Three developing stories at the UK stock market open.
1. Metro Bank recycles personal loan book
Metro Bank LON:MTRO has this morning announced the sale of a portfolio of unsecured personal loans with an aggregate value of just under £600m. These are performing assets as opposed to being delinquent and the transaction will generate £11m on the day of sale for Metro Bank. This will improve the bank’s capital position and in turn allow it to look at rotation into higher-yielding assets. The deal has limited impact on earnings.
2. Aston Martin again struggles to find pace, higher hopes for mid-term outlook
Aston Martin Lagonda LON:AML have their full year numbers out today and again it makes for uncomfortable reading, by and large. Whilst average selling prices are now almost £250k, volumes are down and gross margins dropped by 220bps as well. There was a modest improvement in operating losses and year-end liquidity was in line with guidance, although there’s a more optimistic tone being struck for the year ahead. Positive adjusted EBIT is expected for FY ’25 with free cash flow being recognised in the second half.
3. Occupancy and footfall continue to improve for Hammerson
Full year numbers from Hammerson LON:HMSO are out today, with management heralding great success. Occupancy improved to above 95% and headline income already secured for the year ahead also looks strong. Footfall and sales across the company’s estate remains ahead of national benchmarks and investors will see a 4% uptick in the full-year dividend payments.
