Home » News and Views
Category Archives: News and Views
Melrose MRO Today the gloves are off as Melrose goes to war in its attempts to persuade GKN shareholders to abandon its company. If ever an example was needed as to how the City is no longer a place for gentlemen, Melrose provides it with a hectoring, bullying diatribe threatening GKN shareholders with the terrible financial consequences of their own folly if they are stupid enough to reject Melrose’s offer.There is only one problem and it is a problem which Melrose has created for itself. Its attitude and language is so extreme that it makes it appear that this is its last desperate throw of the dice after which its ammunition is exhausted.
Thus Melrose’s final offensive, attacks GKN’s “hastily assembled and ill considered proposals”, threatens GKN shareholders that “unless they accept our offer” there will be dire consequences and compares GKN rebuttal with what they laughingly call their own “measured approach”. In fact there is nothing measured about today’s response. Its warnings read like the last gambit of a contestant which is running scared and knows it has already lost the battle. Rarely in the world of takeovers has a company made such a disastrous tactical error. It deliberately chose to turn itself into the beast to be feared, a wolf without any sheeps clothing. People who are threatened and treated as stupid, tend to rebel. Melrose has only itself to blame if it is rebuffed.
Finsbury Foods FIF claims that half year results to the 30th December were robust and is increasing its interim dividend by 10% to 1.1p per share. Like for like revenue rose by 2.5% and profit before tax by 6.3% as the group showed resilience in the face of a sustained period of “market wide headwinds” which it says, will persist into the future.
Weatherly International WTI announces that it may have come to the end of a long and difficult road. It renegotiated its loans from Orion on the 31st August, 30th October and 31st December and it is now faced with repayments of $20m. by the 31st March. It admits that it is unlikely to generate sufficient surplus cash to be able to meet the repayment and its continued existence as a going concern will not be possible without Orion’s continued support, of which there is no certainty.
Formation Group (FRM) has been repaid its £5m loan for a development in Wembley and it retains a 40% share of the profit of the development. This cash has been used to invest in acquired a 3.44% stake in Proton Partners International, which has an operational proton beam therapy centre in South Wales with two more sites planned. A treatment unit in Abu Dhabi is expected to be launched in 2019.
Capital for Colleagues (CFCP) has loaned £600,000 to TG Engineering, which supplies steel and aluminium components to the aerospace and scientific sectors. The Dorset-based company will be 35%-owned by Capital for Colleagues and 20%-owned by the employee share ownership trust. The rest of the shares will be owned by the original founders and management.
IMC Exploration (IMCP) intends to focus on its main projects in Ireland. The interim loss was reduced from £99,000 to £75,000. There was net debt of £35,000 at the end of 2017.
Block Commodities (BLOC) has agreed to acquire a 21% stake South African fertiliser and plant products wholesaler VIPA Holdings. Block is paying £150,000 for new shares and acquiring £610,000 worth of existing shares in return for 748.5 million Block shares. VIPA is loss-making following the withdrawal of a major international trading partner. The ongoing focus will be fertiliser and the investment in Advanced Agricultural Holdings will be unwound with the 221.6 million shares issued as initial consideration returned to the company.
Primorus Investments (PRIM) has invested £500,000, at £22 a share, in Engage Technology Partners. This follows an initial subscription of £400,000 at £15 a share. Primorus owns 3.6% of Engage, which builds SaaS-based employee workflow software.
Hellenic Capital (HECP) had £272 in the bank at the end of 2017, but since then £179,000 has been raised at 0.5p a share. There was £120,000 generated from operations in 2017 but that was due to a £143,000 increase in creditors. An investment property in Leeds is in the books at £204,000, while the NAV was £58,000 at the end of 2017. The property is being sold for £235,000 and a £5,000 non-refundable deposit has been paid.
Globe Capital Ltd (GCAP) has raised £500,000 via subscription at 0.75p a share. The cash will finance a new office in Dubai. Valiant Investments (VALP) has raised £51,000 at 0.15p a share. The 84.7%-owned Flamethrower has acquired National-Preservation.com, which focuses on British railway heritage, and has nearly 10,000 registered users. Equatorial Mining and Exploration (EM.P) has raised £40,000 from an issue of 5% unsecured irredeemable convertible loan notes and a further £10,000 could come from the exercise of warrants. Via Developments (VIA1) has raised a further £590,000 from a debenture issue, taking the total raised to nearly £6m. The accounting reference date is being changed from March to September.
In 2017, Walls and Futures REIT (WAFR) achieved a total return on its portfolio of 11.5%, ahead of its benchmark total return of 7%.
DHAIS (DHAP) is leaving NEX on 18 April, nearly ten years after joining the market. The business is being streamlined and the focus is organic growth of the hearing aid operations. Shareholders owning 78.9% of DHAIS agree to the withdrawal so the company does not have to hold a general meeting.
Diurnal Group (DNL) is raising up to £11m at 190p a share in order to finance the launch of the Alkindi hormonal disease treatment for children in Europe and complete the development of Chronocourt in Europe and start a phase III study in the US. IP Group is converting its loan into shares.
Shares in VR Education (VRE) immediately went to a premium when trading commenced. It raised £6m at 10p a share and the share price ended the week at 12.25p. More than two million shares were traded during the week.
1Spatial (SPA) has sold Enables IT back to the founder for £1, while retaining a 19.9% stake. 1Spatial has also injected £150,000 into the business and loaned a further £85,000. The group will be able to focus on its geospatial data operations, which are performing better than expected. 1Spatial is on course to approach breakeven in the year to January 2019.
Marshall Motor Holdings (MMH) is outperforming new and used car markets, although like-for-like sales are still lower. Profit is expected to decline this year but Marshall should be able to continue its progressive dividend policy. There is a significant capex programme but the sale of the leasing business means that net debt is £2.2m.
Pennant International Group (PEN) already has nearly all of the £20.5m revenues forecast for 2018 covered by orders. Pre-tax profit is forecast to improve from £2.1m to £3.5m.
Amryt (AMYT) says that sales of Lojuxta were higher than expected last year. The figure was €11.9m, against the forecast €10.5m. There is still €20.5m in the bank.
Futura Medical (FUM) announced positive pharmacokinetic results for higher doses of the MED2002 erectile dysfunction treatment. This will enable US phase III trials to start later this year. There is £8.36m in cash plus tax credits due.
TechFinancials Inc (TECH) says that Cedex Holdings, where it could acquire a majority interest, has launched its token pre-sale event. One Ethereum (equivalent to £437) will equal 900 CEDEX coins. The blockchain-based online diamonds exchange says that there is strong pre-sale demand.
Genedrive (GDR) has started to sell its Genedrive HCV ID kit in the EMEA region. Sales in Asia Pacific should start in the next few weeks.
Consumer security software provider Kape Technologies (KAPE) improved its pre-tax profit from $4.8m to $6.7m. There is net cash of $69.5m. A 2018 profit of $8.3m is forecast.
Trevor Brown gas cut his stake in Feedback (FDBK) from 11.5% to 9.75%. Lindsay Melvin has taken on the role of finance director.
Advanced foams supplier Zotefoams (ZTF) continues to benefit from investment in capacity and there is more to come. There was growth from all divisions and a good spread of revenues from different sectors. In 2017, revenues were 22% higher at £70.2m, while underlying earnings per share were 14% ahead at 16.6p. The dividend is 3% higher at 5.93p a share. The partnership with Nike to develop footwear technology and supply materials is yet to make a significant contribution.
BATM Advanced Communications (BVC) returned to profit last year and both its telecoms and biomedical divisions have good growth prospects. There is $24m in cash in the bank.
Sportech (SPO) has ended its formal sales process because no suitable offers were received. Trading has been poor and there will be asset write-offs in the 2017 figures. Andrew Gaughan has been appointed as chief executive.
Flying Brands Ltd (FBDU) has acquired Imaging Biometrics for $68,134 in cash and 11 million shares at 4p each, plus $75,000 to cover debt obligations. The final 6.2 million of these shares will be paid by the end of September 2018. The Wisconsin-based company has been managing the CE marking and FDA clearance process for Flying Brands’ StoneChecker visualisation software, as well as commercialising perfusion software IB Neuro, which provides additional information about tumours.
World Trade Systems (WTS) has submitted its application to the International Stock Exchange.
Hemogenyx Pharma (HEMO) announced a collaboration that will generate $250,000 for the blood stem cell-based treatments developer. The partner is a US-based leader in the field of blood cancer treatment and the deal involves the development of a type of humanised mice.
Cineworld CINE found 2017 to be not only exciting but also the most momentous since its foundation in 1995 as it once again produced record results and took the first steps towards turning itself into the second largest cinema chain in the world with the acquisition of Regal entertainment Group for $3.4bn. This was a transformational acquisition, now completed, which gave it a total of over 9,500 screens. Profit before tax rose by 22.7% and basic earnings per share by 18.7% enabling the full year cash dividend to be increased by 14.5% plus a final rights adjusted dividend of 3.1p er share.
Savills plc SVS delivered a strong and improved performance in 2017 and is raising dividends for the year by a total of 4% to to 30.2p per share. Group revenue rose by 11% and on a statutory basis profit before tax increased by 13% and basic earnings per share by 20%. The strength is attributed to the resilience of the residential market, geographical diversity and strength in key commercial markets.
Kier Group KIE is increasing its interim dividend for the six months to the 31sr December by 2% after an 8% rise in revenue, 3% in basic earnings per share and 4% in profit before tax. The good performance is claimed to reflect the strength of the business model coupled with financial and operational discipline. Double digit profit growth is expected for 2018.
PZ Cussons PZC Following January’s announcement that first half trading performance in the UK and Nigeria had been constrained, things have not improved and a warning has had to be issued that full year profit will now fall short of expectations and profit before tax will be in the region of 80 to 85 million pounds. Despite the continuation of low consumer confidence and high competition in most of the company’s markets, a return to profitable growth is forecast for the following year.
Portmeirion Group PMP produced its ninth consecutive year of record group revenue in the year to 31st December and is celebrating with an increase of 7.5% in full year dividends. Profit before tax rose by 13%, basic earnings per share by by 9.2% and revenue. by 10.6%. The success is attributed to strong growth and diversification in export markets.
Morrison W Sprmkts. MRW became clear leader of the supermarket pack during the 53weeks to the 4th February, as it enjoyed its third consecutive year of growth, growth which it describes as being meaningful, consistent and sustainable as well as full of confidence and promise for the future. Underlying profit before tax increased by 11%, or 16.9% on a reported basis and group like for like sales rising by 2.8% or 4.1% including fuel. Not one of them has the aptitude or ability to run a corner shop. They couldnt tell the difference between a cabbage and a cauliflower. and have no interest in learning it. Sir Ken Morrison who sadly died just over a year ago, aged 85, was still frequently seen in Morrisons stores, arriving unannounced and opening packs of food to check their freshness. That is what shop keeping is all about but its not for the number crunchers and city whizz kids who whinge about declining footfall and all the ills which afflict the nations high street and their crumbling businesses and haven’t a clue what to do about it.
The final ordinary dividend is to be increased to 4.43p per share making a fully year total of 6.09p, an increase of 12.2% The good news does not end there however, for a special dividend of 4p per share is also going to be paid, bringing the full years total dividends to 10.09 p per share,an increase of 85.8%, all of which goes to show that if you want to run a chain of supermarkets, you’ve got to know your onions
Hikma Pharmaceuticals HIK produced what its Executive Chairman describes as a solid performance in the year to 31st December. Core group revenue rose by 1% on a constant currency basis as management was beset with challenging market conditions in the US. In fact the year was so bad that the solution management came up with to solve the company;s ills was to refresh the corporate branding. That perhaps explains a lot and especially why the previous years reported profit of $302m. was turned into a loss of $747m. Hands up if there is anybody else on the planet who thinks a billion dollar turn down represents a solid performance. Is a fall of 11% in basic earnings per share or 8% on a constant currency basis, a solid performance except to the inhabitants of cloud cuckoo land. The final dividend is being increased but only to 34 cents per share, a derisory increase of 1 cent. which no doubt will be referred to in the boardroom as a solid increase.
Brand CEO Alan Green talks Prairie Mining #PDZ, Ferrum Crescent #FCR & Salt Lake Potash #SO4 on VOX Markets podcast
Brand CEO Alan Green talks Prairie Mining #PDZ, Ferrum Crescent #FCR & Salt Lake Potash #SO4 with Justin Waite on the VOX Markets podcast. The interview is 22 minutes 30 seconds in.
Antofagasta plc ANTO benefited from the rise in the copper price during 2017 and is increasing its total dividends for the year by 177% with a recommendation for a final dividend of 40.6 cents per share, which brings the total payout for the year to 50.9 cents. EBITDA rose by 59% to $2.6 billion and the EBITDA margin rose to 54%, the highest since 2012 when the copper price was 30% higher. Like for like earnings per share increased by 119%.
Computacenter CCC is increasing it 2017 dividends by 17.6% after breaking records on all fronts. Group revenue rose by 16.9%, adjusted profit before tax rose to record levels with a rise of 22.9% (28.2% on a statutory basis) and adjusted earnings per share broke another record with a rise of 65.1%. France again performed ahead of management expectations,with an 80% rise in adjusted operating profit whilst Germany delivered another record performance and the UK re-established positive sales momentum with a rise of 8.8% in full year revenue.
Close Bros. Grp CBG is increasing its interim dividend by 5% to 21p. per share after a good first half performance which produced a 6% increase in adjusted operating profit. The company says that it is well positioned for the full year with all sectors of its business having performed well in the six months to the 31st January.
Fevertree Drinks FEVR is recommending a final dividend of 7.64 p. per share for the year to 31st January, bringing the total for the year to 10.65p compared to last years 6.25p., an increase of some 50%. 2017produced continued strong growth across all regions, channels, flavours and formats, with the UK delivering an exceptional performance and group revenue rising by 66% with a gross profit margin of 53.5%.
Tasty plc TAST continues to suffer the same fate as the rest of the UK restaurant industry and despite a 9.7% increase in revenue for the year to 31st December it has continued to close more restaurants since the start of the new financial year and does not have any plans to open any new ones in 2018.
H&T Group HAT 2017 was a milestone year which produced a strong trading performance. The final dividend is to be increased by 14.1% after a 45% increase in profit before tax and a 32.1% rise in EBITDA, all of which is enabling the company to look to the future with confidence.
Shepherd Neame (SHEP) improved its interim revenues and underlying pre-tax profit. Revenues were 6% ahead at £84.1m and underlying profit edged up from £5.7m to £5.8m. The interim dividend has been raised from 5.62p a share to 5.75p a share. Net debt was £79.5m. The main growth in revenues was in the managed pubs and hotels division. There was an underlying improvement in the profitability of the brewing business, where own beer volumes were 4.2% higher.
Ashley House (ASH) has reached financial close on the Scarborough extra care housing development. There are 63 apartments plus communal areas and the gross development value is £10m. completion is expected in spring 2019. A housing development and health scheme are likely to follow. This development is not part of the Morgan Sindall joint venture. Non-executive director Christopher Lyons has bought 31,000 shares at 10.09p a share.
EPE Special Opportunities (ESO) had a fully diluted NAV of 239p a share on 5 March 2018 but that was prior to the Luceco profit warning. The NAV included Luceco (LUCE) shares at 77.8p each but the price has subsequently fallen to 57.2p a share. EPE is the largest shareholder in LED lighting products supplier and this was the second profit warning in three months. The original 2017 profit expectation was £16.7m and this has been cut to £11m.
Western Selection (WESP) has raised £668,000 from the disposal of shares in Swallowfield (SWL) and it has a remaining stake of 7.71%. Western sold 120,000 Swallowfield shares at 330p each and 80,000 at 340p each. Last month, personal care products supplier Swallowfield bought men’s grooming brand, Fish for an initial £2.7m.
Ace Liberty and Stone (ALSP) has issued £4.76m of convertible loan notes as part of the £4.85m open offer. A holder of an existing £500,000 loan note is converting into the latest convertible loan notes and like the other subscribers is receiving one warrant for each £1 of loan notes.
MetalNRG (MNRG) says a licence has been granted relating to the Palomino cobalt project, where the company has the right to acquire a 100% stake in return for two million shares at 1.5p each. MetalNRG is also issuing 500,000 shares for work that has already been carried out.
Crossword Cybersecurity (CCS) has raised £2.16m at 270p a share. The cash will be invested in sales and marketing and developing new cyber security products.
Good Energy (GOOD) says that holders of £3.6m of its first energy bonds have agreed to retain them, while the other £4.3m worth will be repaid on 29 March.
Co-chairman David Sumner has increased the amount of Healthperm Resourcing Ltd (HPR) loan notes he will subscribe for to £5m. The outstanding balance is currently £2.7m and additional tranches of up to £200,000 can be subscribed for each month.
London Capital Group Holdings (LCG) is selling a 91.5% stake in its Tradex and 100% of other subsidiary companies to its main shareholder in return for £4.64m of loan notes with a coupon of 8%. The costs of the NEX quotation will also be covered by the buyer. The remaining 8.5% of Tradex can be acquired for £431,000 in loan notes. The disposal requires FCA approval. London Capital will seek a fintech business to acquire within the required six month period.
PCG Entertainment (PCGE) and Wishbone Gold (WSBN) have joined NEX. They are both retaining their AIM quotations and are chaired by Richard Poulden.
VR Education has raised more cash than it originally asked for. It has raised £6m at 10p a share and this values the company at £19.3m. The company has developed the ENGAGE education platform and is also developing corporate training and educational content to go on the platform. The business is generating revenues but it still has to take full advantage of the technology it has developed.
Energy supplier Yu Group (YU.) increased its revenues from £16.3m to £47m last year and annualised bookings continue to grow. Underlying pre-tax profit jumped from £195,000 to £3.08m. Yu has gained a licence to supply water. The dividend has been increased from 2.25p to 3p a share.
Share (SHRE) has continued to add to its market share. In 2017, the broker revenues grew from £14.6m to £18.7m and it moved back to underlying pre-tax profit. Digital investment continues and the benefits of this will increasingly show through over the next couple of years. This year the recent partnerships will make a 12 month contribution. Higher interest rates will also help to increase interest income on the cash held.
Smart audio sales started to take off last year and Frontier Smart Technologies (FST) continues to invest in this area. The original digital radio technology business is profitable but the development costs for smart audio more than wipe that profit out. Net cash was £3m at the end of 2017 and this should be enough for Frontier’s requirements. There is scope to grow the digital radio business but smart audio will provide the main growth. From a tiny percentage in 2016, smart audio could contribute nearly two-fifths of revenues in 2019.
Begbies Traynor (BEG) has bought Springboard Corporate Finance for an initial £2.75m in cash and shares. Springboard generated a pre-tax profit of £750,000 on revenues of £2.3m in 2016-17. Up to £500,000 more will be payable depending on performance over the next five years. Begbies says that third quarter trading is in line with expectations. Corporate insolvencies are increasing, albeit from low levels.
Polemos (PLMO) has terminated the proposal to acquire SecurLinx Corporation, which still hopes to come to the London market. Trading in the shares has been restored. Polemos is raising £270,000 at 0.01p a share, plus a further £140,000 conditional on shareholder approval. These placings are before the planned share consolidation of one new share to every 100 existing shares. When additional approvals are given by shareholders a share offering will be made via PrimaryBid.
Netcall (NET) more than doubled its interim SaaS revenues thanks to the purchase of MatsSoft. Interim revenues grew by one-third to £10.7m, which includes organic growth of 5%. Underlying pre-tax profit was 8% ahead at £1.8m. Net debt is £2.5m.
Audio products supplier Focusrite (TUNE) reported sales growth of more than 25% in the first half. Edison upgraded its full year profit forecast by 4% to £10.4m.
Applied Graphene Materials (AGM) has secured the use of its graphene-enhanced epoxy prepreg in the tailgate of the W Motors Fenyr sports car. This is a limited market but it is a good showcase for the technology.
Second half trading was stronger than expected at FIH Group (FIH) as both trading in the Falkland Islands and Momart improved their performance. This has led to an upgrade in the 2017-18 profit forecast from £2.5m to £2.8m.
GRC International (GRC) raised £5.04m at 70p a share when it joined AIM on 5 March. The share price ended the week at 115p. GRC provides services relating to IT governance and compliance.
Zamano (ZMNO) had €5.05m in the bank at the end of January 2018. It remains in talks for potential acquisitions that would enable the company to remain quoted. Part of any deal would be the offer of a cash return to existing shareholders. Trading in the shares has been suspended.
Microsaic Systems (MSYS) had £3.2m in the bank at the end of 2017. Microsaic is focusing on the biopharma market but it could take until 2019 for its partners to start to generate revenues from its technology. There should be enough cash for more than one year but more will be required. Costs have been reduced.
SysGroup (SYS) has signed a three-year managed hosting deal with TJ Morris Ltd, trading as discount retailer Home Bargains, worth more than £950,000.
Contract research organisation Fusion Antibodies (FAB) says that its 2017-18 revenues are expected to grow by at least two-fifths to £1.9m. Last year’s flotation took up management time so revenues are lower than hoped.
Attraqt (ATQT) reported a full year loss of £4.05m, including exceptional costs of £2.38m. The e-commerce software provider intends to focus on operational efficiency this year. There was £2m in the bank at the end of February.
BOS Global Holdings (BOS) has been placed in administration.
Instem (INS) has switched a long-standing client to the SaaS model and this will increase recurring revenues by two-fifths. There are potentially £10m of fees that could be converted to the recurring revenues model.
WANdisco (WAND) has announced more deals including a partnership with Alibaba, which will embed WANdisco Fusion in some of the cloud services that it offers. Total bookings increased by 45% to $22.5m in 2017 and this has sparked a 2018 revenues upgrade by WH Ireland from $25.5m to $30.8m, although a slightly higher loss of $6.5m is expected. WANdisco could move near to breakeven in 2019.
Mirada (MIRA) has secured a £3m loan facility, which adds to the existing facilities. An initial £1.5m will be drawn down within two months. This provides working capital to finance additional contract wins. The annual interest rate is 15%. The provider of the facility is a 27% shareholder.
Strategic Minerals (SML) has paid A$1.5m in cash and A$1.45m in shares for the Leigh Creek copper mine. Strategic has acquired 24,900 tonnes of JORC compliant resource copper. Production should build up to 200 tonnes of copper each month and there is an offtake agreement for 100% of copper production. Strategic has extended its rolling agreement with the owner of the Cobre magnetite stockpile until March 2019. This deal generated revenues of $5.64m in 2017.
Zoo Digital (ZOO) says full year revenues will be at least $28m, up from $16.5m last year, while EBITDA will be ahead of expectations and be at least $2.3m. Localisation services remain the main growth area. Herald has reduced its stake from 15.7% to 14.6%.
Volvere (VLE) says that its 2017 pre-tax profit improved from £1.94m to £3.22m. Impetus Automotive contributed the growth in profit with CCTV software company Sira and Shire Foods reporting lower profits. NAV is 656p a share, with £18.4m in cash and marketable securities.
AFC Energy (AFC) reduced its loss to £5.5m in 2017. The fuel cell technology developer should have enough cash for this year, but it is likely to run out in 2019. AFC could move into profit in 2020.
Pallet developer RM2 International (RM2) has received $2m from the disposal of a building in Switzerland. That means it will have enough cash until mid-April.
Drilling is set to recommence at the Stonepark zinc project in Limerick and Connemara Mining (CON) has set aside £250,000 to cover its share of the spending over the next 12 months. Connemara has a 23.4% stake in the joint venture that owns the project.
Drilling results from the Kodal Minerals (KOD) lithium project at Bougouni in Southern Mali continue to be positive. The latest 19 drill holes have shown high grade intersections of consistent pegmatite mineralisation of up to 1.68% Li2O.
Clear Leisure (CLP) is ready to set up its Bitcoin mining joint venture in Serbia. Management says that the joint venture could produce more Bitcoins at a lower cost than expected. That would increase the return on the €200,000 investment. Assuming a Bitcoin price of $10,000 and an 8% discount rate, the investment could eventually be worth €389,000.
Bioquell (BQE) reported a rise in pre-exceptional profit from £1.6m to £2.9m in 2017. This was despite a decline in defence revenues. There is £14.6m in the bank. The focus is the biodecontamination business and management believes that this will show through in improved performance this year.
InnovaDerma (IDP) has warned that its full year figures will be below expectations. The personal care products supplier always expected the year to be second half-weighted and full year revenues will be higher. However pre-tax profit will be similar to the £1.03m reported for last year. Last October, £4.4m was raised at 276p a share. The share price has fallen to 121.5p.
Toople (TOOP) has raised £250,000 at 1.022p a share. This will keep the telecoms business going as it tries to increase its revenues in order to reduce its loss. Last June, Toople raised £1.41m at 3.25p a share. Toople joined the standard list in May 2016 when it raised £2m at 8p a share.
Path Investments (PATH) is delaying its exit from the standard list until 29 March. The plan is to move to AIM when an oil and gas asset acquisition is made.
Immarsat plc ISAT 2017 saw strong positive momentum, in fact so strong that it intends to reduce the level of annual dividend payments to 20 cents per share to ensure that it has sufficient financial resources. It will stay at that level until the cash flow of the business rebuilds enough to justify an increase. Group revenue for the year to the 31st December grew by 5.4% and EBITDA by 8% but the figures for quarter 4 were far worse with profit after tax down by 51.3% and EBITDA by 26.2%. Strong long term growth is anticipated in mobile satellite communications with mid-single digit % revenue growth expected on average over the next five years. No doubt shareholders will be hoping that this does not lead to further dividend cuts
GVC Holdings GVC adjusted profit before tax for 2017 rose by 182% and adjusted earnings per share nearly tripled from 0.19 Euro to 0.56 Euro. A second interim dividend of 0.175 euro per share is to be paid giving a full year increase of 13% to 0.34 Euro. A strong start has been made to 2018
Focusrite TUNE has seen first half growth in revenue, profits and cash, across a wide range of product groups and regions.Christmas trading was particularly strong and revenue for the half year is expected to have risen by over 25% to a total of 38m.
Clear Leisure plc CLP updates that its first data mining computers have now completed testing and its mining mobile units is ready to be shipped to its permanent home in Serbia and the first fractions of Bitcoins have already been extracted in ‘mining pool mode’. Delivery of low cost miner machines is expected within 10 days.A continuous daily stream of fractions of Bitcoin can now be mined.The results so far indicate that the joint venture with Miner One Limited will be able to produce more Bitcoin than initially anticipated and at a lower cost.
Multichannel Podcast – Brand Comms CEO Alan Green talks to Simon Gorringe, CEO of Andalas Energy & Power #ADL
Multichannel Podcast – Brand Comms CEO Alan Green talks to Simon Gorringe, CEO of Andalas Energy & Power #ADL. The interview is conducted over Skype with Simon at the offices in Jakarta. Simon talks about his background, his 40 years of industry experience and the projects currently underway at Andalas. He discusses his plans for additional upstream projects and answers some of the questions posted by shareholders, including how he plans to restore shareholder confidence, how the company will deal with the convertible loan note, the recent board changes and the relationship with Corsair Petroleum. This is the first in a series of regular podcasts planned for the current year.
Rolls Royce Holdings RR 2017 was a year of strong recovery, with financial result ahead of expectations. Underlying organic revenue for the year to the 31st December rose by 6%, profit before tax by 25% and earnings per share by 27%. The results were however impacted by the challenge and cost of managing what it describes as significant in service engine issues which are likely to continue for several years. 2018 is expected to be a year of significant operational progress despite the fact that it will take a few years to implement solutions for customers, to the engine problems which Rolls is currently experiencing and the costs of which are and will continue to be, significant.
Legal & General LGEN continued to perform strongly in 2017 with operating profit rising to a record £2.1bn. Profit before tax was up by 32% and profit after tax by 50%. Growth in earnings per share is described as terrific and the full year dividend is to be increased by 7% to 15.3p. per share.Confidence is expressed of further growth in 2018 and beyond.
Paddy Power Betfair PPB produced good growth in 2017 with a final dividend of 135p. per share promised, making a total rise of 21% for the year. Preliminary results for the year to 31st December show a rise in underlying revenue of 13%, EBITDA up by 18%, earnings per share by 20% and operating profit by 19%. The Chief Executive describes it as as an exceptional business with market leading positions in key online and retail markets which will continue to generate shareholder returns in the long term.
Page Group PAGE 2017 was a year of many records with 22 counties producing record performances. Revenue at constant exchange rates rose by 9.8% for the year to 31st December and the final dividend is to be increased by a modest 4.3% to 12.5p per share on top of the special dividend of 12.73p. announced in October.