FTSE 100 pushes towards 6,800 as pound weakens

Liam Roche
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FTSE 100 pushes towards 6,800 as pound weakens

The FTSE 100 edged up to 6,794 on Tuesday morning trading as the pound weakened against other currencies.

“As sterling weakened against dollar and euro alike – cable felt half a percent, while the pound shed 0.4% against its single currency rival – the FTSE 100 was free to push back towards 6,800,” says Connor Campbell, financial analyst at Spreadex.

“A strong finish to trading in the US overnight and robust trading in Asia helped give the FTSE 100 a lift on Tuesday, shaking off any hangover from the day before and framing the day’s narrative around whether the index can regain the 6,800 mantle it briefly attained on Monday,” added AJ Bell investment director Russ Mould.

As inflation concerns somewhat ease, attention will turn to the UK vaccine roll-out in the hope of a return to normality.

FTSE 100 Top Movers

AstraZeneca (3.5%), Rolls-Royce (3.01%) and British Land Co (2.85%) headed up the the FTSE 100 at the time of writing on Tuesday morning.

At the other end of the FTSE 100, Anglo American (-2%), Natwest (-1.74%) and Burberry (-1.28%) are the day’s biggest fallers so far.

Greggs

Greggs reported its first loss in 36 years during 2020 as sales dropped by a third following nationwide lockdown measures. The board of the Newcastle-based company confirmed a pre-tax loss of £13.7m in 2020 with sales dropping from £1.17bn in 2019 to £811.3m.

Greggs also said that the beginning of 2021 had been challenging for the baker. Over the same 10 week period in 2019, before lockdowns came into full affect, sales are down by 28.8%.

Antofagasta

Antofagasta on Tuesday confirmed a 6% rise in its net profit during 2020 as well as raising its dividend for 2020. The mining giant’s net profit reached $893.9m, up from $843.1m in 2019. Lower costs and stronger prices more than offset a fall in copper production levels.

Antofagasta’s EBITDA increased by 12% to $2.74bn ahead of analysts’ expectations of $2.7bn. The FTSE 100 company announced a final dividend of 48.5 cents per share, bringing the full-year number to 54.7 cents, and up from 50.9 cents in 2019.

STV Group profits plummet despite record viewing figures

Liam Roche
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STV Group profits plummet despite record viewing figures

STV Group most watched peak-time channel in Scotland

STV Group (LON:STVG), the Scottish media company, confirmed its profits fell by 65% during 2020, despite achieving record viewing figures.

The firm said that its pre-tax profit had dropped from £19m to £6.7m in 2020.

STV also announced the viewing figures for its channel rose by 14%, while on its catch-up service, its audience grew by 83%.

STV remains the most watched peak-time channel in Scotland, ahead of BBC1 by more than 10%, according to the company.

Shares in the company were up by 5.17% on early Tuesday morning trading to 341.80p per share.

Simon Pitts, chief executive of STV Group, commented on the company’s results and the strategies employed by the group:

“STV is coming through the pandemic with confidence. With profit and net debt materially better than expectations, the 2020 financial results we are confirming today are testament to the strength of our business and the commitment and creativity of our people in what has been an extraordinary 12 months.”

“We enjoyed record audience growth in 2020, with TV viewing up 14% and online viewing up 68%, the biggest gains of any UK broadcaster, and were also able to accelerate delivery of our strategy. Our advertising Growth Fund enabled us to attract 91 new Scottish advertisers, we bolstered our successful digital content strategy with a further 1200 hours of content, and we launched our streaming service STV Player across the UK for the first time meaning it is now available in over 17m homes. STV Studios also secured 19 new programme commissions, the largest number ever, as it looks to establish itself as the UK’s leading nations and regions producer.”

“We took proactive steps to conserve cash and raise capital from shareholders and, combined with better than expected trading, we now have a significantly strengthened balance sheet as we look to invest £30m in the next phase of our strategic growth, targeting at least 50% of our operating profit from outside traditional broadcasting by 2023. With an improved financial position and good growth prospects the Board has also recommended a return to cash dividend payments and a final dividend of 6p per share, giving a full year dividend of 9p per share for 2020.”

Greggs slumps to first loss in 36 years

Liam Roche
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0
Greggs slumps to first loss in 36 years

Greggs to open 100 new shops in 2021

Greggs (LON:GRG) reported its first loss in 36 years during 2020 as sales dropped by a third following nationwide lockdown measures.

The board of the Newcastle-based company confirmed a pre-tax loss of £13.7m in 2020 with sales dropping from £1.17bn in 2019 to £811.3m.

Greggs also said that the beginning of 2021 had been challenging for the baker. Over the same 10 week period in 2019, before lockdowns came into full affect, sales are down by 28.8%.

While the company does not expect too see a return to profit until 2022, it has committed to opening 100 new stores this year.

Ross Hindle, Analyst at Third Bridge, commented on the bakery’s resilience, while outlining concerns for the company beyond lockdowns.

“Greggs is more resilient than many of its food-on-the-go competitors. The Group has deeper pockets than most of its peers and with only 1 in 8 stores in city centres, Greggs hasn’t been burnt by lockdown in the same way as businesses like Pret a Manger have.”

“But Greggs does face a more existential crisis. The big question is how compatible Greggs will be with the UK’s post-lockdown preferences for frugality and healthier eating. Just as Covid has changed how we use tech’, so months at home have reframed how many of us think about what we eat and spend. Whether vegan sausage rolls tempt consumers into old habits, or we begin to baulk at costly coffees, only time will tell.”

Greggs’ share price jumped by 4.71% on early Tuesday morning trading to 2,314p per share.

Roger Whiteside OBE, chief executive of Greggs, commented on the bakery’s results and outlook:

“Greggs has made a better-than-expected start to 2021 given the extent of lockdown conditions and is well placed to participate in the recovery from the pandemic. It has a clear strategy to extend its digital capabilities and to grow further in new locations, channels and dayparts. These opportunities will benefit all of its stakeholders in the years to come.

“In a year like no other I believe that the Covid crisis has in many ways demonstrated the strength of Greggs. It has shown the resilience of our business model, but most of all the strength of our people who have worked hard throughout to maintain an essential service providing takeaway food to customers unable to work from home, many of whom were themselves key workers. I would like to take this opportunity to thank all of our people, who can be proud of the part we played in our nation’s time of need.”

Antofagasta posts higher profit as copper prices surge

Liam Roche
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Antofagasta full-year dividend at 54.7 cents per share

Antofagasta (LON:ANTO) on Tuesday confirmed a 6% rise in its net profit during 2020 as well as raising its dividend for 2020.

The mining giant’s net profit reached $893.9m, up from $843.1m in 2019. Lower costs and stronger prices more than offset a fall in copper production levels.

Antofagasta’s EBITDA increased by 12% to $2.74bn ahead of analysts’ expectations of $2.7bn.

The copper miner announced a final dividend of 48.5 cents per share, bringing the full-year number to 54.7 cents, and up from 50.9 cents in 2019.

Antofagasta also confirmed its copper production guidance of 730,000 metric tons to 760,000 metric tons for 2021 at a net cash cost of $1.25 a pound.

Copper and gold prices climbed about 25% last year, with copper currently trading near 10-year highs at around $9,100 a tonne on rebound in demand in top consumer China.

Iván Arriagada, chief executive at Antofagasta, commented on the company’s results:

“The year has been challenging, but we have successfully kept our people safe and healthy, achieved our production and exceeded our cost targets, and increased EBITDA by 12.3% to $2.7 billion, yielding a 53% EBITDA margin. I am proud of how everyone at Antofagasta has worked together and adjusted to overcome the year’s challenges,” Arriagada said.

“Our resilient operations performed well with high levels of throughput and our Cost and Competitiveness Programme delivered benefits of $197 million, nearly double the targeted amount. Our balance sheet strengthened even further.”

“Full year copper production was 733,900 tonnes and net cash costs were $1.14/lb, reflecting the company’s agility in changing operating conditions.”

“In 2021, we will continue to focus on our safety and operating performance, and we expect copper production to be 730-760,000 tonnes at a net cash cost of $1.25/lb as ore grades increase at Centinela Concentrates and our operating efficiency remains high.”

“We are delighted that 100% of our mining division’s electricity consumption in 2022 will be from renewable sources.”

FTSE 100 listed mining blue chip, Antofagasta, watched its shares rally during November trading, as the company announced that two of its projects would be committed to the Copper Mark.

AIM new admission: In The Style

Andrew Hore
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0
AIM new admission: In The Style

Online fashion retailer In The Style got off to a strong start on AIM with the share price increasing from the 200p placing price to 237p. Recent trading has been exceptionally good as high street competitors were hit by the lockdown and consumers moved online.
Existing shareholders raised £46.8m from share sales. After expenses there was £9.1m raised by the company. This will finance further expansion including a new warehouse.
This is a predominantly UK business with most of the products made in the UK or China. Customers are added through deals with celebrities and online influencers, altho...

ActiveOps plans AIM flotation

Andrew Hore
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0
ActiveOps plans AIM flotation

Management process automation software developer ActiveOps plans to join AIM later in March. No new money is being raised because there is cash in the bank following a disposal last year. A valuation of more than £100m has been suggested.
ActiveOps develops back office workforce optimisation software that provides timely, accurate information and its main platform is called Workware+. The core customer base is financial services companies. This is a SaaS-based business. There are offices in the UK, US, South Africa, India, Ireland and Australia.
Calculus Capital has a 29.3% stake in ActiveOps,...

Flutter Entertainment considers listing FanDuel

Liam Roche
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0
Flutter Entertainment considers listing FanDuel

Flutter Entertainment would have to sell part of its holding in FanDuel to support an IPO

Flutter Entertainment (LON:FLTR) confirmed on Monday that it is thinking about the prospect of listing a small share of its holding in FanDuel.

The Irish gambling company – which owns Ladbrokes, Coral and Bwin – said that it “regularly evaluates its organizational and capital structure to assess how best to position itself to deliver upon the group’s strategy.”

Analysts at Peel Hunt valued FanDuel at around £12bn of Flutter’s £27bn market cap, adding that FanDuel’s smaller rival, DraftKings, trades at a market value of $28.5bn which they said “appears to support the argument that FanDuel is undervalued”.

AJ Bell investment director Russ Mould believes a listing would make sense for Flutter Entertainment.

“Flutter potentially listing its sportsbook and daily fantasy sports betting business FanDuel in the US makes perfect sense for two reasons.”

“First, it is likely to get a much higher valuation than is currently attributed to the operation as part of the Flutter group.

“Second, this is arguably the most exciting part of its group and it seems logical to want to capitalise on positive momentum and give investors an opportunity to invest purely in this bit. It also helps there is already a listed peer in the form of DraftKings.

Mould adds that the company would have to sell part of its holding in FanDuel to support an IPO:

“Flutter would have to sell part of its holding in FanDuel to facilitate an IPO. On one hand this means giving up some of the potential future gains, but it could also generate a significant chunk of cash to help pay down debt.

“Importantly, Flutter has indicated it would only sell a small part of FanDuel to support an IPO. That would suggest that FanDuel would still play an important role within the larger group and be able to access funding.

FTSE 100 set to gain as Americans spend stimulus checks on stock market

Liam Roche
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0
FTSE 100 set to gain as Americans spend stimulus checks on stock market

The FTSE 100 briefly crept over the 6,800 mark for the first time since January on early Monday morning as figures emerged from China and the US stimulus package was signed into law by Joe Biden. According to a Deutsche Bank survey of online brokerage users, Americans are planning to use 37% of their cheques to buy equities.

Russ Mould, investment director at AJ Bell, commented on the results and their potential implications for a recovery.

“It is like the markets have remembered to be happy about economic recovery again. For a time the focus was so fixed on accompanying inflation risks, the upside from a rebound in the economy as countries reopen was lost,” said Mould

“Impressive growth figures from China and the passage of Joe Biden’s $1.9 trillion stimulus package in the US helped briefly launch the FTSE 100 over the 6,800 mark for the first time since January on Monday morning.”

“The scale of China’s recovery from the pandemic, which beat analysts’ expectations, offers an imperfect trailer for what might happen when there is a full reopening in the West.”

FTSE 100 Top Movers

Flutter Entertainment (6.96%), BT Group (2.70%) and Kingfisher (2.49%) are the day’s biggest risers at early morning trading on Monday.

At the bottom, Standard Life Aberdeen (-1.73%), Evraz (-1.68%) and Morrison Supermarkets (-1.39%) saw the biggest drop in their share prices.

Deliveroo

Deliveroo confirmed on Monday morning that it will sell £1bn ($1.4bn) in new shares ahead of its initial public offering (IPO) on the London Stock Exchange.

The confirmed also announced in a statement that its listing would also include the sale of shares by some existing shareholders. 

Bitcoin

After getting close towards the end of February, bitcoin broke above $60,000 over the weekend.

The cryptocurrency’s previous all-time high of $58,332 was just under a month ago and has threatened on a number of occasions since to go past the $60,000 mark.

Bitcoin breaks $60,000

Liam Roche
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0
Bitcoin breaks $60,000

Bitcoin’s market cap worth $1trn

After getting close towards the end of February, bitcoin broke above $60,000 over the weekend.

The cryptocurrency’s previous all-time high of $58,332 was just under a month ago and has threatened on a number of occasions since to go past the $60,000 mark.

While previous milestones have been surpassed in a mild manner, bitcoin went past its recent marker with conviction. However, the digital currency has fallen by 8.83% in the past 24 hours to $55,528.

Bitcoin/USD

Over the past four months, bitcoin has quadrupled in value, while a year ago, it was valued at less than $5,000.

Nigel Green, chief executive and founder of deVere Group, says regulation must now become a major priority as the price of bitcoin hit a new record high, surging past $61,000 on the deVere Crypto exchange on Sunday for the first time.

“Whether crypto cynics like it or not, there’s no getting away from the fact that Bitcoin is becoming an increasingly important part of the global financial system,” Green said.

“Bitcoins in circulation are now worth $1 trillion, with prices having rallied 890% over the last year. Most major financial institutions, including investment giants and payment companies, are now backing the world’s largest cryptocurrency, and there’s ongoing soaring interest from retail investors.”

“The move towards digital currencies is going to increase – and at pace – over the next few years. This is why financial regulators must now make regulation of the crypto sector a major priority.”

“With a growing dominance, Bitcoin and other cryptocurrencies must be held to the same standards as the rest of the financial system with a robust, workable international framework.”

It was a similar story for the other major cryptocurrencies, including Ethereum, which surged before dropping by over 7% in the last 24 hours.

Octopus Renewables records ‘strong performance’ for inaugural year

Liam Roche
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0
Octopus Renewables records ‘strong performance’ for inaugural year

Octopus Renewables confirms dividend of 3.18p per share

Octopus Renewables Infrastructure Trust (LON:ORIT) confirmed its results on Monday for “the period from incorporation” on 11 October 2019 to 31 December 2020.

The company announced that 100% of its net proceeds from IPO are now committed following its IPO on 10 December 2019 which raised £350 million.

Octopus Renewables’ Net Asset Value (NAV) per ordinary share is at 98.3p as of 31 December 2020, a £344m total NAV. Its total NAV return is 2.4% over the period since its IPO.

The company announced a dividend of 3.18p per share, while reaffirming its dividend target for 31 December 2021 at 5p per share.

Octopus Renewables made five acquisitions during the period, with diversification across 24 assets, four countries, onshore wind and solar PV, and operational and construction assets.

The company also confirmed that construction of the Ljungbyholm wind farm in Sweden is on schedule.

Octopus Renewables announced in November that it had acquired 100% of the Cerisou wind farm, a construction-ready project in the Vienne department of France.

Chris Gaydon, Investment Director at Octopus Renewables, commented on the company’s performance following its inaugural year.

“I am pleased that ORIT is reporting a strong performance for its inaugural year. Over the period the team has fully committed the net proceeds of the IPO and delivered on the first-year dividend target of 3.18p per share,” said Gaydon.

“For the year to come we remain focused on delivering on the targets set out to investors, strengthening ORIT’s position as an impact investment trust and continuing to drive the energy transition towards a net-zero future. As we emerge from the Covid-19 crisis, and the electrification of transport and heat accelerates creating greater demand for renewable energy, we continue to see opportunities for further growth in the Company.”

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