The LSEG released this morning its numbers for H1 21. These were overall better than expected, especially the adjusted EBITDA. The key takeaway from the release is the confirmation of the financial targets following the integration of Refinitiv. This had been questioned following the Q4 20 earnings, especially on the costs side. Management still expects mid-single-digit growth in costs but confirmed the 50% EBITDA margin in the mid-long term. This should be supportive of the share price followin
Companies: London Stock Exchange Group plc
The London Stock Exchange Group released this morning a trading statement for Q1 21.
The overall picture is mostly reassuring regarding revenues, even if the mix is of a weaker than expected quality (small miss in the data & analytics division). Cost synergies are well on track and even ahead of the guidance on an annualised basis. The LSEG share price has fallen sharply since the Q4 20 earnings release and a profit warning. These new numbers will give it a floor.
The London Stock Exchange Group’s (LSEG) share price is down another 3% this morning. It follows a sharp fall of 13% last Friday following the FY2020 earnings release.
The FY2020 results were not the cause of the sharp fall. The sluggish guidance regarding the costs for 2021 and following years and the recent sharp drawback in growth stocks (rich P/E or EV/EBITDA) have contributed to this (almost) 15% decrease in the company’s share price.
This morning the LSEG released its numbers for H120. The bottom line was above expectations driven by higher income (treasury income especially) offsetting higher-than-expected expenses. Most importantly, the company has « commenced exploratory discussions which may result in a sale of MTS or potentially Borsa Italiana ». We had expected this to happen as covered in Latest of late June (« Refinitiv or Italy »).
The London Stock Exchange Group (LSEG) released this morning its FY2019 numbers. Revenues and expenses were roughly in line with expectations (slightly lower than our own forecasts). The key anticipation was to discover more about the Refinitiv deal. Management did not elaborate other than “regulatory approvals processes ongoing and on track for completion in H2 2020”. It did not comment either during the conference call.
The London Stock Exchange Group (LSEG) is down about 6% this morning as the Hong Kong Exchange and Clearing (HKEX) eventually simply dropped its offer on the UK market venue. While the odds in the last few days was for a rather higher price (with a higher amount of cash), the dropping the deal is not so surprising as it would have been scrapped either by the majority of LSE’s shareholders (probably) or by the regulators involved in the potential deal.
HKSE made a £32bn takeover bid for the London Stock Exchange yesterday.
We believe the probability of this deal succeeding is close to zero. However, this should feed speculation regarding other giant market venues (ICE or CME, for instance) bidding on the UK market venue. It will support LSEG’s share price in the short term. In any case, we remain positive on the stock (even on a standalone basis).
LSEG released this morning its numbers for Q2 19. But, most importantly, it confirmed its ambitions to acquire Refinitiv in an all-share transaction for a total enterprise value of c.$27bn. According to management, the deal will be 30% earnings accretive in the first year after completion (expected in H2 20).
We have been buying (add at worst) LSEG for more than four years. We will adjust our numbers and maintain our Buy recommendation on the company.
The LSEG is in talks with Blackstone and Thomson Reuters about a possible acquisition of financial data analytics provider Refinitiv. LSEG would acquire the company for a $27bn enterprise value. The deal would mark a strong push into the data business (currently branded Information Services within LSEG) and make the company less dependent on volatile capital markets (trading and clearing). Its share price is up almost 15%.
As part of Edison’s accessing the global capital markets interview series, Rachel Carroll, President and Managing Partner of Edison Inc., asks Chris Mayo, Head of Primary Markets (Americas) for the London Stock Exchange, for his views on the health of the UK IPO market post the EU referendum, and how UK corporates can most effectively access global pools of capital via a London listing, with a particular focus on the United States.
Sarah Baker, head of North American strategic engagement at the London Stock Exchange, and Ian McLelland, global head of natural resources for Edison Group, discuss how North American resources companies are increasingly seeking access to the diverse and sophisticated pools of investment capital in the UK. They outline recent examples and offer advice on how to best unlock additional pools of accessible capital.
According to the FT, Euroclear is exploring some options to allow its shareholders to sell their shares in the company.
As we have been repeatedly saying, it is a natural prey for the LSEG which currently lacks solid collateral management expertise.
The LSEG announced this morning its numbers for FY18.
In terms of P&L, no major surprises as both total income and expenses were bang in line with expenses. Hence, adjusted operating profit was in line with expectations.
Management dropped its 2019 EBITDA guidance (55%) at a time when consensus expectations (Bloomberg) are at 52% (vs. 53% for our expectations). It expects higher total growth in expenses than was initially thought (4%) due to ongoing investments. That mainly has an impact on d
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Revolution Beauty is a multi-brand, multi-category, multi-channel, mass beauty innovator with proven global scale. Since launch in 2014, the Group has grown rapidly (FY14 – FY19 CAGR of 99%) generating revenue of £137.5m in the 12m to 31 December 2020. Revolution has an established retail footprint of c.11,000 doors across leading retail chains in the UK, USA and internationally, driving global brand recognition. This is complemented by a fast-growing digital business (+81% in 2020) including it
Companies: Revolution Beauty Group plc
Companies: Aquis Exchange Plc
Litigation Capital Management has released its results for FY21, reflecting on a positive year for the group in very challenging market conditions. Although well flagged, these set of results highlight the strength of LCM's investment process as it's maturing balance sheet continues to deliver strong returns on capital as key cases settle.
Companies: Litigation Capital Management Ltd
Companies: Real Estate Investors plc
Oversubscription of Gore Street’s PrimaryBid offer is helpful although given the attractions of the energy storage market perhaps not surprising. The larger placing remains open with results announced at the end of the month. Together the c.£70m raise will provide the fund with ammunition to pursue its strong pipeline of storage opportunities.
Companies: Gore Street Energy Storage Fund PLC
Gore Street continues to find good projects in the GB market and has today announced a 57MW project in Leicester. It is now more active in seeking projects beyond the UK and RoI in North America and Western Europe and we think there are significant opportunities in these geographies. The company now has a pipeline of 2.5GWh with 2GWh of that in new geographies and 160MWh of that under exclusivity. With these opportunities in mind the company has announced a placing at 107p.
Following the successful completion of the Hawthorn disposal, towards the top-end of our £180-230m range, and the transformation to a pure retail property group we update forecasts and briefly set out our investment thesis ahead of the Group’s CMD. We estimate FFO for FY22F, FY23F and FY24F of 7.2p, 8.3p and 9.4p per share respectively; a 3-year CAGR of c35% over the 3.8p generated in FY21A. Post-Hawthorn, balance sheet metrics have markedly improved, flexibility enhanced, and refinancing risk r
Companies: NewRiver REIT 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
Companies: AMYT BAG BVC BRSD CLG CML FBD GDWN INV MACF MNZS MIO NRR NSF NBI MATD PREM QFI RUA SCS STVG SUR SNX UPGS VAST VLS
NextEnergy’s JV with storage specialist Eelpower is an important strategic development. Storage demand is set to grow if the UK is to move towards its net zero targets and the combined attributes of the JV partners make it well suited to succeed here. For NESF it opens up a new route to asset growth in our view.
Companies: Nextenergy Solar Fund
NextEnergy Solar Fund (NESF), which has the ability to invest up to 10% of its gross assets in energy storage, has announced a significant step into energy storage with the establishment of a £100m joint venture partnership with one of the leading battery storage specialists, Eelpower Limited (Eelpower). The joint venture is owned 70% by NESF and 30% by Eelpower. The partnership has also announced the signing of its maiden acquisition, a 50MW standalone battery storage project, which is ready to
Today's in-line results illustrate the financial impact from restrictions upon face-to-face Insurance sales over the past 15 months. However, they heavily mask the strategic momentum underway across the Group. Since the lifting of restrictions from June, Insurance is exhibiting a strong and accelerating rebound in demand, which should mark an inflection point for policyholder numbers and restore premium income to pre-pandemic levels over the medium-term. We expect the Group's other product lines
Companies: Personal Group Holdings Plc
Today's results include few surprises in terms of cash outcomes, which are in-line with our FY21E forecasts. These record results come despite the year being challenged by Covid-19, evidencing the resilience of Duke's operating model and royalty partners. Post-period, 4 new investments have been concluded, which should help drive cash results higher over FY22E, despite a further 2 exits from the portfolio. As the company approaches near full deployment by FY23E, we expect to see FCF p/s and DPS
Companies: Duke Royalty Limited
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Plutus Powergen has left AIM.
What’s cooking in the IPO kitchen?
Eurowag confirms its intention to undertake an initial public offering on the Main Market (Premium). The Offer would be expected to comprise both (i) new Ordinary Shares to be issued by the Company, raising gross proceeds of approximately EUR200m to support Eurowag's growth strategy and (ii) existing Ordinary Shares to be sold by existing Eurowag shareholders. Eurowag is a leading pan-European
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Belvoir’s H1 2021 results are exceptionally strong, with adj. EPS up +50%. They were, of course, aided by a very buoyant housing market, but this does not detract from the strategic progress the group continues to make. The group’s growth strategy has supported 24 years of unbroken profit growth and, while 2022 will likely see cooler market conditions, there are increasing signs it will be a gradual return to more normal conditions. The acquisition of Nicholas Humphreys in H1 and The Nottingham
Companies: Belvoir Group PLC
In-line interim results to 30 June 2021 show revenues up 93% to £8.5m, EBITDA up 118% to £2.4m and AUM up 15% to £1.1bn compared with the FTSE All Share, which grew 11.1%. DFM assets outperformed the All Share by almost 4x, increasing 40% to £606m. Recent acquisitions are all performing as initially expected, with the full opportunities that can be realised as a result of the network effects and joined up approach, likely yet to come. While EBITDA is performing very well, reaching 54% of our 202
Companies: Frenkel Topping Group plc