Companies roundup: Boeing, GSK and Jupiter

Shares in US planemaker Boeing (US:BA) fell 8 per cent on Monday following an incident where part of a 737 Max 9 was blown out of an Alaska Airways plane in mid-air on Friday.

The blow-out led the US Federal Aviation Administration to ground all 737 Max 9s with plugged (or permanently closed) doors at the weekend until further safety inspections were carried out. Both United Airlines and Alaska Airways then reported finding loose parts on other 737 Max 9 planes on Monday.

So far, it is only Max 9 planes with plugged doors that have been grounded and no European airline flies such planes, the European Union’s Aviation Safety Agency confirmed.

However, the safety flaw provides another blow to Boeing’s reputation. The FAA previously grounded the company’s entire 737 Max fleet in March 2019 for nearly two years after the planes were involved in two fatal incidents that killed 346 people. MF

Read why we’re bullish on Boeing’s rival, Airbus

GSK picks up asthma drugmaker for $1.4bn

GSK (GSK) has agreed to buy newly launched biotech firm Aiolos Bio for an upfront cost of $1bn (£790mn) – with up to $400mn in success-based milestone payments. The acquisition will give the pharma giant access to AIO-001, a monoclonal antibody drug for asthma, which is ready to enter phase II clinical trials. 

According to GSK, the twice-yearly therapy is “potentially best-in-class” and could change the way asthma is commonly treated. The group’s shares were up nearly 1 per cent by mid-morning – an indication that investors are pleased that the company is expanding its pipeline. JJ

Read more: Why pharma stocks need to find the next big vaccine

MJ Gleeson crumbles as debt rises and margins drop

MJ Gleeson's (GLE) share price collapsed more than 10 per cent in early trading after the small-cap housebuilder warned investors its 2023 performance had not hit expectations. Sales dropped 14 per cent for the previous calendar year, gross margins fell "below expectations by circa 1.5 per cent to 2.0 per cent", and the company swung from a net cash position of £5.2mn to a net debt position of £18.7mn. 

It blamed the worse-than-expected performance on a weak housing market but "anticipates a recovery in demand for low-cost housing in the seasonally busier selling period over the coming weeks and months" as interest rates stabilise.

The good news was in its forward order book, which has swelled to 586 plots by the end of 2023 from 319 at the end of 2022. ML

Read why we’re bullish on MJ Gleeson

Sales slip at SIG

Insulation specialist SIG (SHI) said like-for-like sales for 2023 were down 2 per cent at £2.76bn, and although underlying operating profit is expected to be “at the top end” of its guidance range of £50mn-£55mn, this is still well below the prior-year figure of over £80mn. Net debt increased by £13mn to £457mn as it took on more leases, meaning year-end leverage is set to increase to 3.4x.

Despite this, chief executive Gavin Slark described the company’s performance as “robust”. Although the company expects “continued softness in market conditions” this year, restructuring efforts have trimmed around £10mn from its cost base leaving it better placed to deliver profitable growth in the future, the company argued. SIG’s shares rose by 3 per cent in early trading. MF

Unite forecasts rental growth, but warns of cladding costs

Unite (UTG) has predicted rental growth of at least 5 per cent in the coming academic year as demand for student accommodation continues to outstrip supply. The company also warned investors about a forthcoming post-Grenfell cladding bill in its next results, taking the shine off the positive outlook. Shares dipped 1 per cent in early trading after Unite said it expects to set aside £26mn for cladding repair costs.

"We will continue to play a leading role in increasing the supply of much needed student accommodation at a time when HMO landlords are leaving the market at pace and the new supply of purpose-built student accommodation slows," the company said. ML

Read more: Is the student accommodation market in a bubble?