Fintech firm Mintos smashes Crowdcube record
EU-leading alternative investment platform Mintos has broken records by raising a record €5.3 million on Crowdcube in just 24 hours, after reaching its initial target of €1 million in just 15 minutes.
The fintech firm – described as a “global online marketplace for investing in loans” – attracted over 4,600 investors in its first crowdfunding campaign to date.
Mintos also smashed another record by hitting €3 million in just over 2 hours, cementing the firm as the largest European company to raise on Crowdcube in terms of both funds and number of investors.
Already the leading alternative investment platform in continental Europe, Mintos currently boasts 340,000 investors and 28 million loans funded. Its investor base has been consistently growing at 125% per year for the past 5 years.
Last year, Mintos was awarded the Alternative Finance Platform of the Year award, as well as winning the People’s Choice award for the fourth year running at the annual AltFi Awards.
Up until this week, Mintos had managed to raise around €7 million from angel investors and had funded most of its own growth via its revenue. The company was launched in 2015 and “almost single-handedly built up the market of investing in loans in Europe” to €6.6 billion – with a 45% market share.
Commenting on the firm’s impressive news, Mintos CEO and co-founder Martins Suite stated:
“We are thrilled to have such a response from our community. This result is a huge endorsement of our vision and it goes to show how strong the relationship with our community is. We are looking forward to having our newly joined shareholders aboard and continuing our growth plans.
“However, this is just the beginning as today we are opening the campaign to the public and continuing to crowdfund. After such validation by our own community, we are very excited to see what the next stage of crowdfunding has in store for us”.
Mintos has stated its intentions to secure Investment Firm and EMI licenses by early 2021, with the hope of doing more business across Europe on a passporting basis to open up the larger markets.
“With additional funding, we plan to continue scaling up our business by focusing on customer acquisition and leveraging our customer base by offering new products”.
“We want to broaden our investment offerings by including loans with lower risk and return levels, and to provide new investment products (such as ETFs) and financial services (like Mintos IBAN account and debit card) to our customers”.
Boohoo appoints new Non-Executive Director
Boohoo (LON: BOO) has announced Shaun McCabe to be the new independent non-executive director.
Currently the chief financial officer at Trainline and the non-executive director at AO World, McCabe will join the fast-fashion retailer to improve governance issues.
Boohoo is working on issues following the scandal on poor working conditions at a factory in Leicester.
Mahmud Kamani, the executive chairman, commented: “As Executive Chairman, I am committed to supporting and driving our agenda for change to build a better boohoo for the benefit of all of the Group’s stakeholders. On behalf of the Board I am delighted to welcome Shaun to the Group. His deep knowledge and experience of e-commerce and retail will be a great asset to the Board. As a Group we are committed to implementing our agenda for change that will help us on our journey to lead the fashion e-commerce market globally, and look forward to providing further regular updates on our progress in due course.”
Shaun McCabe, said on his new role: “I am delighted to be joining boohoo at an exciting time when it is implementing its agenda for change. Having spoken extensively with fellow members of the Board, I look forward to helping the Group add further independent experience and increased oversight on matters of compliance and business practices.”
Following the news, shares in Boohoo (LON: BOO) increased by 2%. They are currently trading +1.83% at 289,40 (1404GMT).
Blue Prism shares bounce on 40% revenue growth
Robotic automation specialists, Blue Prism (AIM:PRSM), saw its shares soar as it posted strong full-year performance, in spit of COVID-19 challenges.
The company said that full year bookings of £180 million – £122 million of which was new business – contributed to what the company’s anticipated revenue growth of around 40% year-on-year.
Blue Prism added that its cloud offering now comprises 17% of the business, and expects the division to post a 147% growth in full year bookings. The company were encouraged by their client’s willingness to expand their digital workforce during 2020, and said that alongside positive momentum during the second half, they see a strong pipeline that gives them confidence in their long-term growth potential.
During the course of the full year, the company added 490 new customers, increasing its user base by almost a quarter. Similarly, over a third of customers from the previous year added additional licences to their digital workforce during 2020.
The company finished by saying that it expects its EBITDA loss to be better than consensus estimates, while annual recurring revenue would be around £154 million.Speaking on the company’s performance, Blue Prism CEO, Jason Kingdom, said:
“I am very pleased with the resilience and strength our business has shown through the extraordinary events of 2020. In the second half we have seen strong revenue retention with an acceleration in new business signed, particularly from Blue Prism Cloud. I am very pleased with the level of innovation from the Company too – with a step change in product releases and enhancements.”
“[…] We exit the financial year with a strong pipeline, underpinning our belief that intelligent automation will be key to driving recovery across enterprises of all sizes.”
“[…] We also continue to make progress towards cash break-even during 2021 and reassert our commitment to this.”
Following the update, Blue Prism shares rallied by around 10%, to 1,762p. This price is its highest level since lockdown started, and almost 30% ahead analysts’ target price of 1,237.50p a share. Analysts currently have a consensus ‘Hold’ stance on the stock, while the Marketbeat community gives it a 52.69% “outperform” rating.Craneware shares soar with ‘return to strong sales growth’
Provider of software solutions for the US healthcare sector, Craneware (AIM:CRW) saw its shares bounce on Tuesday, as it announced a “return to strong sales growth” ahead of its AGM.
The company said that trading during the first four months of the fiscal year were ahead of management expectations, and “considerably ahead” of the same period the year before. The company’s statement added that:
“[We] expect revenues and adjusted EBITDA for the Interim period to 31 December 2020 to be ahead of the equivalent period in the prior year, building the foundation for a return to double-digit growth in the future. We look forward to providing further details within our Trading Update for the 6 months ended 31 December 2020.”
The company’s Value Cycle software offering continued to be well-received by leadership teams at US hospitals, with its Trisus Cloud-based software enabling hospitals to improve patient outcomes, while improving the operational and financial performance of hospitals. The Craneware statement added:“With each hospital that joins the platform, Trisus becomes more powerful. Through the recent beta launches of the Trisus (cloud) versions of our core offerings, Chargemaster Toolkit and Pharmacy Chargelink, and our four live Trisus native cloud applications, we now have multiple means by which new and existing customers can join the Trisus Community, providing them with a gateway to the wider benefits the platform can provide.”
“We continue to see substantial new opportunities entering the sales pipeline and the Board is confident in the continued strong performance of the business.”
Following the update, Craneware shares rallied by almost 14%, up to 2,190p a share. This price is its highest since the first lockdown began, but around 25% shy of analysts’ 2,733.33p target price. Analysts currently have a consensus ‘Buy’ stance on the stock; its p/e ratio of 35.30 is good value versus the tech and computing sector average of 72.15; and it has a 54.39% “outperform” rating from the Marketbeat community.Funds to watch during the Biden Emerging Market renaissance
Speaking ahead of the US election, blue chip investment managers, BlackRock, said that tense competition would continue between the US and China regarding tech, trade and investment. However, they believe a Biden presidency will also herald a return to ‘predictable’ trade and foreign policy, which would support emerging market assets and broader risk sentiment in the short-term. With that in mind, here are two funds that could position investors well for a Biden emerging market renaissance.
Aberdeen Emerging Markets Investment Company Limited
This should hardly come as a shock to many – you type ’emerging markets’ into Google and the Aberdeen Standard parent company comes up ahead of the phrase’s definition. Trading at a price of 637.50p and boasting a NAV of 734.26p, the company offers a discount of 13.2% – the third best of the IT Global Emerging Markets Investment Trusts (GEMITs). Similarly, its 3.45% yield means it ranks fifth out of the GEMIT funds. Meanwhile, its 14.9% one-year price growth, 11.9% three-year price growth, and 78.5% five-year growth see it place fourth, fifth and fourth places respectively. That latter growth, at almost 80% over five years, is almost double the IT GEMIT fund average of 44.2%. Its ability to rank within the top five for each of these fundamentals isn’t just impressive, it makes it the only fund of its kind on Trustnet‘s IT GEMIT ranking. Speaking on its performance in emerging market economies during September, the Aberdeen Emerging Markets Investment Company (LON:AEMC) said in its latest performance analytics: “Aberdeen Emerging Markets Investment Company’s net asset value total return for September was 2.3%. Performance was 0.4% ahead of the MSCI Emerging Markets Index with manager selection the largest contributor as the Company’s investments in Thailand (Ton Poh Fund), Romania (Fondul Proprietatea) and the Neuberger Berman China Bond Fund performed well. Asset allocation was a minor detractor which was largely a consequence of the Company’s underweight position in Taiwan. Discount narrowing across the portfolio’s closed end fund holding had a small positive impact with Fidelity China Special Situations the most notable contributor.” At present, the fund’s largest holdings are in Neuberger Berman China Equity Fund (11.40%), Fidelity China Special Situations (7.70%), and Weiss Korea Opportunity Fund Ltd (7.50%). The fund is also particularly exposed to Eastern Asia, with 38.90% of its portfolio made up of Chinese equities, 12.70% in South Korean equities, and 8.10% in Taiwanese equities.Templeton Emerging Markets Investment Trust
Another company to consider – for its solid fundamentals and blue chip holdings – is Templeton Emerging Markets Investment Trust (LON:TEM). With a price of 905.00p and a NAV of 1,004.99p the fund is currently operating an effective 9.5% discount – the fifth best in class. Similarly, its 2.09% yield is not to be shrugged off. Where the company comes into its own, though, is its price growth. Ranking in second position with its 19.2% one-year growth, the company places in fourth with 24.2% growth over three years, and second with its 138.9% growth over five years. This latter figure means it grew at more than 300% the average rate of IT GEMITs. Alongside solid price growth, what also appeals about Templeton’s fund is that it’s comprised of some Asian – and global – household names. For instance, 9.30% of its holdings are made up of Samsung Electronics and Alibaba Group respectively, while 8.70% is made up of Tencent Holdings. Its star performance as of late, though, has been its largest holding, in the Taiwan Semiconductor Manufacturing Company (10.50%). Speaking on its Q3 performance, the company said: “Major stock contributors to TEMIT’s third-quarter performance relative to the benchmark MSCI Emerging Markets Index included chip maker Taiwan Semiconductor Manufacturing Company (TSMC), Russian internet company Yandex, and Chinese e-commerce giant Alibaba Group.” Another notable consideration is the fact that Alibaba have shed around 10% off their value in the past two weeks – partially driven by the kafuffle surrounding Ant Group’s IPO – but it’s hard to imagine China’s largest e-commerce platform will have the wind taken out of its sails for long. At present, Templeton is most exposed to equities in ‘Asia Pacific’ (34.10%), South Korean (19%) and Taiwanese geographies (14.60%).Airbnb posts loss ahead of IPO
Airbnb has revealed a $697m (£527m) loss for the nine months to the end of September.
The loss has widened from the $323m loss that was posted for the same period a year earlier.
Over the third quarter, the group posted revenues of $1.3bn which was down 18%.
Airbnb said: “The recovery in the second and third quarters of 2020 is attributable to the renewed ability and willingness for guests to travel, the resilience of our hosts, and relative strength of our business model.”
The fourth quarter is seeing a decline in bookings and cancellations amid lockdown restrictions.
The company is preparing for its initial public offering, which is expected to be completed before the end of the year.
Airbnb has had a tough year amid the restrictions and in response has announced plans to reduce the workforce by 25% and slash marketing costs.
Chief executive Brian Chesky said told employees at the time: “We are collectively living through the most harrowing crisis of our lifetime, and as it began to unfold, global travel came to a standstill. Airbnb’s business has been hit hard, with revenue this year forecasted to be less than half of what we earned in 2019.”
Imperial Brands forecasts better 2021 profits, shares rise
Imperial Brands shares (LON: IMB) were up over 3.5% on Tuesday after the group full-year results for the year ended 30 September 2020.
The tobacco company forecast better profits for 2021 as the group expects stronger demand in its e-cigarette business, which decline in 2020 amid certain US bans.
The group reported an increase in revenue by 0.8% to £7.99bn.
Stefan Bomhard, the chief executive, said: “Although this has been a difficult year, the resilience of our tobacco business and the measures we have taken to improve our NGP operations reinforce my confidence in the future potential of the business. With a more disciplined focus and better execution we can realise significant value for our stakeholders over time.
“My first months have been focused on engaging with employees, consumers and customers and leading the strategic review of the business. What I have seen to date confirms my view of the Group’s solid foundations. I believe there is scope to enhance returns from our tobacco business and opportunities to strengthen our NGP delivery over time. I firmly believe we can make a meaningful contribution to harm reduction within a more disciplined, returns-focused framework and we have already taken steps to stem the NGP losses.”
Imperial Brands shares (LON: IMB) are +3.28% at 1.448,50 (0936GMT).
Homeserve shares rise on +17% H1 revenue
Homeserve shares (LON: HSV) were up on Tuesday morning after the group reported strong first-half results.
The FTSE 100 company posted a 17% increase in revenue from £457.7m to £536.7m.
Statutory profit before tax, however, fell 49% to £10.1m.
Richard Harpin, the founder and chief executive, commented: “What HomeServe stands for – making home repairs and improvements easy – has never been more important. The stresses of living and working through a pandemic mean that we are all more aware than ever of the value of home comforts. Our strong policy retention in the first half underscores the value our Membership customers place on the service we provide.
“Against this challenging backdrop, I am really pleased that the business continues to perform well. As we go into the busy winter months, our focus continues to be on delivering great service for our customers and a secure livelihood to our teams and trades. The latest wave of lockdowns has made no fundamental difference to our operations, and the good news for us and our customers is that engineers can continue to work in peoples’ homes. Based on what we see today, we are confident of delivering a healthy mix of organic and acquired revenue growth at the full year, with profits ahead of our prior expectations.”
Looking forward, the group said that it continues to expect strong demand and has increased profit forecasts for the full year.
Homeserve shares (LON: HSV) are trading up almost 3% at 1.273,80 (0849GMT).
Easyjet swings to red and posts £1.2bn loss
Easyjet (LON: EZJ) has posted its first-ever full-year loss, sinking £1.2bn into the red.
For the year ending 30 September, the budget airline saw passenger numbers half from 96.1m to 48.1m amid travel restrictions and social distancing measures.
Easyjet also said that it will only fly at 20% capacity for the first quarter of the next financial year.
Revenue 52.9% to £3bn, which was down from last year’s revenue of £6.4bn.
Commenting on the results, chief executive Johan Lundgren said:
“I am immensely proud of the performance of the easyJet team in facing the challenges of 2020. We responded robustly and decisively, minimising losses, reducing cash burn and launching the largest Cost Out and restructuring programme in our history – all while raising more than £3.1 billion in liquidity to date.
“easyJet has not only withstood the impact of the pandemic, but now has an unparalleled foundation upon which to emerge strongly from the crisis. Our unmatched short haul network and trusted brand will see customers choose easyJet when returning to the skies.
“While we expect to fly no more than 20% of planned capacity for Q1 2021, maintaining our disciplined approach to cash generative flying over the winter, we retain the flexibility to rapidly ramp up when demand returns.
“We know our customers want to fly with us and underlying demand is strong, as evidenced by the 900% increase in sales in the days following the lifting of quarantine for the Canary Islands in October. We responded with agility adding 180,000 seats within 24 hours to harness the demand.”
Since the vaccine news, shares in Easyjet have surged and bookings have grown by 50% since the news.
Easyjet shares (LON: EZJ) are down 2.57% at 757,60 (0817GMT). Over the past month, shares have increased from lows of 494,40.
Moderna vaccine news sees FTSE soar and value stock recovery continue
The FTSE was among the biggest index winners on Monday, led by a surge in the previously COVID-stricken equities, as Moderna (NASDAQ:MRNA) announced that its vaccine candidate had a 94.5% efficacy rate.
Logistical issues will remain an ongoing concern going forwards. However, the Moderna vaccine doesn’t require the same extreme cold storage as its Pfizer counterpart, and the UK successfully placed an order for 5 million units on the day of the results publication, taking its total vaccine units to 35 million. Even with these facts being true, mass roll-out will remain a challenge. As stated by Kingswood CIO, Rupert Thompson:
“Mass inoculation therefore looks unlikely before next summer. There is also the additional complication that while 80% of the population is supposedly willing to be inoculated in the UK, it is no more than 60% or so in the US.”
Similarly, infections have picked up in the US, and average daily infections increased from just over 22,000, to more than 25,000 in the UK. With lockdown part 2 now in full swing across European nations, a double dip recession now looks to be on the cards, with the economic activity stifled during the fourth quarter.
Despite the medium-term risk factors, the FTSE chose to chase the good news on Monday, up by 1.66% as trading closed. Up to 6,421 points, the index now stands at its highest level since the start of June.
Already pricing in the harmful effects of a second wave in the week leading up to the US election, global equities managed to cling onto short-term excitement and long-term hope, and replicate the trends posted on the previous Monday. Mr Thompson adds: “If the sunlit uplands are visible on the horizon, investors are usually prepared to look through any short-term troubles.”
Outside the FTSE, the CAC rallied by 1.7%, the DAX rose by 0.5% and the Dow Jones hiked 1.3%. In particular, though, there are two trends worth looking at – prospects are significantly brighter for stocks than bonds, and with 7% growth last week, the FTSE will likely remain the location of notable equities recoveries in coming months. On the latter, IG Senior Market Analyst, Joshua Mahony, said:
“Once again we are seeing value outperform, to the benefit of the FTSE 100. With names such as Cineworld, IAG and Rolls-Royce all pushing sharply higher, there is a feeling that last week’s Pfizer announcement has provided a huge boost in confidence for traders to shift towards some of the hardest-hit stocks.”
“With over a quarter of the FTSE 100 attributed to energy and financial stocks, the prospect of an extended vaccine-led recovery does highlight the potential for UK market outperformance.”