Clinigen see earnings rise across first half
Clinigen Group PLC (LON:CLIN) have told the market that earnings have risen in the first half of its financial year.
Shares in Clinigen trade at 804p (-5.24%). 25/2/20 12:10BST.
The pharmaceuticals firm said that pretax profit had increased by 92% to £24.8 million from the 2018 figure of £12.9 million in the six months to December 31.
Notably, revenues also surged 17% to £243.7 million from £208.9 million. On an organic basis – in constant currency and excluding acquisitions – revenue grew by just 1%.
Additionally, Clinigen declared an interim dividend payout of 2.15 pence per share, seeing a 10% spike from 1.95 pence paid in 2018.
Shaun Chilton, Group Chief Executive Officer, said: “Our strategy is to build an integrated, international pharma product and services group with strong operational synergies, working with a growing roster of multinational clients and healthcare professionals around the world. We are delivering on our strategy and have seen a strong financial performance – both at the headline numbers and on an underlying organic basis.
“Key operational highlights include the first supply agreement for Proleukin with Iovance; the performance of Melatonin, our largest Unlicensed-to-Licensed product to add to Glycopyrronium in validating this strategy; and continued strong growth in Global Access.
“With the commercial platform in the EU and US now established, we are actively seeking further product in-licensing and acquisition opportunities to leverage across the business. We are also integrating CSM into our Clinical Services division to drive higher organic growth across the Group through greater cross-selling and seeding relationships into our Unlicensed Medicines business.
“We have continued our good performance into H2 and continue to expect organic gross profit growth at the upper end of our medium-term target range of 5-10%.”
Looking at the statistics and update provided, it is interesting to note that the share price of Clinigen has fallen on Tuesday afternoon, shareholders have not reacted so optimistically to the results despite increasing revenues and profits.
FTSE 100 crashes to a five month low as coronavirus cases reach Italy and Tenerife
The FTSE 100 has crashed to a five month low on Tuesday, as it dropped below 7,100 for the first time since October following concerns over the coronavirus.
The fall for the FTSE 100 started yesterday, as further fears over the coronavirus continued to take their toll on global stocks and indices.
Currently, the FTSE 100 Index is at 7,118 (-0.54%). 25/2/20 11:35BST. However, global markets saw the index drop to 7,098 at around 10:35BST – a worrying drop for traders and businesses globally.
Markets plunged yesterday, as the coronavirus had reportedly hit Italy. On Sunday, football matches in Italy were postponed over the spread of the lethal virus and this has taken its toll on global markets.
Updates on the coronavirus today have reported that there are cases in a hotel in Tenerife of the disease – and now global governments are being increasingly alarmed over the potency of the coronavirus.
UK airlines were the victim of the drop in share price today and yesterday, as International Consolidated Airlines Group (LON:IAG) dropped 2% as it extended its travel restrictions to and from China.
Notably, budget airline RyanAir (LON:RYA) also lost 1.4% on its value, whilst rival TUI AG (LON:TUI) saw an ever bigger slump of 2.6%.
Yesterday, the FTSE 100 dropped 3.7% before making a slight recovery closing at 3.3% down – in what has been a gloomy few days for global businesses and stocks, it seems that the coronavirus s continuing to affect global markets.
Economic activity has been slumping in China, and demand for oil has also remained volatile. However, the weighing down on global markets is something that will concern governments, businesses and investors.
The coronavirus epidemic could still affect the FTSE 100, and has already hit the Dow Jones and German DAX – the worrying thing might be that, cases are still increasing at a time where global governments thought the virus was easing up.
John Woolfitt from Atlantic Capital Markets gave some further insight noting:
“The sell-off does look to be extremely overdone, especially when you compare
it to the markets reactions to previous outbreaks and the following impact
on the markets. Once the dust has settled it is going to be a fantastic
buying opportunity especially as the FTSE has seen 12months worth of gains
wiped out in less than a week.
The big word here is WHEN the dust has settled. There’s no point trying to
call the bottom, I am going to wait for it to present itself. Patience in
the short term will pay off nicely in the longer term. When SARS and MERS
hit the market the sell off was short lived and the bounce back highly
profitable. We expect similar again
I can’t help feeling that the US markets where looking for a reason to have
a sell off and Coronavirus has given it exactly that. It has been looking
overbought for a while.”
Hotel Chocolat shares bounce 9% on impressive interim results
Hotel Chocolat Group PLC (LON:HOTC) have seen their shares bounce on Tuesday, as the firm posted a strong set of interim results.
The firm did not change its dividend, and alluded to rising revenues and profits across the first half of its financial year.
Shares in Hotel Chocolat trade at 419p (+9.04%). 25/2/20 11:19BST.
Across the half year period, which ended on December 29 – the chocolate retailer reported that revenues had jumped 14% to £91.7 million from £80.7 million from a year ago. Notably, pretax profit also rose 8.2% to £15 million from £13.8 million.
Hotel Chocolat praised these results following the opening of nine new stores, which gives a total store portfolio of 125 sites. Additionally an increase in retail, wholesale and digital sales drove the strong performance.
The firm proposed an interim dividend of 0.6 pence, remaining consistent from a year ago.
Angus Thirlwell, Co-founder and Chief Executive Officer of Hotel Chocolat, said:
“This was another strong period for Hotel Chocolat. Our new store openings contributed three percentage points of the growth in the period, with the remaining balance coming from existing locations, digital and wholesale channels. While our new markets in the US and Japan are still in the early stages of development, consumer response to the brand is encouraging, sales are growing, and we believe we have a deliverable plan to achieve attractive returns.
“The Velvetiser in-home hot chocolate system achieved strong growth, with our installed Velvetiser owner base showing great loyalty and enthusiasm for our widening library of flavours, with Tasmanian Mint, Habanero Chilli, and Maple & Pecan hot chocolates becoming instant hits. Our VIP loyalty scheme continued to grow strongly and contributed to double digit EBITDA growth from our physical UK locations.
“Our strong growth came from a wider variety of sales channels than in previous years, which led to some initial challenges in our supply chain. We are now making good progress with investments and upgrades in our supply chain which will fully address these inefficiencies and increase our international and multi-channel supply capability, ensuring we continue to deliver profitable growth.”
AstraZeneca sublicense Movantik to RedHill Biopharma
AstraZeneca plc (LON:AZN) have announced that it has agreed to sublicense the global rights to Movantik.
The deal has been struck with RedHill Biopharma Ltd for $67.5 million – and certainly looks like a shrewd piece of business.
Movantik is indicated as a treatment for opioid-induced constipation – and Redhill are set to pay AstraZeneca $52.5 million upfront for the global rights – excluding Israel, Canada, and Europe. Additionally, another $15 million will be paid as a non contingency payment in 2021.
Whilst the deal is being formally completed, AstraZeneca have pledged to keep manufacturing and supplying Movantik.
The deal is set to be complete in the first quarter of 2020, provided e “customary closing conditions and regulatory clearances” are met. As a results, the firm have said that there 2020 guidance will not be affected.
Ruud Dobber, Executive Vice President, BioPharmaceuticals Business Unit, said: “This divestment supports our strategy to realise value from medicines in our portfolio that are mature or outside our current scope to enable reinvestment in our main therapy areas. Movantik is an important established medicine and the divestment to RedHill will ensure its continued availability for patients.”
AstraZeneca continue 2020 in strong fashion
At the end of January, the firm gave a double update which continued the good run for the firm. The FTSE 100 listed pharmaceutical giant updated shareholders by saying it has sold the commercial rights to its Inderal, Tenormin, Tenoretic, Zestril, and Zestoretic to Basildon-based Atnahs Pharma for $350 million upfront. Astra added that they may also get a further $40 million depending on sales between 2020 and 2022. Notably, the sale excludes provisions in the USA and India, which had been sold prior to the announcement. AstraZeneca also updated the market about the outcomes of drug trials for two new medications. The pharmaceutical giant said that the Brilinta medication met its primary endpoint in a third phase trial, which showed positive conclusions including the reduction in the risk of death in strokes compared to conventional painkillers. Enhertu, a gastric cancer treatment, also met its primary endpoint, in a phase II trial. Astra said the drug achieved a “statistically significant and clinically meaningful improvement” in the response and survival rate of patients with unresectable or metastatic gastric of gastroesophageal cancer. Shares in AstraZeneca trade at 7,379p (-0.90%). 25/2/20 11:05BST.De La Rue announce three year turnaround plans, as shares spike 18%
De La Rue plc (LON:DLAR) have seen their shares rally on Tuesday, following an optimistic update from the firm.
The bank note producer has seen a lot of turbulence of the last few months – and questions as to whether the firm would survive were posed. However the update provided today will give shareholders some confidence for the future.
De La Rue announced the details and terms of its three year turnaround plan, as the firm reinstated its annual guidance.
The firm added that trading in the second of its financial year in both its Currency and Authentication sectors had been ‘satisfactory’.
De La Rue held faith in their current guidance for operating profit to lie in the range of £20 and £25 million.
Looking at the firms turnaround plan, De La Rue said that it plans to return its its Currency unit to “progressive” margin growth from financial 2021, helped by cost reductions, and investment in polymer and related features.
Notably, the firm also added that demand for currency is still high worldwide and it will look to maintain its “number one” position in the commercial currency print marketplace.
Clive Vacher, CEO of De La Rue, said:
“I am pleased that we have delivered our review of the business on schedule and are on track with the Turnaround Plan, which will deliver significant improvement in the operational and financial performance of the Company. The Plan drives extensive cost reduction and, in parallel, offers a substantial investment opportunity for growth.
“For our valued customers, De La Rue will be an even stronger brand going forward, with exciting market-leading innovations and unparalleled customer focus and support. For our dedicated employees, solidifying both divisions as strong, profitable and growing will ensure long-term stability and a company proud of its number one position globally in the marketplace. For our shareholders, the plan creates value, sustainability and predictability.
“I am confident that this is the right plan for De La Rue. There is a considerable amount of work to be done, and the Company has a single, focused plan, a fully aligned leadership team, and a greatly enhanced structure. We are ready to execute. I look forward to providing further details at our full year results in May.”
De La Rue’s profit warning
In October, the firm saw its shares sink following a profit warning issuance. The company issued a statement saying the following: “De La Rue expects H1 2019/20 adjusted operating profits for the half year ended 28th September 2019 to be low-to-mid single digit millions. Full year 2019/20 adjusted operating profit will be significantly lower than market expectations” The banknote printer had already warned in May that operating profit for the 2020 financial year would be “somewhat lower” than 2019. The firm also revealed a 78% sink in profits, before tax to £25.5m in its full-year results in May, down from £113.6m a year earlier.De La Rue seem to beat the odds
In November, speculation surfaced the market over the survival prospects of De La Rue. Within the November update, De La Rue have bailed on plans for a dividend this year and warned shareholders about the ability for the firm to continue to operate. “We have concluded there is a material uncertainty that casts significant doubt on the Group’s ability to continue as a going concern,” it said today as it fell to a £9 million loss. Net debt soared while the group warned it has become overly reliant on banknote printing contracts. De La Rue seem to have bounced back with the update provided today – this new plan announced should put the firm in the right steps to recover and hopefully operate at its best within the next few years. Shares in De La Rue trade at 144p (+18.00%). 25/2/20 10:46BST.Oil prices see slight recovery following bleak Monday, as coronavirus fears continue
Oil prices have seen another spike on Tuesday morning, following slumps of almost 4% recorded on Monday.
Concerns about the coronavirus are continuing to spread – and a few days back I was here writing about how it looked like the epidemic was under control.
This turned out to be a call made too soon however – worries now that the coronavirus has spread to Italy has raised concern levels not just for investors and traders, but also global governments.
Global equities still seem to be recovering from the slump that was seen on Monday – the Dow Jones plunged more than 900 points, as well as slips to oil derivatives.
The demand for oil has been volatile since the outbreak of the coronavirus, and any gains in price have been offset by falling supply measures.
Last week, OPEC+ announced that they would be monitoring the supply of oil very carefully in order to keep oil derivative prices steady at a time where the global economy is in shock.
There is no doubt that the coronavirus is still very much at large – countries and governments are trying to put together an action plan to stop any further spread, however this is seeming to be a bigger challenge than what was initially expected.
Reports in China have suggested that the virus has now affected more than 80,000 people – a significant number considering that this is ten times more than the SARS coronavirus outbreak in 2002/2003.
However, Saudi Arabia’s Minister of Energy Prince Abdulaziz bin Salman said that OPEC+ should not be complacent about the coronavirus.
Following the slump that was faced on Monday, oil prices are still trying to recover. The outbreak of the coronavirus still continues to dominate news headlines, as the U.S. Centers for Disease Control and Prevention (CDC) warned that “more cases are likely to be identified in the coming days” in the United States, although it said that the “immediate health risk” is “low.”
OPEC+ are scheduled to meet at the end of next week, however continued tensions between Russia and Saudi Arabia may mean that negations could stutter.
The price of WTI Crude is currently $51.40, whilst Brent Crude trades at $55.78.
Meggitt post bullish set of annual results, however shares stay in red
Meggitt PLC (LON:MGGT) have reported an impressive set of annual results on Tuesday, however shares have remained in red.
Shares in Meggitt PLC trade at 581p (-2.15%). 25/2/20 10:01BST.
The annual results were impressive reading for the FTSE 100 lister, as organic revenue beat raised guidance.
Across 2019, the aerospace parts firm said that revenue totaled £2.28 billion in 2019. This sees a 9.6% jump from £2.08 billion in 2018 – certainly an impressive statistic for shareholders to take from the update.
Notably, this surge in revenue also meant that pretax profit rose 33% to £286.7 million from £216.1 million.
Orders also rose 10% year on year in 2019, totaling £2.47 billion. Notably performances came from the civil aerospace, defense and energy sectors – all which saw a 8%, 11% and 10% rise in sales respectively.
The firm continued the good news, and declared an interim dividend of 17.50p per share, which sees a 5.1% spike from 16.65p in 2018.
Meggitt did warn shareholders that 2020 could be a tough year for the firm, following production supply issues with Boeing (NYSE:BA) and issues ongoing with the outbreak of the coronavirus.
The firm forecasted by saying that it expects 2020 revenue to lie within the 2% to 4% ball park, and that 2020 underlying operating margin will improve by 30 to 50 basis points.
Tony Wood, Chief Executive, commented:
“Over the last three years, as a result of the successful execution of our strategy, the Group has become a more focused, higher quality and more resilient business, reflected in the delivery of strong levels of organic growth and cash generation.
We delivered another strong set of results in 2019, with organic revenue growth of 8%, ahead of our raised guidance, and good performance across all end markets, particularly Defence.
Our performance was underpinned by growing end-markets and strong execution across our teams during the first full year of our new customer‑aligned organisation. We delivered good progress on our strategic initiatives helping offset the investment made at our fast growing advanced engine composites sites and headwinds caused by adverse mix, supply and trading environment conditions and the grounding of the Boeing 737 MAX, and enabling us to deliver an increase in underlying operating profit of 10% to £403m.
2020 will mark another important year for the Group including the phased transfer into our new, state-of-the-art manufacturing campus at Ansty Park, UK. With a clear strategy, good cash generation and our increasing market share across our growing installed base of 73,000 aircraft, we are well positioned to sustain growth ahead of the market over the medium term.
Reflecting our continuing confidence in the prospects for the Group, the proposed final dividend is 11.95p giving a full year dividend of 17.50p, an increase of 5% and we expect 2020 to be a year of further progress and profitable growth.”
Meggitt also announce Directorate change
In a separate update today, the firm also announced that Sir Nigel Rudd who is Chairman would be stepping down as Chairman and Director of the Company to spend more time on his business and other interests. Meggitt said that Rudd would be staying in his role until a suitable replacement is found, but will not seek re-election at the 2021 AGM. Rudd commented: “It has been a privilege and a pleasure to serve as the Chairman of Meggitt. Since 2015, we have focused on establishing Meggitt as a truly world-class, innovative, global aerospace, defence and selected energy business and I am very proud that in 2019 the company returned to the FTSE 100 index. It has been a pleasure to work alongside the Board and senior management team during this time to determine and deliver the Group’s vision and strategy, and lay the groundwork for future growth. I will work to ensure a seamless transition to my successor.Meggitt win big with DLA
In November, the firm announced that they had won a big contract with the Defense Logistics Agency in Philadeplphia. Megitt will supply fuel bladders to the F/A-18 Super Hornet, V-22 Osprey and the CH/MH-53 Super Stallion to the Defense Logistics Agency in Philadelphia. The Defense Logistics Agency is part of the US Department of Defense, and they manage the global supply chain of equipment for the army, navy and air force. Specifically, Meggitt will supply fuel bladders for the F/A-18 Super Hornet, V-22 Osprey and CH/MH-53 Super Stallion aircraft. The terms of the contract are yet to be fully released, however it was reported that the contract extension has a potential value of $130 million. The deal will last six years and deliveries are set to commence in early 2020. The update provided today is certainly impressive for Meggitt, however the firm will; remain cautious with the worries that they have speculated over – which could lead to a more steady year of trading.Croda International see profits dip across 2019, as sales remain flat
Croda International (LON:CRDA) have given shareholders a steady set of annual results, which have been released on Tuesday morning.
The FTSE 100 listed firm said that profits had dipped across 2019, and this was largely due to flat sales.
Steve Foots, Chief Executive Officer commented:
“In 2019, we delivered a resilient performance with a strong margin maintained and increased cash flow, despite subdued market conditions. This is testament to Croda’s focused strategy and strong business model.”
Despite the dip in profits and stagnating sales, Croda managed to lift their dividend payout – which will come as a pleasing note for shareholders.
The chemicals company recorded pretax profit of £302.3 million, which dipped 4.9% on the £317.9 million figure recorded in 2018.
In terms of revenue, which also slipped slightly the 2019 figure was £1.38 billion seeing a minute drop from £1.39 billion one year ago.
On a better note, the multinational declared a total ordinary dividend of 90p across 2019, seeing a 3.4% jump from 87p in 2018.
The Life Sciences Unit for Croda performed particularly strongly, as the firm saw sales rise 8% year on year to £350.2 million.
However, the Performance Technologies division saw a slump of 5.7% in sales to £430.2 million.
Foots concluded: “An excellent performance in Life Sciences was reflected in sales growth and margin improvement. Sales in Personal Care were significantly impacted by a slower US market and by new legislation in China, but conditions improved in line with our expectations in the final quarter, and sector profitability increased further. Performance Technologies slowed in line with the wider sector, due to weak industrial demand.
“In the year ahead, subject to trading conditions remaining similar, we expect to make further progress in our consumer markets, whilst demand in industrial markets is expected to remain weak but stable. Our growth will be second half weighted.
“With our new Purpose, Smart Science to Improve LivesTM, we will continue to increase the positive impact our products deliver for our customers and their consumers. We will also reduce the negative impact our activities have on our fragile world. The combination of a healthy innovation pipeline, recent investments, cost saving benefits and a robust business model is expected to underpin performance.”
Going forward the firm said that they remained confident to deliver expectations across 2020, and that progress will be made subject to steady trading conditions.
“In 2019, we delivered a resilient performance with a strong margin maintained and increased cash flow, despite subdued market conditions. This is testament to Croda’s focused strategy and strong business model.
In the year ahead, subject to trading conditions remaining similar, we expect to make further progress in our consumer markets, whilst demand in industrial markets is expected to remain weak but stable. Growth will be second half weighted.
With our new Purpose, Smart Science to Improve LivesTM, we will continue to increase the positive impact our products deliver for our customers and their consumers.
We will also reduce the negative impact our activities have on our fragile world. The combination of a healthy innovation pipeline, recent investments, cost saving benefits and a robust business model is expected to underpin performance.”
Shares in Croda International trade at 4,764p (-3.17%). 25/2/20 9:54BST.
US Election: Does Bernie Sanders hold the high hand?
The US Election is proposing a lot of different questions for the US people, the global audience and political commentators – I want to look at Bernie Sanders’ chance of taking this election by storm.
Bernie Sanders, who is currently the favorite to run against Donald Trump in November is making significant ground as the prime candidate to represent the Democrat Party.
The Democrat candidate produced an impressive win at the Nevada caucuses, and this is one signal that he is not a candidate that Donald Trump should be taking lightly.
The Vermont Senator has the ability to connect with a younger audience, who are engaged with left wing Liberalism in a country which has been dominated by the far right over the last few years.
One interesting thing, is that even in this election Bernie Sanders has still described himself as a democratic socialist – a title which does come with its backlash.
Super Tuesday is just around the corner, and whilst candidates have been sprinting to win as many votes, Sanders is taking a marathon approach.
This election cycle is certainly producing some interesting results – with the recent announcement that billionaire Bloomberg would running inside the Democrat Party, the race has never been so open.
Going back to Bernie Sanders however, the Vermont Senator seems to have caught an interesting audience, mixing diversity with youth. He was seen as the top choice for voters under 65, and has particularly sparkled with college graduates and those who have not been university educated.
Sanders may not need the support of big businesses and corporations, unlike his rival Republican counterpart in Donald Trump.
One of the reasons why Trump won the Presidency in 2016 was because of his pledges to favor big business, cutting red tape and creating an economy dominated by multinationals.
Most of his funding comes from small businesses, and individuals who align with his theory of social equality and communitarianism.
Internal competition comes from former Vice President Joe Biden, who at one points seemed like the favorite to run against Trump – however Sanders’ strategy team seem to be playing the right cards, and just before Super Tuesday he holds the highest hand.
Party internals have had their say on Sanders, suggesting that he is too liberal to beat Trump in November – however if Sanders continues his impressive run, then there may not be a chance to stop the Senator.
There is still a lot of ground to be made up in this election, and to suggest that Sanders will win the Democratic nomination is rather speculative.
Super Tuesday is famous for its decisive nature in any US Election, and if Sanders can capture a significant amount of ground then this could put him in a favorable position going forward.
“Together we will defeat the most dangerous president in the modern history of this country,” Sanders said in Houston, a certainly bold statement within a state that is traditionally red.
Just from the quote above, this sums up Sanders’ approach to this election. In essence, he has nothing to lose – he can afford to be brave, challenge the current incumbent and change the face of American politics if he successfully beats Trump in November.
However, this is all speculative at the moment. As is any great US Election – bumps, twists and turns are always round the corner. There is a real chance on Super Tuesday for Sanders to stampede his mark on this election, and the fact that he is connected with what seem to be ‘marginalized’ communities under the Trump administration puts him in great footing to be the Democrat Party’s challenger to the current US President.
Anglo Asian set out expectations to expand in Azerbaijan
Anglo Asian Mining PLC (LON:AAZ) have updated the market on their recent geological activity.
The firm has told shareholders that they are intending to expand production to current operations, following strong drilling results.
Anglo Asian mainly operate in Azerbaijan: Gedabek, Gosha, and Ordubad. Both Gedabek and Gosha are currently producing gold, with Ordubad in the exploration phase.
At the Gedabek operations, the firm said that they are developing existing work to define mineable mineralization – and the firm said that these are showing positive results.
Anglo Asian added that they hope to publish a new resource in 2020, which will please shareholders and the firm.
At Gosha, this is still in its early state exploration phase. However the firm has remained confident to look at the subsurface potential of this site within the year.
Finally, results from Ordubad have been “extremely encouraging”, and work at this mine will continue to expand over 2020.
Stephen Westhead, Director of Geology & Mining, commented,
“Our geological work programme continues over our three contract areas. At the Gedabek contract area, work on the two new targets of Avshancli and Gilar is progressing well. Good grades at Avshancli have been returned from the surface geological work and drilling and the vein system at Gilar has been confirmed. The mineralisation footprint of the Gadir underground mine has also been further extended. Additionally, we have started investigation of a new ZTEM target, Parakend Bugor which is next to Korogly.
“Considerable work has been carried out at Gosha which has been successful confirming the mineralisation below the existing Gosha mine. Surface geological work in the Gosha mine area also indicates the presence of gold. At Ordubad, the majority of the assay results from drilling at Keleki and Dirnis completed earlier in the year have now been received and show significant gold and copper grades. We have also started trench sampling at a new target “Aylis” at Ordubad and are beginning to corroborate the results of the WorldView-3 remote satellite sensing against data obtained from field geology.
“The Company is also providing shareholders, in a separate announcement today, a summary of the overall progress of our exploration programme and the work planned in 2020.”