Bolloré could be looking to exit its long-standing logistics activities in Africa according to French media. Although the company has not commented on the matter — so it remains all speculation — we see this potential move as a clear positive. Bolloré is faced with the high capital intensity of the business while affronting competitive pressures from deeper-pocketed and expanding rivals. Supportive valuations for logistics & port operators and the upcoming departure of Vincent Bolloré suggest th
Companies: Bollore (BOL:EPA)Bollore SA (BOL:PAR)
In a letter addressed to Vivendi, Bolloré has committed to not ask the French market authority (AMF) for an exemption of launching a takeover bid on Vivendi, triggered if the HoldCo finds itself crossing the regulatory threshold of 30% of the share capital.
Bolloré closed a strong first quarter for its Transportation and Logistics division, partly offset by the weakness from Oil Logistics, while Vivendi was led once again by top performer UMG (soon to be spun-off). The transport and logistics activity outperformance was driven by the strong trading environment stemming from global inventory rebuilding efforts as cyclical sectors emerge from a post-pandemic slumber, a trend that should extend through H1 21.
Vivendi has finally revealed its future plans for UMG, with Bolloré now finding itself as one of the major beneficiaries from the upcoming spin-off of what is, by far, Vivendi’s most valuable asset. This surprising development, which has been most likely orchestrated by Bolloré (up to a certain extent), could result in a complete rethink of the HoldCo’s investment strategy for years to come.
Companies: Bollore SA
Following the unexpected resilience shown by the transportation & logistics division in H1, the third quarter trading statement held fewer surprises. The second half seems less challenging than expected for Bolloré’s key businesses, with both communications and transportation & logistics posting very modest, but still positive, sales growth. Nonetheless, the continued weakness in oil logistics risks pulling down the group’s full-year results.
While we were anticipating Bolloré’s Q2 to be tough, particularly for its transportation & logistics division, an unexpected rise in air freight and positive price developments supported the division’s trading results and profitability in H1. The proven resilience of Vivendi (and UMG in particular), in addition to stronger ‘core activities’ at the Bolloré level, point to a less gloomy outlook despite the challenges of a still uncertain H2 economic recovery.
While Bolloré’s group revenues in Q1 saw a limited impact from the COVID-19 outbreak, banking on Vivendi’s relative resilience to the crisis may not prove to be enough to offset the negative impact on the holding’s transport and logistics activities. The 2020 scenario for Bolloré ex-Vivendi remains quite challenging indeed.
Bolloré released sales figures that, despite falling in line with our estimates, paint a worrisome picture for the group’s ‘core activities’ (i.e. excluding Vivendi). Particularly in the context of a latent global slowdown due to the Covid-19 outbreak and its potential impact on global freight volumes and oil product prices. The outlook for 2020 may not differ much from the disappointing performance of Bolloré’s core businesses in 2019.
The widespread decline in air and sea freight volumes spurred on by the trade war and the uncertain macro-economic environment is catching up with Bolloré, with revenues decreasing by 4% lfl in Transportation & Logistics. Nonetheless, the scenario is more upbeat in the Communications division, as UMG continues to post solid rates of growth (up +16%), much to the benefit of Vivendi (+7%). Opportune disposals of non-core assets should keep the cash flowing in spite of a challenging outlook for Bol
Capital Continues to Flow Into LMIs
Through April and May we have seen three more listed managed
investment vehicles (LMIs) start trading on the ASX including two
fixed income focused listed investment trusts (LITs), Perpetual Credit
Income Trust (ASX:PCI) and MCP Wholesale Income Opportunities
Trust (ASX:MOT). Refer to our LMI Monthly Update of 18 March 2019
for more details on these LITs.
Pengana Private Equity Trust (ASX:PE1) units listed in April after
it raised $205m, at the lower
The 11% organic growth posted by Transportation & Logistics, the historical heart of Bolloré, is a positive surprise in a context of downgraded world GDP growth.
Putting it simply, we find it difficult to reconcile our 2018 forecasts with the H1 release which is a measure of the group’s complexity. The underlying business is in better shape than expected while building up the stake in Vivendi is a high-wire exercise.
The boss and owner of Bolloré SA is meeting French judges on African corruption allegations. This matters less than a business which is far too complicated for comfort when issues are surfacing from too many corners (Africa, Italy, Batteries).
Bolloré SA fully consolidates Vivendi and has published unappetising earnings.
The battles waged by Vincent Bolloré in and on the media could almost make investors forget that the group is currently facing problems – or even setbacks – in nearly all of its activities. We have already discussed the strategy (or is it tactics?) relating to Vivendi. Yet, a series of disappointments have occurred over the last few months, and not just in the media sector.
Bolloré SA is a family-owned company that is seriously geared (the financials at the Omnium Bolloré level give a clearer p
Research Tree provides access to ongoing research coverage, media content and regulatory news on Bollore SA.
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Companies: Vertu Motors PLC
Vertu has delivered an impressive set of record H1 results, which showed strong volume outperformance and pricing discipline across all markets. We are raising our FY22 forecasts by 19% to reflect current management guidance and leave our FY23/24 forecasts unchanged for now. Our near term value per share increases to 86p implying a healthy risk reward profile from here.
H1 trading was slightly ahead of expectations from a sales and margin perspective, with UK sales positive in Q2 after annualising very tough Q1 comps. Despite exceptional comps, a good proportion of the gross margin uplift has also been retained. G4M continues to minimise the impact of various global supply chain headwinds. and has good visibility of stock/availability for peak. It is therefore confident of hitting full year expectations. Recent de-rating looks unjustified, particularly given a
Companies: Gear4music (Holdings) PLC
Strong performance in H1 means full year EBITDA is now expected to be no less than £5.0m (£6.9m post-IFRS16), driving an EPS upgrade of over 20% while potentially still leaving risk to the upside depending on trading in the traditionally quieter Q4 season. This has been driven in part by further gross margin gains and operational enhancements where further strides are likely. Today’s other news relates to the launch of an in-territory EU fulfilment centre in spring 2022 which will facilitate maj
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Marshall Motor Holdings (“MMH”) has today announced its £64.5m cash acquisition of Motorline Holdings Limited, a multi-franchise dealer group that operates 48 franchises operating across the South of England, representing ten brands. MMH has a long track record of successful execution and integration of acquisitions – we are confident that this “off market” transaction will complement MMH’s already strong and reliable platform. With our upgrade to FY21 earnings last week and the upside that this
Companies: Marshall Motor Holdings Plc
Entain registered Q3 21 top-line growth of 6%, driven largely by online (10%). In the all-important US market, BetMGM surged ahead with a further expansion in market share of (23% in three months to August vs 22% in Q2 21).
FY21 EBITDA guidance of £850-900m was re-iterated, a positive given the recently announced headwinds from Dutch regulations.
We do not expect any significant change to our estimates, given that the performance was largely in line with our estimates.
Companies: Entain PLC
G4M has delivered an H1 trading update in line with internal expectations against the very strong H1 trading performance last year and is on track to meet full-year consensus market expectations. UK sales performance was the stand-out feature, coming in flat on last year. Europe’s performance was hindered by post-Brexit challenges, down 16% on last year, though up 14% on a two-year view. Group sales are down 8% in aggregate, but up 31% on a two-year view. Gross margin has held up well, being dow
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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
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Guild Esports provided an encouraging operational update and published H1 results yesterday. H1 financial results do not reflect the company’s substantial progress on sponsorships signings, tournament wins and fanbase growth:
Companies: Guild Esports PLC
Exactly one year ago, the FTSE 100 closed at 5,862, having fallen 100 points on the day, the lowest point since mid-May 2020, due in part, to the strength of sterling vs US$ at $1.34. One year on, the FTSE 100 has risen to 7,119, a rise of 21%, it remains 7% below the peak in January 2020. From an international viewpoint, US and European markets continue to trade at record highs. The US Federal Reserve is close to withdrawing some of its economic support this year as inflation picks up and the e
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Softline the global solutions and services provider in digital transformation and cybersecurity, with its headquarters in London, is considering proceeding with a potential initial public offering of global depositary receipts representing its ordinary shares. The Company is considering applying for admission of the GDRs to the standard listing segm
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The final results revealed adjusted PBT up 99% year-on-year, which was 10% better than forecast despite four upgrades during the financial year. This strong performance reflects the financial benefits that have accrued following the shift in the business model to online only, as well as management’s strategic decision to significantly increase marketing spend. A second special dividend for the 2020 financial year has also been announced, reflecting the strong cash flow characteristics of the bus
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Guild Esports is positioned to become the leading global esports brand based in the UK. With strong support from David Beckham, the company plans to pioneer the UK Premier League academy model in esports, attract leading sponsors, build a loyal fan base and establish a premium line of merchandise. Within 12 months of the IPO, Guild plans to contract 19 esports staff, register 1m fans and generate £5m sponsorship revenue, £1m merchandise revenue and £0.6m media revenue. Today, Guild announced a £