UK pre-market stocks update – GSK, BATS, AstraZeneca, SSE, Babcock

At 07:34GMT, FTSE 100 futures are trading higher by 0.3% at 7266.

In FX markets, GBP/USD is trading at 1.3280, EUR/GBP is trading at 0.8504. The US Dollar Index is down 0.1%.

Today’s calendar highlights include German ZEW, Eurozone GDP, US Trade Balance, Canadian Trade Balance.

Data
UK house prices increased 3.4% over the last three months, the fastest pace in 15 years, according to Halifax. In November, house prices increased 1.0% from October and 8.2% from the same period last year.

Stocks
GlaxoSmithKline (LON:GSK) – Preclinical studies demonstrate that its monoclonal antibody sotrovimab retains activity against the full combination of mutations in the spike protein of the Omicron SARS-CoV-2 variant. The preclinical data was generated through pseudo-virus testing of the combined known mutations of the Omicron variant, which included the maximum number of changes (37 mutations) identified to date in the spike protein.

British American Tobacco (LON:BATS) – Acquired 3.6 million consumer of non-combustibles to September year to date. Revenue growth at constant currency above 5%. Maintaining mid single figure constant currency adjusted diluted EPS growth guidance for 2021. Applying current foreign exchange rates, would expect a translation headwind of over -7% on adjusted diluted EPS growth.

AstraZeneca (LON:AZN) – Signs deal with Ionis to develop and commercialise eplontersen. Eplontersen is a ligand-conjugated antisense investigational medicine currently in Phase III clinical trials for amyloid transthyretin cardiomyopathy and amyloid transthyretin polyneuropathy.

Ashtead Group (LON:AHT) – H1 revenue up 18% to $3.884 billion. EBITDA up 18% to $1.832 billion, Operating profit up 34% to $1.053 billion. Interim dividend increased by 28% to $0.125 per share. Now expect full year results ahead of previous expectations. Expects full year rental revenue of 18%-20% (Previously 13%-16%).

SSE (LON:SSE) – Elliott Management has called for the appointment of two non-executive directors and criticised CEO in a new letter to SSE Chair Sir John Manzoni. Elliott has called on SSE to review its business which should include consideration of the sale of a larger stake of the electricity networks business and the partial listing and possible sale of a stake in the renewables division.

Ferguson (LON:FERG) – Q1 net sales up 26.6% to $6.803 billion. Adjusted operating profit up 58.5% to $767 million. Expect tapering of growth in second half of financial year on tougher prior year comparatives and remain mindful that the recent tailwinds from inflation on gross margins will likely moderate. Increased full year expectations given the strong momentum in the business.

Babcock International (LON:BAB) – H1 revenue up 8% to £2.223 billion. Underlying operating profit increased to £115.3 million. Portfolio alignment issue to continue with proceeds used to strengthen the balance sheet further or will be invested in future growth. Full year outlook unchanged.

Inchcape (LON:INCH) – Agreement to acquire Interamericana Trading Corporation and Simpson Motors from the Simpson Group. The acquired businesses are expected to add c.£120m of annualised revenue, and will be accretive to Group margins.

PageGroup (LON:PAGE) – Growth in October was +16% vs. 2019 in constant currencies and November was +26%. Subject to no further unexpected events, the Group now expects full year operating profit to be in the region of £165 million.

Tritax EuroBox (LON:EBOX) – FY portfolio value increased 52.9% to €1.281 billion. Dividend increased to €0.05 per share.

Paragon Banking Group (LON:PAGPA) – Underlying profit increased 61.8% to £194.2 million. FY dividend of 26.1 pence per share, up from 14.4 pence previously. Net interest margin of 239 basis points up from 224 basis points in 2020. Announced 2022 share repurchase programme of up to £50 million.

Shaftesbury (LON:SHB) – Announced it has signed over 60 new retail, hospitality and leisure brands in Carnaby, Seven Dials, Chinatown, Soho and Fitzrovia since 1 October 2020.

Liontrust Asset Management (LON:LIO) – To purchase Majedie Asset Management for a total consideration of up to £120 million. The Consideration will be satisfied by the issue of up to £97.0 million in new ordinary shares.

Monks Investment Trust (LON:MNKS) – Six months to October 31st produced a positive net asset value return of 6.5% compared to an increase of 8.9% for the FTSE World Index (in sterling), both in total return terms.

UK pre-market stocks update – GSK, BATS, AstraZeneca, SSE, Babcock