.png?source=invchron&width=608)
GSK (GSK), St James’s Place (STJ), Oxford Nanopore Technologies (ONT), Plus500 (PLUS), Craneware (CRW), PageGroup (PAGE), Serco (SRP), Entain (ENT) and Georgia Capital (CGEO)
The quickening pace of pharmaceutical acquisitions was further emphasised by GSK (GSK), which has laid out $1.15bn (£950mn) to acquire US-based biotech company IDRx and its innovative gastro-intestinal cancer drug IDRX-42.
The treatment is a form of gene therapy which aims to prevent mutations in the KIT gene from causing tumours in the digestive tract. GSK will pay $1bn up front in cash, with additional milestone payments of $150mn.
If approved – the clinical road still has some way to run – GSK is talking about a contribution to growth past 2031 when the company’s growing gastro-intestinal cancer portfolio will come to maturity. However, the therapy would be the first-in-class available to treat tumours in this form.
Unusually, GSK bought IDRX-42 based on very early trial results from the StrateGIST 1 trial, an ongoing phase I/Ib trial involving patients with advanced gastro-intestinal cancer, with the data clearly promising enough to justify the outlay at such an early stage. JH
Schroders bags £5.2bn from St. James’s Place
St James’s Place (STJ) has taken a £5.2bn sustainable investment mandate away from Impax Asset Management (IPX) and handed it to Schroders (SDR), in a major sector shake-up.
Schroders said the win was a testament to the “robustness” of its active investment proposition. “This investment allocation by SJP underlines the quality of our active investment process and commitment to delivering sustainable outcomes for our investors,” said Alex Tedder, co-head of equities. JS
Oxford Nanopore soars on trading performance
Oxford Nanopore Technologies’ (ONT) share price soared 15 per cent as the medical technology company, which specialises in genetic sequencing, posted a strong full year trading update with revenues expected to be 11 per cent higher at constant currency rates, to £183mn. Sales seem to have been boosted by the 55 per cent growth in its PromethION product, alongside new product launches in its mature market.
However, the share price rise was somewhat confusing as Oxford Nanopore’s performance had only really come within its previous guidance. Broker Peel Hunt made the point clear, describing meeting revenue guidance as a “low bar” and that much more pertinent to the company’s performance will be whether it has brought costs under control when the full year numbers are released.
“We are hopeful that a renewed focus on capital discipline, which has been lacking since the company's formation, will be evident in the full year 2024 results”, the broker said. JH
Plus500 builds customer base
Revenue at Plus500 (PLUS) has come in ahead of expectations after a strong period of customer growth.
The investment platform achieved revenue of approximately $768mn (£634mn) and Ebitda of around $342mn in 2024, according to a full-year trading update. This compares with revenue of $726mn and Ebitda of $341mn in 2023.
Investment in marketing drove a surge in user numbers, including 36,000 new customers in the final quarter alone. This equated to an increase of 45 per cent versus the third quarter. JS
Read more: Bearbull Income Portfolio: The case for Plus500
Craneware confident on US outlook
Craneware (CRW) achieved a 10 per cent increase in both revenue and adjusted cash profit, to $100mn (£82mn) and $30.3mn, respectively, for the six months to December.
Good levels of operating cash generation also allowed the healthcare software specialist to cut its total bank debt to $31.6mn, from $59.2mn a year ago.
Positive noises about US hospitals expecting a post-election period of stability and investment helped to push the company’s share price up by 6 per cent. MF
PageGroup warns on profits as job market woes worsen
Recruiter PageGroup (PAGE) has warned that full year profits will be towards the lower end of the £49mn to £58.5mn market consensus due to worsening job market conditions in Europe.
The FTSE 250 agency said in a trading update that gross profits tumbled 13 per cent to £196.7mn in the final quarter of 2024, as low levels of client and candidate confidence continued to delay hiring decisions.
Gross profits in Europe, the Middle East and Africa (EMEA), which account for more than half of group fees, fell 19.1 per cent on the back of softer trading in Germany and France. The Americas, Asia Pacific and UK also reported double-digit declines.
The company revealed it had cut its fee-earner headcount by 130, or 2.4 per cent, to 5,370 in the quarter, with reductions mainly in Europe and the UK. Shares fell 4 per cent this morning to 298.2p, having slumped by more than a third over the past year. VM
Serco names new chief executive
Outsourcing giant Serco (SRP) has promoted Anthony Kirby, current head of its UK and Europe division, to the post of group chief executive. He will take over from Mark Irwin, who is retiring after two years in the role and 12 years with the company on 1 March. He will remain as a strategic advisor for a transition period.
Kirby was appointed to his current role in January 2023 after serving as group chief operating officer since 2020. Before joining the company as group HR director in 2017, he spent 17 years at food and support services company Compass Group, where he held a number of senior roles. VM
Entain maintains optimism
Ladbrokes and BetMGM owner Entain (ENT) shrugged off the wider woes felt by the gambling sector and reiterated its full-year profit guidance.
Despite the “customer friendly” results in American football that hit peers, it expects a full-year Ebitda loss of $250mn (£206mn) at BetMGM, which is in line with expectations and is “consistent with 2024 as an investment year”.
Results at its other businesses fell in its favour, though, meaning group Ebitda is still expected to be “at the top end” of its guided range of between £1.04bn-£1.09bn. MF
Georgia Capital caught up in political row
Georgia Capital (CGEO) has denied that the US government is considering action against its chief executive over recent political turmoil in Georgia.
The group, which runs a platform for buying and developing businesses in Georgia, cited a report that claimed the US House of Representatives had sent a letter to the new US administration calling for action against 25 individuals, including the company’s chair and chief executive, Irakli Gilauri.
“The board has no basis for assessing the origin of the list of names. We are, however, actively engaged in contacting the relevant US officials to clarify the circumstances,” Georgia Capital said. It rejected “any suggestion” that any government should be considering action against Gilauri.
Georgia has been rocked by demonstrations and public resignations over its government's decision to suspend a bid to join the European Union. This follows an election victory for the authoritarian ruling party – an outcome which was disputed by opposition parties. JS
.png?source=invchron&width=600)
.png?source=invchron&width=600)
.jpg?source=invchron&width=600)
