7th Sep 2021 08:15
(Alliance News) - Housebuilder Vistry on Tuesday lifted its full-year profit outlook against the backdrop of a still-surging UK property market.
Vistry's revenue in the six months to June 30 jumped 82% to GBP1.10 billion from GBP606.4 million. It swung to a pretax profit of GBP156.2 million from a GBP12.2 million loss a year earlier.
Completions leapt 76% to 5,351 during the half, from 3,034 a year ago, with the 2020 comparison period lapping a time which saw the UK housing sector shuttered due to Covid-19 containment measures.
It proposed a 20 pence dividend, having not declared one this time a year earlier.
"We have had a positive start to the second half with customer interest and sales remaining strong," Vistry added.
It raised its annual outlook. It now expects adjusted pretax profit of GBP345 million, 5% ahead of consensus estimates.
Vistry's half-year earnings came as Halifax reported that, while momentum continues to slow, UK house prices still notched another record high in August.
The average UK house price rose 0.7% monthly in August to GBP262,954. The annual growth was 7.1%, slowing from 7.6% in July.
Growth still topped market expectations, however. According to consensus cited by FXStreet, UK house prices were expected to register monthly growth of 0.4% in August, and an annual rise of 5.5%.
Vistry said: "It has been a strong first half for the group with a significant step up in financial performance and further operational improvements. We have seen positive demand across all business areas...Alongside this strong demand, we have achieved sustained price increases across all of our geographies."
Shares in Vistry were up 3.6% early Tuesday.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: down 0.3% at 7,165.93
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Hang Seng: up 0.8% at 26,368.56
Nikkei 225: closed up 0.9% at 29,916.14
Stock markets in New York were shut Monday for Labor Day
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EUR: up at USD1.1870 (USD1.1860)
GBP: up at USD1.3830 (USD1.3820)
USD: up at JPY109.94 (JPY109.85)
Gold: down at USD1,817.80 per ounce (USD1,822.55)
Oil (Brent): up at USD72.55 a barrel (USD72.20)
(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
11:00 CEST EU GDP
11:00 CEST Germany ZEW indicator
10:00 EDT US quarterly financial report - manufacturing
10:00 EDT US quarterly financial report - retail trade
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UK Prime Minister Boris Johnson has promised his government "will not duck the tough decisions" to fix the broken social care system as he prepares to unveil his long-awaited plan to MPs on Tuesday. The prime minister will set out in the Commons how he aims to tackle the social care crisis amid a growing Tory backlash over reported plans to raise National Insurance to fund the changes to the system in England – in breach of a general election commitment. As well as outline measures to support the NHS in its recovery from Covid, Johnson is expected to tell MPs that the challenges faced by the health service and the social care system are closely linked. Reports have suggested that lifetime contributions on care will be capped at about GBP80,000 and National Insurance will be increased by 1.25% to raise between GBP10 billion and GBP11 billion per year. Ahead of the announcement, No 10 remained tight-lipped on the detail, but it has been reported that the proposals will be sold as a health and social care levy.
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Growth in UK retail sales slowed in August, numbers showed, with pent-up demand finally easing. However, a slow return to offices and wedding season boosted sales of formal wear, while non-food items got a boost from the late-August bank holiday. According to the British Retail Consortium, UK retail sales rose 3.0% annually in August, slowing from a 3.9% surge a year earlier. The August figure was some way off the average three-month growth of 6.9%. The 3.0% rise is the weakest annual hike of 2021 since February's 1.0% rise. January was the only month of the year when UK retail sales fell, registering a 1.3% decline. On a like-for-like basis, sales were 1.5% higher annually, slowing from a 4.7% hike last year.
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China's exports and imports enjoyed forecast-beating growth in August, as data showed overseas demand for cars, electronics and consumer goods surged while a domestic coronavirus resurgence was brought to heel. The news follows a recent spate of weak figures that had suggested the recovery in the world's second-biggest economy was flattening owing to a spike in the Delta Covid variant that has forced some countries to impose strict containment measures and hit consumer sentiment. It also came despite the shutdown of a major port caused by a virus outbreak, which observers had expected to hit shipments. Exports jumped 26% year-on-year, while imports rose 33%, according to the Customs Administration. The readings were both sharply up from July and far better than estimates in a Bloomberg survey of 17% and 27%, respectively.
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BROKER RATING CHANGES
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JEFFERIES CUTS ENQUEST TO 'HOLD' ('BUY') - TARGET 24 (32) PENCE
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COMPANIES - FTSE 100
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Packaging firm DS Smith said it is pleased with progress made since it ended its last financial year in April. It affirmed that Covid-19 has accelerated a drive to sustainability and e-commerce. "Accordingly, while the macroeconomic environment remains uncertain, we remain confident about the prospects for the business in this financial year and beyond," Chief Executive Miles Roberts said. DS Smith said box volumes have grown "very strongly" in the period since May 1, rising annually and topping levels seen in 2019. Cost pressures are mounting, however. The company explained: "Input costs have continued to rise with notable increases in the cost of energy and transportation. Combined with the cost of old corrugated cases remaining high, this has resulted in further significant increases in the price of paper. Given the strong demand for our packaging we have seen good progress towards recovering these increases."
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COMPANIES - FTSE 250
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888 Holdings said it has launched a new "wagering experience" in the US state of Colorado, alongside Sports Illustrated. The launch in Colorado will serve as a platform for SI Sportsbook to expand in other states. Sports betting laws in the US are being relaxed in many states for the first time following a Supreme Court ruling in 2018, allowing bookmakers to tap into the lucrative market there. 888 added: "With more than 30 million monthly unique users, Sports Illustrated will engage readers and fans by seamlessly incorporating betting information and insights from SI Sportsbook across its content, media, and gaming. 888 will provide unique and differentiated tools including a multi-sport Pickem game, betting widgets, betting education tools, and intelligent hyperlinking to create a dynamic sports betting experience for customers."
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COMPANIES - MAIN MARKET AND AIM
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Ted Baker said it has made "encouraging progress" during its second quarter ended August 14, with revenue rising 50% annually. The company said it has "snapped back from the material negative impact from the Covid pandemic". Reported retail sales were 30% higher than a year earlier, though also down 30% from pre-pandemic times. Promisingly, however, full price sales have improved, meaning Ted Baker has not needed as much promotional activity to flog stock. Margins have improved as a result. Its retail trading margin has risen over 500 basis points annually and 190 basis points from two years earlier, so before the onset of the virus. E-commerce sales fell 25%, however, though this is a reflection of its "highly promotional stance last year". "We have made encouraging progress, with trading over the second quarter in line with expectations, albeit the speed of recovery is different across store locations and regions. Full price sales mix has significantly improved across all our retail channels as we continue to re-establish our premium lifestyle brand positioning," CEO Rachel Osborne said.
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COMPANIES - GLOBAL
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Takeda Pharmaceutical Co said Japan's Ministry of Health, Labour & Welfare will purchase 150 million doses of Novavax's vaccine candidate which have been manufactured by the Osaka-based pharmaceutical firm. Terms of the deal are "confidential". Its effect on earnings in the 2022 financial year will "depend on the exact timing of distribution", and Takeda will update its forecast "at the appropriate timing", the company said. Novavax has been licensing and transferring the manufacturing technologies to allow Takeda to manufacture the vaccine antigen and is supply the Matrix-M adjuvant to Takeda to finish alongside the antigen. Takeda has been setting up the capabillity to manufacture the vaccine at its facilities and aims to start distribution in early 2022. Takeda will be responsible for the clinical trial and regulatory submission to Pharmaceuticals & Medical Devices Agency.
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Tuesday's Shareholder Meetings
Brickability Group PLC - AGM
DS Smith PLC - AGM
Echo Energy PLC - GM re allotment of shares
SulNOx Group PLC - AGM
Thalassa Holdings Ltd - AGM
Victoria PLC - AGM
XPS Pensions Group PLC - AGM
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By Lucy Heming;Â [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
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