Companies
Home Reit suspends shares
Homeless accommodation landlord Home Reit (HOME) has suspended its shares due its failure to publish its financial results on time. The company – which has been buffeted by a barrage of criticism over the last few months from short sellers, charities and politicians over the ethics and financial stability of its business model – said it will restore its listing upon publication of the results which it said would be “as soon as practicable”. Home Reit denies all the allegations made against it.The landlord first announced the delay in November, blaming it on the publication of short-seller Viceroy Research’s damning report on the company days earlier. “As directors and shareholders, we share investors’ frustration at the delay of the company’s full year results due to the actions of Viceroy,” Home Reit said at the time. ML
Read more:
Broken Home? Investigating the controversy surrounding Home Reit.
Home Reit investor demands leadership overhaul after short seller attack
Home Reit hits back at ‘misleading’ short seller report
Analyst upgrade lifts Rolls-Royce shares
Shares in jet engine maker Rolls-Royce (RR) climbed by 6 per cent in early trading after analysts at investment bank Jefferies upgraded them to a buy.
Jefferies highlighted “a number of positive catalysts” for Rolls-Royce this year, as a recovery in the number of hours its engines are flown means improved cash generation and potential credit rating upgrades. The investment bank lifted its free cash flow generation forecast for Rolls-Royce by 22 per cent for 2022 and 9 per cent for 2023. MF
Cineworld denies AMC discussions
Cineworld (CINE) shares fell by 7 per cent after the bankrupt cinema giant denied that it had held talks with market leader AMC Entertainment (US:AMC) over selling assets to it. Rather than disposing of individual cinemas, the company is aiming to rejig its capital structure and sell the entire business, with “outreach to potential transaction counterparties [to] commence in January 2023.” Cineworld reiterated its warning that a sale or restructuring of the business would result in “a very significant dilution of existing equity interests”. CA
New Shell boss takes office
This new year will see more uncertainty over energy supply and the role of the global supermajors will remain in focus as governments look to slow down inflation. Previous Shell (SHEL) boss Ben van Beurden was publicly happy to accept higher taxes but also pushed leaders to set clearer rules around extraction.
Now, former integrated gas boss Wael Sawan has taken the top job and said he was “daunted” but excited to tackle the “huge challenges” faced by the oil and gas sector this year. Investors will be keenly watching his commitment to Shell’s green goals, including investment in renewables and other similar technologies and reducing oil and gas production as per a ruling from a Dutch court in 2021. In his first statement in charge, Sawan said growth was the focus: “We will earn our right to be able to grow through the energy transition, through the performance we put in,” he said. AH
