Thomas Cook TCG has been hit hard in Continental Europe with prices down 3% compared to last year on top of a 9% fall in bookings. Belgium is down significantly following the Brussels terror attacks and Germany is showing a 6% fall compared to 2015. Overall today’s pre close update shows strong demand for most destinations except Turkey which remains volatile. Winter sales are in line with last year despite the work the company claims it has done in trying to improve customer satisfaction.
Next Fifteen.com NFC is raising its interim dividend by 25% to 1.5p per share after revenue rose by 30.3% for the six months to 31st July. Sales in the US were particularly strong with a like for like growth of 17.2% compared to 12.8% overall. Profit before tax was up by 47.2% and EBITDA by 50.6%.
Legal & General LGEN In the three months since 30th June the Retirement Division has written sales of over £1.4 billion compared to £2.9 billion for the whole of 2015. The Divisions full year sales are expected to be double those of last year.
Card Factory CARD is paying a special dividend of 15p per share and increasing its interim dividend by 12% for the half year to the 30th July. Profit before tax rose by 7.3% and basic earnings per share by 7.1%. Sales growth has been lower than normal, following what the company describes as softer footfall, which presumably means that customers are treading more carefully.
Brewer Shepherd Neame (SHEP) reported record results for the year to June 2016. Revenues increased by 1% to £139.9m, while underlying pre-tax profit was 11% higher at £10.3m. The growth in revenues and profit came from the managed pubs business. The brewing division reported a lower profit due to the loss of the Kingfisher brewing contract and higher costs of the water treatment plant. The final dividend is 3% higher at 22.05p a share, making a total for the year of 27.5p a share.
Crossword Cybersecurity (CCS) is starting to build up its revenues from products created in partnership with a number of UK universities. Distributors are being appointed for the cyber risk product Rizikon which is based on research by City University. In the six months to June 2016, revenues were £164,000 – eight times the previous twelve months. The loss was £403,000. There was £668,000 in the bank at the end of June 2016, which is slightly more than the cash outflow in the first half. Boss Tom Ilube was on the panel for the cyber security seminar held at ICAP’s headquarters last Wednesday.
Blockchain businesses investor Coinsilium Group Ltd (COIN) reported revenues of £196,000 and a loss of £270,000, including an impairment charge of £120,000, in the first half of 2016. There was nearly £164,000 in the bank at the end of June 2016. There are investments valued at £1.67m in the balance sheet.
Residential property developer Via Developments (VIA1) has issued a further £1m of 7% debentures 2020. This takes the total issued to £4.5m.
London Nusantara Plantations (LNPP) has identified potential oil palm estates investments in east Malaysia. The company has acquired an 11% stake in 404 hectares of land to use for oil palm cultivation. There is nearly £162,000 in the bank. Acquisitions will be funded by a mix of debt and equity.
Incubator company Milamber Ventures (MLVP) has become involved with 15 companies and one of these, Knowledge Motion, has signed a seven figure deal with Pearson. Milamber has the rights to 5% of Knowledge Motion. There was £289 in the bank at the end of March 2016 and the NAV was £291,000. Since then, a further £45,000 has been raised. Service and success fees plus grant-related revenues mean that this years revenues should be much higher than the £70,000 reported in the year to March 2016.
White Fox Ventures Inc is subscribing for $2.35m of shares in Australian minerals explorer NQ Minerals (NQMI) in seven tranches over six months. The issue price is 11.1 cents (8.4p). White Fox has already subscribed for $150,000 worth of shares. White Fox (www.whitefoxventures.com) is an OTXQB-traded company and this is the first of a number of strategic investments planned by the company. The company is also seeking acquisitions and its current activity is educating people how to make money.
Electricity and gas supplier Yu Group (YU.) could reach profitability in the second half of 2016. Even before it moved into profit Yu is paying a maiden dividend of 0.75p. A growing dividend is planned. Yu is still building up its revenues and they were £5.1m in the first half of 2016 but higher operating expenses meant that there was an underlying interim loss. Yu could become highly cash generative. It is expected to end 2016 with cash of £6.6m and this could rise to £10.3m a year later.
Bond International Software (BDI) has recommended the increase Constellation Software bid of 115.5p a share, which is near to the 116p-118p a share the company expects to distribute to shareholders if it were wound up. The bid provides a certain outcome whereas there is a risk that the total distributions could be lower. However, if there is a majority vote at the upcoming general meeting to agree to the sale of the remaining businesses the offer will lapse. That would mean that the proposed acquirer would have to be paid up to £350,000 due to the deal falling through.
Sinclair Pharma (SPH) was undergone significant changes in the past year but it has still to enjoy the benefits of some of these. It does have cash of £24.4m following the disposal of non-core activities in order to concentrate on aesthetic treatments. Sales are growing internationally but the taking over of distribution in Brazil and the US distribution deal for Silhouette InstaLift will make more significant contributions in a year or two. The latter will require a lot of investment in the coming year or so but it should help Sinclair to move into profit in 2018.
Structural steel supplier Billington Holdings (BILN) is continuing its recovery and the acquisition of Shafton Steel Services, which is based five miles away from the head office, enables Billington to increase its capacity. In the six months to June 2016, revenues improved from £24.5m to £27m, while pre-tax profit edged ahead from £1.7m to £1.74m after redundancy costs. The pre-tax profit margin is back above 6% but there is still more potential for recovery. Strong cash flow meant that cash more than doubled to £6.24m. There will be some additional capital investment required to increase capacity. The order book continues to grow.
Mobile payments processor MiPay (MPAY) is being used to process an increasing number of transactions, although interim revenues were affected by a change in terms with a large customer. The good news is that although revenues were 7% ahead at £1.6m, gross profit was one-third higher. Combining that with lower overheads means that the operating loss was reduced by three-quarters to £250,000. Clients are attracted by MiPay’s ability to reduce the risk of fraud. There should be £3m of net cash at the end of 2016. MiPay could make a small profit in 2017.
Fund manager Miton Group (MGR) increased its funds under management to £2.54bn by the end of June and that was despite an outflow from the CF Miton UK Value Opportunities Fund. The figure has risen further to £2.71bn since then. In the six months to June 2016, pre-tax profit recovered from £800,000 to £3.1m. Net cash was £18.4m at the end of August 2016.
Mortice Ltd (MORT) says that its UK facilities management business has been appointed to a £60m framework contract with London Universities. The contract for cleaning and associated services is for a three year period. Those companies on the framework will be invited to bid for individual contracts. Mortice’s subsidiary is the only company that has been appointed to all three parts of the framework.
Fishing tackle and consumables retailer Fishing Republic (FISH) grew its first half revenues by one-third to £2.5m. This was via a combination of organic growth and new store openings, although these newere sites are still building up trade. Online sales were weaker as management moved the focus away from third party sites to its own branded website. That will help margins in the medium-term. Underlying pre-tax profit edged up from £149,000 to £157,000. Two more stores will open in the second half. Investment in new stores will hold back this year’s profit whih is expected to rise from £305,000 in 2015 to £404,000. Earnings per share will decline because of the recent share issue but that cash is being put to work and the benefits should show through next year.
Talent management technology and services provider NetDimensions (NETD) remains on track to move into profit next year. Higher margin licence sales rose during the first half but overall interim revenues were slightly lower at $10.5m. Recurring revenues are more than two-thirds of total revenues. Full year revenues of $26.6m and a loss of $400,000 is forecast. In 2017, a profit of $1.2m is expected on revenues of $31.5m.
Coins investor Avarae Global Coins (AVR) plans to ditch its AIM quotation and it is offering to buy back 16.16 million shares at 11.5p each. It plans to buy back the same number of shares after it leaves AIM. High quality coin prices are plateauing and a small loss was made in the year to March 2016. There is no dividend. There was a cash balance of £570,000 at the end of March and the NAV was 14.6p a share.
Project management services provider Styles & Wood (STY) is paying an initial £2m in cash and shares for Keysource, which will boost the group’s expertise in projects for critical facilities and data centres. The deal will be earnings enhancing next year. In the six months to June 2016, Styles & Wood improved its underlying pre-tax profit from £200,000 to £500,000, although the business is second half weighted so the full year outcome will be much higher.
AIM-quoted Kibo Mining (KIBO) is reversing the Imweru and Lubando gold projects into standard list shell Opera Investments (OPRA). Kibo will receive 61 million shares in Opera at a notional price of 6p each for the Tanzania-based projects. Imeru could be producing gold in 18 months. An AIM admission document is expected to be published before the end of November and at least £1.2m will be raised at 6p a share. The Opera share price has slumped from 10p to 4.38p since it floated in April 2015. Two previous acquisitions have fallen through. It will be interesting to see whether Opera will change its name to Katoro Gold Mining.
MJ Gleeson GLE continued to see strong customer demand for its low cost homes and a final dividend of 10p per share means a rise for the year to 30th June of 45%. Revenue for the year rose by 20%, profit before tax by 63% and basic earnings per share by 86.8%
Sports Direct SPD Dave Forsey yesterday resigned both as CEO of Sports Direct and as a member of the board, after, as he put it, having “given my entire working life to the company” – hardly the sentiments of a man happy with his fate. And guess who has been appointed by the nodding donkeys on the board to replace him as CEO ? Why of course it is none other than one Mike Ashley, the very same Mike Ashley who recently admitted to a parliamentary committee that his head was stuck so far up a cloud that he was completely unaware of the serious and long standing malpractices of his own company under his leadership.
Ashley’ performance in front of the committee was so embarrassing and harmful to the company, that most people in his position would have squirmed but he appeared to have not a squirm in him. Judging by those performances and the admissions as to his failings which he was forced into making, the one question should now be asked is, how can he believe that he is a fit and proper person to resume daily operational management of the company which he has so let down.
The damage caused to the company and its shareholders is huge.In August 2015 the share price stood at 805p since when it has fallen virtually non stop and closed yesterday 285.5p. Since as recently as the 6th September it has fallen by 17% following a critical report issued by its own lawyers and which identified serious shortcomings in working practices.
On the 15th September, Its in house brokers, Goldman Sachs, cut profit expectations by more than 5%. The company itself has had to warn of higher costs and lower margins.
What appeared to be another, of what should have been final straws, at least until yesterday, was to see Chairman Keith Hellawell, whose career since he stopped being a policeman hardly inspires confidence, clinging on to his position after the independent shareholders voted him out, a decision which brings us back to the nodding donkeys, who in true Sports Direct tradition, decided to ignore the vote and keep him on.
Brand CEO Alan Green talks Andalas Energy (ADL) & Smart Metering Systems (SMS) on VOX Markets podcast
Brand CEO Alan Green discusses the latest Andalas Energy & Power (ADL) developments, plus Smart Metering Systems (SMS) with Justin Waite on the VOX Markets podcast. The interview is 11 minutes in.
Trifast plc (TRI) is a United Kingdom-based manufacturer and distributor of industrial fastenings. The Company provides design support and problem solving solutions to its customers. The Company designs, manufactures and distributes a range of plastic components, metal fasteners and fixings on a global basis to both distributors and original equipment manufacturer (OEM) assemblers. It has has six manufacturing sites in Asia and one in the United Kingdom; with a global logistics capability from approximately 25 business locations within the United Kingdom, Asia, Europe and the United States.
An opportunity to invest into the Trifast story was identified some time ago by VectorVest. Indeed, Trifast continues to trade well below the VectorVest valuation as it continues to grow earnings both strongly and safely. Earnings potential (RV) is an excellent 1.33 while earnings safety (RS) is also excellent at 1.32. Above 1.3 for each metric on a scale between 0 and 2 on VectorVest is defined as excellent.
The technical position has improved over the last five months with the share breaking northwards from a consolidation pattern that was in force since May 2014. The consolidation is known by the charting subset of technical analysis as an “ascending triangle”. Trifast broke out of the pattern during April 2016 and then came back as is normal to “kiss” the former resistance. The chart of Trifast is shown below.
Over the last month the share has climbed from 130p to 150p and looks bound towards the 200p level.
At VectorVest we advocate buying safe, undervalued shares, which are rising when the general market is rising. Trifast scores well on the fundamental and technical position of the share but at present the general market is not coming to the party.
In summary Trifast has both excellent fundamentals and a strong technical trend. If and when the Primary Wave on the general London market turns upward, then the share will offer a high probability opportunity.
September 21st 2016
PS: Readers can examine the opportunity at Trifast (TRI), and indeed on a host of other similar stocks for a single payment of £5.95. This gives access to the VectorVest Risk Free 5-week trial, where members enjoy unlimited access to VectorVest UK & U.S., plus VectorVest University for on-demand strategies and training. Link here to view.
On VectorVest a simple search using the Unisearch tool will quickly find shares that are undervalued with good fundamentals that have just issued a Buy recommendation. This will give the active trader a short list of many high probability trading opportunities each week. Traders now have the opportunity to spend five weeks discovering VectorVest’s unique simplicity, automation and independent guidance. Just £5.95 buys a 5 week trial to enable deep exploration, or how the system can assist in smarter trading in as little as 10 minutes a day. Powerful tools. Proven strategies. Unique Perspectives.
Link here for more info and to set up a trial.
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The Company has made good progress in conjunction with Alliance Medical on a technical solution that would allow the integration of TexRAD into Alliance’s network of PET/CT scanners in UK hospitals and a prototype version has already been demonstrated to potential users. The next steps will include applying for a CE mark for a medical device which provides analysis of lung PET/CT images with added prognostication through TexRAD.
The number of new purchase orders received for TexRAD research versions has increased significantly in recent months leading to expectations of a much improved cash inflow over the next few months. However this follows a period of about 12 months where sales of research versions were at a lower level and mainly to existing customers. We are now assessing whether the present high level of sales can be continued with additional sales support.
Our final results for the financial year ended 31st May 2016 are scheduled to be announced in October 2016. These are expected to show turnover significantly ahead of the previous year and a substantially reduced operating loss.
For further information contact:
Tel: 01954 718072
Allenby Capital Limited (Nominated Adviser and Joint Broker)
Tel: 020 3328 5656
Peterhouse Corporate Finance Ltd (Joint Broker)
Majestic Wine WINE appears to have been so mismanaged that it has been forced to issue an update, warning that it will not even achieve its modest target of 1% sales growth for the current year. EBIT for the year to 3rd April 2017 will be £2m.less than market expectations as a result of the first half having been more challenging than expected. Sales growth is flat and gross margins % is down by 200 basis points. That dreaded event, an internal review, is said to be underway.
Naked Wines in the US will move back back into loss as a result of new initiatives which did not work and which are having to be abandoned. The company claims that test and learn in a market the size of the US, is expensive but most companies would learn, at least something first and test later. Majestic however did the opposite and then management wonders why it has got the company into a pickle. Perhaps there should be an internal review at a higher level.
Diageo DGE has started 2017 well and performance will be stronger than last year claims the company, with key drivers being scotch, US spirits and India.
SAGA plc SAGA Everything about Saga’s first half has been robust, especially the interim dividend which is being raised by a robust 23%. Travel has put in a robust trading performance, the operational performance has been robust, as has the financial performance. Hopefully the CEO will be given a robust lesson in how to vary his adjectives a bit, next time round. Profit before tax rose by 8.5% for the six months to 31st July and like for like basic earnings per share were up by 8.2%. All this was achieved despite a competitive environment and the company is on track to meet its full year targets.
32Red TTR is raising its interim dividend by 18% for the half year to 30th June after profit before tax modestly surged by 2,630% following a 63% rise in total net gaming revenue. Both revenue and EBITDA rose to record levels, with strong growth across the business and its brands. Growth has continued into the second half and on a like for like basis it is up by 4%.
Commodities are likely to be the main driver of the market in the short-term, says Alan Green, CEO of Brand Communications, while explaining the current market scenario on today’s opening segment of the London open show. He also discusses Horizon Discovery (HZD) and Smart Metering Systems (SMS). He is joined by Tip TV’s Zak Mir.
Andalas Energy and Power Plc, the AIM listed Indonesian focused upstream oil and gas and power company (AIM: ADL), is pleased to announce the appointment of Dr Robert Arnott as Non-Executive Director with immediate effect. Dr Arnott is a pre-eminent figure in the international oil and gas industry and the Board is confident that he will be highly instrumental as the Company advances its strategy to become a leading Indonesian focused energy company.
Dr Arnott has over 30 years’ experience in the oil and gas industry, during which he has successfully executed a number of high profile transactions and sourced funding for several major development projects. Starting his career with Shell International, Dr Arnott subsequently moved into investment banking, working at both Morgan Stanley Dean Witter and Goldman Sachs International, where he established an extensive network of investment contacts. Moving back into the upstream industry he has distinguished himself as an active board member with high level involvement in the growth and success of numerous public and private energy related ventures.
As a Board member of Spring Energy AS, Dr Arnott rapidly grew the Norwegian Continental Shelf focused upstream oil and gas company ahead of its eventual sale to Tullow Oil in January 2013. He was since a director of Core Energy AS, an oil and gas company focused on the producing fields of the Norwegian Continental Shelf. During his career he has also held the role of Chairman at each of Petroceltic International plc, Global Petroleum Limited and Oyster Petroleum Limited and a non-executive directorship at Rocksource ASA. Dr Arnott is currently non-executive chairman of Hurricane Energy plc (AIM:HUR), the UK based oil and gas company.
Andalas Non-Executive Chairman, Paul Warwick, said: “Rob brings with him an unrivalled combination of industry knowledge and commercial expertise in the oil and gas industry and throughout his career he has demonstrated his ability to execute attractive value accretive transactions. I believe his appointment to the Board and support of our strategy is a clear signal to the market that Andalas is an emerging energy company with significant potential to make a material contribution to Indonesia’s energy industry, where new power sources are critically needed to keep up with current demand let alone future growth. His appointment follows our recent partnership agreement with Indonesia’s state oil company, PT Pertamina (Persero), and adds further gravitas to our already highly experienced and qualified board, as we look to commercialise our gas-to-power business concept and capitalise on the highly compelling opportunites inherent in the Indonesian energy market for the benefit of both the country and our shareholders.”
Commenting on his appointment, Rob Arnott said: “The gas and power supply/demand fundamentals in Indonesia are clearly evident – with a serious power crisis affecting many regions, and the economic development of the entire country, there is certainly an important opportunity for a company with the relevant technological expertise and in-depth knowledge of the country such as Andalas. I am joining a Board which already boasts significant industry and in-country experience, and I am excited at the prospect of using my expertise and contact base to further Andalas’ ambitions to realise the Board’s vision of delievering on its gas-to-power concept. Within the current remit of our partnership with Pertamina, which provides Andalas with unique access and depth of opportunity to small gas fields in our target areas, I believe we are in an excellent position to rapidly commercialise assets and generate real returns for our shareholders.”
The following information regarding Dr. Robert John Arnott, aged 58, is disclosed under Schedule 2(g) of the AIM Rules for Companies:
|Current directorships and/or partnerships||Former directorships and/or partnerships (within the last five years)|
|Hurricane Energy plc
Independent Oil Tools PLC
Independent Oil Tools AS
Brimham Resources Limited
Oyster Petroleum Ltd
Global Petroleum Limited
OPHL Investment Limited
Petroceltic International plc
Tullow Oil (International) Norge Limited
Spring Energy AS
Impax Environmental Markets plc
Core Energy AS
For further information, please contact:
|David Whitby||Andalas Energy and Power Plc||Tel: +62 21 2783 2316|
|Cantor Fitzgerald Europe
(Nominated Adviser and Joint Broker)
|Tel: +44 20 7894 7000|
Peterhouse Corporate Finance
Limited (Joint Broker)
|Tel: +44 20 7469 0930|
|Colin Rowbury||Cornhill Capital (Joint Broker)||Tel: +44 20 7710 9610|
|St Brides Partners Limited||Tel: +44 20 7236 1177|
Market Abuse Regulations (EU) No. 596/2014
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (“MAR”). Upon the publication of this announcement via Regulatory Information Service (“RIS”), this inside information is now considered to be in the public domain.