asset base. “From a demand perspective, the year has started well and, while macro and economic risks remain, we expect another year of strong free cash flow and consistent progress against our strategic objectives. “Reflecting the Board’s confidence in the unique strengths of SKG and its prospects, the Board is recommending a 12% increase in the final dividend to 80.9 cent per share.”Smurfit win eco-trends market
In October, the firm saw its shares in green once again as Smurfit looked to captivate the eco-friendly green trend which has been flooding business strategies. The Dublin based packaging firm said it delivered a “strong performance” in the year-to-date. For the nine months, ending on September 30th revenue was up 3% to€ 6.85 billion and earnings before interest, tax, depreciation and amortisation 11% higher at €1.26 billion. The FTSE100 listed firm also reported that Ebitda margin increased 140 basis points to 18.3%. Notably, American operations also grew approximately 2% with continued EBITDA and EBITDA margin improvement year-on-year.Raparenco acquisition
A while back back, Smurfit also reported that that they had struck a deal with Dutch paper and recycling firm Raparenco in a €460 million acquisition. The transaction is designed to be earnings accretive, with the addition of Raparenco expected to lead to savings of over €30 million. Including an Ebitda of €72 million, Raparenco’s Ebitda and synergies equate to a transaction multiple of less than 4.5. The update from Smurfit Kappa today is impressive, and the firm have bounced back with a rigid growth strategy coupled with a shrewd acquisition. Shares in Smurfit Kappa trade at 2,900p (+6.70%). 5/2/20 10:44BST.Imperial Brands dives over 7% on issuance of profit warning
Imperial Brands PLC (LON:IMB) have seen their shares dive on Wednesday morning following the issuance of a profit warning from the firm.
The tobacco multinational has seen a mixed period of trading over the recent months, however the update today has led to shares diving over 7%.
Shares in Imperial Brands trade at 1,807p (-7.46%). 5/2/20 10:23BST.
The FTSE 100 listed firm said that tobacco trading has remained steady and that expectations are set to me on Wednesday morning.
“Tobacco trading remains in line with expectations, with a weighting to the second half as previously guided. However, following the US FDA’s ban on certain flavours of cartridge-based vapour devices and weaker than expected consumer demand for vapour, we now expect constant currency full year Group net revenue to be at a similar level to last year and adjusted earnings per share to be slightly lower than last year”, the firm said.
However, group constant currency net revenue is now at a similar level to last year which has led to adjusted earnings per share being slightly lower than the comparable figure one year ago.
The firm told the market that the US Food and Drug Administration had placed regulation and bas on certain flavors of cartridge-base vapor devices, as well as weaker-than-expected consumer demand for vapor.
Additionally, Imperial said that it expects a currency headwind on net revenue and adjusted earnings per share of 1% for the half year period, and 3% for the full year.
First half adjusted earnings per share are expected to be down around 10% at constant currency, which the company said is due to the phasing of inventory write-downs, “primarily relating to the US flavor ban”.
Imperial said half-year adjusted operating profit will take a £45 million bruising from the inventory write-down, which Imperial said is in line with its previous estimates, as shareholders were quick to latch onto this as reflected in this mornings share price movement.
The firm gave shareholders something to be pleased about looking at their tobacco business, saying the following:
“Our Tobacco business has had a good start in the first three months of the year with market share trends across the majority of our priority markets. The Europe division has benefited from price/mix gains, which have largely offset weaker volume trends. Our US business remains strong, although financial delivery has been temporarily affected, as anticipated, by wholesaler destocking following the year end price increase. The Africa, Asia and Australasia division has delivered revenue growth reflecting a strong volume performance and the sell-through of the Australian duty paid inventory.”
Imperial elect new Chief Executive
On Monday, Imperial announced that they would be appointing a new Chief Executive. The tobacco company said that car dealer Inchcape PLC’s current Chief Executive Stefan Bomhard will join in a future date. Notably, the firm said that Aliso Cooper who is their Chief Executive has stepped down with immediate effect now that an adequate replacement was appointed. The update today will have given shareholders a shake up and slight worries, however with the new changes to the board Imperial will hope that this can take them in the right direction.Alumasc profits fall but foundations laid for strong second half
Sustainable building and engineering product supplier Alumasc Group (LON:ALU) posted a slight downturn in its half-turn results, due to challenging market conditions. However, the company’s outlook appears more positive.
Owing to operational changes and political tensions, the group had to content itself with ‘resilient’ results.
The company’s revenue narrowed to £41.1 million for the six month period ended 31 December 2019, down from £44.3 million for the same period a year earlier. Similarly, the Group’s statutory profit before tax dropped from £3.4 million to £2.1 million, while underlying profit before tax remained flat at £2.3 million at the end of both half year periods.
Further, Alumasc net debt widened from £5.1 million as of 30 June 2019, to £6.6 million at the end of the calendar year.
However, the company were pleased to announce its underlying operating margin had improved to 6.1%, up from 5.4%, and its triennial pension deficit valuation at 31 March 2019 was ‘significantly lower’ at £22.4 million, versus £33.0 million in 2016.Alumasc comments
Responding to the posting of the results, company Chief Executive Paul Hooper, stated:“In light of the challenging market conditions in 2019, we acted swiftly to restructure and reposition the Group in the second half of our last financial year. This underpinned a resilient H1 profit performance.”
“The Group’s pension deficit and cash funding requirement are significantly reduced.”
“With an increased order book of £23.6 million, up over 10% on six months ago, strong contract pipelines and the Group’s usual seasonal trading bias towards the second half referenced in the Outlook Statement, the Board’s expectations for full year performance remain unchanged.”
“The Board remains confident in prospects for the medium and longer-term performance of the Group in view of our leading specialist market positions in water and energy management, addressing climate change and the growing sustainability agenda.”
Strong second half expected
Looking ahead, the company’s outlook statement read:
“Group order books in the six months to 31 December 2019 were up by £3.0 million to £23.6 million, with encouraging trends across the Group, except for Levolux where we are being deliberately selective and cautious with order intake in line with the turnaround plan. Contract pipelines are strong at both Alumasc Roofing and Gatic, with a £1m project recently secured by Alumasc Roofing expected to deliver a positive impact in the second half year.”
“We anticipate that Alumasc should benefit from its usual seasonal second half trading bias. This could be more marked in the current financial year as we expect Levolux to return to profit in the coming months as it trades out of underperforming contracts from a significantly lower overhead base.”
“More broadly, with around two-thirds of Group revenues relating to the management of the scarce resources of water and energy in the built environment, and circa 75% of the Group’s products sourced from recycled or recyclable materials, the Group should benefit from the growing sustainability agenda as well as from increasing business confidence and positive market indicators in the UK economy following the recent General Election and EU Withdrawal Agreement.”
Investor notes
Following the update, the company’es shares rallied 5.14% or 5.50p to 112.50p per share 04/02/20 17:07 GMT. Analysts from Peel Hunt echoed the positive Alumasc outlook, upgrading their stance from ‘Add’ to ‘Buy’. The Group’s p/e ratio stands at 8.63, their dividend yield is generous at 6.53%.Numis equities trading performance “very strong” post General Election
For the four month period ended 31 January 2020, institutional stockbroker and corporate advisor Numis Corp (LON:NUM) posted strong results, with performance ahead of the comparable period the year before.
Revenue was in line with management expectations. Despite the pause in corporate activity caused by the General Election, Investment Banking revenues were materially ahead of the prior year based on a material increase in average deal fees.
The company added that while transaction volumes for the year-to-date remain broadly in line with the previous year, they expected activity to pick up as the year progressed.
The real highlight came with the Group’s equities trading, which was ‘significantly ahead of the comparable period’. Strong market activity post General Election saw the company’s Institutional Income and trading book deliver consistently during the four month period.
Numis added that following its recent engagement with institutions, it thought its payments for Research and Sales for the full-year would be broadly in line with expectations.Numis looks ahead
Discussing its strategy and outlook, the company’s statement read:“We remain focused on executing our strategic objectives and establishing Numis as a diversified investment banking business. Private markets transactions have delivered a meaningful contribution to our Investment Banking revenues since the start of the financial year following the completion of a number of transactions for both UK and international companies. In addition our Equities business has now launched an electronic trading product which is targeted at capturing incremental revenue from new and existing clients, as well as enhancing our execution capabilities beyond UK Equities.”
“Our investment across the business over recent years alongside our strong corporate client base assists in ensuring Numis is well placed to capitalise on an improvement in market conditions and deliver revenue and profit growth.”
Investor notes
Following the update, the company’s shares dipped 1.38% or 4.00p to 285.00p per share 04/02/20 16:35 GMT. The Group’s p/e ratio stands at 32.84, their dividend yield is moderate at 4.15%.SEC Newgate rallies 13% – results meet expectations following merger
Research, communications and advocacy group SEC Newgate SpA (LON:SECG) announced on Tuesday that it expected to post strong full-year results following its merger with Porta Communications in September 2019.
It said results for the joint group were expected to be in line with management expectations.
Forecast unaudited consolidated total turnover is EUR 47 million, alongside consolidated unadjusted Operating Profit of c. EUR 2.3 million and consolidated unadjusted PBT of c. EUR 1.6 million.
The company added that its net debt at the year’s end was expected to be c. EUR 9.0 million, excluding the impact of IFRS 16 adjustments.
SEC Newgate comments
Fiorenzo Tagliabue, Group CEO, stated:
“The unaudited consolidated figures reflect the significant progress we have made since the merger in September 2019. Our three-year Strategic Plan is being implemented, an example of which was our replacement €3 million banking facility secured with Deutsche Bank S.p.A., on preferable terms with no security or covenants, reflecting the improved financial stability of the Group.”
“Our agile teams are now working together across the communications spectrum building and protecting brands, reputations and business. We are committed to creating positive change for our people, clients and shareholders and have had a strong start to the new financial year.”