UK market update – Greggs raises forecast, Melrose warns on supply constraints

imageStock Markets3 hours ago (Oct 05, 2021 07:36)

© Reuters

By Samuel Indyk – At 07:31BST, FTSE 100 Futures are trading higher by 0.3% at 7,005.  

In FX markets, GBP/USD is trading at 1.3592, EUR/GBP is trading at 0.8532. The US Dollar Index is up 0.2%.

Today’s calendar highlights include UK, Eurozone and US services and composite PMIs, Eurozone PPI, US trade balance, US ISM non-manufacturing PMI.

Greggs (LON:GRG) – Two-year like for like for Q3 sales up 3.5% despite staffing and supply chain disruption. Subject to any unexpected COVID disruption, expect full year outcome to be ahead of previous expectations.

BHP (LON:BHPB) – Reportedly in talks with Ivanhoe Mines to buy into the Western Foreland copper project in the Democratic Republic of Congo.

Tesco (LON:TSCO) – Close to settling the final meaningful legal action from shareholders over the 2014 accounting crisis. Could announce it has reached a an agreement with a group on institutional investors over a “substantial payout” alongside results on Wednesday. 

AstraZeneca (LON:AZN) – Requested an Emergency Use Authorization (EUA) to the US Food and Drug Administration (FDA) for its Covid-19 prophylaxis AZD7442.

Melrose Industries (LON:MRON) – Supply constraints in automotive industry affects performance of the company’s Automotive and Powder Metallurgy divisions.  At present the timing and duration of these constraints is uncertain, but recently the consensus view is that they have lengthened.  There are a number of scenarios possible, but it is likely these are below previous expectations. Melrose is confident that the scale of the impact on profitability from any revenue adjustment is in {{0|line}} with previous guidance given on margin drop-through, further underlining the good progress being made with the restructuring of these businesses

Anglo American (LON:AAL) – Seamus French to leave at the end of 2021 and will be replaced as CEO of Bulk Commodities by Themba Mkhwanazi, currently CEO of Kumba Iron Ore. Mpumi Zikalala, currently Managing Director of De Beers Managed Operations, appointed as CEO of Kumba.

Great Portland Estates (LON:GPOR) – £14.3 million of new annual rent signed in the quarter to 30 September, market lettings 10.4% ahead of March 2021 ERV. Sold 60 Old Street, EC1 for £181.5 million, reflecting 5% premium to March 2021 valuation. Expect healthy demand to persist and have a further £3.3 million of lettings under offer 7.3% ahead of ERV and £38 million of new annual rent in negotiation.

Assura (LON:AGRP) – Growing portfolio of 625 properties with current annualised rent roll of £127.5 million. Added 27 properties to our portfolio in H1, comprising seven new development completions and 20 acquisitions for a combined total cost of £117 million.

ICG Enterprise Trust (LON:ICGT) – NAV per Share of 1,523p, NAV per Share Total Return of 11.1% during H1. Second quarter dividend of 6p per share, taking total for the period to 12p. Intention reaffirmed to declare total dividends of at least 27p per share during the financial year.

Scs Group (LON:SCSS) – FY gross sales increased 21.0% to £324.5 million. Underlying profit before tax of £18.4 million (2020: £0.9 million). One year like-for-like order intake down only 1.5%, despite being closed for 17 weeks in 2021, compared with 9 weeks in 2020. Recommended final dividend of 7.0p per share. Year to date trading has been in {{0|line}} with the Board’s expectations.

Hotel Chocolat (LON:HOTC) – FY revenue increase of 21% to £164.6 million. Underlying EBITDA of £28.6 million (FY20: £21.6 million). Group trading is in line with management expectations for the first 13 weeks of FY22.

UK market update – Greggs raises forecast, Melrose warns on supply constraints

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