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CLS Holdings H1 Profit Down, Net Rental Income Up; Maintains Dividend

HD Supply To Divest White Cap Business To Clayton, Dubilier & Rice For $2.9 Bln In Cash

HD Supply Holdings, Inc. (HDS) announced Tuesday that it has entered into a definitive agreement to sell its White Cap business to an affiliate of private equity firm Clayton, Dubilier & Rice for a purchase price of $2.9 billion in cash.

The White Cap business is a leading distributor of specialty concrete and construction products and services in North America serving professional contractors.

Net proceeds from the sale are expected to be approximately $2.5 billion after taxes and transaction costs. The transaction is expected to close in October 2020, subject to customary regulatory approvals.

HD Supply expects to use the net proceeds from this transaction to return capital to HD Supply shareholders, fund M&A activity and repay debt.

Once the transaction is complete, John Stegeman, White Cap’s current CEO, and Alan Sollenberger, White Cap’s current President, are expected to continue to lead the Construction and Industrial business, which will include the White Cap, Home Improvement Solutions and Brafasco businesses.

U.S. Reaches Deal With Moderna For 100 Million Doses Of COVID-19 Vaccine

Moderna said Tuesday that it has reached an agreement with the U.S. to initially supply 100 million doses of its experimental vaccine for COVID-19, mRNA-1273. The U.S. government has awarded up to $1.525 billion for the vaccine.

The U.S. will also have the option to purchase up to an additional 400 million doses of mRNA-1273 from Moderna.

The U.S. government has already invested $955 million in the company’s vaccine development, bringing its total investment up to $2.48 billion, Moderna said in a statement.

The U.S. has also entered into a deal with Pfizer in July to secure 100 million doses of its vaccine BNT162. In August it has reached a deal to get 100 million doses of vaccine Ad26.COV2.S from Janssen Pharmaceutical. Similarly, the U.S has reached deals with GlaxoSmithKline, Sanofi, Novavax and AstraZeneca for their vaccines.

The UK is in an official COVID-19 recession after GDP plunged 20.4% in Q2

 

  • The United Kingdom has entered a recession for the first time in 11 years due to the coronavirus pandemic's impact on the economy.
  • Figures from the Office for National Statistics show that from April to June, GDO plunged 20.4%
  • The figures marked a second consecutive quarter of contraction, the technical definition of a recession.
  • The economy began to rebound in June after lockdown restrictions were relaxed, but is still in deep trouble.
  • The neighboring Eurozone is also in recession, which was announced in late July.
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Freenet Q2 EBITDA Increases; Confirms FY Outlook

Freenet AG (FRAGF.PK) reported that its second-quarter EBITDA increased to 109.7 million euros from 107.5 million euros in the prior year.

EBITDA without regulatory effects / MOTION TM rose to 114.7 million euros from 109.5 million euros in the prior year.

But quarterly revenue declined to 622.1 million euros from 624.3 million euros in the prior year. The prior year’s revenue adjusted for the sale of MOTION TM.

The subscriber base reported a year-on-year net increase of 266.7 thousand customers or 3.2 per cent to 8.490 million customers in the first half of 2020.

The company still sees no need to adjust its financial and non-financial performance indicator forecasts and confirmed the guidance issued for the 2020 financial year.

The company said in February that it anticipated stable revenue, which adjusted for hardware retail business MOTION TM, for the financial year 2020. EBITDA was expected to remain largely unchanged within a range of 415 million eurosto 435 million euros.

The company confirmed its dividend policy of distributing at least 80 per cent of free cash flow.

HHLA H1 Profit Plunges; Sees Further Strong Decline In FY20 Results – Quick Facts

Hamburger Hafen und Logistik AG or HHLA (HHULF.PK,HHULY.PK), a German logistics and transportation company, reported Monday that its first-half profit after tax and minority interests fell 74.2 percent to 14.1 million euros from last year’s 54.7 million euros.

The operating result or EBIT decreased 51.5 percent to 55.5 million euros. EBIT margin was 8.8 percent, down 7.7 percentage points from last year.

EBITDA declined 27.4 percent to 140.1 million euros from last year’s 192.9 million euros.

Group revenue decreased 9.4 percent to 628.4 million euros from 693.7 million euros a year ago.

Looking ahead, the company projects further strong decline in revenue and earnings for the 2020 financial year.

The company said it has sufficient liquidity despite the strains caused by the pandemic. The available liquidity at the end of the first half amounted to 296.1 million euros, compared to 260.1 million euros last year.

CLS Holdings H1 Profit Down, Net Rental Income Up; Maintains Dividend

Office space specialist CLS Holdings plc (CLI.L) reported Monday that its first-half profit before tax was down 62.8 percent to 31.5 million pounds from last year’s 84.6 million pounds, reflecting lower investment property valuation.

Earnings per share from continuing operations was 5.3 pence, down 68.5 percent from 16.8 pence a year ago.

EPRA Earnings per share grew 16.7 percent to 7 pence from last year’s 6 pence, with higher net rental income and foreign exchange.

Statutory net asset value or NAV per share grew 2.2 percent to 301.7 pence from 295.1 pence last year. EPRA NAV per share improved 3.2 percent to 339.6 pence from 329.2 pence last year.

Net rental income increased 5 percent to 56.5 million pounds from 53.8 million pounds a year ago, driven by net additions to the portfolio and operational improvements as well as higher other income.

Further, the company maintained interim dividend at 2.35 pence per share, to be paid on September 25. Any full year dividend increase to be assessed with the final dividend

Looking ahead, the company said, “With the gradual easing of lockdown restrictions, the priority for the second half of the year is the conversion of our leasing enquiry pipeline to drive occupancy while continuing to maintain a high level of cash collection from the portfolio. Initial indications are that leasing enquiries are picking-up in lockstep with general economic activity and we are encouraged by recent increases in leasing activity.”