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PREVIEW - Aldermore, Derwent London and others to report

A look at some of the firms reporting on Thursday (August 11)
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Derwent London is a REIT focused on the capital

Challenger bank Aldermore Group PLC (LON:ALD) reports interims on Thursday and like all in the banking sector (well all sectors, actually) traders will be keen to hear what the outlook is like post the Brexit vote.

It comes after some mixed noises from the big players recently, noteably being from Royal Bank of Scotland plc (LON:RBS), which took a big hit due to provisions.

RBS posted a £1.08bn deficit (£280mln profit) in the three months to June and said Brexit would make it more difficult to achieve its targets by 2019.

Also tomorrow, we will hear from Derwent London, the REIT -  a real estate investment trust (REIT) -  focused on central London.

Of course, property prices has been a much talked about topic since the referendum, with  prices in London taking a big hit - so too the share price of Derwent.

It owns and manages a portfolio of around 6.2mln sq ft in over 15 villages in London’s West End and City borders and focus on middle market rents. Its portfolio includes investment property, owner-occupied property and trading property.

Broker Numis says: "After the unexpected result in the EU referendum DLN sold off heavily, and we continue to believe that too much downside is being priced into the shares."

"One of the hardest hit in the sector (second only to HLCL) the shares bottomed out on 27 June, 34% below the 23 June value, and while they have recovered by c.16% the shares still currently trade at a 24% discount to our 1H16 NAV estimate."

Numis rates shares a 'buy' targeting 3.850p.

"While we agree that London offices are the sector most at risk post-Brexit, we believe that fears of an occupier exodus from London, whether led by financial services through the potential loss of passporting (DLN has just 2% of its tenant base in the financial sector as at FY15, so would be relatively insulated from the immediate impact) or more generally driven by wider uncertainty, are overdone."

Announcements expected

Final: UK Select Trust Ltd (LON:UKT)

Interims: Aldermore Group PLC (LON:ALD), Coca-Cola HBC (LON:CCH), Derwent London (LON:DLN), Grupo Clarin (LON:GCLA), Hastings Group Holdings PLC (LON:HSTG), Old Mutual Group PLC (LON:OML), PageGroup PLC (LON:PAGE), Tritax Big Box Reit PLC (LON:BBOX), TUI AG (LON:TUI)

Trading statement: Glencore PLC (LON:GLEN).


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