Just Eat says Q1 orders up 79% to 200m

Liam Roche
-
0
Just Eat says Q1 orders up 79% to 200m

Just Eat secures new partnerships with major brands in first quarter

Just Eat (LON:JET), the food takeaway service, confirmed today that it received 200m orders in Q1 of 2021, an increase of 79% compared to the same period the year before.

UK customers placed the highest number of orders at just under 64m.

The FTSE 100 company suggested in March in its full-year earnings report that it would see Q1 order growth of over 42%.

In European markets, where Just Eat competes with Uber, including in Germany, where orders rose by 77% to 39.2m, and the Netherlands, where orders were up by 53% to 15.3m.

Following Takeaway’s £6.2bn merger with Just Eat last year, the company has profited as a result of lockdown restrictions as people have remained confined to their homes.

Just Eat grew for the fourth quarter in a row having secured partnerships with a host of major brands including Leon, Starbucks and Costa.

Jitse Groen, chief executive of Just Eat Takeaway.com:

“The first quarter of 2021 marks our fourth consecutive quarter of order growth acceleration. Our fastest growing segment was the United Kingdom, and we are especially pleased with the roll-out of our UK Delivery network, which has reached an impressive 695% order growth rate year-on-year,” Groen said.

“We are also very proud of the acceleration in two of our highly profitable markets, with 77% order growth in Germany and 53% in the Netherlands. Just Eat Takeaway.com is in excellent shape and the start of 2021 has been very strong.”

London Stock Exchange sees best quarter for IPOs since 2007

Liam Roche
-
0
London Stock Exchange sees best quarter for IPOs since 2007

12 IPOs raised £5.2bn on the main market, while on the AIM, eight listings earned £441m

The London Stock Exchange posted its best start to the year for IPOs in over a decade, despite a weak debut for Deliveroo.

Included in the list of stock floats alongside the food delivery company is Trustpilot, the consumer reviews site, in addition to a number of smaller-sized firms listed on the AIM. This is according to research by EY.

EY said that 12 IPOs raised £5.2bn on the main market, while on the AIM, eight listings earned £441m, in the most lucrative quarter since 2007.

The financial services company claimed that London is still the optimal place in Europe for companies to go public, despite Deliveroo’s poor start to trading. The food delivery company is down to 248p per share on Monday morning following its listing at 390p.

Scott McCubbin, an EY partner, commented: “The UK has had the strongest opening quarter for IPOs for 14 years, with the markets successfully weathering the effects of Brexit and bouncing back from the stall in activity caused by the onset of the pandemic a year ago. With an effective vaccine rollout under way, momentum and confidence in the UK IPO market should continue to build, but future growth may vary depending on the sector.”

Compared to the same period a year ago there is a sharp difference in the performance of IPOs. In Q1 of 2021 there were only three IPOs on the main market and only two on the AIM, raising a total of £615m.

Rishi Sunak recently paved the way for sweeping reforms of the stock market to attract more fast-growing companies to list in the UK. However, EY’s McCubbin warned that further action would be required in order to compete with America.

“Such a positive performance in the first quarter shows confidence in the strong fundamentals of the UK IPO market. While some believe there is a risk of compromising on current strengths if the UK seeks to adapt to bolster its tech status, the UK would likely have to make some significant changes if it were to rival the US in this area,” he said.

Shoppers flock to high streets as restrictions are lifted

Liam Roche
-
0
Shoppers flock to high streets as restrictions are lifted

Pubs, cafes and restaurants in England also able open for customers seated outdoors

Shoppers have rushed back to high streets across the country as a range of non-essential retail outlets have reopened their doors for the first time in over three months.

According to analysts at Springboard, the number of people out by 10am had more than tripled in comparison to the Monday before and was only 15% less than 2019 levels.

Despite snow falling and cold temperatures throughout, shopping centres reported the most significant increase in footfall, followed by the high streets.

Customers waited in queues on London’s Oxford Street early on Monday, outside stores such as Primark, John Lewis and Selfridges.

Pubs, cafes and restaurants in England are also able to open for customers seated outdoors.

Restrictions have been amended since the last time pubs were open, as people are no longer required to order a substantial meal with alcoholic beverages. Also, there is no 10pm curfew.

Commenting on the reopening of the food service industry, Mark Lynch, Partner at corporate finance house, Oghma Partners, said:

“The food service industry will be relieved that we have come through a tough shuttered winter and have now reached the start of the unlocking process. Whilst it is likely that only half of UK pubs will open due to lack of outside space, and restaurants perhaps an even lower percentage, the 12th April should, we hope, mark the first steps in the return of the industry to business as normal and the start of a painful rebuild of industry activity, cashflow and eventually balance sheets,” Lynch said.

“Undoubtedly we will see consolidation in the sector as the winners and losers from the recovery emerge. At this next phase of the crisis however, the focus is likely to be very much on supplying the customer and getting back to ‘normal’. What may surprise is the number of lessons learnt around cost and the positive implications that this could have for profitability which will, no doubt, emerge in due course.”

Is the tide turning for UK income investing?

Aberdeen Investment Trusts
-
0
Is the tide turning for UK income investing?

Charles Luke, Investment Manager, Murray Income Trust PLC

It’s a challenging time for investors, not least those in need of income generation. The coronavirus crisis continues to play out globally, with the UK hit worse than almost any other large economy at the start of 2021. Covid-19’s scars are likely to be with us for a long time and the path to economic recovery remains uncertain.

However, at Murray Income Trust, we believe there are reasons for optimism on UK equities. Indeed, income investors, who may have previously overlooked the market, may want to reconsider their positions in light of some positive drivers. Let us tell you more.

Vaccines help vanquish dividend doubts

We are all familiar with the difficult dividend backdrop of the past year or so. We’ve witnessed dividend cuts, cancellations and regulatory intervention, as companies grappled with the financial impact of the pandemic. Combined with the long shadow cast by Brexit, these headwinds were enough to turn many investors away from the UK equities market.

But the tide could be turning. The UK’s rollout of the vaccine programme has progressed extremely well, offering hope of an enduring route out of the pandemic. At the same time, the UK equities market is significantly under-owned. For example, global and European funds’ holdings of UK equities are at their lowest for many years. This offers potential for upside performance when these portfolios are reweighted. Valuation is another significant draw. Even if you adjust for sector differences, UK equities are more attractively valued than their US and European peers.

The hallmarks of quality

The UK equities market also benefits from an abundance of good-quality companies that are still paying attractive dividends. In nearly all cases where dividends were vulnerable to cuts, they have now been rebased. We can, therefore, have more confidence in the UK market’s income level, with previously over-distributing companies returning to sensible pay-out ratios.

A company’s dividend is a useful touchstone for its health. From our perspective, we place great store in the simple premise; to consistently grow your dividends over the long term, you need to grow your earnings. Good-quality companies are best placed to do just that. As income investors, it’s important to remember that dividends provide a significant part of an investment’s total return. In addition, the yield acts as a backstop for a company’s valuation.

A more optimistic outlook

In the aftermath of the pandemic, and in a world of low interest rates, high debt and pressure on corporate profits, the quality of a company will remain as important as ever. At Murray Income Trust, we believe that quality companies are more likely to be able to pay dividends even when conditions are challenging.

From here, we expect to see the following waymarks.

  • Investors will pay a premium for companies capable of delivering attractive and growing dividends.
  • Those companies with strong balance sheets that can undertake merger and acquisition activity, or continue to invest in their businesses through the cycle should emerge in a stronger competitive position.
  • Structural long-term earnings potential in a world of modest medium-term growth will continue to be prized.
  • Therefore, companies with sustainable competitive advantages and pricing power should benefit disproportionately.

Final thoughts …

As we’ve highlighted, there are several positive drivers at play in the UK equities market. For income investors who may have disregarded it, we believe now could be a good time to reconsider investing in the UK.

At a time when quality counts, we maintain our disciplined and measured focus on financially strong, resilient companies that can thrive whatever the conditions. These businesses offer the potential to grow their earnings, and hence their dividends, over the long term.

Important information

Risk factors you should consider prior to investing:

  • The value of investments and the income from them can fall and investors may get back less than the amount invested.
  • Past performance is not a guide to future results.
  • Investment in the Company may not be appropriate for investors who plan to withdraw their money within 5 years.
  • The Company may borrow to finance further investment (gearing). The use of gearing is likely to lead to volatility in the Net Asset Value (NAV) meaning that any movement in the value of the company’s assets will result in a magnified movement in the NAV.
  • The Company may accumulate investment positions which represent more than normal trading volumes which may make it difficult to realise investments and may lead to volatility in the market price of the Company’s shares.
  • The Company may charge expenses to capital which may erode the capital value of the investment.
  • Derivatives may be used, subject to restrictions set out for the Company, in order to manage risk and generate income. The market in derivatives can be volatile and there is a higher than average risk of loss.
  • There is no guarantee that the market price of the Company’s shares will fully reflect their underlying Net Asset Value.
  • As with all stock exchange investments the value of the Company’s shares purchased will immediately fall by the difference between the buying and selling prices, the bid-offer spread. If trading volumes fall, the bid-offer spread can widen.
  • Certain trusts may seek to invest in higher yielding securities such as bonds, which are subject to credit risk, market price risk and interest rate risk. Unlike income from a single bond, the level of income from an investment trust is not fixed and may fluctuate.
  • Yields are estimated figures and may fluctuate, there are no guarantees that future dividends will match or exceed historic dividends and certain investors may be subject to further tax on dividends.

Other important information:

Issued by Aberdeen Asset Managers Limited which is authorised and regulated by the Financial Conduct Authority in the United Kingdom. Registered Office: 10 Queen’s Terrace, Aberdeen AB10 1XL. Registered in Scotland No. 108419. An investment trust should be considered only as part of a balanced portfolio. Under no circumstances should this information be considered as an offer or solicitation to deal in investments.

Investors should review the relevant Key Information Document (KID) and brochure prior to making an investment decision. These can be obtained free of charge from www.invtrusts.co.uk or by writing to Aberdeen Fund Managers Limited, PO Box 9029, Chelmsford, CM99 2WJ.

FTSE International Limited (‘FTSE’) © FTSE 2019. ‘FTSE®’ is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. RAFI® is a registered trademark of Research Affiliates, LLC. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

Find out more at www.murray-income.co.uk or by registering for updates.

You can also follow us on Twitter and LinkedIn.

Argo Blockchain Share Price: what next after record mining revenues?

Liam Roche
-
4
Argo Blockchain Share Price: what next after record mining revenues?

Argo Blockchain Share Price

Since the beginning of 2021 the Argo Blockchain share price (LON:ARB) is up by 597% to 230p per share. It follows the prior 12 months when the company’s share price rose by just under 500% in 2020. However, more recently, over the past two months or so, shares in Argo Blockchain have retreated below its February high of 284p. Following remarkable growth of the company, and the ever-increasing influence of blockchain technology, investors will be closely monitoring Argo’s prospects.

Mining

Last month Argo mined 165 Bitcoin (BTC) or BTC equivalent, up from 129 BTC in February, takin the total amount mined in the first quarter the financial year to 387 BTC. The revenue generated from mining increased by 51% in March rose by over 50% to £6.57m, up from £4.34m in February the month before.

Argo also recently confirmed it had reached an agreement with crypto technology company DMG Blockchain Solutions to start a BTC mining pool totally powered by clean energy. Controversy surrounds the emissions generated by mining processes caused criticism of the industry. Some critics have alluded to the fact that one BTC transaction has a carbon footprint equivalent to 900 Visa transactions, while Bill Gates said BTC was “not a great climate thing”. Argo’s move in demonstrating its climate consciousness could go some way to reassuring sceptical investors and setting it apart from other miners.

Bitcoin

It goes without saying that the Argo Blockchain share price is intimately linked to the performance and adoption of BTC. If the price of bitcoin, which at the time of writing stands at £43,832.49, jumps up again, then the Argo share price is likely to follow suit, and vice versa.

According to Tom Jessop, head of Fidelity Digital Assets, BTC adoption has reached a “tipping point” thanks to an environment of “unprecedented monetary and fiscal stimulus.”

Speaking at the Investing in Crypto virtual event series hosted by MarketWatch and Barron’s, Jessop pointed to “a host of reasons” for the adoption of digital assets to proceed “at an accelerated pace.” “We’re not going to get out of this stimulated environment anytime soon,” Jessop said. “I think we’ve reached a tipping point,” Jessop added.

FTSE 100 retreats from recent highs as commodity prices fall

Liam Roche
-
0
FTSE 100 retreats from recent highs as commodity prices fall

Falling commodity stocks put an end to the FTSE 100’s 13-month peak. A 0.9% decline from Brent Crude, and a sharper 1.4% slide from copper, sent the index’s weighty oil and mining stocks lower, and left the FTSE itself down by over 20 points at lunchtime.

By contrast – and almost certainly contributing to the FTSE’s losses according to Connor Campbell, financial analyst at Spreadex – the pound rose 0.1% against the dollar and 0.3% against the euro. “This as sterling tries to reset after a rough set of sessions last week,” Campbell added.

The Eurozone fared better. The DAX essentially didn’t move after the bell, holding at the 15,220 mark it spent most of last week buzzing around, with the CAC dipping 0.1%.

“Looking ahead to this afternoon and, after last Friday’s big push, the Dow Jones is set retreat from its record highs,” said Campbell.

“The futures have the index down 110 points and back below 33,700. If things go the Dow’s way this week, especially in regard to Monday’s 3-year and 10-year Treasury auctions and Tuesday’s inflation readings, then it could cross 34,000. If not, and fears of rising bond yields and inflationary pressures reignite, then the Dow’s recent gains could quickly unravel.”

FTSE 100 Top Movers

Admiral Group (1.52%), Severn Trent (1%) and Bunzl (0.98%) made the most, albeit modest, gains on the FTSE 100 at lunchtime on Monday.

Rightmove (-3.10%), Ocado (-2.77%) and Kingfisher (-2.5%) are the day’s top fallers on Monday.

Shell

Royal Dutch Shell has confirmed its plan to install 5,000 electric vehicle chargers across the UK by 2025. The oil company is also looking to invest in slower-on-street public charging points in an effort to firm up its place as a market leader established through the acquisition of Ubitricity earlier this year.

It is a part of Shell’s plan to move towards a strategy of carbon neutrality. The Anglo-Dutch FTSE 100 company is aiming to operate 500,000 charging points across the world by 2025 and up to 2.5m by 2030.

Cyber security firm Darktrace unveils plans for London float

Liam Roche
-
0
Cyber security firm Darktrace unveils plans for London float

Darktrace announcement comes days after disappointing Deliveroo debut

Darktrace, the cyber security company, is planning to float in London only weeks after Deliveroo ran into problems on its first day of trading.

Chief executive of Darktrace Poppy Gustafsson said on Monday that it would be “a historic day for the UK’s thriving technology sector” when the company, founded in 2013, listed on the London Stock Exchange.

Darkface’s products use artificial intelligence to detect and react to cyber threats. The company brought in revenue of nearly $200m in the past financial year but estimates that is targeting a market worth $40bn a year. The company made a profit on its earnings before interest, tax, depreciation and amortisation, with EBITDA of $9m in the past financial year.

“Developed by our talented software engineering teams in Cambridge, our artificial intelligence was the first on the market to be deployed at scale in the enterprise,” said Gustafsson. “Today [it] is responsible for protecting over 4,700 organisations worldwide from the most sophisticated cyber threats.”

Doubts have been creeping in over the future prospect of technology IPOs after shares in Deliveroo tanked by nearly a third on their trading debut in March. The company’s share price is down again by just under 1% at mid-morning on Monday.

According to a filing released by the company on Monday, Darktrace’s most sizeable market is in North American and its greatest source of growth, despite its decision to list in London.

Over a six month period ending in December, Darktrace’s revenue grew by 39% to $126.5m, compared to 45% growth in the last full year. Losses before tax rose by more than double to $47.9m during H1 of the current financial year, mainly down to a sharp rise in financing costs. Over the same period, operating losses fell to $4.9m to $21.5m in the same period.

Novacyt shares continue decline after DHSC dispute announcement

Liam Roche
-
0
Novacyt shares continue decline after DHSC dispute announcement

Novacyt says revenues and profit levels for 2021 could be lower than market expectations without supply contract for cov-19 tests

Novacyt shares (LON:NCYT), having fallen by well over 30% on Friday, are down again by 5% on Monday morning to 400p following warnings on revenues due to a dispute with the UK Department of Health and Social Care (DHSC).

The AIM-listed company has recently said “it has strong grounds to assert its contractual rights” by taking legal action as the DHSC said it would not extend a supply contract for Covid-19 tests.

The firm has said that its revenues and profit levels for 2021 could be lower than market expectations without the contract. The situation is compounded by Novacyt’s lack of clarity regarding sales as a result of the “ever-changing nature of the COVID-19 pandemic and diagnostic testing demands”.

A statement released by the company said: “Whilst the directors are confident new contract wins will continue as Novacyt expands international sales and into private sector testing, they believe revenue and profit for 2021 may be lower than current market expectations due to the absence of the DHSC contract extension.”

Novacyt delivered revenue for the first quarter of 2021 of GBP72.6 million, with 50% of this attributable to sales to the DHSC.

The Novacyt Group is an international diagnostics business generating an increasing portfolio of in vitro and molecular diagnostic tests.

CyanConnode selected as Technology Partner for EESL Energy Solutions in Middle East and Africa

Liam Roche
-
0
CyanConnode selected as Technology Partner for EESL Energy Solutions in Middle East and Africa

CyanConnode (LON:CYAN) has announced that it will partner EESL Energy Solutions LLC, Dubai, (EESL), as technology partner for projects in the Middle East and Africa for smart metering and smart lighting projects.

EESL India is a joint venture of four Indian public-sector undertakings; NTPC Limited, Power Finance Corporation Limited, Rural Electrification Corporation Limited and POWERGRID Corporation of India Limited.

EESL has also established a Joint Venture in Dubai, partnering with Hansa Energy Solutions to form EESL Energy Solutions LLC.

John Cronin, executive chairman of CyanConnode, commented on the newly established partnership:

“I am delighted to announce this partnership with EESL Energy Solutions, which I believe will deliver new opportunities for CyanConnode.”

“Offering a range of business models gives a flexible approach to our partnership with EESL and we look forward to collaborating with them to develop and deliver large-scale projects in the Middle East and African markets.”

Saurabh Kumar, EESL Executive Vice Chairperson, expressed similar views over the collaboration:

“EESL Energy Solutions is promoting energy efficiency projects in the Middle East and Africa and is pleased to be partnering with CyanConnode. We have selected CyanConnode as Technology Partner to leverage its market-leading RF Mesh Technology.”

“I look forward to a successful collaborative partnership.”

CyanConnode is a leader in Narrowband Radio Frequency (RF) Smart Mesh Networks, which are used for machine to machine (M2M) communication. As well as being self-forming and self-healing, CyanConnode’s RF Smart Mesh Networks are designed for rapid deployment.

In June 2018, CyanConnode launched its award-winning Omnimesh Advanced Metering Infrastructure (AMI) platform, which has already gained considerable commercial traction, especially in India which is a key market for the Company.

On early morning trading CyanConnode’s share price is up by nearly 10%.

Cake Box expecting record revenue despite pandemic

Liam Roche
-
0
Cake Box expecting record revenue despite pandemic

Cake Box opened 17 stores in Q2 of the last financial year

Cake Box (LON:CBOX) is expecting to confirm a robust performance for the year ending 31 March 2021 in the face of lockdown restrictions over the past 12 months.

The cake seller said in an update released on Monday that it was currently holding franchisee deposits for 52 sites across the country.

Cake Box opened 17 stores in Q2 of the last financial year, including sites in Epsom, Gloucester, Newport, Ipswich and Hove. The group now has a total of 24 stores with 157 sites in total.

Cake Box is set to make a record revenue for the year, and is forecasting a rise of around 16% form the period before.

Co-founder and CEO Sukh Chamdal said: “Customer appetite for our products has continued to grow, with good traction across our expanded online and delivery services.”

“Our tested recipe of backing our franchisees has helped us deliver another year of growth, and it is thanks to the dedication of them and everyone in the Cake Box family that we have been able to emerge stronger from a year marked by the global pandemic.”

Cake Box will release its full-year results in June.

1...1,0111,0121,013...1,826Page 1,012 of 1,826