Markets News:
The FTSE index on Monday closed higher boosted by gains from oil
major Royal Dutch Shell, which offset the drop in shares of travel
and hospitality companies amid reports that the U.K. government
will delay by four weeks the final lifting of Covid-19 restrictions
in England. "The FTSE, up 24 points on the day, has managed to hit
its highest point since the beginning of the pandemic," said Hugh
Shields, financial trader at Spreadex.
Company News:
Draper Esprit to Raise GBP111 Mln to Accelerate Investment
Strategy
Draper Esprit PLC said Monday that it plans to raise 111 million
pounds ($156.6 million) via an equity issue, which will provide it
with additional financial firepower to accelerate its investment
strategy.
---
Gresham House Strategic Appoints Interim Chairwoman
Gresham House Strategic PLC said Monday that it has appointed
Nonexecutive Director Helen Sinclair as its new chairwoman on an
interim basis, with immediate effect.
---
Draper Esprit FY 2021 Profit Surged; To Move Listing to London's
Main Market
Draper Esprit PLC said Monday that operating pretax profit for
fiscal 2021 rose sharply as the value of its investments surged,
and that it plans to move its listing to the main market of the
London Stock Exchange.
---
JLEN Environmental Assets Buys Cramlington Renewable Energy --
Deal Digest
ACQUIRER: JLEN Environmental Assets Group Ltd., a London-listed
environmental infrastructure fund.
---
Total Produce Completes Syndication of Financing
Arrangements
Total Produce PLC said Monday that it has completed the
syndication of its financing arrangements for the purpose of its
combination with Dole Food Company Inc.
---
Silver Bullet Data Services to Float on London's AIM
Silver Bullet Data Services Group PLC said Monday that it plans
to float on London's junior AIM, with trading expected to start
later this month.
---
Scirocco Energy's 2020 Loss Widened; To Invest GBP1.2 Mln in
Energy Acquisitions
Scirocco Energy PLC reported Monday a widened pretax loss for
2020 on higher costs and said it intends to invest in Energy
Acquisitions Group Ltd., a specialist acquisition and operating
vehicle in the sustainable energy sector.
---
EEnergy Appoints Crispin Goldsmith to Lead M&A Strategy
EEnergy Group PLC said Monday that it has appointed Crispin
Goldsmith to lead its mergers and acquisitions strategy.
---
Sound Energy Agrees to Conditional Purchase of Schlumberger Silk
Route Services
Sound Energy PLC said Monday that it has conditionally agreed to
buy Schlumberger Silk Route Services Ltd. from Schlumberger
Holdings II Ltd.
Market Talk:
Era of Attractive Government Bond Returns Likely to Be Over
0958 GMT - After almost 40 years of declining rates that saw
10-year US Treasury yields hitting 0.50% in 2020, "it is probable
that the era of attractive returns is over for government bonds,"
Pictet Wealth Management says. The wealth manager sees expected
returns at the bottom of the historic average, it says while
outlining its outlook for the next 10 years. Coupon payments in
Europe and Japan won't compensate for the loss of value associated
with the rise in yield, while U.S. and U.K. 10-year government
bonds are likely to post low positive total returns, it says. "All
in all, the protection that benchmark government bonds provide to
portfolios will cost investors in terms of performance potential,"
Pictet WM says.
---
Saga's Higher Cash Reserves Are Positive Amid Mixed Trading
Update
0955 GMT - Saga's small increase in cash reflects broking cash
flow and positive working capital in cruise, offset by tours cash
burn, capital expenditure and interest costs, Numis says. The U.K.
provider of specialized products for consumers over 50 said its
cash burn at its travel business from February to May was at the
lower end of its guidance, but it also reported continued progress
in other metrics that will improve its marketing effectiveness.
Saga's available cash as of May 21 was GBP78 million, up slightly
from GBP75 million as of Jan. 21, which Numis considers to be
modestly ahead of its model. Numis has a buy recommendation on the
stock. Shares are up 0.2% at 411.40 pence.
---
UK to Face 'Minor' Economic Hit if Pandemic Restrictions
Extended
0950 GMT - U.K. Prime Minister Boris Johnson is expected to
announce today whether the final stage of easing Covid-19 measures
in England will go ahead on June 21. To provide more time to assess
developments of the new Delta variant, and to make sure that all
vulnerable groups have been offered both vaccine shots, a delay of
four weeks looks likely, economists from Berenberg say. However,
the economic impact of an extension of restrictions should be
moderate, Berenberg says. "Unless serious restrictions had to be
reimposed, the damage to the U.K. economy would likely be minor,"
it says.
---
Esken Would Benefit From Strategic Partnership for London
Southend Airport
0930 GMT - It is disappointing that Esken has been unable to
dispose of Stobart Air despite all its efforts, Canaccord Genuity
says. Stobart Air will cease trading and the cash outflows
associated with the aircraft leases and legacy commitments will
increase by about GBP33 million in the 2022 to fiscal 2024 period,
the Canadian investment bank says. Still, despite the remaining
uncertainties and lack of visibility for the aviation and energy
infrastructure group, a potential strategic partnership for London
Southend Airport would release significant liquidity and underpin
the airport's medium-term funding requirements. Shares are down 16%
to 26.20 pence.
---
Ted Baker's Performance Plan Seen as Shot at Redemption
0921 GMT - Lifestyle brand Ted Baker's performance plan
represents an opportunity to offset a string of negatives,
according to Money.co.uk analyst James Andrews. "That performance
plan is key. Ted Baker was hardly thriving before coronavirus,
issuing four profit warnings in 2019, not to mention the GBP58
million accounting error, and [...] its share price collapse by
more than 90% between 2015 and the start of the pandemic," the
analyst says. The company has been accelerating its plan in the
past 18 months, with a new partnership with Next, reduced costs
where possible, and an enhanced online offering, Andrews says. "In
order to restore faith and confidence in the company Ted Baker
needs to keep going with its plans," he says.
---
Serco's Contract Win to Help Shore Up Shortfalls
0914 GMT - Outsourcing group Serco's joint venture has secured a
contract win with the Defence Infrastructure Organisation worth a
base value of GBP900 million, a significant positive which will go
some way to filling the hole left by the Atomic Weapons
Establishment, Barclays says. The contract will have little effect
in 2021, but will start to ramp up next year, says the U.K. bank,
which assumes a contribution of around GBP5 million in 2022. After
taking into account upgrades, Serco's current share price looks
like it undervalues a best-in-class outsourcer currently enjoying
positive momentum, Barclays says. The bank reiterates its
overweight rating, and raises its target price to 180 pence from
170 pence. Shares are up 4.4% at 141.6 pence.
---
Craneware's Takeover of Sentry Is Positive for Group's Long-Term
Outlook
0913 GMT - Craneware's $400 million acquisition of Florida-based
peer Sentry Data Systems Inc. will boost the healthcare-software
provider's long-term growth, according to Peel Hunt. The
acquisition will materially enhance Craneware's play on helping to
improve admin efficacy of U.S. hospitals and pharmacy costs, the
brokerage says. Taking over Sentry strengthens Craneware's ability
to eventually unlock a significant analytics opportunity in U.S.
healthcare administration, Peel Hunt says. The brokerage has a buy
rating on the stock and a target price of 3,665 pence. Shares are
up 0.2% at 2,155 pence.
---
UK-US Air Travel Reopening Seen Pushed to Later in the
Summer
0857 GMT - Instead of an announcement that air travel between
the U.K. and the U.S. would resume as expected by Citi, last week's
G-7 meeting resulted in the creation of a task force designed to
reopen borders between the two countries. "Our base case for border
reopening has now been pushed to later in the summer versus a July
unlocking we assumed previously," the bank says. An announcement
regarding the reopening of the travel corridor could happen in July
with a potential resumption of travel in August, and U.K.-based
airline group IAG would benefit the most from the reopening, Citi
says.
Contact: London NewsPlus, Dow Jones Newswires;
+44-20-7842-931
(END) Dow Jones Newswires
June 14, 2021 12:14 ET (16:14 GMT)
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