Tony Cross
2 min read
Three key news stories unfolding as the UK stock market opens. Check out our companies reporting diary for upcoming results from FTSE 350 and selected international stocks.
1. Terms agreed for sale of Gamma
A note issued by private equity suitor Bradbury Bidco this morning notes that terms have been agreed with Gamma Communications [LON:GAMA] for an all cash acquisition worth £11.20 per share, valuing the entire business as £1.015bn. That’s a 53% premium to the price before takeover talks began in April, and the acquirer believes that the additional flexibility that will come from a private company environment will enable further growth to materialise. Another damning indictment of the downsides of growth companies attempting to be listed on the London market…
2. Bunzl upgrades outlook at half year point, launches £500m buyback
There’s a half year report out from Bunzl [LON:BNZL] this morning with revenues up 3%, adjusted pre-tax profits up more than 10% and investors benefitting from a 3% uplift in the interim dividend. The full year outlook has also been upgraded with stable margins but revenues still building. In recognition of this, management have announced the launch of a £500m share buyback to run over the next twelve months, in keeping with its agreed capital allocation model.
3. Bellway continues cash distribution to shareholders
Housebuilder Bellway [LON:BWY] has confirmed this morning the completion of a £75m share buyback tranche, announcing that the follow on £50m round declared in last month’s interim results is now being initiated. The balance sheet expanded significantly over the last 12 months and it’s difficult not to see management as having a weather eye on the government’s current quest for new lines of income. Companies that have received significant indirect subsidies over the last couple of decades who are now sitting on cash are likely wise to mitigate risk here…
Get up to £1,500 cashback when you transfer to Charles Stanley Direct
You could be eligible for up to £1,500 cashback if you transfer your cash and/or investments held with another provider to Charles Stanley Direct’s platform. Investment involves risk. Find Out More
Get free weekly UK company analysis from The Armchair Trader here
