Good morning! I see that the FTSE All-Share is now up 3% year-to-date, not including dividends. For once it is outperforming the S&P 500, which is down 4.5% year-to-date.
The Agenda is now complete.
1.30pm: wrapping it up there, thank you.
Companies Reporting
| Name (Mkt Cap) | RNS | Summary | Our view (Author) |
|---|---|---|---|
BAE Systems (LON:BA.) (£53.5bn) | Trading in line, guidance maintained. Order backlog and pipeline provide good visibility. 2025 EPS growth is expected to be 8% to 10%. | AMBER/GREEN (Roland) [no section below] BAE says it’s well positioned to benefit from increase in EU defence spending and is engaged in the UK’s defence review. The wildcard remains the US, where there’s little visibility on how the current administration may alter defence spending. The US generated 44% of group revenue last year. This year’s expected capex/revenue ratio of 3.3% suggests to me that BAE is still waiting for clarity before committing to major new investments in capacity. With the shares on a P/E of 23, the valuation looks full to me. But I can’t deny the momentum here, so I’m taking a moderately positive view. | |
Tritax Big Box REIT (LON:BBOX) (£3.6bn) | Expecting “acceleration in rent income capture as the year progresses”. 28% rental reversion. | ||
Trainline (LON:TRN) (£1.2bn) | FY25: rev +12%, op profit +54%. FY26: headwinds (as previously announced). Growth 6-9%. | AMBER (Roland) [no section below] Today’s results look strong to me, with a 19% op margin and 20% ROE. The commentary highlights the potential for medium-term structural growth as EU rail networks are opened up to new operators. However, TRN also flags up a range of near-term headwinds. Google changes are expected to hit traffic while revenue take could fall due to lower commission rates. Localised monopolies (e.g. TFL) and the potential for greater competition also seem like risks to me. The opportunity for TRN is to build a brand (like Rightmove) that dominates competition and doesn’t rely on search traffic. That could happen, but I’m not sure TRN is there yet. Given the number of moving parts here, I think a neutral view makes sense at this point. | |
J D Wetherspoon (LON:JDW) (£801m) | Year-end net debt £720-740m. “Reasonable” outcome this year. Wage/tax increases £1.2m/week. | ||
Georgia Capital (LON:CGEO) (£628m) | NAV per share +11.2% to GEL 106.73. Excellent underlying… |
