UK stocks ended the week on a positive note, just, despite an unexpected rate rise from the Bank of England and a record level of Covid infections driven by the new Omicron variant.
Earlier in the day retail sales for November surprised to the upside, lifting retail and other consumer-facing stocks.
At the close the FTSE 100 index of leading shares was up 9 points or a little over 0.1% at 7,270 while sterling eased 0.4% against the dollar to $1.3265.
Oil was also weaker with Brent crude futures down 1.6% at $73.65 per barrel, while gold nudged up 0.5% to $1,807 an ounce.
CORPORATE NEWS
Shares in chemicals company Johnson Matthey (JMAT) were 1.5% lower at £19.62 despite news the firm had sold its health business to Altaris Capital Partners for £325 million and would retain an equity interest of approximately 30%.
The deal represents an implied transaction multiple of 9.8 times underlying EBITDA (earnings before interest, taxes, depreciation, and amortisation) of £33 million for the 12 months to September.
Primary Health Properties (PHP), the investor in modern primary healthcare facilities, said it had agreed to acquire a medical and office facility in the North East of England for £10 million.
The acquisition will complete when a comprehensive refurbishment of the premises is complete in the second quarter of 2022, and will increase the company’s portfolio to a total of 521 assets, of which 20 are in Ireland, with a contracted rent roll of over £140 million. The shares were flat at 149p.
STRONG TRADING
Shares in native in-game advertising group Bidstack (BIDS:AIM) surged 20% to 3.85p after reporting a strong trading update. The company said it has secured a revenue stream of a guaranteed minimum of US$30 million advertising spend over two years, commencing 1 March 2022.
The company also announced a two-year deal with leading pan-European digital entertainment platform Azerion which it said would ‘will grow Bidstack's global sales footprint exponentially thanks to Azerion's established team of over 1,000 employees operating across 26 offices in 18 countries.
Global music and audio products company Focusrite (TUNE:AIM) said it was still experiencing supply constraints due to the global shortage of components while freight and shipping costs remain ‘significantly’ higher.
However, the company insisted it was managing the challenges in line with its expectations. The shares dropped 4.5% to £15.15.
Wealth manager Mattioli Woods (MTW:AIM) said net inflows and the number of new clients on-boarded were higher in the first half to November compared with last year reflecting the strength of existing client referrals and new business initiatives.
Organic revenue growth was up 10% over the period. The company said the trading outlook for the current financial year was in line with management’s expectations. The shares dipped 4.5% to 840p at the close.
Shares in non-standard lending group Morses Club (MCL:AIM) were unchanged at 56.4p after it said the board had decided to abandon plans to reorganise the business by introducing a new holding company because the work couldn’t be completed within the time allotted.
The company said ‘further funding arrangements for the group have now been confirmed until 31 March 2023, and the business is trading in line with expectations, with continued strong customer demand for credit products in both trading divisions.’
