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IMC Exploration Group (IMCP) has published the prospectus for its move to a standard listing. No fundraising is planned to accompany the flotation. Management believes that IMC has enough working capital for 12 months. There was €152,878 in cash available at the end of January 2019. This takes account of the statutory spending on its licences.
Block Commodities (BLCC) is calling a general meeting to enable shareholders to decide whether the company should become involved in the medicinal cannabis sector.
Ananda Developments (ANA) owns 15% of LHT, the owner of hapac medicinal cannabis inhaling technology. The hapac products are being sold in Italy and the product range is being widened. Other investments are being assessed.
Ace Liberty and Stone (ALSP) has declared a second interim dividend of 0.83p a share.
Anne Yerburgh has been replaced as chairman of Daniel Thwaites (THW) by chief executive Richard Bailey, although she remains as a non-executive director in order to represent family shareholders. A replacement is being sought for former non-executive director Nick Mackenzie.
Queros Capital Partners (BFD) has raised £305,000 from the issue of 8% unsecured bonds 2025. This will be used to provide bridging finance to UK businesses.
Chris Akers has a 3.97% stake in High Growth Capital (HASH) following the purchase of the intellectual property of Malta-based BDD, a company he founded. RRNB Capital Ltd has increased its shareholding from 1.92% to 9.95%, while Fujairah has raised its stake from 2.31% to 8.59%. High Growth Capital has completed the acquisition of additional shares in AI company Sentiance to take its stake to 15%. Whitman Howard has been appointed as corporate adviser and broker.
Modern Water (MWG) reported its 2018 results at 6.19pm o the Thursday before Good Friday. Revenues increased by 18% to £4.2m and the reported loss was more than halved from £5.23m, although this included a £1.53m goodwill write off, to £2.47m. This appears to be the first time that Modern Water has slipped out results after the market has closed for the week. Let us hope that this does not become a habit. Serial offender Immunodiagnostic Systems Holdings (IDH) managed to put out its statement a bit earlier but after the close of the market. More can be found at https://ukinvestormagazine.co.uk/why-you-should-avoid-immunodiagnostic-systems-holdings/.
Enterprise software provider Sanderson (SND) says interim trading was ahead of expectations and further progress is expected in the second half. Interim revenues improved from £14.6m to £17m and underlying operating profit is one-third higher at £2.8m, which is partly due to accounting changes. Like-for-like operating profit would be one-fifth higher. Net cash was £3.29m at the end of March 2019. The order book is worth £8m. The interims will be published on 15 May.
Sheikh Ahmed Bin Dalmook Al Maktoum is investing £534,000 in MX Oil (MXO) for a 29.86% stake. He will appoint a non-executive chairman. This is part of a placing raising £680,000 at 0.04p a share. There are also 800 million warrants being issued that are exercisable at 0.04p over a five year period. Options over 10% of the enlarged share capital will be issued to management. The Aje field, where MX has a 5% investment is producing at around 3,150 barrels of oil per day and cash generated is being used to reduce project debt. The Aje field should start generating free cash in 2020 and that could move MX into profit in the first half of 2020. MX plans to consolidate 100 existing shares into one new share and change its name to ADM Energy.
Chief executive Sean Smith has bought 126,624 shares in biopesticide products developer Eden Research (EDEN) for 10.25p each. Finance director Alex Abrey has acquired 50,000 shares at 10.1p each. House broker Shore forecasts an increase in revenues from £2.8m to £3.7m in 2019, although the loss is expected to rise to £900,000. Shore expects Eden to move into profit in 2021.
PowerHouse Energy (PHE) has gained its first revenue generating contract for its DMG technology in conjunction with partner Waste2Tricity. Revenues will come from IP, design rights and licensing, followed by operational engineering.
Parity (PTY) is increasing its focus on the data analytics market and has appointed a new boss of consultancy services. Pre-tax profit halved to £850,000 in 2018 and a further decline is expected in 2019. Net debt is expected to remain at around £1m. Revenues are expected to continue to decline but there should be a greater proportion of the business coming from higher margin activities and profit is expected to bounce back to £1.5m in 2020.
Fryer and grease management services provider Filta (FLTA) increased revenues by 23% to £14.2m in 2018, while underlying pre-tax profit improved from £1.81m to £2.2m. This is before any significant contribution from the Watbio acquisition, which cost savings appear to be on course. A 2019 pre-tax profit of £3.8m is forecast.
Nektan (NKTN) is selling a 57.5% stake in Respin for £300,000 to a new purchaser because the previous deal could not be completed at a higher price due to the fact that buyer could not raise the finance. The online gaming firm says that it owes £3.6m in tax to the HMRC and it is likely to need additional cash to pay the bill.
TruFin (TRU) plans to sell its stake in unsecured consumer finance provider Zopa for £44.5m, an increase of 22% on the 2017 valuation, and investing £25m in manufacturing finance provider Distribution Finance Capital, which will be floated on AIM in early May. There should also be £10m returned to investors later this year. That will leave early payment services provider Oxygen Finance and Satago Financial Solutions, which provides working capital to small businesses.
Delayed results from consumer care products supplier Venture Life Group (VLG) show revenues 17% ahead at £18.8m and nearly all the growth came from the company’s brands. Pre-tax profit improved from £63,000 to £710,000. Net cash was £5.8m so the company has funds to make additional acquisitions.
Yourgene Health (YGEN) has raised £11.8m at 10.25p a share and that will be used to fund the £6.3m cash payment for molecular diagnostics developer Elucigene, which will cost £9.2m in cash and shares.
Managed services provider Redcentric (RCN) says net debt was £17.6m at the end of March 2019, compared with estimates of £20.2m. Pre-tax profit is expected to rise from £8m to £8.7m.
D4T4 Solutions (D4T4) has announced that its 2018-19 results will be ahead of expectations. This led to a pre-tax profit upgrade from £5.7m to £5.8m, but earnings per share were upgraded from 12.1p to 13.3p due to a low tax rate.
Evgen Pharma (EVG) has raised £5m through a placing at 13p a share. The cash will boost the balance sheet while management undertakes partnership discussions and additional work on SFX-01. The phase IIb data for SFX-01 in subarachnoid haemorrhage is expected in the third quarter of 2019.
Directa Plus (DCTA) doubled its total income to €2.5m in 2018. The graphene-based products developer has net cash of €5.2m, following a €3m outflow from operations.
Ariana Resources (AAU) says that the Kiziltepe gold mine produced 7,296 ounces of gold in the first quarter of 2019. That was lower than the fourth quarter of 2018, but it is ahead of the average annualised quarterly guidance.
IG Design (IGR) is set for 10% organic sales growth in the year to March 2019 and total revenues rising from £327.5m to £447m. Pre-tax profit is expected to grow from £21.4m to £29.5m. There could be further merger benefits to come from the Impact Innovations acquisition.
Europa Oil and Gas (EOG) is selling its 20% stake in PEDL143 in the Weald Basin to UK Oil and Gas (UKOG) for £300,000.
Plastics and panels supplier Tex Holdings (TXH) made a small loss in 2018 following accounting changes to the recognition of revenues and there is no final dividend. Trading levels were lower in the second half. Tex is in breach of some of its bank loan covenants. The major shareholder continues to support the group. The share price fell by more than one-quarter.
Electronic products distributor DiscoverIE (DSCV) is on course to improve its full year pre-tax profit from £21.8m to £27.7m. The group has raised £29m at 400p a share in order to finance the acquisitions of US-based transformers and magnetic components manufacturer Hobart Electronics and UK-based rugged and submersible sensors manufacturer Positek. The total initial consideration is £15.9m.
Fasteners supplier Trifast (TRI) says full year profit is slightly better than expected even though demand from China has been reduced due to tariff wars with the US. Net debt was £15m at the end of March 2019 and it has agreed a new four-year bank facility of £80m. This could be used for acquisitions.
Argo Blockchain (ARB) has set the date for its requisitioned general meeting, which will be held on 16 May. The requisition came from an entity owning 13.8% that is controlled by Frank Timis, who does not believe that the company will provide a satisfactory return to shareholders with its current cryptomining strategy. The plan is to remove Jonathan Bixby and Mike Edwards as directors and appoint another director. Argo has more cash than its market capitalisation. Cash operating costs have been reduced to £280,000, compared with £500,000 of potential revenues expected in May.
Kazakhstan-focused vanadium miner Ferro-Alloy Resources (FAR) is already spending the money it raised when it gained a standard listing last month. Equipment, a mobile crane and vehicles have been acquired. The design of the extension to the existing facilities and for the connection to the high voltage power line has been completed. The share price has almost halved from the placing price of 70p to 37.37p. More background information can be found at https://ukinvestormagazine.co.uk/ferro-alloy-resources-goes-to-discount-on-first-day/.
BATM (BVC) has won an initial $2m armed forces contract for cyber security and this lasts 18 months.
Emmerson (EML) has signed heads of agreement for an offtake agreement for 100% of the production from the Khemisset potash project.
Telecom Plus TEP delivered record revenue, profits and dividends in the year to the 31st March, with growth and momentum becoming significantly faster. The impact of a warm winter and the Ofgem price cap have led to expectations that pre-tax profits will be towards the lower end of previous guidance at around £56m. For 2020 however it is expected that accelerating growth will lead to adjusted profit before tax of between £60m and £65m and a 10% increase in the total dividend to 57p per share, compared to this years 4% rise to 52p per share,
Countryside Properties plc CSP reports solid trading in the 6 months to the 31st March, with completions up by 43%, the private average selling price down by 4% and a strong forward order book up 49%. After a slow start to the year, the spring selling season is described as having been robust. Completions are expected to be weighted towards the second half.
Bunzl plc BNZL Group revenue in the first quarter from the 31st December increased by 4% at actual exchange rates whilst at constant exchange rates the rise was 2.5%. The rate of underlying revenue growth however slowed during the quarter due to mixed macroeconomic and market conditions across the countries in which the Group operates, especially in North America.
ZOO Digital Group ZOO reports that the financial outturn for 2019 is frustrating and has been impacted by market shifts and client disruption, The company has already disclosed that planned investment has impacted on profitability to such an extent that adjusted EBITDA in the second half will be around break-even at around $0.5m.
SEGRO plc SEGRO has continued to grow well during the quarter commencing on the 1st January. Increasing occupancy, uplifts from rent reviews and renewals and development activity, all contributed to securing £21 million of new headline rent. 44 projects are currently under construction, 72% of which are already leased, and expected to generate £57 million of annualised rent. The vacancy rate has reduced to 4.4 per cent with decrease since December reflecting strong lettings of both existing and recently completed speculative space.
Dialight plc DIA continues to work on its recovery and global end markets continue to be robust.The Board expects further progress to be made in 2019 and the Group’s results to be heavily weighted towards the second half.
Card Factory plc CARD claims a robust performance in a challenging consumer environment for the year to the 31st December. Unfortunately looking at the actual figures, robust must mean different things to different people.. True, revenue rose by 3% although on a like-for-like basis sales were flat. However profit before tax fell by 8.3%, EBITDA by 8.7% and basic earnings per share by 12%. Cover for the ordinary dividend fell from 2.03x to 1.89x
Galliford Try plc GFRD is undertaking a strategic review which will reduce the size of the Construction business. It is anticipated that as a result profitability will be reduced by £30m-£40m below current consensus analysts’ forecasts. The damage reflects a reassessment of some legacy and current contracts, the effect of some recent adverse settlements and the costs of the restructure. The single largest element relates to the Queensferry Crossing venture where costs have increased.These are in addition to the claim in respect of the completed Aberdeen Western Peripheral Route, and the previously disclosed £38m work in progress balance in respect of three contracts for a single client, Significantly management appears to have avoided laying any blame at its own door.
JD Sports Fashion JD reports record results for the 52 weeks to the 2nd February with revenue up by 49,2% and EBITDA by 26.8%. Profit before tax rose by 15.4% and the total dividend is increased from 1.63p per share to 1.71. No need to worry about the meaning of robust, there, with total like for like sales growth in global Sports Fashion fascias of more than 6%.
G4S plc GFS updates for the three months to the end of March 2019 that Group revenue was 4.8% higher than the first quarter of last year, with growth in all regions and divisions.. Good progress is being made with the separation review which has the aim of turning the group into two strong, independent businesses that are able to take advantage of their market leading positions. The Board believes that this has the potential to unlock substantial shareholder value.
Article by Business Insider – April 1st 2019
- Iron ore spot markets rose strongly across the board on Friday.
- Uncertainty over supply disruptions in Brazil and Australia, along with firmer steel prices, likely explain the size of the gains recorded during the session.
- China’s official manufacturing and non-manufacturing PMIs both improved in March compared to the levels reported in February.
- The Caixin-IHS Markit China manufacturing PMI report for March will be released on Monday.
Iron ore prices rallied on Friday, supported by renewed uncertainty over Brazilian and Australian supply.
According to metal Bulletin, the spot price for benchmark 62% fines jumped 2.5% to $86.81 a tonne, logging its largest gain in two weeks.
The gains in higher grades were even larger with 65% fines soaring 3% to $99.30 a tonne, leaving it just below the multi-year highs struck in early February.
Lower grades also rallied with 58% fines adding 1.6% to $72.14 a tonne.
The across the board gains coincided with renewed uncertainty over the outlook for Brazilian and Australian iron ore supply, two of the largest seaborne exporters globally.
On Thursday, Brazilian miner Vale lowered its iron ore sales forecasts to a range of 307 to 322 million tonnes this year, down from an earlier estimate of 382 million tonnes.
“Given the physical nature of iron ore markets, the impending physical tightness to face iron ore markets strengthens our conviction that iron ore prices will rise above to over $90 a tonne in the short term.”
Daniel Hynes, Senior Commodities Strategist at ANZ Bank, is another who expects iron ore prices will remain supported in the period ahead.
“We see a sizable disruption lingering over the market for the near future,” he said, referring to supply disruptions in Brazil.
“Supply-side responses are likely, but will be far short of what is required to meet the needs of the market in 2019. As a result, iron ore exports will fail to meet expected demand by around 35–40 million tonnes in 2019.
“This should keep prices well supported in 2019.”
Along with uncertainty over the outlook for Brazilian supply, news of operational disruptions at facilities owned by Rio Tinto in Western Australia was another factor that helped to propel prices higher during the session.
On Friday, the miner issued force majeure notices to some iron ore customers due to damage from tropical cyclone Veronica, which hit Western Australia earlier this week, according to Reuters.
Rio said that it was “currently assessing the impact of the damage sustained at the Cape Lambert A port facility and is working with its customers to minimise any disruption in supplies”.
A force majeure is invoked when a miner cannot perform an obligation under a contract due to circumstances outside of its control.
Like spot markets, the news helped to spark a rally in Chinese iron ore futures on Friday.
In Dalian, the most actively traded May 2019 contract jumped to as high as 638.5 yuan before closing the session at 631.5 yuan. That was well above the 613.5 yuan level it finished on Thursday evening.
Stronger steel prices also helped to support iron ore futures at the margin with rebar and hot-rolled coil finishing trade at 3,758 and 3,741 yuan respectively, up from 3,695 and 3,673 yuan on Thursday evening.
As seen in the scoreboard below, those moves were largely sustained in overnight trade on Friday.
SHFE Hot Rolled Coil ¥3,732 , 0.67%
SHFE Rebar ¥3,754 , 0.72%
DCE Iron Ore ¥632.50 , 1.85%
DCE Coking Coal ¥1,229.00 , -0.08%
DCE Coke ¥1,980.00 , 0.23%
Trade in Chinese commodity futures will resume at midday AEDT on Monday.
In news that will likely bolster sentiment across the steel and bulk commodity complex further, activity levels across China’s manufacturing and non-manufacturing sectors improved in March, driven in part by booming construction activity.
The government’s manufacturing and non-manufacturing PMIs rose to 50.5 and 54.8 respectively in March, up from 49.2 and 54.3 in February.
A reading above 50 indicates that activity levels improved from a month earlier. The distance away from 50 reveals how fast the improvement occurred.
The separate Caixin-IHS Markit China manufacturing PMI report for March will be released today. In the past, markets have tended to pay more attention to this report than the official government release.
Sanderson Group plc SND Half year trading results to the end of March, are ahead of management’s expectations with revenue growing to approximately £17.0 million from last years £14.6 million and operating profit increasing by over 30% to £2.8 million from last years £2.1 million. Digital Retail has continued to perform strongly during the six months and achieved further double-digit revenue and operating profit growth.in The Manufacturing business sales orders grew by over 10%. The Board is confident that it will be able to maintain its progressive dividend policy.
System 1 Group plc Sys1 updates that its Consultancy business stabilised after a difficult 2017/18. Gross profit was down 1% for the year as a whole at £22m but Being 4% ahead in the second half, allowed it to generate underlying pre-tax profits for the year as a whole.
Serabi Gold plc SRB Reports another excellent quarter with a strong start made to 2019 and over 10,000 ounces of gold produced in the first quarter, keeping up the momentum from the end of 2018 and the second successive quarter with production above 10,000 ounces for the first time. Guidance for 2019 is maintained at production in the range of 40,000-44,000 ounces representing a significant improvement on 2018’s production of 37,108 ounces.
Filta Group Holdings plc FLTA continued to experience strong organic growth for the year to the end of December whilst, at the same time completing two strategically significant acquisitions, moved Filta into a market-leading position. Like for like revenue grew by 23% and like for like EBITDA by 25%. The proposed final dividend has been increased to 0.92p. per share on top of the interim dividend of 0.72p making a total increase for the year of 26%.
IG Design Group plc IGR The strong trading performance continued in the final quarter both delivering revenue and profit growth across all regions in the year to the 31st March.. The Board now anticipates that the financial performance of the Group will be be up significantly up year on year. The progressive dividend policy is expected to be continued earnings pay-out ratio is also expected to be increasesd at the full year.
Bonmarche Holdings BON which had seen trading become significantly weaker than expected sine the beginning of March, has rejected a takeover bid from Phillip Day’s Spectre Holdings, on the basis that it undervalues the business and its future prospects. These included a rise in the underlying loss for the year from a possible £4.0m. to between £5.0m. and £6.0m. 2 April, Mr Day, who owns Edinburgh Woollen Mill Group, acquired 26 million Bonmarché shares at 11.445p a share, which brought his stake up to 52.4% and a warning that he expected a “material reduction” in staff. The Bonmarche Board was left with nothing but the expression of a wish to hold discussions, which would be for the benefit of all shareholders, including no doubt, themselves. So far they appear to be unable to find a reason why shareholders would benefit from their continued presence in the governance of the company, especially having regard to its recent continued decline under their stewardship.
Games Workshop Group GAW has today declared a dividend of 35 pence per share, in line with the Company’s policy of distributing truly surplus cash and to be paid on 31 May.This takes the total dividend declared and paid during the year ending 2 June 2019 to £1.55 per share. Trading has continued well since the half year report in January with sales and profits ahead of last year. The Board’s current expectations are that profit before tax for the year to June 2019 will be c. £80 million.
Plus 500 Ltd PLUS updates that financial markets in the three months to the end of March were extremely subdued and revenue.fell by 65%. New customers were down by 10%. The company that It is impossible to predict market conditions for the rest of the year and conclusions can not be drawn about the full year outcome based on the Group’s first quarter performance.
Mobile Streams plc MOS has had to undergo a comprehensive cost-cutting exercise, in fact so comprehensive that both Non-Executive Directors have had to volunteer a deferral of 50% of their respective remuneration. Sizable one-off redundancy and severance payments have had to be made, to employees, many of whom were of long service. With falling revenue, decisive steps became necessary to allow the company to preserve and protect its remaining cash balances.
National Express NEX has acquired a 60% stake in WeDriveU an employee shuttle company serving many of the world’s largest and fastest growing companies in Silicon Valley and other fast growing US cities.. The deal also includes an Option to acquire the remaining shares in tranches over the next three years.
WH Smith plc SMWH is rapidly evolving into two separate businesses one of which does not seem to be able to find the management which it seems to need. The problem is the High Street, the traditional business which keeps on trying to make a profit out of selling newspapers, books and pencils. Smiths highlights its problems as if it is something to be proud of. Like for like High Street revenue fell by 2% in the six months to the 28th February and that, it proudly boasts, is its second best sales performance in a decade.Travel on the other hand is the jewel in the crown, with sales up by 18%, like for like revenue up by 3% and profit by 7%. Travel is expected to produce strong profit growth in the second half, slightly ahead of expectations. and it is thanks to travel that the interim dividend can be increased by 8%.
Quiz plc QUIZ saw group revenue rise by 12% during the year to the 31st March, helped by strong online expansion of 34%, compared to UK stores and concessions and International sales up by 8%. The company operates 108 Debenham concessions in the UK and a further 11 in the Republic of Ireland which between them produce 23% of total revenues. Slower than anticipated growth is expected during the year. and a thorough review of all aspects of the business is being undertaken, to mitigate the effects of the slowdown.It still looks forward to continuing to work productively with Debenhams.
easy Hotel plc EZH continued to outperform for the fourth year its hotel markets in the UK and across Europe during the six months to the 31st March, System sales rose by 24% and revenue by 47%. Regional market performance was weaker compared to a strong London. market., There was a marked deterioration across the UK in in the second quarter compared to the first.. As a result the short-term market outlook remains uncertain and trading is mixed on a country-by-country basis and as in the UK overall market demand has softened.
Christie Group plc CTG The 12 months to the end of December produced a solid performance but it can not be hidden that here is yet another company which is being damaged by our feckless politicians Brexit performance and the uncertainty surrounding Brexit is causing UK transaction related activity to slow.despite that, operating profit rose by 8.4%, revenue by 6.3%, the total dividend is to be increased by 3% and the second half performance is expected to be stronger.