LONDON BRIEFING: Moonpig Follows Dr Martens In Trotting Out IPO Plans

(Alliance News) - Greeting cards retailer Moonpig on Tuesday followed bootmaker Dr Martens in ...

Alliance News 12 January, 2021 | 8:15AM
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(Alliance News) - Greeting cards retailer Moonpig on Tuesday followed bootmaker Dr Martens in setting out plans to float in London, both taking advantage of a stock market that has started the year in a surprisingly bullish mood despite renewed virus lockdowns and restrictions.

The online greeting card and gifting platform, which also includes the Greetz brand in the Netherlands, said it will seek a premium listing on the London Main Market for holding company Cards Holdco Ltd. The initial public offering will be led by Citigroup Global Markets Ltd and JP Morgan Securities PLC as joint global co-ordinators. HSBC Bank PLC, Jefferies International Ltd and Numis Securities Ltd will be joint bookrunners.

Moonpig recorded GBP173.1 million in revenue in the financial year that ended April 30, 2020. Underlying earnings before interest, tax, depreciation and amortisation were GBP44.4 million. It said it operates in a GBP24 billion card-attached gifting market in the UK, Netherlands and Ireland.

Here is what you need to know at the London market open:

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MARKETS

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FTSE 100: up 0.1% at 6,808.26

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Hang Seng: up 1.3% at 28,276.75

Nikkei 225: closed up 0.1% at 28,164.34

DJIA: closed down 89.28 points, or 0.3%, at 31,008.69

S&P 500: closed down 0.7% at 3,799.61

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GBP: up at USD1.3553 (USD1.3506)

EUR: unchanged at USD1.2163

Gold: up at USD1,858.38 per ounce (USD1,845.86)

Oil (Brent): up at USD56.01 a barrel (USD55.58)

(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 quarterly balance of payments

0855 EST US Johnson Redbook retail sales index

1630 EST US API weekly statistical bulletin

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Britain's most senior police officer has warned coronavirus rule-breakers they are "increasingly likely" to face fines as forces move "more quickly" to enforce lockdown restrictions, PA reports. Metropolitan Police Commissioner Cressida Dick said it is "preposterous" that anyone could be unaware of the need to follow the stringent measures designed to curb Covid-19 cases. Writing in The Times, she said: "It is preposterous to me that anyone could be unaware of our duty to do all we can to stop the spread of the virus. "We have been clear that those who breach Covid-19 legislation are increasingly likely to face fines." Meanwhile, ministers are reported to be mulling over introducing tougher measures in England, with the wearing of face masks outdoors and banning exercise with people not in their household bubble said to be under consideration.

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New rules that will require international travellers to test negative for coronavirus before arriving in England will come into force from Friday, a transport minister has said. From 0400 GMT on January 15, passengers arriving in England by boat, train or plane – including UK nationals – will have to take a test up to 72 hours before leaving the country of departure. They will need to present proof of a negative test result to their carrier on boarding while the UK Border Force will conduct spot checks on arrivals. New arrivals who flout the rules will face a minimum GBP500 fine, while the operator who transported them will also be fined. Passengers will still have to quarantine for 10 days regardless of their test results, transport minister Robert Courts said in a statement.

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BROKER RATING CHANGES

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BERENBERG INITIATES AVAST WITH 'BUY' - TARGET 680 PENCE

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JPMORGAN CUTS CLARKSON TO 'NEUTRAL' ('OVERWEIGHT') - TARGET 2960 (2920) PENCE

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BERENBERG CUTS KEYWORDS STUDIOS TO 'HOLD' ('BUY') - TARGET 2890 (2510) PENCE

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COMPANIES - FTSE 100

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Rio Tinto-controlled Turquoise Hill Resources late Monday said Mongolia's government is mulling whether the Oyu Tolgoi project should proceed over cost concerns. A press release from Turquoise Hill stated that the government has advised Rio Tinto that it is "dissatisfied" with the results of the definitive estimate, which were announced in December. Last month, Rio Tinto set out plans to get its Oyu Tolgoi copper and gold mine in Mongolia to sustainable underground production by October 2022, spending USD6.75 billion to do so. The Mongolian government is concerned that "the significant increase in the development costs" of the Oyu Tolgoi project has eroded the economic benefits it anticipated to receive, Turquoise Hill said.

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Kingfisher said it has continued to experience high demand during the fourth quarter, boosted by strong online sales. Kingfisher said like-for-like sales in the fourth quarter to date were up 17%, supported by e-commerce sales growth of over 150%. In the financial year to date like-for-like sales were up 6.5%. Based on trading to date, Kingfisher expects annual adjusted profit before tax to be at the top end of the range of current sell-side analyst estimates. "While the strength of our fourth quarter trading, to date, is reassuring, uncertainty over COVID-19 and the impact of lockdown restrictions in most of our markets continue to limit our visibility. Longer term, we are confident that the strategic and operational actions we are taking are building a strong foundation for sustainable long-term growth. We also believe that the renewed focus on homes is supportive for our markets," said Chief Executive Officer Thierry Garnier.

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Johnson Matthey has appointed Stephen Oxley as its new chief financial officer, with interim CFO Karen Hayzen-Smith returning to her role as financial controller. Oxley joins the speciality chemicals firm from Big Four accountancy KPMG, where he has spent almost 30 years. "I am extremely pleased that Stephen will join JM in April, and I am looking forward to working with him. I would also like to thank Karen for her valuable contributions and ongoing support over the past few months," said CEO Robert MacLeod.

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COMPANIES - FTSE 250

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Rathbone Brothers reported a rise in funds under management and administration and named a new chair. The wealth manager said total FUMA at December 31 was GBP54.7 billion, up 8.6% from GBP50.4 billion at the same time in 2019. Rathbones said this reflected not only strong market movements in the last quarter, but also continuing net inflows and strong investment performance. "Although we continue to expect market volatility during 2021 as well as continuing low interest rates, we remain focused on enhancing our services to clients and delivering growth. We will continue to balance this investment with prevailing market conditions, maintaining strict cost discipline and identifying inorganic opportunities that are a strong cultural fit," the company said. Rathbones named Clive Bannister as chair-designate and non-executive director to replace the outgoing Mark Nicholls who will retire at the next annual general meeting in May. Bannister was CEO of Phoenix Group Holdings for nine years, retiring in March 2020.

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Vistry Group said it delivered a strong second half performance with 2020 pretax profit expected to be at the top end of the anticipated range at GBP140 million. The housebuilder delivered a total of 4,652 completions, down from 6,884 in 2019. These included 820 from joint ventures. The total housebuilding average selling price for 2020 was GBP302,000 with a private average selling price of GBP344,000. "Looking to FY21 we are alert to the wider market uncertainty, including the potential implications of the most recent lockdown, as well as for housebuilding specifically the changes from an end to the stamp duty holiday and existing Help to Buy scheme at the end of Q1. We are encouraged by the strength of the market in 2020 and the levels of demand during the second national lockdown in November, and whilst very early, we have seen no impact from this third national lockdown. Assuming stable market conditions, the group remains confident it can deliver a step-up in completions for both Housebuilding and Partnerships in FY21 and increase profit before tax to GBP310 million," the company said. Vistry reported a net cash position of GBP38 million as at December 31, reflecting its "strong second half performance and firm focus on cash management". Given the robust balance sheet position, the company now expects to resume dividend payments with a modest final dividend for 2020.

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COMPANIES - MAIN MARKET AND AIM

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THG said revenue jumped 51% from a year before to GBP558.7 million in the fourth quarter from a year before. THG, which trades as The Hut Group, said full-year revenue was up 41% To GBP1.61 billion. The online retailing platform said it added 3.5 million new active customers in the fourth quarter and 10.7 million in all of 2020.

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Tharisa reported a rise in production for the first quarter of its current financial year for both platinum and chrome, despite pandemic headwinds. For the three months to the end of December, the output of 6E platinum group metals - platinum, ruthenium, rhodium, palladium, osmium and iridium - rose by 14% year-on-year to 39,300 ounces from 34,400 ounces the year before, but down 3.0% from 40,500 ounces the previous quarter. Chrome concentrate production rose by 0.4% quarter-on-quarter to 372,300 tonnes from 370,800 tonnes, but increased by 8.7% from 342,500 tonnes the year before. Looking ahead, the miner maintained its annual production guidance of between 155,000 ounces to 165,000 ounces of 6E platinum, and 1.45 to 1.55 million tonnes of chrome concentrate.

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COMPANIES - OTHER

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Deliveroo has said it plans to expand into around 100 new towns and cities across the UK in 2021. The takeaway delivery business has seen demand surge over the past year as customers stayed at home and restaurants have shut their doors to diners during the pandemic. The company said it plans to take this momentum into 2021 with an expansion strategy intended to reach another four million potential customers. It revealed it will launch in new regions across the UK, Yeovil, Bangor, East Kilbride, King's Lynn, Scarborough, Llanelli and Exmouth, although the full list of locations has not yet been announced. Deliveroo currently operates in over 200 locations and said it will also expand its reach from these existing sites over the year.

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Tuesday's Shareholder Meetings

Carr's Group PLC - AGM

Myanmar Investments International Ltd - AGM

Premier Oil PLC - GM re Chrysaor merger

Impax Environmental Markets PLC - GM re authority to issue shares

RDL Realisation PLC - GM re delisting

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By Tom Waite; thomaslwaite@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Clarkson PLC 2,625.00 GBX -0.19 -
Avast PLC 512.50 GBX -1.63 -
THG Holdings PLC Ordinary Share 750.00 GBX -0.27 -
Keywords Studios PLC 2,574.00 GBX -1.00 -

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