Daily Stock Market Report (Fri 10 Jan 2025) - SHI, Fast Retailing, APH, ANP, CKN, SBRY

Fri 7:05am by Graham Neary

65 comments 4787 reads

Good morning! We have another takeover offer to round out the week, this time for Alliance Pharma.

1pm: this report is finished! Have a great weekend, and keep an eye out for our weekly podcast!

Spreadsheet accompanying this report (updated to 3/1/2025).

Companies Reporting

Name (Mkt Cap)	RNS	Summary	Our view (Author)
J Sainsbury (LON:SBRY) (£6.6bn)	TU	Q3 LfLs +2.8%. Won market share. FY25 adj. operating profit to be in line (£1,010-1,060m).	AMBER/GREEN (Graham)
Clarkson (LON:CKN) (£1.2bn)	TU	Results for FY Dec 2024 to be slightly ahead of expectations, adj. PBT not less than £115m.	AMBER/RED (Graham)
Glenveagh Properties (LON:GLV) (£704m)	Full Year TU	Rev +43% (€869m), EPS +112%. “Positioned for further growth in 2025”, favourable mkt conditions
Team Internet (LON:TIG) (£297m)	Statement of intention not to make an offer	One of the possible buyers pulls out of the race.	PINK
Alliance Pharma (LON:APH) (£240m)	Recommended acquisition of APH	62.5p in cash, 41% premium to yesterday’s close.	PINK (Graham)
De La Rue (LON:DLAR) (£218m)	Receives takeover offer (per Sky News)	According to Sky News there is a “full cash offer” at 125p. A partial cash offer was proposed in Oct.	PINK
Anpario (LON:ANP) (£75m)	Full year TU	Stronger than expected H2 performance. Rev £37.5m, EBITDA ahead of exps.	GREEN (Graham)
Equipmake Holdings (OFEX:EQIP) (£15m)	Results for six months to Nov 2024	Rev +19% to £2.5m, adj. operating loss £3.95m, in line with exps.
One Media IP (LON:OMIP) (£9m)	TU	FY Oct 2024: rev £5m, EBITDA £2.1m (+15%). Strategic disposal: “much stronger position for 2025”.

Summaries

Alliance Pharma (LON:APH) - up 38% to 61p (£330m) - Recommended Acquisition - Graham - PINK (takeover)

It's a 40%+ premium takeover offer from APH's largest shareholder, although they point out the shares have more than doubled since they originally approached the APH board. It's a shame to lose another decent company from the UK market, but at the same time reassuring of the value that is probably still available!

Short Sections

Anpario (LON:ANP) - up 9% to 400p (£83m) - Full year trading statement - Graham - GREEN

It’s a positive update from this provider of animal feed additives: year-end sales were higher than expected, so that full-year revenue is now thought to be c. £37.5m (consensus: 35.25m). Higher sales, operational gearing and fortunate…

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bohenie

Fri 2:30pm

Clarkson (LON:CKN) - Hi Rusty and thanks for the reminder. Indeed Paul has just ranted on about the huge pay package awarded to the top two directors in his daily podcast (along with similar disdain over at Anpario (LON:ANP) ). Not on Tesla scale but they do make profits for shareholders and there are a number of dare I say reputable institutional investors on the shareholder list.

Rusty2

Fri 2:46pm

From memory it was not just 2 directors and it was almost all the cash.

In 2022 it was £225m. This is not just a few £m to directors.

jjis

Fri 2:53pm

It is a broking type business where bonuses are often paid. I don't think it is correct to say that most of the cash is paid out to staff as there have been dividends and they retain cash on the balance sheet. There is also a degree of paying out past years as well as bonuses are held back & last year (which I guess he may have been referring to) was a bumper year & included some catch up etc. There was a good explanation of this in the Remuneration report in last year annual report on page 129 0r see the photo below if it is readable?

Fri 2:57pm

It was £225m in 2022.

In 2021 it was £148m.

Yes it is on the balance sheet, but is reserved for future bonuses.

From the SCVP 6 March 2023:

"On digging a bit deeper, I’ve found something rather alarming in the notes, right at the end, it says that most of the cash pile is due to be paid out in bonuses, a colossal amount!

hosSeQzoryHnulI10ja6WUL0p2qj2I9cngavCkl0xrGbWCH_8Dqkga3lbbo_9aC7pMQWnlE_cAZ4aXwZ7zd0D5j0HOM0Yljq4IXyG15yiAKJ4iFw6zMnEkGW47IbfkyKF7fLObMpuE2_nn7Qg32PBOk

I also note from the cashflow statement that £20.4m was spent buying shares for the employees’ ESOP. Plus an £88.8m increase in the “bonus accrual”. This dwarfs the cash paid to shareholders, divis of £25.9m."

Fri 3:06pm

It is not just about the dividend with this, it has offered pretty decent total returns, although obviously anything could happen in the future.

sparkler

Fri 3:36pm

Wow. What a surprise that would be! A small fashion retailer that has made a profit just once in its lifetime and recently did a complete strategy u-turn from exclusively online to a mix with physical stores. One of Paul Scott's stranger obsessions.

Gung Ho

Fri 3:56pm

You would expect the supermarkets to benefit if people are trying to rein in their food and drink budgets. A meal for 2 in a pub with a couple of drink each goes a long way in a supermarket - especially Aldi!

Pimlico on Thames

Fri 4:05pm

XPS Pensions (LON:XPS) has dropped back to 200 dma, where it has found support for it's 3x growth over the last 2 years. I see the current gilt/stock/pension turmoil as another "Truss trigger" for their clients and will be topping up after top slicing at 360 on the October spike.

Fri 4:15pm

The other approach being taken is shrinkflation to anchor prices but smaller product size. Just had a flat repainted and Dulux emulsion tubs now only 7.5L were 10L, and don't mention the size of piece of cheddar to go in my sandwich. I think I need that £7 pint

Fri 4:23pm

Dulux came out bottom in one test of emulsions, coverage was very poor.

It is not the cheapest but you need to use more of it.

planetx

Fri 4:35pm

The stupidi small minded economist Rachel Reeves appears to have killed the Greggs sausage roll as well as the hopes and dreams of a nations entrepreneurs.

Before bemoaning the price of a burger or a pint we need to be very very clear that this is the result of costs spiralling for the providers .

And costs have spiralled to pay for our doctors and train drivers whos myopic self interst have shafted the nation

At least the civil servants with their fat pemsions , flexi time wotk from home and mental health awareness days wont be forced to queue with the rest of us tax paying peasants bring bled to death in the queues at Greggs .

Maybe our economic path to growth and fiuture success is nothing more than a shadow move by Reeves to get her Greggs pasty quicker .

Bouden54

Fri 4:39pm

Yes any turmoil should be good for XPS - taken advantage of irrational drop to add a few

Graham Neary

Fri 5:09pm

Hi MIK, I'm responding to you on yesterday's thread. Thanks. Graham

Fri 5:10pm

Its all in the annual report available on the website - pages and pages of detail but in 2023 by far the largest -£12m - went to Andi Case

Fri 5:29pm

So what is the total for 2023?

Do you think £12m to one director is reasonable?

How many millions did he get in 2022?

Lochinver

Fri 6:23pm

Shame about the staggering size of the ongoing ‘hidden’ employee share trust . Presumably mainly for Directors benefit . A whopping £8.6m of the company's cash has been spent in this way without being put through the P & L.

Db47

Fri 8:36pm

like Greggs !

Fri 8:40pm

Greggs (LON:GRG) I hold - I've added some today and will add more if it falls further, doesn't feel like a falling knife ? (I hope !)

snowdrop

Fri 8:53pm

Re Loungers (LON:LGRS) big big stock market success! I went to the one in Deal late lunch today (busy) 4 front of house. Kitchen up steep stairs. No dumb waiter!!! If the UK did productivity cap ex the place would be transformed. But why bother when staff were cheap? As a Londoner what really struck me was how SLOW the pace of life is outside the smoke. This country deserves to be poor? The FT pointed out that Starbucks is being hammered in China by 'automated' competition. The Loungers was not an old fit out, just an exploitation of cheap labour.

Robert W

Sat 5:22pm

I just watched the H1 results as a consequence of the good TU today. Contrary to the comment above, they had a specific slide front and centre on the employee share trust. And looking at it, I am fairly relaxed: the rewards to shareholders and employees seem well balanced. For me the bigger question/issue is are their markets cyclical or are we seeing secular growth? I am less optimistic than Graham above so a no for me for now.

Daily Stock Market Report (Fri 10 Jan 2025) - SHI, Fast Retailing, APH, ANP, CKN, SBRY

Companies Reporting

Summaries

Short Sections

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Graham Neary

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