Bitcoin blah blah, Trustpilot flies & GlobalData reorganises
Macro & Overnight
It’s a quiet day for macro news; investors are focusing on US inflation data later today for clues about the Fed rate decision, where the next FOMC meeting is on January 30th.
The SEC finally approved Bitcoin ETFs in the US market, widening the scope for investors to access the alternative asset, for example, via 401K pension plans.
The Winklevoss brothers first proposed a Bitcoin ETF in 2013 when the price was $500. The regulator’s reluctance to sanction this product over the last decade has “saved” US investors from participating in an instrument that has risen 90-fold in dollar terms over the period.
UK Company News
Trustpilot expects to report profits above the top end of the range of market expectations. In addition, it continues to deliver strong cash generation and announced plans for a £20m share buyback.
Mpac Group, the packaging and automation provider, updated that its H2 revenue and profit were substantially above H1, aided by the normalisation of margins. It had a closing order book of £75.0m (FY22: £67.2m). Its H2 order intake was the highest ever.
GlobalData expects to deliver underlying revenue growth of 7% and EBITDA growth of 28%, with stronger-than-expected margins of 41% versus 36% last year. It is reorganising to operate across three customer-focused divisions – Healthcare, Consumer, and Technology. Before Christmas, it announced plans to sell a minority stake in its Healthcare business, which accounted for c.36% of revenue, at a valuation of £1.1bn, raising net cash proceeds of approximately £434m for the group.
GlobalData is among several UK-listed B2B media companies that are realising significant value from their divisional portfolio, in this case by bringing in private equity to take a minority stake in a division, which exposes the UK market’s considerable undervaluation of these assets. The move also delivers Mike Danson, the founder and CEO, the opportunity to fund non-dilutive acquisitions, where he has a strong record.
This communication is provided for information purposes only, and is not a solicitation or inducement to buy, sell, subscribe, or underwrite securities or units. Investors should seek advice from an Independent Financial Adviser or regulated stockbroker before making any investment decisions. Progressive Equity Research Ltd (“PERL”) does not make investment recommendations.
Opinions contained in this communication represent those of PERL and/or our affiliates at the time of publication and PERL does not undertake to provide updates to any opinions or views expressed. PERL does not hold any positions in the securities mentioned in this communication, however, PERL’s directors, officers, employees, contractors and affiliates may hold a position, and/or may perform services or solicit business from, any of the companies or related securities mentioned.
Any prices quoted in our research are as at the previous day’s close.