10th Mar 2020 07:56
(Alliance News) - Listed companies on Tuesday switched from warning about the outbreak of coronavirus to saying it is completely impossible to predict its impact, as markets rebounded slightly from Monday's crash.
FTSE 100 business publisher and events manager Informa said 2019 brought a sixth consecutive year of growth in revenue, free cash flow, and dividends, but swerved giving any guidance whatsoever for 2020.
For 2019, revenue rose 22% to GBP2.89 billion from GBP2.37 billion in 2018, and pretax profit was up 13% to GBP318.7 million from GBP282.1 million.
Informa lifted its full-year dividend by 7.3% to 23.5 pence from 21.9p in 2018.
The company said it would not be providing any market guidance due to the coronavirus outbreak. Informa has had to postpone some of its events and exhibitions since January for health and safety reasons, it said.
"In 2020, our subscriptions-related businesses, representing around 35% of group revenue, continue to trade well, underpinned by strong renewal rates, at 90% on average, and consistent low to mid-single digit growth in annualised contract values. However, like a number of businesses, we are seeing an impact from the outbreak of COVID-19 within our Events portfolio. We are making all the decisions necessary to look after colleagues and customers and ensure the long-term strength of our brands and customer relationships," Informa said.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: called up 2.3% at 6,105.20
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Hang Seng: up 1.5% at 25,424.75
Nikkei 225: closed up 0.9% at 19,867.12
DJIA: closed down 2,013.76 points, 7.8%, at 23,851.02
S&P 500: closed down 7.6% at 2,746.56
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GBP: down at USD1.3036 (USD1.3119)
EUR: down at USD1.1350 (USD1.1462)
Gold: down at USD1,663.26 per ounce (USD1,668.05)
Oil (Brent): firm at USD36.40 a barrel (USD36.22)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Tuesday's Key Economic Events still to come
1100 CET EU gross domestic product estimate
1100 CET EU employment
1630 EDT US API weekly statistical bulletin
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Britons with "minor" cold, flu or fever symptoms could soon to be asked to stay at home in self-isolation in a bid to tackle the coronavirus outbreak, while new government advice has warned against all but essential travel to Italy. England's chief medical officer Chris Whitty pointed to tighter measures aimed at protecting the public, particularly the vulnerable and elderly, which could be implemented in the next 10 to 14 days. It came as the government tightened travel restrictions on coronavirus-stricken Italy following the announcement that Italian authorities were to extend quarantine measures to the whole country. The Foreign & Commonwealth Office amended its advice to warn against all but essential travel to the country on Monday evening, while the number of dead in Italy rose to 463. As of Monday morning, 319 people had tested positive for Covid-19 in the UK, up from 273 at the same point on Sunday, and five people had died in British hospitals.
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UK retail sales edged higher in February, with the sector hampered by stormy weather but seeing a slight rise food and healthcare spending amid coronavirus outbreak. According to the British Retail Consortium-KPMG retail sales monitor, total sales rose 0.1% year-on-year in February, but slipped 0.4% on a like-for-like basis. In January, total sales were 0.4% higher annually and flat on a like-for-like basis. In February 2019, sales climbed 3.2% year-on-year, and 2.6% like-for-like. February's numbers were an improvement from the 12-month average fall of 0.2%, however. Storms Ciara, Dennis and Jorge swept the UK, leading to a spate of flood warnings during the country's wettest February on record. British Retail Consortium Chief Executive Helen Dickinson said: "Clouds continued to hang over the retail industry in February, as storm Ciara, Dennis and Jorge took their toll on retail sales, particularly in fashion. Despite many indicators suggesting a rise in confidence among UK shoppers in recent months, this has failed to translate into higher retail sales. However, the end of the month saw a slight rise in spending on food and healthcare as a result of concerns around coronavirus."
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BROKER RATING CHANGES
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CITIGROUP RAISES HIKMA PHARMACEUTICAL TO 'BUY' ('NEUTRAL') - TARGET 2150 (1980) PENCE
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BERENBERG CUTS MEGGITT TO 'HOLD' ('BUY') - TARGET 490 (695) PENCE
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BARCLAYS INITIATES SOFTCAT WITH 'OVERWEIGHT' - TARGET 1220 PENCE
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COMPANIES - FTSE 100
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Standard Life Aberdeen kept its dividend unchanged as it reported a drop in assets under management. For 2019, fee-based revenue was down 13% to GBP1.63 billion from GBP1.87 billion in 2018 and adjusted pretax profit fell to GBP584 million from GBP650 million. Net outflows were reduced to GBP17.4 billion from GBP40.9 billion. Standard Life's assets under management in 2019 slipped to GBP544.6 billion from GBP551.6 billion in 2018. The figure beat the company-compiled consensus forecast of GBP529.1 billion, however. Standard Life declared an unchanged total annual dividend of 21.6 pence. "The outlook for the markets and our industry in 2020 is turbulent with the additional complexity of COVID-19. Importantly we are focused on what we can control, namely delivering for our clients, customers, colleagues and shareholders; diversifying our revenues; investing for the future and maintaining financial discipline," said Chief Executive Keith Skeoch.
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COMPANIES - FTSE 250
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Domino's Pizza Group appointed Matt Shattock as its new chair effective from next Monday. He is currently chair of Jim Beam bourbon maker Beam Suntory and has held roles at Cadbury and Unilever in the past. The ongoing search for a new CEO and chief financial officer will be led by Shattock, the company added. "I couldn't be more excited to be joining Domino's as chairman. This is a good business today but with its powerful brand and some of the best franchisees in the world, it has the potential to be an outstanding business. My priorities will be building the new executive leadership, while also getting out to know the business, meeting colleagues and engaging with our franchisees to build a constructive relationship," Shattock said.
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Tuesday's Shareholder Meetings
Hornby (re approval of share placing)
Real Estate Credit Investments (re share placing)
CC Japan Income & Growth Trust
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By Tom Waite; [email protected]
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