31st May 2023. 9.00am
Regency View:
Update
Regency View:
Update
Aviva build ‘clear trading momentum’
Aviva (AV.) released a solid trading update last week in which it said it was “on track to meet or exceed Group targets”.
The insurer’s private healthcare sales surged 25% as NHS waiting lists made private care more attractive.
Aviva said its bulk purchase annuity business is enjoying higher interest rates and it has now completed over £2 billion of deals so far this year.
And its workplace pensions division saw inflows jump 25% due to 134 new scheme wins and higher wages feeding through to higher pension contributions.
Aviva CEO, Amanda Blanc said:
“We have delivered an encouraging start to 2023 and continue to build clear trading momentum. New business volumes are good, despite persistent economic uncertainty, and we delivered another quarter of strong growth across our diversified business”.
On the back of the update, activist investor Cevian Capital sold the bulk of its stake in the insurer – causing the shares to drop sharply.
However, our technical and fundamental outlook for Aviva remains unchanged. The shares continue to consolidate within a long-term uptrend and the business is clearly building momentum and beating forecasts.
AV. Daily Candle Chart
Qinetiq on track for £3bn revenue by 2027
Qinetiq (QQ.) outlined ambitious growth plans when it published its FY23 preliminary results last week.
The defence giant delivered a “step-change” in its global growth platform with two strategic acquisitions in the US and Australia, with both integrations on track and performing well.
Whilst Qinetiq kept next year’s outlook unchanged, targeting high single digit organic revenue growth at 11-12% margin, it upgraded its long-term guidance.
“We have accelerated our global ambition to build an integrated global company with c.£3bn revenue by FY27” – commented Qinetiq CEO, Steve Wadey.
“We move forward into FY24 with optimism due to our track-record of performance and confidence in our strategy” he added.
The upgraded long-term guidance will see Qinetiq approximately double its revenue and profit over the next 4 years and marks a 20% improvement to previous guidance.
With geopolitical uncertainty at levels not seen for decades, we believe Qinetiq are well positioned to reward investors in the coming years.
QQ. Daily Candle Chart
Softcat trading “in-line” with expectations
Software reseller, Softcat (SCT) released a short but sweet trading update this week in which it said it was trading in-line with current expectations.
The two-sentence trading update read as follows:
“The Company performed well during the Period, delivering further year-on-year growth in gross invoiced income, gross profit and operating profit”.
“The Board is pleased with progress and anticipates the outturn for the full year will be in line with its current expectations”.
When it comes to calibrating market expectations, sometimes less is more and the market enjoyed Softcat’s statement with the shares trading 1.51% higher on Tuesday.
It’s very early days for our position in the stock, but so far so good and we expect the stock to show strength heading into the release of October’s full year results.
SCT Daily Candle Chart
Unilever announce board room shake up
Unilever (ULVR) has announced the departure of both its chief financial officer and chief digital and commercial officer.
Graeme Pitkethly, who headed the consumer goods giant’s finances, is retiring after 21 year at the business.
And Conny Braams, chief digital and commercial officer, will also depart at the end of the summer, with a successor set to be announced in “due course”.
The board room shake up was not entirely unexpected given new CEO Hein Schumacher will be taking the reins in the coming weeks.
However, the market has not responded favourably with the stock trading lower and breaking its ascending trendline this week.
We will keep the stock under close review and update members accordingly.
ULVR Daily Candle Chart
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