Dixons Carphone plc DC Greece had become the jewel in Dixons international empire with like for like sales up 9% but it looks like that will not last for long unless Dixons management can start getting its act together. Smart phones is its problem. At one of its biggest Kotsovoulos stores in Athens it has had to stop selling smart phones because it has no staff trained and qualified to explain to customers what the terms of the contracts are which it offers with the three main service providers to enable it to give huge discounts on the prices of smart phones. Each model of smart phone has a price label next to it showing the discount and the specific contract which it offers with each provider. The problem is permanent, not temporary and it is that no staff member is allowed to tell customers what the terms of those contracts are because they are untrained and unqualified. Worse still they are trained to lie about the reason.Thus customers are told that a qualified employee from another store will be there from 5pm but it is just a lie. Other more truthful members of staff they will have to go to a store several miles away to find an employee with the necessary qualifications. They even advise customers to go directly to branches of the providers in a distant shopping mall, thus ensuring that Dixons loses the sale permanently. The manager joins in the deceit by claiming that the price labels do not advertise the package offered, they are purely notifications. Often it is the tiny things which expose the failings of management which is not on the ball, in some of our largest companies.
Thomas Cook Group TCG has been forced to admit that it can not compete with UK holidays when the UK enjoys hot summers, as it did this year in June and July. And if one thinks about it, that is not surprising because who wants to go through the trauma of spending part of their annual holiday trapped in a UK airport full of undrinkable coffee and British rail sandwiches, plus overbearing security officers waiting to pounce and perform an intimate body search at the slightest opportunity. What Cooks describes as the “unprecented” hot weather, led to higher levels of discounting and the recent trading performance has been disappointing, with full year operating profit expected to be only 280m. But then Cooks gives the game away by admitting that even bookings for next winter are down by 2% so the problems appear to be more ingrained than just a few weeks of summer sunshine. Dread the thought but could management perhaps be at fault if hot summer weather is followed by winter booking problems.
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) announced on the 1 November 2017 that it had repaid US$6.45 million of its US$12.9 million loan note and restructured the remaining US$6.45 million as two separate convertible loan notes (“Convertible Notes”), which were due to mature at the end of September 2018.
Cadence is pleased to announce that it has refinanced the Convertible Notes by agreeing a US$4.87 million amortizing loan note with a consortium of institutional lenders. The loan will be primarily used to repay the outstanding balances due on the Convertible Notes (US$4.2 million) and future interest payments. The loan will attract an effective 9% per annum and has a principle repayment holiday until 1st January 2019. After which the loan will be paid via equal instalments over a 12-month period, with the principle being fully repaid by the 1st December 2019. The note is secured over the Company’s assets.
Appointment of Joint Broker
The Company is pleased to announce that is has appointed Novum Securities Limited as joint broker to the Company with immediate effect.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
– Ends –
For further information:
About Cadence Minerals:
Cadence is dedicated to smart investments for a greener world. The planet needs rechargeable batteries on a global scale – upcoming supersized passenger vehicles, lorries and buses – require lithium and other minerals to achieve this goal. Cadence is helping find these minerals in new places and extracting them in new ways, which will meet the demand of this burgeoning market.
Cadence invests across the globe, principally in lithium mining projects. Its primary strategy is taking significant economic stakes in upstream exploration and development assets within strategic metals. We identify assets that have strategic cost advantages that are not replicable, with the aim of achieving lower quartile production costs. The combination of this approach and seeking value opportunities allows us to identify projects capable of achieving high rates of return.
The Cadence board has a blend of mining, commodity investing, fund management and deal structuring knowledge and experience, that is supported by access to key marketing, political and industry contacts. These resources are leveraged not only in our investment decisions but also in continuing support of our investments, whether it be increasing market awareness of an asset, or advising on product mix or path to production. Cadence Mineral’s goal is to assist management to rapidly develop the project up the value curve and deliver excellent returns on its investments.
Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identiﬁed by their use of terms and phrases such as ”believe” ”could” “should” ”envisage” ”estimate” ”intend” ”may” ”plan” ”will” or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding the Company’s future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements reﬂect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward-looking statements.
In the first half of 2018, Newbury Racecourse (NYR) increased media revenues by one-fifth and, along with growth in nursery and lodge revenues, this helped the racecourse operator to raise revenues by 5% to £7.33m even though two race days were lost to bad weather. Enough cash was generated to more than cover capital spending.
Block Commodities (BLCC) has signed a non-binding letter of intent with the Eelleet Network Corp, which intends to buy Block. There would be an all share recommended offer and the enlarged business would list on the Canadian Stock Exchange. Trading in Block shares has been suspended.
Ananda Developments (ANA) has obtained a £300,000 convertible loan facility with two directors, Charles Morgan and Melissa Sturgess. The annual interest rate is 10% and the conversion price is 0.75p a share. The manufacture of 15%-owned Liberty Herbal Technologies’ vaporisers and consumable packs containing four hapac sachets of 0.25g medicinal cannabis has commenced in China. AfriAg Global (AFRI) has applied for a medicinal cannabis licence in the UK. Fellow cannabis investment company Sativa Investments (SATI) has set up a German wholesaling subsidiary and it will invest €80,000 for a 60% stake.
In the six months to June 2018, St Mark Homes (SMAP) increased revenues from £71,000 to £139,000 and it made a small loss excluding negative goodwill release. The interim dividend was unchanged at 5.5p a share. The NAV is £5.9m, including £754,000 in cash, which is equivalent to 134p a share. St Mark is trying to gain planning permission for the commercial development in Sutton High Street. Two other properties in London are being redeveloped and sales have commenced. A development in Wembley should start in 2019.
TechFinancials Inc (TECH) reported a profit in the first half of 2018, but that was due to a change in the fair value of the option to acquire 90% of Cedex. Revenues fell 48% to $3.78m and the underlying loss of the fintech software provider increased from $282,000 to $971,000. The blockchain operations made an initial contribution of $1.23m to revenues. The B2C operations have ceased in Europe and the company wants to sell its subsidiary with a FSA licence. Higher regulations have hampered the B2B technology customers.
NQ Minerals (NQMI) reported an increased interim loss of $9.43m due to higher finance costs. Admin costs were flat. The development of the Hellyer gold project in Tasmania is progressing well and the first sales of concentrate should happen before the end of this year. Work continues towards a move to a standard listing.
Less than one month after asking for trading in the company’s 7% bonds 2021 to be suspended Positive Healthcare (DOC) has appointed Eric Walls and Wayne Harrison of KSA to advise on a liquidation process. Irregularities were identified at the principal operating subsidiary and Positive is unable to pay the next instalment of interest on the bonds.
Eight Capital Partners (MORE) had cash of £773,000 at the end of June 2018. That was before the former Cogenpower acquired €111,100 worth of 8% corporate bonds 2020 in Italian financial services company Finance Partners Group. Other financial services and technology investments are being considered.
EPE Special Opportunities (ESO) has been readmitted to NEX and AIM on 21 September, after it completed its migration from the Isle of Man to Bermuda.
IT recruitment and consultancy Parity (PTY) remains on track for an improvement in pre-tax profit from £1.7m to £1.9m but cash generation is not as good as expected. Net debt is still expected to reduce from £1.6m to £900,000. The previously announced Primark managed services contract has started well, although another contract has been delayed. The consultancy business continues to contribute a growing proportion of profit.
Tlou Energy Ltd (TLOU) has agreed locations for pilot production at the Lesedi coal bed methane project in Botswana and the first well should be spudded in October.
N+1 Singer has upgraded its forecast for EKF Diagnostics (EKF) following the interim figures. There was a 5% decline in revenues to £20.4m, while underlying profit improved from £2.3m to £2.7m. Around £250,000 has been added to the profit, taking pre-tax profit to £7.7m. The launch of haemoglobin analyser DiaSpect following FDA approval will boost next year’s figures. The spin out of RenalytixAI continues and it will require a general meeting.
Audio products supplier Focusrite (TUNE) says full year revenues were in line with expectations of £75.4m, while cash of £22.8m is better than forecast. A pre-tax profit of £10.8m is forecast. There are concerns about US tariffs.
Tanfield (TAN) has warned that it may not get anything for its stake in Snorkel if the call option is exercised. Management has already said that it will write down the value of the investment to £19.1m ($25.3m), which already knocks 12p a share off NAV, but there is a disagreement about the interpretation of the original agreement.
Disappointing results from the Atopic Dermatitis study has led Realm Therapeutics (RLM) to appoint MTS Health Partners to advise on strategy alternatives. Realm is considered to be in an offer period. There was $21.3m in the bank at the end of August.
Short-term weakness in the oil palm price has held back the progress of plantations operator MP Evans (MPE) in the first half, but crude palm oil production is increasing in line with expectations (91,900 tons in the first half). That means that full year revenues are likely to be flat and pre-tax profit will be lower. Longer-term growth will come from increased production from more recently planted areas.
Online women’s fashion retailer Sosandar (SOS) is coming up to its first year on AIM and the growth momentum continues.
Huadong Medicine Aesthetics has launched its recommended 32p a share cash bid for Sinclair Pharma (SPH) and that values the company at £166.6m.
There has been a lot of activity at Frontier IP (FIPP) in the past week. The AB Sugar head of innovation Matthew White is joining the company as head of commercialisation. Recycled building materials developer Alusid has raised £1.34m, including the conversion of a £348,000 loan from Frontier IP, which has a 35.6% stake. The Alusid investment had been valued at £700,000 and the latest fundraising values it at £1.73m. The cash will be used by Alusid to invest in its manufacturing facility, which should start production in 2020. The total cost will be £10m. A new company has been set up to develop new antibiotics. Frontier IP has a 10% stake in Amprologix, which has been spun out of the University of Plymouth. The first product is likely to be a cream that contains epidermicin, which can kill antibiotic-resistant bacteria, including MRSA.
There was a switch in the mix of revenues at job screening services provider ClearStar Inc (CLSU) in the first half as revenues increased by 11% to $9.9m. The growth has come from Medical Information Systems, which has lower margins and this means that the overall loss is reducing more slowly than expected. The cash outflow is small. Net cash is $1.2m.
Diurnal Group (DNL) is going along as expected with the launch of its Alkindi paediatric adrenal insufficiency treatment in Germany but the market has been unnerved by a negative comment from a German government research organisation. It pointed out that the performance of Alkindi was not compared with another treatment which has not been given regulatory approval. This does not appear likely to affect the relationship with the German regulatory authorities. There will be news from the European phase III trial for Chronocort before the end of the year.
Stockdale has initiated research on professional services group Christie Group (CTG) and expects a full year profit of £3.5m. It has already achieved an interim profit of £1.75m.
VR Education (VRE) still had £4.9m in the bank at the end of June 2018. Since then there have been improvements to the ENGAGE platform ahead of the full commercial launch before the end of the year. The full version of Titanic VR was launched in August and it is set to be launched on Playstation.
Energy supplier Yu Group (YU.) continues to grow rapidly and it is moving into the water sector. Interim revenues jumped from £20.8m to £35.8m, while underlying pre-tax profit moved ahead from £1.15m to £1.8m. Growth is coming from the larger corporate sector which has held back margins because they are via brokers. The interim dividend is one-fifth higher at 1.2p a share. There was £18.2m in the bank at the end of June 2018.
N4 Pharma (N4P) has undertaken a strategic review following the failure of the reformulation of sildenafil to achieve its key targets in its clinical trial. It would cost a lot and increase risk if the company undertook further reformulation of this generic. The generics division has been closed and the focus will be the Nuvec delivery system. Initial results from research should be available before the end of the year. There was £1.6m in the bank at the end of June 2018.
Books publisher Quarto Group (QRT) increased interim revenues from $50.2m to $56.2m and the underlying loss fell from $8.7m to $6.6m. Net debt was $73.2m at the end of June 2018. Management is talking to banks to extend the bank facility until August 2020. Costs are being reduced.
Spinnaker Opportunities (SOP) intends to broaden its investment remit to include cannabis processing, as well as the energy and industrial sectors. Finance professional Alan Hume has joined the board of the standard list shell. He was previously an adviser to the company and until last year finance director of Zenith Energy (ZEN). Between 2010 and 2012 he was finance director of Xtract Energy (XTR).
Bluebird Merchant Ventures Ltd (BMV) has completed its feasibility report into the reopening of the Gubong gold mine and the joint venture with Southern Gold has started. Production of 10,000 ounces of gold is initially targeted.
ECR Minerals #ECR confirms potential for “significant gold discovery” at Blue Moon; discovers two new targets – via Proactive Investors
In July, ECR told investors it was carrying out a technical review of the project after results from an initial drilling campaign provided “evidence of a significant near surface gold system”.
The review has backed up that earlier theory and suggested that there could be higher grade mineralisation a bit further below the surface, similar to the nearby 1mln ounce Fosterville mine.
As a result, ECR now plans to undertake more drilling at Blue Moon in “the coming months”.
In addition to the review, the explorer has also undertaken field mapping and soil sampling over previously unexplored areas just to the north and north-west of Blue Moon.
This work programme has identified two new prospective targets – called Red Moon and Yellow Moon – which share similarities with Blue Moon.
Further work on those two targets is due to begin shortly as ECR looks to better understand them and help determine a follow-up work programme.
Boss delighted with progress
“I am delighted with the progress our technical team have made with the review of Blue Moon,” said chief executive Craig Brown.
“It is evident that the Blue Moon target offers an opportunity to discover a significant gold deposit and that will be our prime objective in the forthcoming drill campaign.”
He added: “Furthermore, the addition of two new targets at Red Moon and Yellow Moon is extremely exciting for the technical team and the company.
“The multiple gold targets identified to date support the rationale of the company in securing the Bailieston licence with the overall objective being the discovery of a significant and economic gold deposit.”
ECR shares rose 16.2% to just shy of a penny in early trading on Monday.
Andalas Energy and Power Plc, the AIM listed upstream oil and gas and energy company (AIM: ADL), is pleased to announce it has, through its 100% owned subsidiary Resolute Oil & Gas (UK) Limited, entered into an agreement with Corallian Energy Limited under which it has acquired, via a farm-in, an 8% interest in UK Continental Shelf Licence P1918, which contains the Colter prospect and PEDL 330 and PEDL 345.
In addition, the Company has raised £800,000 (gross) at 1.15 pence, via an oversubscribed placing, which, together with existing funds, fully finances the expected costs of the Acquisition. The Placing Price represents a 2% discount to the closing mid-market share price on 20 September 2018.
- Farm-in to Colter prospect (“Colter”) fully funded through to drilling of the well expected in Q4 2018, expected well cost £7.5m gross.
- To earn its 8% interest Andalas is funding 10.67% of the well cost up to a maximum of £8million, thereafter it funds 8%.
- Colter scheduled to be drilled in Q4 2018
- Colter will evaluate a prospect that has been assessed to contain gross unrisked Mean Prospective Resources of 22 million barrels of oil (“MMBO”) recoverable (1.76MMBO net) (Operator estimate).
- Andalas portfolio now contains short, medium and long term value catalysts, each with significant potential and activity expected over the remainder of 2018 including:
- Progress updates on our interest in the Badger licence, including updates on the ongoing farm-out process;
- Updates on the licence extension at our recently announced Bunga Mas project; and
- Drilling of the Colter well planned for Q4 2018.
- £800,000 (gross) raised via the issue of 69,565,217 new ordinary shares of no par value, at a price of 1.15 pence per share (“Placing Shares”).
- Funds to be applied to fully fund the farm-in;
- 34,782,608 (on a 2 for 1 basis) warrants will be issued in connection with the placing. Warrants have an exercise price of 2pence and a three year life.
Simon Gorringe, CEO of Andalas Energy and Power PLC said: “With this transaction and recent fund raises we have completed the first phase of the transformation of Andalas into a well-funded and well-diversified oil and gas company. We now have a portfolio of short, medium and long term value catalysts, in both the UK and Indonesia and we thank shareholders for their support.
“We are acquiring an interest in a fully funded well, planned for the Q4 2018, which is targeting a significant oil prospect that is attractive due to its significant resource potential and also its proximity to the Wytch farm oilfield and its facilities.
“We have worked hard to create a business capable of delivering value to shareholders since the change in the board of the Company We look forward to providing the market with further updates as we make progress across our existing portfolio and the other potential opportunities”
Dave Gaudoin, MD of Corallian Energy Limited said: “We are pleased to welcome the Andalas team as a partner in the Colter project. They have significant previous experience in developing and commercialising major oil and gas projects in the UK continental shelf and we are looking forward to working with them”.
The Colter Prospect lies in Poole Bay, immediately south of the Wytch Farm oilfield, operated by Perenco. Mapping of 3D seismic data by the operator, Corallian, indicates that the 98/11-3 well, which encountered oil in the Triassic Sherwood sandstone reservoir in 1986, lies on the flank of a structure that has the potential to hold gross unrisked Mean Prospective Resources of 22 million barrels of oil (“MMBO”) recoverable (1.76MMBO net) from this reservoir (Operator estimate).
The Colter Prospect will be appraised by a well drilled to a total depth of 1,800 metres subsea in a water depth of 16 metres. The well is currently scheduled to be drilled in the fourth quarter of 2018, subject to regulatory approvals. Under the terms of the agreement with Corallian, Andalas has, subject to governmental consents, acquired an interest of 8% in the licences from Corallian.
The total cost to Andalas of farming into the licence, will include the funding of the back costs on the licence (£45,000), together with the obligation to fund 10.67% of the forward costs related to this well, capped at a gross cost of £8.0 million. Andalas will be responsible for funding its 8% share of incremental costs above this cap. The Operator currently estimates the well cost to be £7.5m (£800,000 net to Andalas). Andalas will be added to the licence upon the payment of the back costs and the receipt of the necessary government approvals.
Corallian has also conducted preliminary mapping of a separate area around the 98/11-1 well, south of the Colter prospect, which indicates that there is the potential for Prospective Resources of up to 27 million barrels of recoverable oil. Further definition of this separate area will be possible once the results of the Colter well (98/11a-E) are available.
Issue of equity
The farm-in is funded via the placing of new ordinary shares of no par value, raising gross proceeds of £800,000, at a price of 1.15 pence per share. The proceeds of the placing will also be applied for general working capital purposes. Application has been made for the Placing Shares to be admitted to trading on AIM and dealings are expected to commence on or around 4 October 2018 (“Admission”).
In connection with the placing, a total 5,217,391, three year warrants exercisable at the placing price have been issued as part payment of commission.
Furthermore 34,782,608 warrants have been issued to the placees, on a 1 for 2 basis, with a three year life and an exercise price of 2pence per share.
Total voting rights
Following Admission, the Company’s issued share capital will consist of 365,749,640 ordinary shares of nil par value (“Ordinary Shares”), with each Ordinary Share carrying the right to one vote. The Company does not hold any Ordinary Shares in treasury. This figure of 365,749,640 Ordinary Shares may therefore be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA’s Disclosure Guidance and Transparency Rules (“DTRs”).
Qualified Person’s Statement
The technical information contained in this announcement has been reviewed and approved by Mr. Gregor Mawhinney. Mr. Mawhinney is consulting for Andalas, acting in the role of Vice President Operations. He has nearly 40 years’ experience in the oil and gas industry, is a member of the Society of Petroleum Engineers (SPE) and a member of the Professional Engineers and Geoscientists of Newfoundland and Labrador (PEGNL).
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 a Regulatory Information Service (‘RIS’), this inside information is now considered to be in the public domain.
For further information, please contact:
|Simon Gorringe||Andalas Energy and Power Plc||Tel: +62 21 2965 5800|
|Roland Cornish/ James Biddle||Beaumont Cornish Limited
|Tel: +44 20 7628 3396|
|Colin Rowbury||Novum Securities Limited
|Tel: +44 207 399 9427|
|Christian Dennis||Optiva Securities Limited
|Tel: +44 20 3411 1881|
|Stefania Barbaglio||Cassiopeia Services Limited (Public Relations)||Stefania@cassiopeia-ltd.com|
Brand CEO Alan Green discusses i3 Energy #I3E, Itaconix #ITX, Smart Metering #SMS & Hastings Grp #HSTG on the Vox Markets podcast
Brand CEO Alan Green discusses i3 Energy #I3E, Itaconix #ITX, Smart Metering #SMS & Hastings Grp #HSTG with Justin Waite on the Vox Markets podcast. Interview starts at 12 minutes 45 seconds.
Diageo plc DGE updates prior to its AGM that the year has started well but increased foreign exchange volatility in emerging markets will have a £175m impact on sales and a £45m.impact on operating profit for the fiscal year.
Stobart Group plc STOB has issued a pre close trading statement for the six months to the 31st August showing that aviation passenger numbers at London Southend Airport have risen by 37%. Further growth will be added with the start of Ryanair flights in spring 2019, the target being to reach 5m passengers per year by 2022. Stobart claims it is well placed to deliver the ambitious growth targets set by the Board to double the value of the business. An interim dividend of 4.5p per share is to be paid.
Kier Group plc KIE announces what it describes as a good set of results for the year to 30th June with all divisions performing well. The year ended with a record order book of 10.2bn in construction and services. Both profit before tax and basic earnings per share rose by 9% and an increase of 2% is proposed in the full year dividend.
Iofina IOF has continued to improve both revenue and profitability. in the half year to the 30th June. Revenue rose by 20% on top of which it benefited from price rises of 8% and production increases. Iodine prices are continuing to rise and production increased by 12% ahead of revised production targets. EBITDA was up by 6% and the operating loss was reduced to $47,000 and the loss before tax to $0.8m.
The City Pub Group CPC claims it made strong progress in the half year to the 1st July, with sales up by 24%, adjusted EBITDA by 25% and adjusted profit before tax by 73%. Nine pubs have been opened this year and it anticipates operating more than 50 by mid 2019. It is ahead of its strategy to double in size to 65-70 sites by 2021.The momentum seen in the first half has continued into the second half
KATOWICE, Poland (Reuters) – Poland’s state-run JSW (JSW.WA) is awaiting approval from the Energy Ministry in its bid to acquire the Polish mining assets of Australia’s Prairie Mining (PDZ.AX), JSW said on Wednesday.
Prairie Mining has been developing coking coal projects at the Jan Karski mine in southeast Poland and the Debiensko mine in Silesia, Poland’s industrial heartland in the south. JSW has said it wants to increase its coking coal output.
“We maintain that we would like to take over Prairie Mining assets, however we still need to obtain the owner’s approvals, which means that the Energy Ministry opinion is necessary,” JSW Chief Executive Daniel Ozon told Reuters.
He did not give a value for any transaction. Prairie Mining has a market capitalization of A$79 million ($57 million).
Sources told Reuters this month that JSW, which has been in talks on cooperation with the Australian firm for much of this year, wanted a controlling stake in Prairie Mining to tighten its grip as the EU’s biggest coking coal miner.Ozon declined to comment on that issue.
The Energy Ministry, which supervises the mining industry, had planned to dismiss Ozon last week after disagreements over strategy but a meeting of the supervisory board in which this was expected to take place was canceled last week, sources said. JSW declined to comment on the meeting.
Ozon also declined to comment on the matter.
Energy Minister Krzysztof Tchorzewski told Reuters last week that he was familiar with JSW’s plan to take over Prairie Mining but declined to provide details.
Link here to view on Reuters website
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014. The person who arranged for release of this announcement on behalf of the Company was Tony Sanders (Chief Executive Officer).
For further information:
Catenae Innovation Plc Tel: 020 7929 7826
Cairn Financial Advisers LLP, Nominated Adviser Tel: 020 7213 0880
Liam Murray / Jo Turner
Alexander David Securities Limited, Broker Tel: 020 7448 9820
Buy Benchmark Holdings #BMK says VectorVest. There is every sign that the company is developing into a highly investible proposition.
UK based Benchmark Holdings (BMK.L) challenges the status quo in aquaculture. Since 2000, BMK has consistently worked to build a technology-rich platform in the areas of genetics, advanced nutrition, animal health and knowledge services, to serve its customers, helping them to improve yield and efficiency in a sustainable way. The Company has leading positions in its core markets and established R&D, manufacturing and distribution capabilities to serve all the major aquaculture markets. BMK operates in 27 countries globally and employs 950 people.
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On June 19th2018, BMK published interim results for the six months ended 31 March 2018. The Company reported a 91% increase in adjusted EBITDA to £6.3m on revenues 9% higher at £75.7m. An £8.2m loss for the same period last year turned into a £3.6m profit, driven by improved trading, a reduction in finance costs and a £9.2m tax credit resulting from a reduced deferred tax liability on intangibles from the acquisition of INVE. CEO Malcolm Pye said the results showed “good organic revenue growth and improving profitability on an adjusted basis, while we continue to invest in our pipeline of new products and infrastructure.” “The outlook for the Group is positive as the drivers for our business are stronger than ever before, with continued growth in aquaculture and increasing recognition from consumers, producers and regulators of the need for sustainable solutions to enable future growth.”Separately on Sept 10th2018 BMK announced the commencement of production of salmon eggs at its new land based breeding facility in Salten, Norway. The centre is the World’s most advanced egg facility, and increases Benchmark’s capacity by 75%.
Since the end of May 2018, BMK has consistently flagged a high Relative Value (RV) reading to VectorVest members. The RV metric is an indicator of long-term price appreciation potential, and even today continues to log BMK at 1.47, excellent on a scale of 0.0 – 2.0. Added to this the company logs a GRT (Earnings Growth Rate) of 32%, which also rates as excellent on the VectorVest stock and portfolio management system. Cautious investors may decide to look elsewhere given that BMK offers a ‘fair’ RS (Relative Safety) rating of 1.00, again on a scale of 0.00 to 2.00, but trading today at 62p, BMK still offers plenty of upside against a current VectorVest valuation of 81p.
The chart of BMK.L is shown above using weekly candlesticks. The share is undervalued and has recently broken upwards from a five-wave symmetrical triangle of two years duration. The first technical target from the triangle breakout is around 100p.
Summary: VectorVest has this week identified another niche sector operator, with leading positions in core aquaculture markets around the globe. This acquisitive operator has completed several notable acquisitions in the past few years, and significantly in the first half turned a loss into a profit on higher revenues. While the low RS metric may deter the more cautious investor, there is every sign that BMK is developing into a highly investible proposition given its global footprint, not to mention the opening of the World’s most advanced salmon egg facility and consequential increase in capacity. Coupled with the recent bullish charting signals, VectorVest recommends the stock as a buy
Dr David Paul
September 19th 2018
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