Picture supply: Getty Pictures
The clocks have gone again, October’s turned to November, and the UK’s ‘price of residing disaster’ rumbles on.
Final week, over the primary two days of November, no fewer than 20 FTSE 350 firms issued buying and selling updates.
What struck me about them was the variety of corporations that stated they now anticipate delivering full-year outcomes forward of expectations.
Remarkably, a full half of the 20 elevated their earlier steering.
Upgrades galore
Right here’s the roll-call of upgraders:
- BT Group: Robust first-half strategic execution, and “free money circulate now anticipated in direction of the highest finish of the steering vary.”
- Empiric Scholar Property: Stronger-than-expected rental development and occupancy ranges, and “enough confidence exists to extend the total yr [dividend] goal.”
- Hikma Prescription drugs: Persevering with good momentum, “enabling us to improve full yr steering in two of our three companies.”
- J Sainsbury: Quantity positive factors, and now anticipating revenue in “the higher half of our earlier steering vary,” and free money circulate ” larger than our earlier steering.”
- OSB Group (OneSavings Financial institution): Robust lending efficiency, and now expects mortgage ebook development forward of earlier steering.
- Smith & Nephew: Motion plan driving sturdy income development, “presently anticipated to be in direction of the upper finish of guided vary.”
- Trainline: Robust first-half development, and “tightening group steering in direction of higher finish of vary.”
The opposite three firms that issued upgrades had been GSK (previously GlaxoSmithKline), Helios Towers, and Subsequent. I’ll take a look at these just a little extra intently.
GSK
GlaxoSmithKline rebranded itself GSK after demerging its shopper healthcare enterprise final yr. The latter turned Haleon, a FTSE 100 firm in its personal proper, whereas GSK is now a pure-play biopharma agency.
The rationale for separating the companies was to permit every to focus by itself development. GSK is delivering. Administration had already lifted expectations on the half-year stage. Its latest improve represents an extra improve in what was already sturdy development steering:
| New steering | Earlier steering | |
| Income development | 12%-13% | 8%-10% |
| Underlying working revenue development | 13%-15% | 11%-13% |
| Underlying EPS* development | 17%-20% | 14%-17% |
As a pure-play biopharma agency, GSK is considerably riskier than the previous extra diversified group. Nonetheless, the potential reward is larger development. A dividend yield of 4% seems to be fairly engaging too.
Helios Towers
Helios is a telecommunications infrastructure firm and member of the FTSE 250.
It presently owns and operates over 14,000 telecommunication tower websites. These are situated in 9 international locations (giving some diversification in opposition to geopolitical danger) throughout Africa and the Center East. The markets have low cell penetration in the present day, with substantial development anticipated in coming years. Helios is focusing on 22,000 towers by 2026.
In its half-year outcomes, the corporate tightened its full-year steering to the highest finish of its beforehand introduced vary. The latest replace will increase the steering:
| New steering | Earlier steering | |
| Tenancy additions | 2.2k-2.4k | 1.9k-2.1k |
| Underlying EBITDA* | $365m-$370m | $355m-$365m |
| Free money circulate | $260m-$265m | $235m-$245m |
Within the close to time period, Helios’s precedence is to allocate capital for development. Within the medium time period, it expects to achieve a scale the place money technology can ship not solely its development ambitions, but additionally shareholder dividends.
Subsequent
Lastly, clothes and homeware retailer Subsequent wants little introduction. It’s a perfectly managed enterprise, and has persistently been forward of the sport in its evolution.
For the reason that pandemic, it’s invested in — or purchased outright — a stack of manufacturers, together with Cath Kidston, FatFace, Made and Reiss. Its transfer in direction of turning into a type of e-commerce, multi-label vogue division retailer is a daring one.
Like GSK and Helios, administration had already elevated its steering earlier this yr, earlier than the latest additional improve:
| New steering | Earlier steering | |
| Full worth gross sales | £4.74bn | £4.72bn |
| Underlying pre-tax revenue | £885m | £875m |
| Underlying pre-tax EPS | 730.2p | 723.9p |
There’s some danger with Subsequent’s acquisition technique. Nonetheless, if the transfer is as astute as administration’s earlier strategic shifts, the corporate may reward shareholders for a few years to come back. Together with by means of growing dividends (present yield 3%).
First inexperienced shoots
The 20 firms that issued buying and selling updates on the primary two days of November symbolize lower than 6% of the FTSE 350’s constituents. Nonetheless, the upgraded steering from a big proportion of them — and throughout a spread of sectors — is encouraging.
Dozens extra corporations have buying and selling statements due this month. And it’ll be fascinating to see whether or not the early development of upgrades continues. I’m optimistic it is going to.
We would simply be seeing the primary inexperienced shoots of a brand new bull market amidst the depths of the home cost-of-living disaster and the sadly heavy beat of struggle drums on components of the worldwide stage.
Picture supply: Getty Pictures
The clocks have gone again, October’s turned to November, and the UK’s ‘price of residing disaster’ rumbles on.
Final week, over the primary two days of November, no fewer than 20 FTSE 350 firms issued buying and selling updates.
What struck me about them was the variety of corporations that stated they now anticipate delivering full-year outcomes forward of expectations.
Remarkably, a full half of the 20 elevated their earlier steering.
Upgrades galore
Right here’s the roll-call of upgraders:
- BT Group: Robust first-half strategic execution, and “free money circulate now anticipated in direction of the highest finish of the steering vary.”
- Empiric Scholar Property: Stronger-than-expected rental development and occupancy ranges, and “enough confidence exists to extend the total yr [dividend] goal.”
- Hikma Prescription drugs: Persevering with good momentum, “enabling us to improve full yr steering in two of our three companies.”
- J Sainsbury: Quantity positive factors, and now anticipating revenue in “the higher half of our earlier steering vary,” and free money circulate ” larger than our earlier steering.”
- OSB Group (OneSavings Financial institution): Robust lending efficiency, and now expects mortgage ebook development forward of earlier steering.
- Smith & Nephew: Motion plan driving sturdy income development, “presently anticipated to be in direction of the upper finish of guided vary.”
- Trainline: Robust first-half development, and “tightening group steering in direction of higher finish of vary.”
The opposite three firms that issued upgrades had been GSK (previously GlaxoSmithKline), Helios Towers, and Subsequent. I’ll take a look at these just a little extra intently.
GSK
GlaxoSmithKline rebranded itself GSK after demerging its shopper healthcare enterprise final yr. The latter turned Haleon, a FTSE 100 firm in its personal proper, whereas GSK is now a pure-play biopharma agency.
The rationale for separating the companies was to permit every to focus by itself development. GSK is delivering. Administration had already lifted expectations on the half-year stage. Its latest improve represents an extra improve in what was already sturdy development steering:
| New steering | Earlier steering | |
| Income development | 12%-13% | 8%-10% |
| Underlying working revenue development | 13%-15% | 11%-13% |
| Underlying EPS* development | 17%-20% | 14%-17% |
As a pure-play biopharma agency, GSK is considerably riskier than the previous extra diversified group. Nonetheless, the potential reward is larger development. A dividend yield of 4% seems to be fairly engaging too.
Helios Towers
Helios is a telecommunications infrastructure firm and member of the FTSE 250.
It presently owns and operates over 14,000 telecommunication tower websites. These are situated in 9 international locations (giving some diversification in opposition to geopolitical danger) throughout Africa and the Center East. The markets have low cell penetration in the present day, with substantial development anticipated in coming years. Helios is focusing on 22,000 towers by 2026.
In its half-year outcomes, the corporate tightened its full-year steering to the highest finish of its beforehand introduced vary. The latest replace will increase the steering:
| New steering | Earlier steering | |
| Tenancy additions | 2.2k-2.4k | 1.9k-2.1k |
| Underlying EBITDA* | $365m-$370m | $355m-$365m |
| Free money circulate | $260m-$265m | $235m-$245m |
Within the close to time period, Helios’s precedence is to allocate capital for development. Within the medium time period, it expects to achieve a scale the place money technology can ship not solely its development ambitions, but additionally shareholder dividends.
Subsequent
Lastly, clothes and homeware retailer Subsequent wants little introduction. It’s a perfectly managed enterprise, and has persistently been forward of the sport in its evolution.
For the reason that pandemic, it’s invested in — or purchased outright — a stack of manufacturers, together with Cath Kidston, FatFace, Made and Reiss. Its transfer in direction of turning into a type of e-commerce, multi-label vogue division retailer is a daring one.
Like GSK and Helios, administration had already elevated its steering earlier this yr, earlier than the latest additional improve:
| New steering | Earlier steering | |
| Full worth gross sales | £4.74bn | £4.72bn |
| Underlying pre-tax revenue | £885m | £875m |
| Underlying pre-tax EPS | 730.2p | 723.9p |
There’s some danger with Subsequent’s acquisition technique. Nonetheless, if the transfer is as astute as administration’s earlier strategic shifts, the corporate may reward shareholders for a few years to come back. Together with by means of growing dividends (present yield 3%).
First inexperienced shoots
The 20 firms that issued buying and selling updates on the primary two days of November symbolize lower than 6% of the FTSE 350’s constituents. Nonetheless, the upgraded steering from a big proportion of them — and throughout a spread of sectors — is encouraging.
Dozens extra corporations have buying and selling statements due this month. And it’ll be fascinating to see whether or not the early development of upgrades continues. I’m optimistic it is going to.
We would simply be seeing the primary inexperienced shoots of a brand new bull market amidst the depths of the home cost-of-living disaster and the sadly heavy beat of struggle drums on components of the worldwide stage.
