Thursday, October 03 17:38:33
The ISEQ slipped in to the red today despite a strong showing from Smurfit Kappa after they announced a major refinancing and as CRH stocks were hit by the continuing shutdown in the US.
The index was down 14.89 points to 4,260.76.
Dublin-based global packaging and paper group, Smurfit Kappa, this morning said it is refinancing E500m worth of senior notes due 2017. The redemption of the senior dent will come from around E220 million from the Group's existing cash resources plus existing credit facilities, it told the markets this morning. It said it expects cash interest savings from the redemption will be around E30 million a year and the transaction will be immediately earnings accretive with an annualised increase in EPS of approximately 11 cent. Shares in the group rose by 31c to E17.25.
CRH shares fell 45c to E17.41. The group makes nearly half of its total revenues from the US, which today is in the third day of a partial government shutdown. The company relies heavily on US Government contracts for highways and bridges.
UK bookies William Hill today announced that its Q3 earnings have come in £20m below its expectations. In online, the earnings miss seems to be sports results related. Gross win margin came in at 6.3pc versus an expectation of 7.75pc (and 7.8pc in Q3 2012). An unfavourable run of football results has been the key driver of the lower gross win margin. Staking levels were up 42pc (Davy: +44pc), so are broadly in line though notably there was no incremental positive recycling effect as a result of the weaker margin. Costs were up 12pc in the quarter versus our expectation of up 20pc. "However, this was likely due to the timing of marketing spend; marketing as a percentage of NGR came in at 26pc versus Davy's expectation of 27.9pc. We believe that guidance in relation to this number is unchanged for the full year," the broker said. Shares in Paddy Power fell 22c to E59.63.