BlueRock Diamonds shares surge on Q4 update

Bronte Carvalho
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BlueRock Diamonds shares surge on Q4 update

Shares at AIM-listed diamond producers BlueRock Diamonds (LON:BRD) have surged almost 7% after the company released an optimistic Q4 and FY production update, citing “strong results in a challenging year” as its processed tonnes increased by 25% year-on-year.

Despite its mine being closed due to COVID-19 for a period of 50 days starting on 24 March 2020, BlueRock’s total processed tonnes still exceeded the year prior, and the firm estimated the increase over the year would have been approximately 45% “assuming a constant run rate during the period of closure”.

Tonnes processed during Q4 were “lower than anticipated” due to abnormally high and early rains in late 2020 (238mm in December 2020 compared with 70mm in December 2019) at its Kareevlei Diamond Mine (‘Kareevlei’) in the Kimberley region of South Africa, but production was still higher than the year earlier and is nonetheless a “remarkable achievement in a very difficult year”.

BlueRock is expecting to open a new plant in the near future, and once production is completed, processing is expected to be “significantly less impacted” by the rainy season.

The firm’s carat production was up 10% year-on-year, with carat sales also growing on the back of increased production, although the value per carat of USD295 was “around the bottom end of the Company’s guidance for 2020 and 26% down on FY 2019, due largely to the impact of COVID-19 on the marketing chain and the reduced incidence of higher value diamonds in 2020 compared with 2019”.

The latter, BlueRock explained, is partly due to the development of the the Kareevlei’s Main Pit, which required a “large tonnage of higher level and near edge ore to be mined” as the company continues to prepare for the expansion of its operations in 2021.

BlueRock estimates that the like-for-like reduction in pricing is approximately 10 to 15%, in what the firm described as a “decent result in what was a very difficult market environment”. In particular, BlueRock cited an increased reliance on “private sales to a limited number of buyers” as the tender system was not in operation for much of the year.

Executive Chairman, Mike Houston, commented on BlueRock’s update:

“Given the problems of operating in the COVID-19 world, I am very encouraged by our outturn for Q4 2020 and the full year as the management team has delivered in the areas that it can control with production tonnes and sales carats significantly up on the 2019 figures.

“The fall in the value per carat is unfortunate as it has reduced the impact of the improved production output, but we are now seeing signs of recovery in general pricing and early signs of an increasing incidence of the high value stones.

“A major focus for much of 2020 has been the preparation and development of our exciting expansion project, which was initially delayed by the COVID-19 lockdown and then the ongoing impact it had on the global supply chain.

“The plan to transition to the new operation by running both plants during Q1 will minimise the disruption on production in early 2021. Despite having to deal with the ongoing exceptionally poor weather conditions and, weather permitting, the project is still expected to be fully commissioned by the end of Q1 but may push into early Q2. Our guidance for 2021 remains at 850,000 to 1,000,000 tonnes and 34,000 to 46,000 carats”.

BlueRock’s shares bounced on the news, up 6.90% to 62.00p at midday on Tuesday.

92% of businesses say vaccines are “golden ticket” to recovery

Bronte Carvalho
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92% of businesses say vaccines are “golden ticket” to recovery

Vaccines are increasingly being seen as the key to a sustained recovery for UK businesses.

New research has revealed that 92% of owners of independent public-facing companies across the retail, hospitality and travel sectors believe that vaccinating British consumers is the “golden ticket” to a post-pandemic recovery, and are reportedly considering inviting back the customers who can prove their vaccination status “as soon as possible” as firms battle to save their businesses.

The research was conducted across 500 businesses owners between 19-21 December 2020 by myGP – the UK’s largest independent GP booking and healthcare management app – which has reported being “inundated with enquiries from small business owners” after announcing its plans to provide English customers with a “simple, clear means of communicating their verified vaccination status, via their smartphone”. 

Currently planned for release next month, myGP has developed a “TICKet” to allow businesses whose “viability depends upon operating at capacity” – such as the retail, leisure, the arts and hospitality sectors, which have widely struggled to operate during the pandemic – the ability to open either full or part-time to vaccinated individuals, without the need to observe social distancing rules.

In addition, myGP has stated that its “TICKet” technology will help to “reduce the administrative burden” on GPs, who will likely be “busy with requests for verification of vaccination status as people begin to return to everyday life around the country”.

Since the start of the pandemic, myGP has regularly undertaken patient research to “gauge feelings and intentions regarding their health, access to primary care, and their intentions regarding the Covid-19 vaccine”.

In December last year, myGP asked 2,000 adults if they intended to receive a Covid-19 vaccine, of which 31% said no. However, out of this group, 23% said they “could be swayed” to have the vaccine if it meant they could “attend live events and other activities” without strict social distancing measures in place.

While the nationwide Covid-19 vaccination drive continues, it is still expected to take some time for life to return to any semblance of normality, and businesses are increasingly eager to adopt so-called “vaccine passports” which would allow inoculated customers and staff to bypass the current lockdown restrictions on the premise of reduced risk of infection.

Despite last month’s comments by Michael Gove that there are currently “no plans” to introduce vaccine passports for places such as pubs and restaurants, interest in implementing similar schemes is rapidly growing. Last week, Denmark announced it is in the process of developing a digital vaccine passport to enable safer and more efficient travel, with the Health Ministry stating “it is expected that there may be requirements from other countries to present vaccine documentation upon entry”.

Invesco launches new Japan-focused ‘ESG Momentum’ ETFs

UK Investor Magazine
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Invesco launches new Japan-focused ‘ESG Momentum’ ETFs

Invesco have launched a new Japan and Asia Pacific focussed ETFs to add to their existing suite of ESG ETFs. The ETF will track a customised versions of MSCI ESG indices in the same way Invesco’s existing ESG Equity ETFs track indices in Europe and the US.

Invesco builds their ESG ETFs by taking MSCI Indices and removing companies involved in controversial, conventional or nuclear weapons, civilian firearms, oil sands, thermal coal, tobacco or recreational cannabis. Companies that have had consistently poor ESG ratings are also removed in a careful balancing act between improving the ESG credentials of the ETF portfolios whilst tracking the originals MSCI Index as closely as possible.

“Different investors will often vary in their objectives, and this is most evident in the ESG space. Generally speaking, the more you exclude from an index, the more likely the performance will deviate from the base index. While that is acceptable for some investors, it’s not for others,” said Chris Mellor, Head of EMEA ETF Equity and Commodity Product Management at Invesco.

“Many want to reduce their portfolio’s carbon footprint and improve other ESG characteristics but at the same time maintain their overall risk and expected returns. We designed these ETFs to provide investors with materially significant ESG improvements for their core equity exposure.”

ESG ETFs

Invesco launch their new range of Japan and Asia Pacific focused ETFs after a 2020 that saw ESG ETFs flows soar to record levels and produce some of the best returns for investors.

“With 60% of all equity ETF flows last year going into funds with an ESG objective, demand is clearly strong. We believe ESG will be embedded even more broadly into portfolios with investors no longer needing to sacrifice their investment objectives to follow their principles'” said Gary Buxton, Head of EMEA ETFs and Indexed Strategies at Invesco.

“Our suite of MSCI ESG Universal ETFs offers investors low-cost tools to construct diversified equity portfolios. We will continue building out our ESG offering in response to market opportunities and driven by investor demand.”

OnePlanetCapital launches fund to invest in businesses tackling climate change

Safiya Bashir
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OnePlanetCapital launches fund to invest in businesses tackling climate change

OnePlanetCapital has revealed plans to launch a specialist sustainability EIS Fund to invest in businesses tackling climate change.

The sustainably driven investment house announced the plans as Prince Charles urges firms to do more to protect the planet. The fund is focused on climate change, the environment and consumer sustainability.

OnePlanetCapital was founded in 2019 by Matthew Jellicoe and Ed Stevens, together with Tony Flanagan of Wilton Group.

The EIS fund is underpinned by a strong ESG framework looking at environmental impact, social purpose and corporate governance in its investee companies. It will screen for both positive and negative factors in all companies.

Why is the sustainability EIS Fund so important? New data has shown that the global economy must slash its carbon intensity five times faster than current levels if the world will keep global temperature increases to the 1.5C limit that were set out by the Paris Agreement.

“By unlocking the positive impact of early-stage companies as they grow, an investment into the fund is not only an investment into our collective future but also a growth opportunity as the world pivots to a low carbon economy.”

Matthew Jellicoe, Co-founder of OnePlanetCapital, commented: “In 2019 the UK became the first major economy to pass laws to end its contribution to global warming by 2050. This target requires a paradigm shift in the UK economy and enormous amounts of investment into the businesses of the future.

“Unprecedented change is required to our global economy. We are on the verge of a green industrial revolution and the world is waking up to the substantial changes needed to tackle the climate issues we face. This has been amplified by numerous lockdowns over the last 11 months which have underlined the fragility of the world as we know it. Decarbonisation is now being backed by all major developed economies including the US and China and huge amounts are being invested in green energy, green technology and services. Consumers are also becoming increasingly driven by sustainability and becoming more aware of a business’ green and social purpose credentials. 

“It is now clear that investment performance does not need to be sacrificed in order to tackle the environmental problems of the day, with UK sustainable funds likely to outperform the market over the short, medium and long term.

“We founded OnePlanetCapital to be more than an investment house. We’re part of a growing, global movement, and are focused on unlocking the positive impact of early-stage companies as they grow. As a team we’re spearheading the green industrial revolution and disrupting the status quo to create a positive global impact.”

Deliveroo to expand to 100 new UK locations

Safiya Bashir
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Deliveroo to expand to 100 new UK locations

Deliveroo is expanding to 100 new cities and towns across the UK.

Following strong demand over the past year, the food delivery service will lead to an additional 4m customers available for the app.

Deliveroo already operates in 200 locations. The full list of expansion has not yet been shared, however, on the list is East Kilbride, King’s Lynn and Scarborough.

Over the past, thousands of new restaurants were added to the app. Major supermarkets including Aldi, Morrisons and Sainsbury’s were also added in order to deliver groceries to people who are self-isolating.

Starting from the convenience store in Hammersmith, Sainsbury’s shoppers are able to purchase up to order from more than 1,000 products through the Deliveroo app and have them delivered within 20 minutes.

Ajay Lakhwani, who is the vice president of new business at Deliveroo, said: “Deliveroo’s on-demand grocery partnerships have proven vital for so many people during this difficult period, allowing families to get the food and household items they need and want quickly.”

Carlo Mocci, Deliveroo’s chief business officer for UK and Ireland, commented: “We are pleased to announce that we expect to launch in around 100 new towns and cities across the UK and expand our reach in existing areas throughout 2021 with the aim of reaching almost two-thirds of the population.

“With further lockdown measures now in place across the UK, we want to do everything possible to help households get the food they need and want and play our role to make sure families across the country have a wide selection of amazing food, drink and household products to order in as little as 30 minutes.”

Johnson Matthey shares up on new CFO

Bronte Carvalho
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Johnson Matthey shares up on new CFO

Shares at British chemicals and sustainable technology firm Johnson Matthey plc (LON:JMAT) have risen more than 1% on the back of the announcement that new Chief Financial Officer Stephen Oxley will join the board on 1 April, with Karen Hayzen-Smith stepping down as interim CFO and continuing in her role as Group Financial Controller.

Oxley joins Johnson Matthey from KPMG, where he is currently a partner, and boasts experience working with a variety of FTSE 100 and private companies in audit and advisor roles across sectors including healthcare, natural resources, and industrials.

He has also been responsible for leading KPMG’s correspondence with the UK investor community on the firm’s performance, climate change, and Environment, Social and Governance (ESG) matters.

A qualified chartered accountant, Oxley has worked at KPMG for almost 30 years, and has been welcomed by Johnson Matthey CEO Robert MacLeod as a valuable addition as the company strives to meet its climate-conscious targets:

“I am extremely pleased that Stephen will join JM in April, and I am looking forward to working with him. I would also like to thank Karen for her valuable contributions and ongoing support over the past few months.

“Stephen’s extensive experience in working with large global companies on major strategic programmes will enable him to make an immediate contribution to JM as we progress our transformation and deliver our growth opportunities to create a cleaner, healthier world”.

Oxley himself added: “I am delighted to be joining JM at such an exciting time. The company’s sustainable technologies are right at the heart of tackling climate change and I am looking forward to working with Robert and the rest of the executive team to deliver the strategy and create value for all our stakeholders”.

Shares at Johnson Matthey are up 1.25% to 2679.00p at 09:40, following a turbulent year which has seen its price dip 10.18% over the past 12 months. Recent gains, however, have seen shares rally 8.71% over the last few weeks. The company has a modest dividend yield of 2.08% and a P/E ratio of 13.28.

Robert Walters posts 24% fall in Q4 profits

Safiya Bashir
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0
Robert Walters posts 24% fall in Q4 profits

Robert Walters has posted a 24% fall in fourth-quarter profits.

The recruitment firm revealed a fall in profits from £94.2m last year to £71.4m. Profits at the firm have fallen the past two consecutive quarters, where profits were down 34% and 30% respectively.

Robert Walters operates in over 30 countries and said the current climate was challenging, however, was optimistic about the improving conditions in the Asia Pacific.

Full-year profits are expected to come in at the upper end of the forecast, despite the drop in profits over the past year.

Chief executive Robert Walters said: “Once again I would like to begin by thanking all of our people across the globe, whose wellbeing remains our number one priority, for the incredible durability and commitment they have shown during this most unprecedented and difficult of years.

“It’s their drive, passion for the business and singular focus on helping our clients and candidates that has enabled the Group to deliver such a resilient performance.“I am however pleased to say that the better than expected performance in the fourth quarter, coupled with the sensible and targeted short-term cost reduction and control measures that were put in place at the beginning of the pandemic, means that profit for the full year is likely to be ahead of current market expectations,” he added.

Robert Walters shares (LON: RWA) are trading +4.82% at 484,25 (0931GMT).

Oil price gains on weaker dollar

Bronte Carvalho
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0
Oil price gains on weaker dollar

The price of oil has climbed on Tuesday morning against a weaker dollar, following yesterday’s announcement that Goldman Sachs expects Brent prices to reach $65 per barrel by this summer.

A combination of Saudi Arabia’s decision to cut output and anticipation of a Democrat-driven stimulus check in the US has also boosted the commodity – “the traditional bellwether of economic hopes” – back towards the 10-month high it reached last week.

WTI Crude is up 0.63% as of 09:03, while Brent Crude is similarly up 0.57%, following an across-the-board rally of more than 45% since the end of October after numerous Covid-19 vaccine breakthroughs raised hopes of a return to normality for the travel industry.

However, the laborious process of vaccinating large swathes of the population is expected to take some time, and with outbreaks worsening in both the UK and the US, hopes of a sustained recovery are being increasingly pushed back to the latter half of the year.

The International Energy Agency (IEA) has revised its previous projections, stating that oil demand recovery will be slower in 2021 than first thought, and reducing its projections by 170,000 barrels per day (bpd) to 5.7 mbpd in 2021.

Analysis by S&P Global Platts suggests that oil demand will be 2.4 mbpd lower than 2019 levels, coming in at around 5.3 mbpd, with blame largely falling to the decline in global travel.

In fact, according to the IEA, 80% of the decline in fuel consumption in 2021 from 2019 levels is set to be attributed to “weak consumption” of jet fuel due to widespread travel bans.

The Hut Group Q4 revenue jumps 51%

Safiya Bashir
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The Hut Group Q4 revenue jumps 51%

The Hut Group saw Q4 sales come in ahead of expectations, thanks to a 3.5m boost in new customers.

Revenues in the three months to December 31 were up by 51% year-on-year, this was more than the expected 40-45% increase.

Group revenue for the fourth quarter was £558.7m, up from last year’s £370.0m. Revenue was boosted by the firm’s acquisition of Dermstore.com and growth in demand for beauty products, which soared by 66%.

Over the fourth quarter, the group added 3.5m new customers. Over the whole year, The Hut Group saw an increase of 10.7m.

Matthew Moulding, Executive Chairman and CEO commented: “I am pleased to report another strong performance through Q4 2020, during what has been a transformational year for THG. Due to the focus and dedication of our rapidly growing global workforce we have delivered some significant milestones in 2020.

“Following our successful listing on the London Stock Exchange in September 2020, we have accelerated our sales growth across all areas of the Group, underpinned by record new customer numbers. We have also started reinvesting capital raised at IPO, including over £360m in M&A, principally within the US beauty sector.

“Furthermore, we have also invested significantly in our people, creating 3,000 new jobs during 2020, largely within the U.K, but also across our international operations. During 2020, we have made significant progress in commercialising our Ingenuity Platform, fast becoming a major global player in taking brands direct to consumers.

“Each of these milestones further underpin THG’s strategic growth pillars outlined at IPO, giving management significant confidence when looking ahead to 2021 and beyond, and driving the increase in our guidance for the year ahead,” he added.

The Hut Group shares (LON: THG) are trading 2.66% higher at 811,00 (0849GMT).

Kingfisher shares rise on strong online trading

Safiya Bashir
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0
Kingfisher shares rise on strong online trading

Kingfisher was a top riser on this morning’s FTSE 100, as the group posted a boom in online sales for the fourth quarter.

In a trading update, the group said its full-year profits are likely to be at the upper end of expectations. Profits are expected to be around £667m-£742m for this year.

Sales over Q4 increased by 12.6% amid the lockdown, where the retailer stores are still open for click and collect.

Overall, Q4 20/21 Kingfisher sales are up 16.9%, supported by ecommerce sales growth of over 150%.

Chief executive Thierry Garnier said: “The safety of our customers and teams remains our first priority while we fulfil the essential
needs of our customers. We will continue to support our colleagues during these most difficult times, and I want to express my sincere appreciation for all our teams as they continue to operate in such a challenging environment.


“While the strength of our Q4 trading, to date, is reassuring, uncertainty over COVID-19 and the impact of lockdown restrictions in most of our markets continue to limit our visibility. Longer term, we are confident that the strategic and operational actions we are taking are building a strong foundation for sustainable long-term growth. We also believe that the renewed focus on homes is supportive for our markets.

Richard Chamberlain, an analyst at RBC Capital Markets, said: “The outlook for home improvement has improved, with people spending more time at home, more wear and tear, and people looking to save money doing DIY. We also think Kingfisher’s new management team has introduced a more effective trading strategy, with a stronger digital offer, lower inventory and better cost control.”

In December, Kingfisher confirmed plans to return £130m it received in business rates relief.

Kingfisher shares (LON: KGF) are trading 2.11% higher at 285,40 (0831GMT).

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