GKN

GKN: 426.59 1.50 (▲0.35%)

Delayed:2018-02-23 17:30:00
Bid Price 426.50 High Price 428.30
Ask Price 426.60 Low Price 422.50
Open Price 424.90 Spread 0.02%
Prev Close 426.50 Volume 11,005,354.00

GKN Share Price Chart

Intraday

Historic - 1 year


GKN Share Price Information

Name GKN Epic GKN
Sector Automobiles & Parts ISIN GB0030646508
Activites GKN is a leading global supplier to the world's automotive and aerospace manufacturers. GKN provides technology-based, highly engineered products requiring complex manufacturing to virtually all of the world's major producers of automotive vehicles, military and civil aircraft and aero engines. GKN operates in more than 30 countries and employs 39,000 people in its subsidiaries and 4,000 people in its joint ventures. Security Type Equity

Key numbers

Latest Share Price (p) 426.50 Net Gearing (%) 71.29
Market Cap (£m) 7,253.46 Gross Gearing (%) 75.88
Shares in issue (m) 1,717.61 Debt Ratio 65.65
P/E Ratio 29.95 Debt-to-Equity Ratio 0.61
Divs per share (p) 8.85 Assets / Equity Ratio 4.15
Dividend Yield (%) 2.13 Price to book value 3.35
Dividend Cover 1.57 SROCE (%) 4.64
Earning per share (p) 14.10 EPS Growth (%) 19.49
52-week high / low (p) 449.40 / 280.00 DPS Growth (%) 1.72

GKN Broker Views

Date Broker Rec. Price Old target price New target price Notes
22 Feb Jefferies International Buy 426.59 425.00 425.00 Reiterates
22 Feb Peel Hunt Buy 426.59 500.00 500.00 Reiterates
16 Feb Deutsche Bank Buy 426.59 Retains
14 Feb Numis Hold 426.59 450.00 450.00 Reiterates
22 Jan Peel Hunt Buy 426.59 500.00 500.00 Reiterates

GKN Director Deals

Date Director Type Volume / Price Trade Value
21 Sep 2017 Kevin Cummings Dividend Reinvestment Plan 1700 @ 348.10p £5,917.70

GKN Company News

Miners and banks support FTSE gains

The FTSE 100 was supported by rising miners and banks, trading 0.5% higher at 7,251 around midday.

Rio Tinto (RIO) jumped 3.1% to £41.50 and Glencore (GLEN) advanced 2.4% to 391.8p.

Among the banks, Barclays (BARC) and Lloyds (LLOY) were winners, gaining up to 1.7%.

Brent crude oil slipped 0.5% to $64 per barrel.

OVERSEAS MARKETS

Tech stocks were in demand on Wall Street and investors overlooked disappointing inflation data, helping the S&P 500 rally 1.3% to 2,698 overnight.

Sentiment was also strong in Asia this morning with Hong Kong's Hang Seng closed 2% higher at 30,515.

MID AND LARGE CAP RISERS AND FALLERS

Engineer GKN (GKN) urged shareholders to resist the hostile takeover by Melrose (MRO), arguing the attempt is opportunistic.

ConvaTec (CTEC) beat lower full year sales expectations, helping to overshadow ongoing supply issues and pushing its shares 7.4% higher to 212.3p.

RELX (REL) dropped 1.2% to £14.39 despite solid 2017 results. The company also announced it was ditching its dual share structure for a single PLC share listed in Amsterdam and London.

Insurer Lancashire (LRE) revealed 2018 will be another challenging year after falling into the red. Pre-tax losses hit £72.9m in the year to 31 December, down from a pre-tax profit of £150.4m in 2016. The stock declined 2.9% to 635p.

SMALL CAP RISERS AND FALLERS

Oxford BioMedica (OXB) announced a new collaboration for its haemophilia treatments with Bioverativ, helping the shares rally 10.2% to 11.8p.

On AIM, electronics engineer Stadium (SDM) recommended a £45.8m takeover from TT Electronics (TTG), prompting the shares to soar 42.9% to 119.3p.


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GKN tells shareholders Melrose offer represents 'low price and high risk'

GKN advised shareholders not to accept Melrose's hostile takeover offer as it was 'not a good deal' and represents 'low price and high risk.'

'The Board unanimously recommends that you should take no action in relation to the offer and that you should not sign any document which Melrose or its advisers send to you,' GKN said in a letter to shareholders.

GKN said that the premium Melrose is offering is 'very low,' and added that Melrose's stated premium of 22% is 'misleading' as its market capitalisation is significantly smaller than GKN's, the offer is 80% in shares, representing an actual premium of 10%.

GKN also highlighted Melrose's lack of relevant experience and said its short term business model is 'inappropriate' as the latter's three-to-five-year exit strategy is not compatible with the long-term investment and technology horizons that are essential in GKN's markets.

GNK called on shareholders to trust in the company's new strategy which aims to deliver returns to shareholders of up to £2.5bn over the next three years.

'Your Board strongly believes that GKN's new leadership team and strategy can maximise shareholder value and that, as a GKN shareholder, you should receive 100% of the benefit of this strategy.'


At 9:23am: (LON:GKN) GKN PLC share price was +7.5p at 418.8p



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FTSE rises on miners and weaker sterling

A weaker pound and continued strength in mining stocks kept the FTSE 100's positive momentum going. The blue-chip index advanced 0.7% to 7,218 around midday.

Antofagasta (ANTO) and Anglo American (AAL) increased by approximately 1.5% apiece.

Other notable risers were British American Tobacco (BATS) and HSBC (HSBA).

Brent crude oil was down 0.4% at $62.46 per barrel.

OVERSEAS MARKETS

Wall Street was still in recovery mode overnight, with the S&P 500 making small gains of 0.2% to 2,662.

Asia followed the US higher this morning with the exception of Japan's Nikkei 225, which closed 0.4% lower at 21,154.

MID AND LARGE CAP RISERS AND FALLERS

Galliford Try (GFRD) was unloved by the market on an announcement it is raising £150m to strengthen its balance sheet due to financial pressures from the liquidation of Carillion (CLLN). The need to bolster its finances is linked to excess costs on its Aberdeen Western Peripheral Route joint venture with Carillion and Balfour Beatty (BBY). Shares in Galliford Try fell 17.5% to 814.4p.

Serco (SRP) secured a discount on its purchase of Carillion's healthcare contracts and said it would pay £29.7m. Its shares rose 2% to 85.2p.

Soft drinks bottler Coca-Cola HBC (CCH) reported profits beat expectations, driven by a strong performance in emerging markets, operational leverage and controlled costs. Shares in the company fizzed 3.1% higher to £23.06.

Pay TV firm Sky (SKY) sparked 3.2% to £10.95 after extending its Premier League rights at a 14% discount from 2019 to 2022.

Engineer GKN (GKN) reported it planned to return up to £2.5bn to shareholders over the next three years in a bid to fight off a hostile takeover by Melrose (MRO).

Sirius Minerals (SXX) signed up an alternative contractor for construction work at its polyhalite project in North Yorkshire after ending talks with another contractor. Its shares gained 1.6% to 22.5p.

SMALL CAP RISERS AND FALLERS

Trading Emissions' (TRE) subsidiary TEP entered a deal with NextPower concerning the sale of its Italian solar asset SEI1 for an estimated €7.97m. Its shares soared 24.9% to 2.5p, but fell back to 2p around midday.

The resignation of Nighthawk Energy's (HAWK) chief financial officer Kurtis Hooley triggered a 17% slide to 0.4p.


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GKN plans to return £2.5bn to shareholders over next three years

Takeover target GKN said it plans to return up to £2.5bn to shareholders over the next three years, with a significant part expected to come from divestments executed within the first 12 to 18 months, including the sale of Powder Metallurgy.

The engineering group is the subject of a hostile takeover £7bn takeover bid from Melrose industries.

The announcement comes as the company provided an update on its new strategy and transformation plan along with its cash improvement initiative, the latter is expected to deliver a recurring annual cash benefit of £340m from the end of 2020.

The company said its progressive dividend policy would aim to target an average payout of 50% of free cash flow over the period of 2018 to 2020. Anne Stevens, Chief Executive of GKN plc, said: 'The new strategy brings clarity, accountability and focus to GKN's world class businesses and will allow the Group to attain world class financial performance.' 'This strategy is expected to generate significant cash for shareholders in the short term and meaningful sustainable cash flows over the mid to long term. We expect to deliver £340m of recurring annual cash benefit from the end of 2020 and are targeting a return of up to £2.bn to our shareholders over the next three years, with a significant part expected to come from divestments executed within the first 12 to 18 months. We have a plan and we are dedicated to delivering it.'

At 8:23am: (LON:GKN) GKN PLC share price was +6.15p at 404.15p



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Miners keep FTSE afloat

Miners remained strong on Monday with Glencore (GLEN) and Rio Tinto (RIO) among the winners on a quiet day for corporate news.

Glencore strengthened 3.2% to 415p and Rio Tinto was up 2.1% at £40.24.

Anglo American (AAL) sold its 73%-held subsidiary Inyosi Coal for $71m, helping to push the stock 1.2% higher to £17.56.

The FTSE 100 closed 5.8 points higher at 7,671.

Brent crude oil fell 1.7% to $69.30 per barrel.

OVERSEAS MARKETS

Reports that Apple would cut the production of iPhone X significantly weighed on investor sentiment in the US. The S&P 500 fell 0.4% to 2,859 around 4:45pm UK time.

MID AND LARGE CAP RISERS AND FALLERS

Engineer GKN (GKN) warned a proposed takeover by Melrose (MRO) would negatively affect its pension scheme, causing the shares to retreat 0.9% to 431.9p.

SMALL CAP RISERS AND FALLERS

News that Defenx (DFX) may seek additional funding in the second quarter of 2018 upset investors as the stock plummeted 37.6% to 24p. The company said it would need to raise money if new orders do not come through and it cannot drawdown its facilities.

Diamond producer Petra Diamonds (PDL) cut full year production guidance for the Cullinan mine in South Africa. Shares in the company slumped 19.8% to 63.1p after Petra also revealed full earnings would miss market expectations by between 10% and 15% as the stronger rand against the dollar made an impact.

Drinks distributor Conviviality (CVR) lost its fizz on falling profits following the phasing of some synergies into the second half of the year. The stock fell 11.2% to 318p.

Intellectual property specialist Frontier IP (FIPP) announced its portfolio company Molendotech sealed a collaboration deal with an arm of Halma to develop and licence its water testing products. Frontier IP gained 11.5% to 94.8p while Halma was flat at £12.72.

A warning from music content provider Immedia (IME) that contract delays and a disappointing performance from its AVC operation will increases losses in 2017 concerned investors. Shares in the firm plummeted 30.1% to 22p.

Gas and electricity supplier Yu (YU.) sparked 11.2% to £11.40 after it upgraded profit guidance 'significantly ahead' of current market forecasts.

There was also good news from Sopheon (SPE), which rallied 14.7% to 565p as annual pre-tax profit is expected to beat market expectations.


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