Daily Stock Market Report (Wed 5 Feb 2025) - CRST, FUTR, FXPO, MTEC, GSK, FSJ, SSE, TND

5th Feb by Graham Neary

66 comments 5799 reads

Good morning! I have a backlog section on CRST to kick us off today.

Event tonight! At 5pm (London time), Megan and Ed are hosting a webinar on how to navigate reporting season. Here's the signup page.

13:15pm: we've run out of time again, thanks everyone.

Spreadsheet accompanying this report (last updated to: 23rd Jan 2025)

Companies Reporting

Name (Mkt Cap)	RNS	Summary	Our view (Author)
GSK (LON:GSK) (£57bn)	Final Results	2024 rev +3% to £31.4bn, adj op profit +11% to £9.2bn. £1.8bn Zantac charge. 2025 outlook 3%-5% rev growth.	AMBER/GREEN (Roland) The pharma group has upgraded its medium-term guidance and delivered solid results. With a 7% FCF yield, I think a cautiously positive view may be justified.
SSE (LON:SSE) (£17.8bn)	TU	FY25 adj eps exp 154p-163p (vs 158.5 in FY24). Business unit op profit exps unchanged.	AMBER (Roland) There’s still some uncertainty about performance during the final quarter of FY25, but I don’t see any serious concerns. The price looks about right to me.
DCC (LON:DCC) (£5.4bn)	TU	Q3 adj op profit “broadly in line with prior year”. FX headwinds. FY25 op profit growth expected.
JTC (LON:JTC) (£1.6bn)	FY TU	FY results to be in line with market exps. Organic rev +10%, adj EBITDA margin 33%-38%.
Grainger (LON:GRI) (£1.6bn)	TU	15% growth in net rental income. Occupancy 96%, in line with exps. Outlook “exceptionally supportive”
Future (LON:FUTR) (£1.0bn)	TU	YTD “on track to achieve market exps” in FY25. US ad market YoY growth, UK more challenging.	AMBER/GREEN (Roland) The larger UK market is lagging the recovery in the US, but I think the valuation could be attractive at current levels.
Target Healthcare Reit (LON:THRL) (£527m)	TU	1.47p quarterly divi fully covered. Net tangible assets +0.9% to 112.7p, LfL valuation uplift.
Ferrexpo (LON:FXPO) (£478m) (RNS late 4/2/25)	Legal case	This Ukraine miner has received a claim for nearly $4bn in damages relating to alleged illegal mining.	RED (Graham) I have no insights into Ukrainian politics or their legal system, but can only assume there is a risk of shareholder wipeout arising from this lawsuit.
Custodian Property Income Reit (LON:CREI) (£336m)	TU	1.5p quarterly divi fully covered. C. 8% yield. Valuations stable, 0.5% LfL increase.
Aptitude Software (LON:APTD) (£178m)	FY TU	2024 in line. ARR +2% to £52m total revenue fell as anticipated. Net funds…

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Value of funds

Charge

On the first £250,000

0.45%

On the value between £250,000 -£1m

0.25%

On the value between £1m - £2m

0.1%

On the value over £2m

No charge

ken mitchell

5th Feb

You’re SO right Bouden about the misleading and inaccurate too high Investment Trusts charges needing sorting asap.

Here’s an Investors Chronicle article by John Barron about this. It’s behind a paywall but the first 2 paragraphs are there and are well worth reading.

https://www.investorschronicle...

I’ve invested in Investment Trusts very successfully for many years now, and except in the rare cases where charges are excessive, I don’t let charges influence my buy decisions. The underlying investment case and wider than usual discounts to NAV are far more important

Posts today going on about those incorrect charges and still believing they are right reflect misunderstanding about those charges. Perhaps too those posts reflect people not realising that unlike Open Ended Funds/Unit Trusts, Investment Trusts can be bought at sometimes big discounts to Net Asset Value.

I.e an Investment Trust at a 40% discount to NAV of £1 can be bought for a discount 60p! Investors opting for a similar Unit Trust are charged the full £1. Plus points like that along with being able to trade them instantly unlike Unit Trusts, dwarf the often very reasonable charges. And Investment Trusts don’t lock their investors in as Unit Trusts sometimes do when there’s heavy selling. Investment Trusts simply go to ever wider discounts…..creating some great buy opportunities !

While this inaccurate charge nonsense continues to fester it will put off investors from buying Investment Trusts. But it also means there are some at extreme bargain prices, including some of those in my posts this morning including Supermarket Income REIT (LON:SUPR) where timarr posted this today:-

"I hold quite a lot of Supermarket Income REIT (LON:SUPR). Unless there's something wildly amiss here it's staggeringly cheap."and if they are paying dividends of 8% or more a year, there is decent income while waiting for correct information on charges to prevail again. “

Lord Gnome

This comment is under review

Mark Carter

FXPO And to think folks that people thought Putin was the real risk here.

"Who can understand the motives of the Ukrainian police and prosecutor’s office?"

From what I've been hearing, Ukraine is no better at due process than the Russians.

Tortoise investor

The other way to play this sector is via the ETF iShares UK Property UCITS ETF GBP (Dist) (LON:IUKP) which has a divi of 4.7%. I don't think you'll get the same gearing as some REITS when markets improve, but it's a safer way to play the theme.

I hold along with Supermarket Income REIT (LON:SUPR) & Assura (LON:AGR) which both have massive divis, safer tenants, and big NAV discounts. The downside is their LTV is relatively high so if you thought interest rates might go up that could be a problem; it also means the upside from declining interest rates is bigger. It's some time before they need to renew substantial loans - looking at the loan book, and when loans are due to be renewed or paid off, is key in this sector.

DutchSchulz

Sharescope reports the Total Expense Ratio to be 1.357%. I'm happily paying that (it's already in the share price) for the (IMO) quality, reliability and safety of the dividend. I believe this trust will re-rate closer to NAV in due time. Until then, and most likely well beyond that, I'm happily collecting the dividends.

Elric Langton

Fresnillo (LON:FRES) upgrade of note:

Fresnillo #FRES shines as Citi’s top EMEA gold pick! The target price was raised to 1,000p as strong Q4 gold production (+30%) & soaring cash flow yield (12%) bolster the investment case. With gold eyeing $2,950/oz, Citi sees big upside!

Rusty2

6th Feb

Fresnillo (LON:FRES) certainly lags gold miners, such as Serabi Gold (LON:SRB) and Pan African Resources (LON:PAF), probably because it is not a pure gold miner. DespiteSerabi Gold (LON:SRB) going up 138%, in the past year, it still looks better value than Fresnillo (LON:FRES). I don't agree with JP Morgan's comments, maybe they are looking at commodity miners?

Silver prices are rising so Fresnillo (LON:FRES) is worth considering.

Seems HL collect more on Supermarket Income REIT (LON:SUPR), so that does not make sense. Plus there are transaction fees, unlike on funds.

Rusty2.

I hold Supermarket Income REIT (LON:SUPR) with Hargreaves Lansdown in my ISA. The only charge from Hargreaves is the dealing charge when buying and selling. The charges for Investment Trusts are the same as for shares.

Not according to HL, they charge a fee.

Just gone into HL, they are charging a 0.45% fee, according to the costs, in an ISA.

intuitive6191

I have an account with HL. There is an annual account charge of .45% on holdings within ISAs and SIPP,s

Yes that is on funds and ITs, it is not on shares. So ITs fees are more expensive, than funds and shares, if held in an ISA or SIPP. It is capped at £45 per annum.

I must have a special HL account where I am getting my b*lls squeezed. I am paying .0.45% on stocks.

In fairness the the HL explanation of charges says that you pay 0.45% on everything and have to cough up monthly.

There is an account fee but if you hold funds, that is in addition, l believe. That is why some complain about fees on funds.
Here are the fees on funds:

Funds

Value of funds	Charge
On the first £250,000	0.45%
On the value between £250,000 -£1m	0.25%
On the value between £1m - £2m	0.1%
On the value over £2m	No charge

timarr

Yes that is on funds and ITs, it is not on shares. So ITs fees are more expensive, than funds and shares, if held in an ISA or SIPP.

Not according to HL, at least in an ISA:

https://www.hl.co.uk/investmen...

Those tiered fund fees mean you can pay a maximum of £4,000 a year if you've £2 million invested. The same amount in investment trusts would cost you £45.

Including UK and overseas shares, investment trusts, exchange-traded funds, VCTs, gilts and bonds.
0.45%capped at £200 per year

The above is what I see when I open my account page

OK, l was confused by HL costs, which shows 0.45%.

The HL example could be much clearer. If you already have over £10,000 in your ISA or SIPP, in shares and ITs, there will be no fees. The way they show the costs, it looks like it is the same, as on funds.

£200? I have £45.

GavSmith01

7th Feb

For shares (and ITs!) it’s capped at £45 in an ISA and £200 in a SIPP. £0 management charges in a general trading account.

Daily Stock Market Report (Wed 5 Feb 2025) - CRST, FUTR, FXPO, MTEC, GSK, FSJ, SSE, TND

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Graham Neary

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