Standard Chartered to reinstate dividend despite fall in profit

Liam Roche
-
0
Standard Chartered to reinstate dividend despite fall in profit

Standard Chartered to cut office space in coming years

Standard Chartered (LON:STAN) will reinstate its dividend this year despite seeing a significant fall in its pre-tax profit.

The bank also unveiled plans to significantly reduce its office space over 2021. 

Standard Chartered confirmed it will payout a dividend of 9p per share having been stopped from doing so by the Bank of England last year. The bank will also buyback shares worth $254m (£179m) in the coming year.

The announcement came despite the banking company’s pre-tax profit falling by 57% to $1.6bn. This figure is down from $3.7bn the year before. 

The fall in Standard Chartered’s profit can be put down in part to its significant credit impairment of $2.3bn, up by $1.4bn the year before, due to the pandemic. 

The bank has also announced plans to cut its office space by a third in the next three to four years.

Standard Chartered’s share price dropped by 4.77% on early Thursday morning trading to 485.1p following the results being announced. Since the beginning of the year the share price is up from 463.4p following a spike in early January.

Bill Winters, chief executive of Standard Chartered, acknowledged the difficulties faced by the bank in 2020. “We are weathering the health crisis and geopolitical tensions very well, our strategic transformation continues to progress and our outlook is bright. We remain strong and profitable, although returns in 2020 were clearly impacted by higher provisions, reduced economic activity and low interest rates, in each case the result of COVID-19,” Winters said

Winters remains optimistic over Standard Chartered’s exposure across the world ahead of an anticipated recovery.

“I am proud of the way our colleagues around the world have responded to the challenges of the pandemic by supporting each other, our communities and our clients. Looking ahead, our unique exposure to the most dynamic markets in the world puts us in a great position to benefit from the clear signs of recovery there.”

Standard Chartered results follow a string of announcements by the UK’s major banks – Lloyds, Barclays, HSBC, Natwest – as drops in revenue and the reappearance of dividends are a reoccurring theme.

Pound keeps climbing against the dollar and the euro

Liam Roche
-
0
Pound keeps climbing against the dollar and the euro

Pound at $1.42 on Wednesday before retreating

The pound reached $1.42 on Wednesday, building on the UK currency’s ongoing surge.

While Boris Johnson’s roadmap out of lockdown hardly inspired eagerness within investors, it appears to have laid the foundations for a positive outlook.

The pound edged past $1.411 yesterday, its highest level in nearly three years, in a show of continued optimism surrounding the UK economy.

Michael Brown, senior market analyst at CaxtonFX, pondered over the cause of the the pound’s movements against the dollar. 

“In something of a parabolic move, cable jumped above the 1.42 handle, testing the bottom of the aforementioned double-top region. The move, seemingly driven by significant GBP demand with little news behind it, confirms that region as the next key resistance,” Brown said. 

The pound also strengthened against the euro, up to €1.17, a one-year high, before falling back to €1.16. 

This follows a heavy fall in the value of the pound in the lead up to an anticipated ‘hard Brexit’ from the European Union.

Simon French, chief economist at Panmure Gordon, said: “Brexit has given international investors an excuse since 2016 to reduce their holdings in sterling. As the UK progresses through 2021 it is likely to see more stability in its relationship with the EU as adjustment frictions begin to dissipate. This should translate to a greater upside for the pound against the euro than than against the dollar in our view.

Labour data also emerged this week, surpassing expectations. The claimant count dropped by 20,000, again better than expected, in a “tentative” sign that the UK labour market market is stabilising, according to Jonathan Athow, deputy national statistician at the ONS commented.

GRIT Real Estate Income Group virtual investor presentation 23rd February

UK Investor Magazine
-
0
GRIT Real Estate Income Group virtual investor presentation 23rd February

Grit Real Estate Income Group is a leading pan-African real estate company focused on investing in and actively managing a diversified portfolio of assets in carefully selected African countries (excluding South Africa).

Particular attention is paid to the breakdown of the GRIT portfolio by sector, including insightful discussion around the retail sector and how Africa’s retail sector is adapting to online retailing.

Grit has its primary listing on the premium segment of London Stock Exchange main market (LSE: GR1T).

Download presentation slides here.

Novacyt share price jumps following R&D update

Liam Roche
-
0
Novacyt share price jumps following R&D update

Novacyt to expand its product portfolio

Novacyt (AIM:NCYT), the specialist in clinical diagnostics, saw a 3% jump in its share price on Wednesday after the company provided an update on the progress of its research and development programmes. 

With a Novacyt share price of 704.59p, Novacyt confirmed the expansion of its product portfolio, clinical trial activity and the publication of independent validation of the company’s Covid-19 tests.

The announcement is positive news for Novacyt shareholders after shares in the company dropped by over 40% in the last month.

Novacyt will look to address the rapidly evolving diagnostics market by expanding its Covid-19 portfolio to include a range of tests, with the aim of targeting new variants at a faster speed. 

The company also confirmed it has successfully completed a clinical trial of rapid testing in care homes at Queen Mary University of London, as well as initiating the variant diagnostic surveillance study in the UK, US and Latin America.

Graham Mullis, chief executive of Novacyt, reasserted the company’s focus, while confirming upcoming announcements regarding long-term plans.  

“Novacyt remains focused on leveraging its innovative reputation and position in the rapidly changing COVID-19 testing market to continue to deliver value and support clinicians and laboratories in a global setting,” said Mullis. 

“Of note, following its launch, our PROmate™ test has been well received by users and opens up new opportunities for rapid PCR testing, including in private testing markets. In addition, we look forward to presenting exciting long-term plans for Novacyt during Q2 this year as we continue to define our strategy for delivering sustainable, long- term growth.”

Novacyt shares jumped more than 45% in March after it received approval from the U.S. Food & Drug Administration (FDA) for it’s COVID-19 testing kits.

UK banking shares: income attractiveness returns

UK Investor Magazine
-
0
UK banking shares: income attractiveness returns

Alan Green joins the UK Investor Magazine Podcast to discuss the latest developments from UK banks.

Many UK banks have resumed paying dividends after the Bank of England eased restrictions on payouts by financial institutions. Natwest Group, Barclays, HSBC and Lloyds have announced payments with Lloyds paying 0.57p dividend per share after a drop in profits to £1.2bn.

We question whether income investors can expect more from UK banks or do the risks around competition from new entrants and ongoing economic strive will cap payouts.

We also discuss Mode (LON:MODE), Blue Star Capital (LON:BLU) and British Honey (LON:BHC).

Avacta coronavirus rapid test approaching ‘clinical validation’

Liam Roche
-
0
Avacta coronavirus rapid test approaching ‘clinical validation’

Avacta test could allow nightclubs and theatres to reopen

Avacta Group, the medicinal drug company, has provided an update on its ongoing development of a rapid coronavirus test.

The announcement follows a report by the Huffington Post that the UK Government is seeking to use the SARS-CoV-2 rapid antigen test to assist in the government’s plan, known as Operation Moonshot, to open nightclubs, theatres and sporting arenas.

Avacta’s test provides a result within five to ten minutes, which could allow for Operation Moonshot to go ahead.

Dr Alastair Smith, chief executive of Avacta Group, commented on the launch of the rapid test. Smith noted that Avacta’s tests are progressing towards full clinical validation, as well the company being able to meet commercial demands.

“The significant progress achieved in both the Diagnostics and Therapeutics Divisions during 2020 has already enabled us to deliver major value inflection points during the first weeks of 2021,” Smith said.

“We are very excited by the commercial potential of our scalable, rapid coronavirus test. The recently announced clinical data strongly reflects the excellent analytical performance demonstrated in the lab and suggests that it may be, to date, the most sensitive S1 spike protein lateral flow test. We are now confidently proceeding into full clinical validation to support a CE Mark, with a potential commercial launch for professional use around the end of the first quarter of this year.”

“Despite unprecedented pressures on the Diagnostics Division, we now have in place the infrastructure to support the commercial launch of this test. Importantly, we are close to completing the establishment of a complex supply chain for the scalable manufacture of the test kits and we are making timely progress in instituting a quality management system to support the required ISO13485 accreditation for medical devices.”

Avacta Group’s share value rose on Wednesday by 3.75% to 184.67p just before lunchtime. This followed a spike on Monday to 210.85p as rumours intensified over the company’s role in testing the UK’s population in the coming months.

Heathrow posts £2bn loss

Safiya Bashir
-
0
Heathrow posts £2bn loss

Heathrow has been hit with a £2bn loss as the Covid-19 pandemic has caused havoc on travel and borders.

The number of passengers who passed through the airport last year slumped by 73% to 22.1m last year, which is the lowest number since 1975.

Heathrow’s chief executive, John Holland-Kaye, remained positive following the prime minister’s road map and was sure that people would be going on summer holidays this year.

He said on BBC Radio 4’s Today programme: “For the aviation sector we can start to plan ahead for 17 May to make sure we’ve got the people and the planes in place so that we can not just get people on their holidays but also get British businesses moving again.”

Airline and travel companies saw a surge of bookings after the announcement and also saw shares grow on Tuesday.

Heathrow has cut 1,000 jobs over the year and has hopes that Rishi Sunak will continue 100% business rates relief and an extend the furlough scheme.

Holland-Kaye said: “Despite £2bn of losses and shrinking to passenger levels we haven’t seen since the 70s, I am hugely proud of the way that our colleagues have kept our passengers safe and the UK’s hub airport open for vital supplies throughout.

“We can be hopeful for 2021, with Britain on the cusp of becoming the first country in the world to safely resume international travel and trade at scale.

“Getting aviation moving again will save thousands of jobs and reinvigorate the economy, and Heathrow will be working with the Global Travel Taskforce to develop a robust plan underpinned by science and backed by industry,” he added.

Miton Global Opportunities Virtual Presentation 23rd February

MIGO Opportunties Trust
-
0
Miton Global Opportunities Virtual Presentation 23rd February

Miton Global Opportunities (LON:MIGO) presents at the UK Investor Magazine Virtual Conference 23rd February.

Miton Global Opportunities plc (MIGO) is a closed-end investment company, specialising in deep value opportunities and special situations within the Investment Trust universe. The Trust seeks to exploit pricing inefficiencies in overlooked and unloved closed-ended funds often found in the darker corners of the Investment Trust market.

The Trust offers exposure to a diversified pool of closed-end investment companies, often trading on substantial discounts to their intrinsic value and where the Managers believe there is a catalyst for a re-rating.

Download presentation slides here.

Netcall revenue up 9% as company’s cloud business grows

Liam Roche
-
0
Netcall revenue up 9% as company’s cloud business grows

Netcall revenue up to £13.4m

Netcall (AIM:NET), the customer experience software specialist, announced strong end of year results on Wednesday as the company was boosted by the growth of its cloud business. 

Netcall’s revenue was up by 9% in 2020 to £13.4m, while pre-tax profits rose to £0.96m from £0.14m the year before. 

The software company saw significant growth from its Intelligent Automation and Customer Engagement offerings with an increase in usership of both.  

The cloud services annual contract value (ACV) at 31 December 2020, rose by 25% to £8.4m. 

On market opening there was a surge in demand for Netcall shares following its positive results. The AIM-listed company’s share price reached 71.4p during early morning trading on Wednesday, a rise of over 4%. Before 10am Netcall’s share price retreated back to 67.2p, 1% up on yesterday’s close. 

Netcall has stated the company has a strong level of current trading and a healthy pipeline, while the board believes that adjusted EBITDA for 2021 will be ahead of its previous expectations. 

Henrik Bang, chief executive at Netcall, commented on the results:

“Netcall enjoyed a strong first half year performance delivering solid revenue and profit growth despite the ongoing impact of Covid-19 and traded comfortably in line with management expectations. We continued to experience robust demand from our main market segments of financial services, healthcare and government driven by cloud subscription contracts for both Intelligent Automation and Customer Engagement solutions.”

“As we continue to strengthen our product portfolio, such as the recent addition of Robotic Process Automation, we see an increasing number of customers combining the use of both our Intelligent Automation and Customer Engagement solutions, which supports our growth aspirations.”

Triple Point Social Housing REIT presents at the UK Investor Magazine Virtual Conference 23rd February

UK Investor Magazine
-
0
Triple Point Social Housing REIT presents at the UK Investor Magazine Virtual Conference 23rd February

The UK Investor Magazine Virtual Investor Conference 23rd February featured Freddie Cowper-Coles of Triple Point Social Housing REIT (LON:SOHO) who outlined the latest developments at the trust.

Triple Point Social Housing REIT plc is improving the lives of vulnerable people across the UK by meeting the critical demand for specialised supported housing.

SOHO’s homes give residents greater independence and dignity than traditional institutional care whilst still addressing their specialist care needs.

Download slides here

1...1,0721,0731,074...1,856Page 1,073 of 1,856