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UK market update – Royal Mail to acquire Canadian logistics company

Published 08/10/2021, 07:31
Updated 08/10/2021, 07:33
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By Samuel Indyk

Investing.com – At 07:30BST, FTSE 100 Futures are trading flat at 7,055.

In FX markets, GBP/USD is trading at 1.3601, EUR/GBP is trading at 0.8489. The US Dollar Index is up 0.1%.

Today’s calendar highlights include US Nonfarm Payrolls, Canadian labour market report, and US wholesale inventories.  

Stocks

Royal Mail (LON:RMG) - Royal Mail’s General Logistics Systems (GLS) subsidiary has agreed to acquire Canadian logistics company Mid-Nite Sun Transportation. The total consideration is CAD360.0 million (approximately £210.5 million) on a debt and cash free basis.

Electrocomponents (LON:ECM) - One-year like-for-like H1 revenue growth was 31%, with acquisitions contributing a further 7%. With the strong H1 performance, and notwithstanding the uncertain trading environment, Electrocomponents now anticipates full year revenue growth and adjusted operating profit margin to be slightly ahead of the guidance provided at the Q1 update.

Unite Group (LON:UTG) - 94% of bed spaces are now let across total portfolio (2020/21: 88%, 2019/20: 98%), slightly below expectations of 95%-98% occupancy.  Pricing activity remains disciplined in the market with only limited discounting in specific markets with higher availability. As a result, we expect to deliver rental growth of 2.3% for the 2021/22 academic year. Reduction in occupancy and rental income for the 2021/22 academic year is expected to result in EPRA EPS at the lower end of guidance.

IP Group (LON:IPO) - Today launched a £35 million shares repurchase programme.

Chemring (LON:CHG) - Received confirmation from HM Revenue & Customs that their enquiry into Chemring's participation in the UK's Controlled Foreign Company Finance exemption has been closed.

Clinigen (LON:CLINC) - Signed an exclusive agreement with Humanigen to implement a Managed Access Program for lenzilumab.

Hollywood Bowl (LON:BOWL) - 29% like-for-like revenue growth since reopening on 17 May compared to FY19. Total revenue of £61.3 million since reopening on 17 May, and total of £74.6 million for FY21. Expects FY21 EBITDA margin to be in line with FY20 and for it to return to pre-pandemic levels going forward.

N Brown (LON:BWNG) - H1 group revenue down 0.1% to £346.8 million. Product revenue up 3.3%. EBITDA remains in-line with expectations.

Tullow Oil (LON:TLW) - Upgraded to hold from buy by Jefferies.

Marks and Spencer (LON:MKS) - Upgraded to add from hold at Peel Hunt.

Experian (LON:EXPN) - Upgraded to outperform from neutral by Exane BNP.

Ascential (LON:ASCL) - Upgraded to overweight from equal weight at Barclays (LON:BARC).

Pennon Group (LON:PNN) - Upgraded to hold from reduce by HSBC.

IPO

Eurowag - Successfully priced IPO at 150 pence per share, giving a market cap of £1.033 billion.

Tortilla Mexican Grill - Admission of its entire issued and to be issued share capital to trading on the AIM market of the London Stock Exchange will become effective today.

Sectors

Travel & Leisure - The UK’s travel red list will be cut from 54 to seven countries. South Africa, Brazil and Mexico come off the red list, which requires a mandatory 10-day quarantine. Expects PCR testing to be replaced by lateral flow tests by October half term.

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