Companies roundup: GSK & Regional Reit

GSK’s (GSK) shares slumped as much as 7 per cent in early trading after a US government body tweaked its guidance on the group’s RSV vaccine. The Advisory Committee on Immunization Practices, which advises the country’s national public health agency, had previously recommended all adults aged 60 and over receive the Arexvy jab. 

Following feedback from the medical community, the committee has suggested that people aged 60-74 should only be vaccinated if they’re at increased risk of complications from RSV infection. The decision comes just days after UK health authorities chose Abrysvo, the Pfizer (US:PFE) RSV vaccine, as its preferred formulation. Shore Capital said keener pricing was behind the decision. The US pharmaceutical giant will now supply 5mn doses across the next two years. JJ

Find out why we’re bullish on GSK

Regional Reit slumps 30%

Regional Reit (RGL) shares dived after it announced plans to raise £110.5mn in capital through a placing and open offer of 1.1bn shares at 10p apiece, representing a 50 per cent discount to its latest net tangible assets per share.

The open offer will be based on 15 new ordinary shares for every seven existing ordinary shares held. The resultant funds will be used to pay back a £50mn retail bond and reduce the trust’s bank facilities ahead of an August deadline, while £28.4mn will be put towards selective acquisitions. The Reit also announced a 1-for-10 share consolidation. MR

Read more: How to use earnings to find hidden Reit bargains

Watches of Switzerland sticks with targets after tough year

Watches of Switzerland (WOSG) shares gained more than 10 per cent in early trading after management said the UK market "is starting to show signs of stabilisation" and reiterated targets to more than double revenue and profit between 2023 and 2028.

The luxury watch retailer’s performance for the year to 28 April weakened as expected, with adjusted operating profits down 18 per cent to £135mn after a period characterised by big price increases and muted consumer confidence. Revenue was flat at £1.54bn, with growth of 6 per cent in the US offset by a 5 per cent contraction in the UK and Europe. CA

AI boosts Moonpig profits

Moonpig’s (MOON) share price jumped 8 per cent this morning after it reported strong sales and profit growth. Revenue at the greetings card company increased by 7 per cent to £341mn in the year to 30 April 2024, while adjusted profit before tax climbed by 5 per cent to £58.2mn. Management expects momentum to continue into the new financial year, forecasting mid to high single-digit sales increases. 

Chief executive Nickyl Raithatha attributed this partly to investment in technology, saying artificial intelligence is delivering an “increasingly personalised” customer experience. 

Moonpig’s balance sheet is also getting stronger. Net debt to adjusted Ebitda fell from 1.9 times to 1.3 times in the period, and management hinted at possible cash returns. “With our consistent strong operating cash generation and the progress being made with deleveraging, we will also have the financial flexibility to consider returning excess capital to shareholders,” it said. JS