Tremor International shares soar on 40% revenue growth

Jamie Gordon
-
0
Tremor International shares soar on 40% revenue growth

Video advertising specialists, Tremor International Ltd (AIM:TRMR), watched their shares boom on Monday, with the company announcing a bumper end to their full-year 2020.

Among its key performance indicators, the company noted that private marketplace revenues grew dramatically year-on-year, up 1,519% in the third quarter and 1,095% during the fourth quarter. Similarly, the Group watched its connected TV revenues spiked by 140% in Q3 and 115% in Q4, while its self-service platform revenues increased by 647% and 551% respectively.

In its statement, Tremor International said that it: “[…] continues to drive substantial customer momentum in the second half of the current financial year, demonstrating strong organic growth despite the impact of Covid-19. Revenues generated across October and November 2020 were the highest in the Company’s history. Overall, it is anticipated that the Company will now achieve 37-43% revenue growth in the second half of 2020, compared to H2 2019.”

“As a consequence of this performance, the Company expects trading for the year ending 31 December 2020 to be significantly ahead of the ranges outlined in its October 2020 trading statement, which were $340-360 million for revenues and $30-36 million in Adjusted EBITDA, and provided under caution due to the uncertainty surrounding the US election. The Company now expects revenues, net revenue and Adjusted EBITDA to be in the ranges of $390-400 million, $171-175 million and $50-52 million respectively.”

The ‘significant’ sales traction being generated by the company is being primarily led by its Self-serve, PMP and Connected TV core segments. The Group say that its recent performance ‘provides clear validation’ of the company’s video, data and CTV focus – with the former accounting for more than 80% of company revenues.  

With the company’s management saying they believe the current growth trajectories will continue, Tremor International shares rocketed 26.43%, up to 290.80p a share 30/11/20 13:18 GMT.

On the one hand, the company currently has a p/e ratio of -26.35, and insiders have sold £526,635 of the company’s stock – while buying £0 – in the last three months. On the other hand, the Marketbeat community has a 55.56% stance on the stock, and it boasts a strong 4.73% dividend yield.

Aviva finalises £1.5bn sale of its Singapore business

Jamie Gordon
-
0
Aviva finalises £1.5bn sale of its Singapore business

Multinational insurance firm, Aviva plc (LON:AV) announced on Monday that it had completed the sale of a majority shareholding in Aviva Singapore to a consortium headed up by Singapore Life Ltd.

The company will be renamed ‘Aviva Singlife Holdings Pte Ltd’. The transaction was completed for a total consideration of SGD 2.7 billion (£1.51 billion), comprised of SGD 2.0 billion in cash and securities, SGD 250 million in vendor finance notes and a 26% equity shareholding in Aviva Singlife.

The group said that as per its Q3 announcement, the cash proceeds from the Singlife transaction will be put towards reducing the company’s debt. With the deal first confirmed on September 11 2020, the company’s statement on Monday added:

“This is the third transaction Aviva has completed so far this year and follows the recent announcement of the sale of our entire shareholding in Aviva Vita S.p.A., an Italian life insurance joint venture. Aviva continues to work at pace, taking decisive actions on its portfolio to transform the company for the benefit of its shareholders.”

Following the news, the company’s shares rallied modestly, up by 0.68% or 2.20p, to 326.30p a share 30/11/20 12:20 GMT. This is just shy of its post-lockdown high of 337.80p posted last week, and around 13.5% short of analysts’ target price of 369.82p a share.

Analysts currently have a consensus Buy rating on the stock, while the Marketbeat community has a 62.94% “outperform” stance. Its stock looks to be undervalued, with a p/e ratio of 5.24 comfortably below the financial sector average of 20.91.

Barclays shares slide amid update on net zero ambitions

Bronte Carvalho
-
0
Barclays shares slide amid update on net zero ambitions

Shares at British multinational investment bank Barclays (LON:BARC) have slipped almost 2% on Monday morning after the London-based firm released an update on its strategy and targets to combat the climate crisis.

Earlier this year, the bank announced it would limit its funding to fossil fuel projects after pressure from investors forced Barclays to realign its portfolio with the climate-conscious impetus of shareholders. The new resolution included a pledge to achieve net zero carbon emissions by 2050.

Monday’s update saw Barclays group chairman Nigel Higgins restating its commitment to ‘help address the climate challenge’ and ‘align all our financing activities with the goals of the Paris Agreement’, although warned that the economic impact of the coronavirus pandemic had ‘not made it easy to progress the work beyond what we indicated in March’.

He added that the bank was still ‘committed to continuous improvement in our response to the climate challenge’, even in the face of significant financial and logistical obstacles.

What are the details of Barclays’ climate pledge?

Barclays today confirmed that it is so far on track to reduce ‘CO2 intensity’ across its portfolio by 30% by 2025, as part of the company’s two-tiered approach to measure its carbon production; ‘CO2 intensity’ being ’emissions per unit of output’ and ‘absolute emissions’ being the more comprehensive unit of measurement.

Higgins outlined why the firm has decided to adopt this unconventional approach:

“[…] Each have their place in tracking the journey to net zero.  The most appropriate choice depends on the nature of the portfolio being measured, and how far its carbon intensity has already reduced. Generally speaking, we believe that most portfolios will be best measured primarily using an intensity measure – emissions per unit of output – at least in the earlier stages of decarbonisation. As the linked emissions of a portfolio reduce, we will also start to track an absolute measure, which will of course lead towards net zero”.

“We are now comfortable with the detail of the methodology we have developed to measure the absolute emissions and/or emissions intensity of different types of financing activity,” Higgins added, “although this is likely to continue to evolve and be further refined over time”.

The bank has continued to engage with a ‘number of industry initiatives’ throughout the year as part of its decarbonisation process, including the Two Degrees Investing Initiative’s Paris Agreement Capital Transition Assessment (PACTA) and the Partnership for Carbon Accounting Financials (PCAF). Barclays is also a member of the ‘Financing a Just Transition Alliance’ led by the Grantham Research Institute at the LSE. 

It has also committed to ‘acknowledge’ the role that Barclays plays in financing carbon-emitting projects, and has stated it will ‘take a proportion, generally one third, of the emissions linked to Barclays’ financing ‘against’ our own targets’ to ‘account for the underwriting of equity and debt securities, which generally leave Barclays with no residual exposure’.

Regarding the bank’s energy sector, Barclays has adjusted its initial pledge back in March, which will now ‘target a 15% reduction in absolute emissions by 2025, rather than in CO2 intensity’.

Higgins explained that the amendment ‘reflects the fact that the energy sector cannot so easily reduce its emissions intensity (you cannot de-carbonise a barrel of oil), and our energy portfolio has already reduced in intensity, such that only 2% of the fuel mix is now represented by coal’.

What happened with Barclays’ share price?

Shares at Barclays slipped somewhat on the news, down 1.84% to 136.94p at midday on Monday 30/11/2020. The bank has so far enjoyed a positive month overall, with its share price bouncing almost 8% in response to better-than-expected Q3 results released last week.

In the three months to the end of September, Barclays reported a pre-tax profit of £1.1bn – almost double analyst expectations, with income at the corporate and investment bank growing by 24%, while markets income surged by 52%.

During the initial crash during March when the UK government first imposed a series of strict lockdown measures, Barclays shares slid to a mere 80.24p, but have since regained considerable ground since the summer and now seem to be oscillating largely within the realm of 110p to 150p – still a far cry from its annual peak of 192.99p in December 2019, but at least it has weathered the second lockdown with some resilience.

Barclays has a dividend yield of 2.18% and a P/E ratio of 9.76.

Lloyds names new chief executive, shares edge up

Safiya Bashir
-
0
Lloyds names new chief executive, shares edge up

Lloyds Banking Group (LON: LLOY) has said that Charlie Nunn will be joining the group as the next chief executive.

Current chief executive Antonio Horta-Osorio will be stepping down next year to replaced by Nunn, who has been at HSBC since 2011.

Horta-Osorio said: “Charlie will find a warm welcome at Lloyds Banking Group and a deep commitment from all of our people to deliver on our purpose and to help Britain recover. I am sure that he will find his time here as fulfilling and fascinating as I have done and I wish him the very best.”

Commenting on his new role, Nunn said: “Lloyds’ history, exceptional people and leading position in the UK means it is uniquely placed to define the future of exceptional customer service in UK financial services.

“I look forward to building on the work of António and the team and their commitment to helping Britain prosper.”

Nunn’s new appointment date has not been specified, however, his current role at HSBC has a six-month notice period.

Lloyds shares opened on Monday slightly higher at 38p. Shares in the lender have halved in the last year.

Robin Budenberg, the incoming chairman of Lloyds from January, commented on the news: “I am excited about Charlie’s vision for Lloyds Banking Group, as well as his passion for and commitment to our purpose of helping Britain prosper.

“Given his career track record, he will bring world-class operational, technology and strategic expertise to build on the strengths of the existing management team. I look forward to welcoming him to the group.”

Shares in Lloyds (LON: LLOY) are currently trading +0.91% at 37,64 (1106GMT).

Oil prices rally ahead of Monday OPEC meeting

Bronte Carvalho
-
0
Oil prices rally ahead of Monday OPEC meeting

Ministers from the world’s largest fossil-fuel producing nations are set to meet virtually on Monday to discuss what the future holds for the global oil market in 2021. After a turbulent year which saw prices crash to their lowest level in more than 20 years in so-called “Black April”, news of more lax lockdowns and a trilogy of high-profile Covid-19 vaccines almost ready to roll out offers a glimpse of the light at the end of the tunnel for the industry.

Earlier this week, oil prices climbed to their highest point since April, after battling a slump at the beginning of November when crude slid to just $33.64 a barrel. The disappointing figures did not last the month, however, with prices beginning to creep back up in recent weeks.

On Wednesday, Brent crude rose 47 cents – 1% – to $48.33 a barrel, although by Sunday evening it had settled at around $48.18. Despite the minor slip backwards, it was trading at $37.94 a barrel less than a month ago on 30 October, but have since been buoyed by the success of the latest vaccine trials and hopes that travel restrictions around the world may loosen over the Christmas period to allow people to visit their families.

West Texas Intermediate crude gained 80 cents – 1.8% – reaching $45.71 per barrel in the early hours of Wednesday, before sliding slightly to $45.52 on Sunday night. Prices have surged from a low point of just $35.79 at the start of the month, as lockdown across the UK and mounting infection cases in the USA dampened appetite for travel.

A return to the $50 a barrel mark before the end of the year is finally in sight, but part of reason why oil has managed to recuperate in recent months is due to the combined effort of OPEC nations to cut production rates. Back in April, they collaboratively agreed to the largest single output cut in history – rolling back production by 9.7 million barrels a day – to try to balance supply and demand.

In August, this was scaled back to 7.7 million less barrels, but analysts are expecting OPEC leaders to roll over the current plans into 2021 in light of the fact that mass vaccination is still likely to be some time away. CNBC reported that a planned 2 million bpd January production ramp-up looks “set to be delayed, according to market consensus, with analysts differing on whether that would be for three months or six months”.

Ravindra Rao, Head of Commodity Research at Kotak Securities, told MoneyControl that oil is “running too hot” ahead of the OPEC meeting:

“OPEC and allies are largely expected to extend the current production of about 7.7 million barrels per day for an additional three to six months. The current deal calls for curtailment in production cuts to 5.8 million bpd in January 2021.

“The recent rise in price indicates that market players have factored in that OPEC may defer further production hike so unless there is any major announcement, crude oil could become vulnerable to some correction. With a sharp rise in crude prices and signs of progress on the vaccine front, OPEC is unlikely to take aggressive measures.

“Additionally, there are other challenges in the form of rising virus cases and easing euphoria about vaccine amid efficacy concerns as well as logistical challenges”.

On the other hand, US banking giant Goldman Sachs believes that the oil market is “ripe for a comeback” in 2021 as demand for natural resources returns with increased travel and manufacturing, although analysts have warned that nothing is guaranteed:

“As another Opec+ meeting nears, uncertainty on the group’s decision is once again rising. Beyond the outcome of another quota decision, however, there are renewed concerns about the future of the organisation”.

Loungers bucks bars trend

Andrew Hore
-
0
Loungers bucks bars trend

It has not been a good year for hospitality sector in general, but particularly for pubs and bars. Loungers (LON: LGRS) is reporting its first half figures on 2 December and it has done better than most. The most recent trading statement was much better than anticipated and the latest results will show how well trading is holding up.
Bristol-based Loungers operates café/bar/restaurants in England and Wales under two brands: Lounge and Cosy Club.
Like-for-like sales in the 13 weeks to the beginning of October were 25% ahead, when the pubs and bars sector sales were continuing to decline.
Tradin...

Topps retail growth

Andrew Hore
-
0
Topps retail growth

Tiles retailer Topps Tiles (LON: TPT) is reporting its full year figures on Tuesday 1 December. Although a loss is expected for the year to September 2020, trading trends have been positive in recent months and there should be news concerning the effect of the recent lockdown.
DIY
Sales to the trade are growing, but nowhere near as fast as the retail market. There should be indications about whether these trends are continuing.
Household goods spending increased by 3% in September and the seasonally adjusted index reached a new high of 110.9. That is 15% higher than one year earlier. The rate ...

EV battery startup QuantumScape watches its shares surge 57% on NYSE admission

Jamie Gordon
-
0
EV battery startup QuantumScape watches its shares surge 57% on NYSE admission

Backed by Volkswagen, and Tesla co-founder JB Straubel, EV battery startup Quantumscape (NYSE:QS) listed on the NYSE on Friday, and watched its shares soar more than 57% on its first day of trading.

The news followed the conclusion of QuantumScape’s business combination with special purpose acquisition company, Kensington Capital Acquisition Corp (NYSE:KCAC). On the 25th of November, Kensignton shareholders approved the Business Combination, and from the 27th, it was agreed that QuantumScape shares would trade on the NYSE. Speaking on the company’s admission to the NY exchange, company Founder and CEO, Jagdeep Singh, said:

“Today marks a big step in the evolution of our company”

He added: “This transaction allows QuantumScape to fund development and commercialization of our OEM-validated battery technology as we look forward to playing our part in the electrification of the automotive powertrain, helping transform one of the world’s largest industries and fostering a cleaner future for all.” 

Justin Mirro, Chairman and Chief Executive Officer of Kensington Capital, continued, saying that his company are: “incredibly excited to complete our business combination with QuantumScape and to provide the company with significant capital and automotive guidance to accelerate its business plan.”

Mr Mirro said that EVs have emerged as a ‘global mega-trend in the automotive industry’, and he believes QuantumScape are well-positioned to become a leading provider of solid-state batteries for the next generation of electric powertrains.

Since QuantumScape began in 2010, it has been designing and manufacturing “anode-less” solid-state lithium batteries, which are designed to be safer, and have faster charging time sand longer life cycles than lithium-ion technology.

The solid-state battery tech boasts the ability to: ‘significantly’ increase energy density to between 400 and 500 Wh/kg; fast charging of up to 80% in 15 minutes, by eliminating the lithium diffusion bottleneck; an increased lifespan by eliminating capacity loss at anode interface; increased safety as the separator is non-combustible; and lower cost by eliminating anode host material.

Following news of its listing, investors rushed to get a piece of the QuantumScape pie, causing the company’s shares to rally by more than 57%, up to $37 apiece.

Pound Sterling falls on yet another Brexit fishing impasse

Jamie Gordon
-
2
Pound Sterling falls on yet another Brexit fishing impasse

It feels as though we’re copy and pasting an old story. The pound sterling drops as two sides willing to negotiate and unwilling to compromise, hit another stalemate over the allocation of post Brexit fishing rights.

Michel Barnier made his way to London on Friday, following news that the UK negotiating team had turned down an offer by team EU to cede between 15% and 18% of their current fishing quota.

“The UK has already blown Michel Barnier’s plan to boost British fishing quotas by up to 18 percent out of the water before it arrives in London,” said Joe Barnes, Brussels Correspondent for The Express.

Barnes added that his source on the UK side told him: “it’s derisory, nothing more to say about it.”

Prime Minister Boris Johnson offered a lukewarm response, merely saying that: “substantial and important differences to be bridged”.

Perhaps more concerning, though, was that even EU sources weren’t in favour of the concessions being offered by Barnier. Speaking to BBC Brussels Correspondent, Chris Beake, the source said they were ‘surprised’ by Barnier’s proposal. One diplomat added that the percentage bracket was just one of many that had been discussed in recent weeks, and would be a ‘very high price to pay’ for the EU’s fishing-reliant countries.

Beake said that after the Brexit transition, the UK is demanding the right to double its own catch quota within its own waters, as a result of claiming independent status. The bottom line, though, was that more percentages were likely to be ‘bandied around’ in the coming weeks, though an agreement on fishing still seems a long way off.

Following these developments, the pound sterling fell by 0.76% against the euro, down to a rate of 1.1125 GBP/EUR. Likewise, cable (GBP/USD) dropped 0.44% to 1.3298. Speaking on the Brexit fishing stalemate and the situation as it stands, IG Senior Market Analyst, Joshua Mahony, said that:

“The issues of fishing right, state aid, and future dispute resolution remain a trio of hurdles which remain the three major sticking points which could ultimately lead the UK out of the EU without a deal.”

“Nevertheless, with the pound having gained ground against the euro over recent months, it is clear that traders either expect a last-minute breakthrough or have simply taken on a more relaxed stance to what originally touted as the worst-case scenario in 2016.”

Two strategic shifts driving Unilever shares higher

Jamie Gordon
-
0
Two strategic shifts driving Unilever shares higher

Consumer defensive sector giant, Unilever (LON:ULVR), has been on the lips of several pundits over the past few weeks, with the stock looking value-for-money versus the role it plays in the Western retail sector.

Indeed, with a p/e ratio of 17.44, six versus three analyst Buy and Sell stances respectively, and a healthy 3.42% dividend yield, the consumer blue chip is not be sniffed at. Similarly, with its 4,590p share price just 5.56% ahead of where it began the year – versus some of the colossal gains posted by other companies during the pandemic – and 5% short of analysts’ consensus target price of 4,819p, Unilever remains a good-value stock for retail investors looking for a solid foundation.

The company’s price has increased somewhat this week, however, with two strategic developments seeing its stock come back into vogue and rise over 6%. Following the announcement that it would target $1.2 billion in plant-based sales by 2025 last Friday, the company’s shares hit a four-month low of 4,325p. Now, with news released over the last two days, it Unilever stock has seen something of a resurgence.

On Thursday, the company announced that it had agreed to acquire Californian nutrition business, SmartyPants Vitamins. Though the terms of the acquisition, and regulatory approval, have yet to be confirmed, the non-profit-backed health business will help to bolster Unilever’s ethical offerings by providing expectant mothers and children in need with affordable health goods.

Speaking on the deal, Fabian Garcia, President of Unilever North America, said: “We are delighted to welcome SmartyPants Vitamins to the Unilever family and our portfolio of purpose‐led brands. SmartyPants Vitamins aligns strongly with our mission to improve the health and wellbeing of consumers and empower people to take charge of their health with solutions they can understand and trust.”

On Friday, the company announced that its shares would trade on the Amsterdam exchanger for the final time on Friday. The group said it would be merging its UK and Dutch arms amid an uncertain macroeconomic landscape, marred by a pandemic downturn and disruptive Brexit proceedings. The owner of PG Tips, Vaseline, Ben & Jerry’s, Hellmann’s, and Lynx said the merger will help provide extra flexibility in acquiring and exiting businesses, as well as more unified corporate governance and reduced complexity.

Speaking last month, ahead of merging the 90-year-old hybrid company, the group said: “The boards consider that unification is in the best interests of Unilever, its shareholders and other stakeholders taken as a whole.”

Though both strategic shifts indicate positive changes within the company, the latter could pose some considerable challenges, given that four previous chief executives had tried and failed to get rid of the company’s hybrid structure. Regardless, investors responded neutrally to the news, with Unilever shares exactly flat by mid-afternoon on Friday 27/11/20.

1...1,0831,0841,085...1,820Page 1,084 of 1,820