Novacyt shares bounce as coronavirus test kit develops
Novacyt SA (LON:NCYT) have seen their shares bounce, as the firm gave an update on its’ coronavirus testing kit.
The firm said that its coronavirus test kit, which has been developed by Primerdesign, its molecular diagnostics division, have invested a significant increase in manufacturing capacity following strong demand.
Novacyt noted that as of March 11, the firm has sold and received order for over £2.3 million of their coronavirus testing costs.
Interestingly, this figure represents five months of sales for the division under normal circumstances – and as a results shares have bounced.
Over the past two weeks the number of countries the Company is selling its COVID-19 test into has doubled to over 50, which is expected to increase further as the virus continues to spread.
Currently, the company is seeing significant sales from Europe and from a number of new and existing distribution partners across the Middle East.
Novacyt also added that they had completed a formal evaluation of its COVID-19 test by Public Health England (PHE) and is very satisfied with the performance assessment of its test.
The firm said that they are now expecting more NHS Hospital to purchase the testing kit, which should drive demand and sales.
Graham Mullis, Chief Executive Officer of Novacyt, commented:
“We believe the commercial demand for and interest in our COVID-19 test could continue for several months as the virus continues to spread from country to country. We are therefore ensuring we are fully prepared to meet the increasing demand for the product, as we continue to position Novacyt to support the global response to monitor and contain the COVID-19 outbreak. The sale of our COVID-19 test has already generated significant revenue for the Company, which we expect to continue given the increasing demand for the test.
“In addition, we believe interest in our COVID-19 test will have a positive, long-term impact on Novacyt as new customers look to purchase our broader product range. We are already seeing an increased demand for our B2B capabilities as customers look to utilise our molecular design and development capabilities.
“We will continue to update shareholders regularly with the Company’s progress, but we also ask shareholders to be patient as we try to respond to an ever-changing situation.”
WH Smith shares crash as coronavirus could have significant impact on results
WH Smith Plc (LON:SMWH) have given shareholders an update on its first half trading and the impact of the coronavirus.
The high street retailer said that across the first half of its’ financial year – which ended on February 29, group total revenue had jumped 7%, however on a like for like basis revenue had fallen 1%.
Total revenue across their travel division spiked 19% as like for like revenue also rose 2%. Notably, High Street saw their total revenue fall 5%, as like for like revenue also fell 4%.
The firm remained confident however that despite the current market conditions, that that underlying profit before tax for the first half will be in line with market expectations.
WH Smith also gave an update about the impact of the coronavirus on their operations and trading.
The firm said that across its Asia Pacific operations – which accounts for 5% of Travel revenue, the firm has been significantly affected.
Additionally, over the last two weeks WH Smith has seen a reduction in passenger numbers at airports outside of the Asia Pacific Region.
The firm said: “The Group is managing the business to protect profitability and is taking all necessary action to reduce costs. Based on current trading and modelling, the Group believes that the effects of Covid-19 will result in a reduction in our expectations for revenue and profit across the Travel business for the second half. Today, the Company is therefore providing guidance on the impact on full year results of Covid-19 based on an assumption of a challenging third quarter and a modest normalisation in the fourth quarter.
For UK Travel, we expect revenue for the six months to be down approximately 15% on expectations which includes airports, our most affected channel, down 35% in March and April. On the same basis, including significant reductions in March and April, second half revenue in the US is expected to be approximately 20% lower than our expectations. The rest of our International business is also expected to be approximately 20% lower.”
WH Smith have said that they will give more clarity on April 22, when interim results are set to be published.
The firm have speculated that the coronavirus could have a major impact within their financial year, and could face a hit between £100m and £130m on Group revenue.
Profit is also expected to be hit between £30m and £40m – which may worry shareholders.
The firm concluded by saying: “WH Smith is a resilient business with a strong balance sheet, substantial cash liquidity and strong cashflow. The Group has a strong management team in place and has consistently demonstrated that it can adapt and respond quickly to changing market conditions.
Over the longer term, the Board remains confident in the strategy and believes the Group is well positioned to benefit from the normalisation and growth of the global travel market.”
WH Smith see turbulence in 2020
In January, WH Smith gave the market a mixed update. The high street reader said that revenue growth in the 20 weeks period ending January 18 was 7%, however like for like revenue fell by 1%. WH Smith noted that high street business revenue fell by 5% on both a reported and like for like basis, which will worry shareholders. Gross margin was ahead of expectations however, and WH Smith said that they intend to identify further savings of £3 million. The travel business bloomed for the firm, as revenue growth of 19% was reported. This was driven by the acquisitions of Marshall Retail Group and InMotion. MRG was bought in October for £312 million, with InMotion purchased a year earlier for £198 million. Excluding the two deals, WH Smith in their travel sector still achieved revenue growth of 5% across travel overall which was impressive looking at the volatility of the airline and holiday market. Shares in WH Smith trade at 1,390p (-12.41%). 12/3/20 10:25BST.Trainline shares drop 10% however group net ticket sales rise 17% annually
Trainline PLC (LON:TRN) have seen their shares crash on Thursday, as the firm published its’ recent trading update.
The train ticket retailing platform noted that across its recently ended financial year, group net ticket sales increased 17% year on year to £3.7 billion – notably this fell within guidance and expectations.
UK Consumer net tickets also rose 24% – and Trainline added that this “reflected strong mobile demand driven by increasing eticket availability and adoption by customers”.
Trainline praised the strong performance of their new ‘SplitSave’ mobile app feature – which sold more than one million split tickets.
Notably, UK Trainline for Business (UK T4B) net ticket sales declined 1%. The firm said that these ticket sales were impacted by a change in operation and branding for the West Coast mainline franchise in the fourth quarter.
Group Revenue increase 24% year on year, giving a total of £261 million – which was at the top end of improved guidance.
The firm also noted that UK Consumer revenue grew by 30%, which was ‘ driven by strong momentum in net ticket sales and the launch of new revenue services in the last 12 months’.
International Revenue jumped 79%, which was driven by growth in net ticket sales and the launch of a new revenue service in Trainline’s international markets.
Going forward, the firm noted that since the outbreak of the coronavirus – trading had become more challenging.
The firm commented: “The trading environment has become more challenging in recent weeks. Trading softened significantly in February in Italy following an increased number of COVID-19 cases and demand has since weakened across the rest of International. UK demand has remained more resilient, although growth has slowed particularly from inbound travellers. The COVID-19 situation continues to evolve and at this time its ongoing impact is difficult to fully assess. As you would expect, the Group is monitoring the situation closely and will continue to take mitigating actions as appropriate.”
Going forward, Trainline have speculated saying that they expect expect Group adjusted EBITDA to be in the range of £82-86 million.
Clare Gilmartin, CEO of Trainline said:
“We are pleased to announce a strong trading performance for this financial year, with net ticket sales in line with and revenue growth ahead of expectations set out at the IPO. We have continued to focus on our mission to make rail and coach travel easier for customers in all the markets in which we operate, thereby encouraging a much greener way to travel.
“Our UK Consumer segment outperformed expectations, underpinned by ongoing consumer adoption of our mobile app and etickets, as well as the successful launch of our split-ticketing service ‘SplitSave’, which has been very well received by our customers. In International, while French ticket sales were impacted by the nationwide rail strike, I’m pleased we saw a good recovery once the strike ended and a continued strong performance in the rest of our International business.
“We have delivered on our growth plans this year, our first as a public company. While the impact of COVID-19 on near-term trading is unclear at this stage, we are well positioned in all of our markets and remain confident in our long-term growth strategy.”
Trainline see mixed few months
Trainline gave shareholders a confident update in December, as they eiterated their annual guidance as the firm continued to deliver strong growth in ticket sales and revenue. Within the nine months to November 30, Trainline’s climbed 26% to £198 million, with UK revenue up 22% to £178 million and International rising 90% to £20 million. Revenue from the UK consumer segment climbed 31% to £133 million, though Trainline for Business revenue in the UK was flat at £45 million. Trainline did note there was a slowdown in the third quarter of its year as large corporations cut discretionary travel spending. Trainline offers a rail and coach ticket purchase platform saw net ticket sales of £2.86 billion within the none months, seeing an 18% climb year on year. In the UK, net ticket sales were up 14% to £2.47 billion, with International climbing 49% to £390 million. UK consumer net ticket sales rose 24% to £1.54 billion, with business sales rising 2% to £930 million. Shares in Trainline trade at 349p (-10.61%). 12/3/20 10:12BST.
Rishi Sunak unveils new budget plans to mitigate coronavirus impact
The Chancellor of the Exchequer, Rishi Sunak has unveiled the latest budget by the government this afternoon.
Over the last few weeks, the global population have been trying to combat the ongoing coronavirus epidemic.
Since its initial spread, the coronavirus has affected Europe in a manner which is larger than anticipated.
Italy seem to have taken the worse of the beatings, as the Italian Government announced yesterday that the country would be placed into lockdown to stop the spread of the coronavirus.
The UK has seen case numbers rise also, and as of this morning six deaths had been recorded due to COVID-19.
Many analysts and policy makers have anticipated that the Budget would be largely focused on combatting the coronavirus – as the Chancellor planned to inject more money into the NHS and public service.
Notably, the Bank of England slashed interests rates from 0.75% to 0.25% this morning – in an attempt to increase cash flows to support businesses in the UK that had been bruised by the coronavirus.
This afternoon, Chancellor Sunak announced new budget plans including a £30 billion package to battle the coronavirus.
Sunak noted that there was significant strains on the UK economy, however said that “We will get through this together.”
Other policies that were notable in today’s budget included a statutory sick pay for “all those who are advised to self-isolate” even if they have not displayed symptoms and a a “Fiscal loosening” of £18 billion to support the economy this year, taking the total fiscal stimulus to £30 billion.
Notably, the was also the introduction of a “temporary coronavirus business interruption loan scheme” for banks to offer loans of up to £1.2m to support small and medium-sized businesses.
The newly elected Conservative Government also pledged to meet costs for businesses with fewer than 250 employees of providing statutory sick pay to those off work “due to coronavirus”.
Additionally, Rishi Sunak told the House of Commons that there would be a £5 billion injection into an emergency response fund to support the NHS and other public services.
Despite the ongoing coronavirus epidemic, the Office for Budget Responsibility has forecast growth of 1.1% in 2020, 1.8% in 2021 and then 1.5%, 1.3%, and 1.4% in the following years – if the impact of the coronavirus is mitigated.
Notably, fuel duty has been frozen for another year – and an increase in spirits duty will be cancelled. Tobacco taxes are increasing by 2% above the rate of retail price inflation.
Sunak also added that this budget will include a £600 billion allowance for road, rail, housing and broadband projects over five years – which built on the Conservative pledge to focus growth outside of London and the South East.
Finally looking at devolving powers – the budget also told the British people that there would be an additional £640m for the Scottish government, £360m for the Welsh government, £210m for the Northern Ireland executive and £240m for new city and growth deals.
Ultra Electronics post bullish annual update, as dividend is lifted
Ultra Electronics Holdings PLC (LON:ULE) have reported an impressive set of fundamentals from their annual results.
The firm saw a pretax profit total of £91 million – a notable rise from £42.6 million recorded a year ago.
Ultra Electronics also added that revenues spiked 7.7% to £825.4 million from £766.7 million.
The FTSE 250 listed firm said that its’ current order book stood at £1.02 billion – seeing a 4% jump from the 2018 figure of £983.9 million.
Following the strong results, Ultra Electronic raised their dividend by 5% to 54.2p from 51.6p.
Simon Pryce, Chief Executive, commented:
“2019 was a busy year for Ultra, and one in which we made great progress. We defined our ONE Ultra strategy and started our Focus; Fix; Grow transformation journey, made good progress on a number of our change initiatives and continued to identify longer term opportunities for enhanced growth and improved efficiency. At the same time, we delivered a good set of outcomes for our stakeholders.
We enter 2020 with an enhanced, engaged and motivated team and a strong order book. In addition to focussing on improved delivery, we will be accelerating investment in internal R&D and underlying IT infrastructure as well as process standardisation and excellence.
We remain excited about the significant opportunity within Ultra to accelerate growth, improve delivery and generate exceptional value for all our stakeholders over time. We are increasingly confident in our ability to deliver it. ”
Ultra Electronics deliver on expectations
In November, the firm told shareholders that its’ trading was set to meet expectations and was on track with company targets. The defense engineering company said for the nine months to September 30 there had been good order book development, as anticipated. Ultra’s order book rose above the £1 billion mark for the first time since 2011 at the half year stage in June. In November, Ultra’s Ocean Systems business won a potential $100.9 million contract to design, develop, test and integrate a radar software management platform intended for the US Navy’s new and in-service submarines. Numis forecasted Ultra to deliver £104.1 million of pre-tax profit for the full year to 31 December 2019, £824 million revenue. The analysts estimate pre-tax profit to grow to more than £115 million by 2021 showing significant strides after volatile 2019 trading year – and these targets have comfortably been met. Shares in Ultra Electronics trade at 2,046p (-1.06%). 11/3/20 14:31BST.Future remain confident that COVID-19 will not hurt profit levels
Future plc (LON:FUTR) have remained confident that their annual results will not be impacted by the current epidemic of coronavirus.
The firm noted that it has decided to cancel two of its’ biggest events, which are e Photography Show and Homebuilding & Renovating Show.
Both these events had been scheduled for March however the Photography Show is now expected to take place in September, while the National Homebuilding & Renovating Show is scheduled for July.
Shareholders will remain optimistic – as both these events even with the rescheduling still fall within Future’s current financial year – which ends on September 30.
The firm commented:
“The decision to postpone has been agreed in partnership with the headline sponsors of both events and in anticipation of the requirements of other sponsors and exhibitors. We do not expect any impact on profit as a result of postponing these events, while the decision to delay in a timely manner means we can avoid unrecoverable costs. We have a number of other smaller events, both in the UK and the US, over the coming months, however their impact to the wider group is not material. A decision will be made regarding each event based on the local market dynamics.
Overall, we are seeing limited impact of Coronavirus in our day-to-day business model; our strategy is working well in terms of audience, product and end market diversification. The fundamentals of our business have not changed, our headline audience numbers continue to be strong, and our operating disciplines mean that we are well placed to meet the challenges and opportunities arising from these dynamic market conditions.
Whilst the Board continues to monitor the situation closely, the Group does not expect any impact on profit as a result of postponing these events.”
Future’s annal results still set to beat expectations
In February, Future saw their shares in green as the firm reinstated their confident sentiment in beating Interactive expectations. The British media firm said that it expects its annual results to be ahead of market expectations, despite both political and economic uncertainties affecting many British businesses. Following the strong trading form, Future said that they can expect financial year results to be “materially ahead of current market expectations”. Interestingly, the firm saw audience members across its media division rise which caused the surge in strong organic revenue. Future also saw higher conversion off margin revenue in eCommerce and digital display advertising. For its financial year ended September 30, 2019 the company posted pretax profit of £12.7 million on revenue of £221.5 million. The magazine and media brand concluded by saying that it had carried strong trading momentum across the four month period, which ended on January 31st. Shares in Future plc trade at 1,038p (-1.33%). 11/3/20 13:57BST.French Connection shares in red as 2019 sales fall
French Connection Group (LON:FCCN) have seen their shares dip as the firm gave shareholders a disappointing update.
The fashion brand said that across the recently ended financial year their loss had narrowed but sales continued to slip.
The Chairman noted: “After making further progress during the first half of the year, the overall result for the financial year is disappointing. Performance during the second half has been considerably worse than expected, particularly during the fourth quarter in the UK, reflecting the continued difficult trading conditions and a shift in the phasing of wholesale deliveries to customers into the New Year.
Encouragingly however, the strong sales growth we have seen recently in the USA wholesale business continued, helped by another excellent sell through at the major department stores, although this was adversely impacted by the additional import duties imposed.
I am however, pleased with the continued good performance of the wholesale business in the USA and we have good forward order banks in the UK to be delivered during the first half of the year. Initial reaction to the winter ranges has been good.”
Across the annual period, which ended on January 31 – French Connection recorded revenue from continuing operations of £119.9 million – which sees a 11% slump from £135.3 million recorded a year ago.
French Connection managed to cut their loss from £8.6 million to £7.3 million on a better note – this was mainly due to operating expenses falling by 20% from £71.6 million to £57.2 million.
Total retail revenue dropped 20% to £46.7 million – whilst wholesale revenue also dipped 4.8% to £73.2 million.
Looking at the UK Europe – the fashion brand saw like for like sales fall 2.5% following tough market conditions.
French Connection noted that the British High Street was becoming tougher to operate within and that this had affected its’ results across the yearly period.
“The trading landscape in the UK is unlikely to improve in the short term and this has a potential impact on both the retail and wholesale businesses. Against this background we are working hard to ensure we are operating as efficiently and cost effectively as possible while working closely with all our trading partners to maximize business with them.
All our staff have worked hard over the year in testing conditions and for this I thank them. We have a lot to do to return the business to the positive progress we had been making prior to this year but I am confident we are well positioned to achieve this”.
Commenting on the results, Stephen Marks, Chairman and Chief Executive said:
“The performance this year has not been as anticipated and we are not being assisted by the continued difficult trading conditions in the UK and potential uncertainty due to the COVID-19 coronavirus. I am however, pleased with the continued good performance of the wholesale business in the USA and we have good forward order banks in the UK to be delivered during the first half of the year. The initial reaction to the winter ranges has been positive, particularly at our recent New York Fashion Show.”
French Connection see tough end to 2019
In September, the firm saw its’ shares crash following a trading update. he UK-based retailer said that group revenue for the six months to 31 July amounted to £51 million – a 12.2% decline compared to the £58.1 million figure from 2018. French Connection said that the decline in group revenue was driven by “the ongoing reduction of the store portfolio and a shift in timing of wholesale shipments into the second half of the year”. The company added that operating loss from continuing operations improved to £3.7 million compared to £5.5 million from the year prior. French Connection added that it initially expected the strategic review and formal sale process to end during the first half of the year, but has extended the period given the “active ongoing discussions”. Shares in French Connection Group trade at 13p (-5.26%). 11/3/20 13:37BST.Frontier Developments sign new deal with Formula One
Frontier Developments PLC (LON:FDEV) have told the market they have won the licence for a new Formula One game.
The video game development firm said that its future confidence has been reinstated as it signed a multi year gaming licence along with two third party publishing deals.
Following the signing of this deal – the firm also remained confident on their future outlook as they commented:
“As a result of the significant incremental benefit of the F1 Licence and the progress of Frontier Publishing, the Board’s confidence in the outlook for FY22 and beyond has been further strengthened. FY22 will now benefit from two major licenced IP multi-platform releases planned for that year, the anticipated ongoing performance of the existing titles supported by additional content, and a strong pipeline of releases from Frontier Publishing partnerships.”
Notably, Frontier said that the licence gives exclusive rights with Formula One Management to develop games for the FIA Formula One World Championship.
The games will produced on both PC and consoles, giving Frontier streaming rights from 2020 till 2025 – as long as certain financial criteria are met.
David Braben, Frontier’s Chief Executive, said:
“We are delighted to announce this multi-year licence deal with F1. F1 is one of the most popular global sporting franchises in the world, and we believe the combination of the F1 brand together with our extensive experience in management games will deliver fantastic game experiences to a wide and varied audience around the world.
We have achieved great success with our own IP and are proven development and publishing partners for the highest profile third party IP. Both original and licensed IP will continue to be important as we grow and nurture our portfolio.”
Frank Arthofer, Director of Digital and Licensing at Formula 1, said:
“Games are an important part of the F1 media ecosystem. This new manager franchise will allow fans to experience the challenging management aspects of the sport through immersive simulation games, and make that experience as accessible as possible for a broad audience. We have huge respect for Frontier and their achievements in the management simulation category, and are thrilled to be working with them for the 2022 season and beyond.”
Frontier Developments grow from strength to strength
In September, the firm gave shareholders a confident update on its’ trading. The Company’s revenue jumped 162% on a year-on-year comparison, from £34.2 million to £89.7 million. This drove operating profit growth of 593%, up from £2.8 million to £19.4 million, and EBITDA growth of 209%, up from £9.4 million to £29.0 million. Frontier Developments added that their basic EPS rose 373%, from 9.6p to 45.4p. The Company attributed much of its progress to its biggest release to-date. Jurassic World Evolution was released in June 2018 to compliment the release of the Jurassic World: Fallen Kingdom film. The game sold a million copies in the first five weeks, and two million within seven months. Planet Coaster, Elite Dangerous and Planet Zoo – released in November 2016, December 2014 and November 2019 respectively – all progress as the Company’s major releases. Shares in Frontier Developments trade at 1,216p. 11/3/20 12:53BST.Greatland Gold produce ‘outstanding’ results at Havieron
Greatland Gold (LON:GGP) have updated the market today on their operations at their Havieron site.
The gold exploration firm said that the results had been ‘outstanding’ – which has sent shares rallying.
Shares in Greatland Gold trade at 4p (+13.09%). 11/3/20 12:31BST.
Greatland noted that the current drilling at Havieron is continually expanding and is showing strong potential of high grade mineralization.
Notably, this extends over a strike length of 400m, to vertical depths of 600m and remains open at depth and to the northwest.
The firm said that they will continue to pursue their drilling activity, with a total of eight rights now in operation. Greatland also outlined their intentions to try and deliver initial resources in the second half of this year.
The firm also noted that they expect operations at Newcrest to complete Stage 2 of Farm-in by end of March 2020.
Gervaise Heddle, Chief Executive Officer of Greatland Gold plc, commented:
“We are delighted by this sixth consecutive set of excellent results from Newcrest’s drilling campaign, which continue to demonstrate the continuity of high-grade mineralisation and expand the mineralised footprint. These latest results represent one of the best sets of drilling results at Havieron since Newcrest began its exploration campaign and reinforce the potential to accelerate the timetable for commercial production.
“As we enter the Australian exploration season, Newcrest continues to drill Havieron at pace and will shortly complete Stage 2 of the Farm-in. Meanwhile, we are planning to be very active with our own systematic exploration campaign across the Paterson, which will focus on drill testing many of the high-priority targets we identified last year.”