@CantorIreland

Cantor Fitzgerald Ireland

A round up of the main financial stories of interest from the weekend papers. 2nd March 2020

Pages 2 - 4: Press Summary Page 5: Links to Our research publications and market insights https://cantorfitzgerald.ie/

Cantor Fitzgerald Ireland Ltd (Cantor) is regulated by the Central . Cantor Fitzgerald Ireland Ltd is a member firm of the Irish Stock Exchange and the London Stock Exchange

Weekend Press Summary

Saturday 29th of February 2020 Sunday 1st March 2020

The Saturday Irish Times Sunday Business Post

CRH reported results on Friday which saw EBITDA jumping 25 percent driven by acquisitions and widening margins. The company also plans a 15 percent rise in dividend while aiming to cut its Voxpro founders add fintech firm Trezeo to portfolio carbon emissions. Linda and Dan Kiely, who sold their Voxpro firm in a €145 million deal, have added a new investment to their rapidly expanding Joe Brennan in the Market Beat column reviews the results and Regsont portfolio. The Kiely’s are seed-level investors in fledgling questions whether the company had done enough to silence the fintech firm Trezeo, it has emerged, bringing the Cork couple’s start- Swedish based activist shareholder Cevian. up investments to almost a dozen to date. Trezeo was founded by former banker Garrett Cassidy, who previously ran the European Stephen Garvey, CEO of Glenveigh Properties expects the headquarters of Circle, the US cryptocurrency company, which was industry to build up to 23,000 houses in 2020. Noting a strong backed by billionaire Facebook investor Jim Breyer. Trezeo has performance for the company ‘operationally and financially’ he did devised pay software to help casual workers regulate their incomes, question how the 35,000 homes experts say are needed will be with a focus on the British market. built. CRH hoping to benefit from rising infrastructural spend. Mark Paul notes the fall in globa markets as a result of the On Friday, the Irish firm proposed a 15 per cent increase in its CoVid 19 virus fears, however despite the falls Rools Royce gained annual dividend to 83 cent after reporting a 25 per cent jump in 6.6 percent, the most in. 18 months, on positive nenes relating to earnings before interest, taxation, depreciation and amortisation the engine it manufacturers for the Boeing 787. (Ebitda) to €4.2 billion. CRH also hinted at a likely continuation of Cantillon notes the lack of visibility for airlines over the coronavirus the share buyback programme it initiated in 2018. with IAG and EasyJet reporting falling demand.

Glenveagh spends €5m on factory for timber frames. CSO data saw retail sales volumes fall 3.4 percent in January, The company said that the building, near to some of its active however compared with the same month a year ago the volume of construction sites in the Dublin area, will be leased to a company sales increased by 3.7 percent. called Keenan Timber Frame which will produce exclusively for Glenveagh. When the new factory is open in April, Glenveagh said it will have the capacity to deliver about 800 timber frame units a year. . It will also have the opportunity to expand the facility to raise its output.

The Saturday Independent Ian Guider: The $3tn Wipeout that shook the world’s stock markets. The huge drop, equivalent to the entire annual output of India’s economy, conveys the widespread fear that the coronavirus could wreak havoc on an already shaky global economy CRH hints at further buybacks after hiking 2019 dividend CRH has continued to ramp up a return of capital to shareholders, Johnson backer Odey raises his bet against Tullow Oil. announcing a 15pc hike in its full-year dividend and hinting strongly The hedge fund boss has increased his short trade position to 1.37 at further share buybacks. per cent – or £6.3 million – of the company’s shares.

'No magic wand' to boost housing supply, warns Glenveagh Banks forced to cut costs as rock-bottom interest rates cripple growth. CEO Stephen Garvey, CEO of Glenveagh Properties, said there The reality is that 2019 was another year of running to stand still for was "no magic wand" to fix the housing crisis, adding "you are not a banking sector dogged by legacy issues and still suffering from a going to get 100,000 houses in a flash". The demand for more rock-bottom interest rate environment that is holding back their housing is "obviously there", he said. "What the Government needs ability to grow. This year is likely to be the same. Conor O’Kelly, to focus on is how they stimulate supply into the market." head of the National Treasury Management Agency, suggested last week that the state shouldn’t wait too long to flog off its remaining 'Heavy price' for climate apathy faced by taxpayers Effective shares in Irish banks. climate action is going to result in higher taxes here as revenues from some sources sink, but the cost of inaction is even greater and Dalata ‘watching Covid-19 situation very carefully’. the State faces fines that could run into billions of euro if it fails to Last week, the Dalata chief executive had good reason to be in high meet agreed limits on emissions, according to the Irish Fiscal spirits as Ireland’s largest hotel group reported a 13 per cent jump in Advisory Council. earnings to €135 million on the back of a near 10 per cent increase in revenues to €429.2 million. 12,000: the total number of bedrooms the group will have when new hotels in the pipeline come Markets count losses in trillions as virus spreads Irish and to fruition. 3.1%: RevPAR (revenue per available room) fell from global equities have lost more than a tenth of their trillions in value €93.24 to €92.11 in Dublin last year this week, a plunge of historic speed that could last until the coronavirus fear factor peaks. Pay flat for Kingspan’s top brass despite record profits Chief executive Gene Murtagh saw his pay come in at just shy of €2 million for a second year in a row. Murtagh, who has been chief executive since 2005, was paid a salary of €870,000 and a bonus of €870,000. When pension, benefits and other payments are added in his total pay package came to €1.9 million.

CANTOR FITZGERALD IRELAND Page 2

Weekend Press Summary

How Fexco became a success story in the Kingdom The Sunday Times The employees of Kerry-based financial services behemoth Fexco have swapped the grind of the city for a bucolic brand of rural life. Could their experience point the way forward for thousands of other In the first opinion poll since the election, the Sunday Times workers around Ireland? Fexco has grown into a multinational reports that Sinn Fein’s support has surged by 10% to 35% at the financial services business operating in 29 countries and employing expense of almost all other parties. 2,500 workers across the world. According to the company, it has about 1,000 people in Killorglin in various offices in the town. Quoted housebuilder Glenveagh is lining up the sale of 450 planned apartments to property group Round Hill Capital for about Greencoat Renewables gives an energy reading (Monday) €250m. Round Hill is in exclusive talks with Glenveagh about a so- Greencoat Renewables releases its full-year results. It comes the called pre-fund deal for the project on East Road in Dublin near the month after the Irish energy company bought a 14.1 megawatt wind north docklands. It is the first time than Glenveagh have entered farm in Clare for €35.4 million in a deal that took its wind assets discussions about this type of deal. portfolio to 476MW. The farm consists of six Enercon E92 turbines that have been operational since December. KBC bank is preparing to ditch its insurance partner Irish Life, as it turns to its Belgian parent to help drive a push into life cover, shows financial foundations (Tuesday) pensions and investments next year. The bank has been reviewing Cairn Homes announces its full-year results. In a trading update in its options since the Irish operation was deemed to be core by its January, the builder said its revenues for 2019 grew by about 29 per parent in 2017. cent to €434 million. Cairn said there was strong demand for homes and that its average selling price rose from €366,000 in 2018 to Sinn Fein’s success at the polls has put a mooted sale of waste €372,000. In the same month, An Bord Pleanála gave Cairn company Key in doubt. Sin Fein is committed to bringing the permission to build 426 homes near Greystones, Co Wicklow. industry back under municipal control according to its environment spokesman. ICG announces its full-year results (Thurs) releases its full-year results. The shipping Dundrum Town Centre is to spend €16m to reconfigure the company reported an 8.2 per cent increase in group revenues in the former House of Fraser outlet into a new premise for Brown year to November 23, which it attributed to “improved schedule Thomas. The Centre is owned by Hammerson and Allianz and the integrity” at its Irish Ferries division after disruptions in 2018. ICG work is expected to start mid-year. Penney’s is reported to be said its group revenue rose to €308.8 million over the period, a interested in the remaining available space. year-on-year increase of €23.5 million. Irish hostel group A Star has lodged plans to build a seven shows fruits of its labour (Thurs) storey tourist hostel off O’Connell St in Dublin. The company Total Produce announces its full-year results on Thursday. The fruit already operates three hostels in the city and the new development and vegetable company reported strong results for the first half of in Marlborough street will have 95 bedrooms. 2019. Total revenue was up 39.6 per cent to €3.051 billion. The group completed the acquisition of a 45 per cent stake in Dole Food Brian Carey reviews Flutter’s recent results and draws attention Company, one of the largest fresh produce companies, in July to the success it is making out of its American acquisition Stars 2018. Group relative to its other heavily regulated markets.

Statement due from AIB (Friday) Niall Brady reports that has acceded to pressure AIB releases its full-year results on Friday, following Bank of for the auditing watchdog to give greater disclosure on the make up Ireland and Permanent TSB last week. In January, the bank of its revenues. Bank of Ireland, Smurfit, Kenmare and IRES are revealed that it had set aside an additional €300 million for other quoted companies that are in discussions with the Irish customers affected by the tracker mortgage scandal. Colin Hunt, the Auditing and Accounting Supervisory Authority over accounting chief executive, will want to use the results announcement to draw a issues. line under the episode. Brian Carey reviews ’s results and examines the issues Glanbia to focus on new performance nutrition strategy in the performance Nutrition division where the company is planning The past 12 months have undoubtedly been an “annus horribilis” for to rationalise its brand portfolio. He also highlights the very strong the company, as analysts at London investment bank Jefferies put it performance of the Slimfast business in the US. in a note to clients earlier this month. GPN itself appears bloated and undoubtedly weakened. The division has two distinct areas of There are two pull page articles on the Coronavirus, one on the focus. These are its lifestyle business, which encompasses impact on global stock markets, the other on its impact on Irish products like SlimFast and thinkThin, and its performance nutrition industry. brands of protein powders and bars, led by its Optimum Nutrition brand. GPN’s challenges revolve around three core issues: pricing, Liam Kelly reviews the fate of small shareholders in Yorkshire distribution and competition. Adverse foreign exchange movements based Sirius Minerals who are resisting a rescue takeover of the and tariff headwinds in Brazil and other emerging markets have not company by mining giant Anglo American at 5.5p per share. The helped its cause. company had plans for a major potash mining operation which had attracted a large number of private investors, many of them people living locally.

.

CANTOR FITZGERALD IRELAND Page 3

Weekend Press Summary

VW shrugs off broader sector woes to post strong profits Pre-tax earnings up 17% Dividend a third higher Stark contrast to The Sunday Independent rivals.

Brussels kicks off probe into Rome’s €400m Alitalia loan Irish property owned by Hammerson, a UK-based property The European Commission has opened an investigation into a development and investment group that co-owns Dundrum Town €400m Italian government loan to Alitalia after complaints alleging it Centre, has decreased in value by nearly £119m (€138m). breaches state aid rules.

Flutter, the Irish-headquartered gambling group formerly known Coronavirus prompts crisis for travel sector as Paddy Power Betfair, has paid nearly £40m (€46m) to tax Airlines count cost of cancelled events as multinationals freeze authorities in Germany and Greece in respect of legacy business trips and turn to video conferencing instead. tax assessments. Rolls-Royce upbeat on restructuring gains Grafton Group is in early-stage discussions with at least one Engineer cuts operating losses and reports higher than expected company that it sees as a potential acquisition in a new European free cash. market, CEO Gavin Slark has told the Sunday Independent in an interview. Trump expands travel restrictions after first US coronavirus death Bank of Ireland has entered into exclusive negotiations with President announces new measures after criticism he cash machine operator Euronet for the sale of around 750 non- was downplaying outbreak. branch ATMs. Joe Biden wins big in South Carolina primary Glanbia issued several profit warnings in 2019, with the share Emphatic victory boosts former US vice-president’s price tumbling more than 40pc since this time last year. flagging campaign. The company homed in on Glanbia Performance Nutrition (GPN) as the central problem facing the group, namely that whey protein is Wall Street weighs up Bernie Sanders’ financial plans not now viewed as the super-supplement for fitness and health that Far-left Democratic presidential candidate eyes broad changes it was once believed to be. but offers few details so far.

A descendant of Daniel O'Connell, the Irishman who fought to Opinion The Long View- The coronavirus alarm points to broader allow Catholics the right to sit in Westminster in the early 19th credit shakeout century, has released his own whiskey brand in Ireland. Investors will need to wait months before the full impact can be Maurice O'Connell and his wife Francesca yesterday launched The assessed. Liberator Irish Whiskey range through their Co Kerry company, Wayward Irish Spirits. The product is a blend of 13-year-old Cooley Distillery whiskey and a four-year-old whiskey from the Great Northern Distillery

The Weekend FT

US stocks close lower again for worst week since 2008 Late rebound fails to snap losing streak as Fed promised to ‘act as appropriate’ in response to coronavirus.

Federal Reserve to ‘act as appropriate’ to support economy US central bank calls spread of coronavirus an ‘evolving risk’ but says fundamentals still strong How the coronavirus shattered market complacency Shrugging off risks at the start of the year has proven costly Traders press central banks to act amid coronavirus ructions Shrugging off risks this year has proven costly in biggest market drop since 2008.

Saudi Arabia seeks bigger oil cut as demand drops Saudi Arabia is pushing for a substantial cut in oil production when Opec and its allies meet next week, as global energy producers scramble to respond to the coronavirus outbreak, which has crippled demand.

Odey’s bets against Tesla and shale start to pay off

Crispin Odey, one of Europe’s most high-profile hedge fund managers, has emerged as a winner in a brutal week for equity investors as the fallout from the deadly coronavirus sends markets plunging.

CANTOR FITZGERALD IRELAND Page 4

Weekend Press Summary

Daily Note

Each day we produce a market commentary outlining critical economic and company developments. We leverage off our global network of analysts and investment professionals to provide clients with critical insights from our local teams first thing in the morning. Click here for more details

Weekly Trader On Mondays, we release our weekly note in which we provide a view on equity markets for the coming days and highlight the equities which we believe provide exposure to the important themes unfolding in the markets. Our in-house Investment Committee meets on a weekly basis to craft this strategy, Download thereby allowing clients to dynamically position portfolios to take advantage of the most up to date market developments.

Click here for more details

Investment Journal Each month our Private Client and Research departments collaborate to produce our Investment Journal. Here we highlight the key stocks to watch, the performance of our flagship products and our Downloadcore portfolio , the latest investment opportunities and a round-up of world financial news and events. Click here for more details

Download

CANTOR FITZGERALD IRELAND Page 5