BAE Systems post bullish annual results, as sales and revenue climb
BAE Systems plc (LON:BA) have reported a rise in sales and revenue across 2019, within an impressive update from the firm.
The aerospace technology and defense company said that 2019 revenue was reported at £18.3 billion, which sees an 8.9% spike from £16.8 million in 2018.
The revenue figure was slightly below Bloomberg consensus, which was predicted to be £19.8 billion – however the spike from last year will please the defense titan.
Pretax profit also surged, this time by 33% from £1.2 billion in 2018 to £1.6 billion this year. Notably, underlying earnings before interest, tax, depreciation and amortization was £2.2 billion compared to £1.9 billion a year ago.
BAE noted that their Electronic Systems sector grew well, from £3.9 billion in 2019 to £4.4 billion.
The Cyber and Intelligence Division also grew to £1.7 billion from £11.6 billion – which will please both the firm and shareholders.
BAE proposed a final dividend of 13.8p, which gives a total of 23.p per share for 2019. This sees an increase from 22.2 pence in 2018.
The firm also noted that the business is expanding geographically, with strong performance recorded in both the British and Saudi Arabian markets.
Charles Woodburn, Chief Executive, said:
“2019 has been a year of significant progress for BAE Systems. We delivered a good set of financial results in line with guidance, growing sales and earnings, with improved operational performance and increased investment in the business to underpin our growth outlook. Strategically we took a number of actions to strengthen the portfolio and the pensions agreement announced today is good for all stakeholders. These will help to accelerate our strategy and further our growth outlook. We have a large order backlog and remain focused on strong programme performance to deliver a sustainable business model with enhanced financial performance.”
The firm also told the market that it had seen an order intake of £18.4 billion, whilst order backlogs were recorded at £45.4 billion.
BAE finally noted that they had a one-off tax benefit, as the company noted: “A one-off tax benefit of £161m was recognised in the year, arising from agreements reached in respect of overseas tax matters, net of a provision taken in respect of the estimated exposure arising from the EU’s decision regarding the UK’s Controlled Foreign Company regime.”
Lloyds report mixed 2019, as profit falls due to rise in PPI payments
Lloyds Banking Group PLC (LON:LLOY) have given the market an update on their annual trading for 2019 on Thursday morning.
The British Bank reported a fall in profit across 2019 trading, which the firm said was due to a rise in PPI payments.
Lloyds remained confident with its general underlying performance, as shares have stayed in green on Thursday morning.
Across 2019, Lloyds said that they had recorded pretax profit of £4.39 billion – which sees a 26% slump from the 2018 figure of £5.96 billion.
Notably, 2019 profit also fell 1.8% short of the £4.47 billion consensus off market forecasts predicted by the firm.
Statuary net income for 2019 totaled £10.18 billion, which again slumped 24$ from £13.4 billion the year before.
On a better note, total income rose from £22.09 billion to £42.36 billion, where net trading income was reported of £18.29 billion against total expenses of £3.88 billion in 2018.
Insurance claims also rose for Lloyds, as the firm saw a sharp rise from £3.47 billion in 2018 to £24 billion.
On an underlying metric, net interest income was £12.38 billion which remained constant with market and analyst predictions. However, this was 2.6% lower from a year go which was reported at £12.71 billion.
Net income stayed inline with forecasts which was £17.14 billion, but saw a similar slip of 3.5% from £17.77 billion in 2018.
Lloyds reported that their total costs also fell, which would have been a pleasing take from this morning’s update.
Costs fell 5.1% to £8.32 billion, but PPI provisions rose again from £750 million to £2.45 billion.
Looking at Lloyds Retail, net interest income fell 2.8% year on year to £8.81 billion, whilst the commercial unit reported income drops of 3% to £2.92 billion.
Lloyds decided to increase their total dividend for 2019 to 3.37p, which sees a 5% appreciation from the 2018 figure of 3.21.
The British bank ended 2019 with a loan book total of £440.4 billion, which sees a slight fall from the £444.4 billion recorded at the end of 2018.
Net interest margin across 2019 trading also worsen to 2.88%, however this did remain consistent with market forecasts. This was a slight fall from 2.93% in 2018.
Notably, customer deposits fell 1.1% to £411.8 billion from £416.3 billion.
Going forward, Lloyds have said that they are guiding for a net interest margin between 2.75% and 2.80%
“The Group faces the future with confidence. As a result, we will continue to target a progressive and sustainable ordinary dividend. In 2020, the Group will also commence paying dividends quarterly, accelerating payments to shareholders, with the first dividend being paid in June 2020.”
Operating costs are expected to fall below £7.7 billion, which will please shareholders and give confidence for the future.
António Horta-Osório, Group Chief Executive commented:
“In 2019 the Group has continued to make significant strategic progress while delivering solid financial results in a challenging external market. The Group’s statutory performance was impacted by a substantial PPI charge related to the deadline for claims submission. Underlying performance was resilient, reflecting the health of our customer franchise and the strength of the business model.
Given our clear UK focus, our performance is inextricably linked to the health of the UK economy. Throughout 2019, UK economic performance has remained resilient in the face of significant political and economic uncertainty, supported by record employment, low interest rates and rising real wages. Although uncertainty remains given the ongoing negotiation of international trade agreements, there is now a clearer sense of direction and some signs of an improving outlook.”
Lloyds mentioned the diversity and inclusive nature of their employees – which is an aspect of business which has never been so important.
The Chief Executive concluded:
“The Group was the first FTSE100 company to establish targets for championing diversity within its business and we now have 36.8 per cent of senior roles held by women, up almost 8 percentage points since 2014 and we continue to aim to meet our target of 40 per cent by the end of 2020. With 10.2 per cent of roles across the Group held by Black, Asian and Minority Ethnic (BAME) colleagues, we have exceeded our 2020 target of 10 per cent.”
Lloyd’s receive criticism over HBOS fraud victim treatment
In December, Lloyds faced criticism for mistreating victims of major fraud. The fraud at Halifax Bank of Scotland’s Reading branch led to six people being jailed in 2017 for a combined 47 years. The scam involved small business customers being referred to consultancy for bribes which included watches, holidays and sex with prostitutes. The bank’s compensation scheme for victims had ‘serious shortcomings’, retired judge Ross Cranston said in a review. The bank has paid £102 million in compensation to 71 businesses and 191 directors over the fraud. Additionally Lloyds said it would offer all victims the option to have their cases independently reviewed. Watchdog the Financial Conduct Authority said it would consider ‘further action’ against Lloyds over the failings, adding that they needed to be addressed quickly. Speaking today, the Chief Executive added: “Historic conduct issues remain disappointing but we continue to be focused on doing the right thing for our customers. The Group is fully committed to implementing all of the recommendations contained within Sir Ross Cranston’s report relating to HBOS Reading and ensuring that victims of the HBOS Reading fraud have their claims assessed in an open and transparent manner. We have apologised to those impacted and are determined to put things right.”Third quarter blues
At the end of October, Lloyds reported that they third quarter pretax profit had slipped. The company’s profit before tax for the third quarter fell 97 percent to 50 million pounds from £1.82 billion last year. Statutory loss after tax for the quarter was £238 million or 0.5 pence per share, compared to profit of £1.42 billion or 1.8 pence per share in 2018. The third quarter results, were significantly impacted by a £1.8 billion payment protection insurance or PPI charge, driven by a high levels of PPI information requests received in August. Additionally, net income for the quarter declined 6% to £4.19 billion from £4.45 billion pounds a year ago. Lloyds banking forecasted net interest margin of 2.88%, in line with previous guidance of about 2.9% which does give shareholders something to hold onto amidst this poor quarterly performance. Market analysts have reinforced the current PPI issues that Lloyds are facing, and have said that this was the main factor which dented their results today. However, there has been commendation for the firm. John Woolfitt, Director of Trading at Atlantic Capital Markets commented: “It looks like Lloyd’s still can’t get away from the shadow of PPI pay-outs and so the “people’s cash machine” is still paying out. Despite this weight on the headline results, profitability was still fairly robust and I feel that investors will at least take some comfort from the increased dividend and the executive pay structure cuts taken by Horta-Osario. At least he is sharing the pain. Considering Lloyd’s are the most domestic facing bank, and the uncertainty the UK economy has seen over the last year, overall the numbers show resilience. Investors and the markets are in agreement with shares up 3% on the day.” Lloyds have seen a mixed time across 2019, with a spread of results. The firm is looking to correct their public media imagine following a couple of incidents which have dented the reputation of the firm – however this should be fixable over time. The British bank will remain confident across 2020 – when more market clarity is given as both consumers and investors find confidence. Shares in Lloyds trade at 57p (+2.88%). 20/2/20 9:57BST.
A small guide to Copenhagen
I started the new decade with a long weekend trip to Copenhagen. Having heard nothing but positive talk about the city, I was ready to go and explore the Scandinavian dream for myself.
Thanks to Ryanair’s (LON:RYA) Black Friday sale, me and my partner snapped up flights for a ridiculously cheap £14 return. We found an equally good deal on our hotel, securing roughly 50% off in yet another Black Friday sale.
This brings me onto my first point – when to book. Like many places in Scandinavia, Copenhagen is a stunning little winter getaway. Granted day light is limited, but the city is the perfect place to wrap up warm and explore in the cold wintery months.
Visiting during the second week of January was a great thing to look forward to in the New Year after the Christmas festivities. Regardless of whether you’re visiting Copenhagen or not, I recommend you take advantage of Black Friday travel sales and book just a few months ahead for some fantastic deals on flights and hotels.
Where to stay:
We stayed in Hotel Ottilia; a quirky 4-star hotel located in the vibrant Carlsberg City District. The hotel is surrounded by quirky cafés and urban restaurants, and it is just a metro ride away from the touristy city centre. Hotel Ottilia is part of a chain of luxury boutique hotels named Brøchner Hotels. These hotels are scattered around Copenhagen and provide both quality and comfort. My favourite feature of these hotels was wine hour! Between 17.00-18.00 every day guests can have a few glasses of wine on the house. Red, white or port wine, take your pick! The best part? You don’t have to be at your specific hotel for the wine hour; you can pop into any one of the Brøchner Hotels.Where to eat:
Our stay in Copenhagen was only short, but two restaurants stood out in particular. The first of these was recommended to us by reception, as we were after typical Danish cuisine. We were recommended to try Carl’s Beer & Eatery, which was just a stone’s throw from our hotel. The restaurant offers a social dining concept where you pick and share several plates between you. We went for the veal shoulder braised in dark beer, creamy pearl barley with mushrooms and walnuts and potatoes caramelised in cream. The food was exquisite and reasonably priced; I highly recommend this restaurant for an understated yet elegant dining experience. The second which stood out is a rooftop restaurant located on the top of Hotel Ottilia; Tramonto Rooftop. The restaurant is designed as a combination of industrial and classical modernism, boasting 360° views over Copenhagen and Carlsberg. Guests can roam along the outdoor terrace and enjoy Italian cuisine, all in a chic and sophisticated atmosphere. As a starter I enjoyed a dish made up of fried scallops, cream of celeriac, salmon roe, bottarga and Jerusalem artichoke chips, whilst my partner had the burrata with cauliflower cream, malt crumble and chervil oil. Next, we ordered the homemade pappardelle pasta in a beef tenderloin sauce with truffle flakes and porcini. Being Italian myself, I can confidently say that this was one of the best pasta dishes I have ever eaten. Often, cooking with truffle runs the risk of overpowering the rest of the flavours, but this plate of pasta used the perfect amount, complementing every aspect of the dish. We finished with a small dessert made of hazelnuts, salted caramel and 70% valrhona guanaja chocolate cream. The evening was enjoyed alongside a bottle of red wine, and it was perhaps one of the best dining experiences I have ever had. Like most cities, I suggest avoiding touristy restaurants in the centre. These are often very overpriced and do not offer the best quality food. The two restaurants I have mentioned are both located outside of the centre and were extremely delightful experiences. If you are after more relaxed dining options, I recommend one of Copenhagen’s food markets. There are a few dotted around the city and they offer a wide range of different street food. We often popped into these food markets for lunch as they were very convenient and offered food on the go. The Tivoli Food Hall was my favourite and, if you visit, I recommend trying a traditional Scandinavian open sandwich. Please note that I have not been paid to write about any of the companies mentioned above, nor were any of these experiences “gifted” to me.FTSE ruled the roost: finishing on top of Tuesday’s equity rebound
Despite the potential for a wobble being brought on by inflation figures and the sluggish Dow Jones open, the FTSE crossed the finish line of the Wednesday session at the head of the pack.
Falling just short of a one-week high, the FTSE finished the session at 7450, following a 1.2% bounce.
The index’s success was partially led by a Bloomberg report, which said that China would help airlines suffering as a result of the Coronavirus. It was also boosted by the inflation figures, which allowed Sterling a short rally before the currency fell and turbocharged the FTSE’s afternoon rally.
Speaking on the afternoon’s movements in global equities, Spreadex Financial Analyst Connor Campbell stated,
“Though the Dow Jones was reticent to join in, the European markets took back yesterday’s losses and then some on Wednesday.”
“The FTSE was well ahead of its peers as the session went on, climbing to a near one-week peak of 7450 – remember at one point on Monday it touched 7350 – thanks to a 1.2% increase. Not only did the UK index benefit from a Bloomberg report claiming Beijing will help out airlines struck by the coronavirus, further adding to the idea that China is set to try and money its way of out of a crisis, but also the pound’s afternoon downturn.”
“Sterling quickly giving up its post-inflation reading gains – the latest UK CPI number came in at 1.8% against the 1.6% forecast – to fall 0.4% and 0.3% against the dollar and euro respectively. This as the currency perhaps expressed its anxieties over the UK-EU trade situation.”
“Elsewhere the DAX and CAC both shot up by 0.8%. That left the German index only a handful of points away from a record high close, and its French cousin back above 6100 for the first time in a week.”
“In comparison the Dow wasn’t feeling quite as up for it. The US index added a paltry 0.3%, just about pushing it across 29300, but keeping it away from its 29500-tickling peak.”
Tesla shares bounce 8% – the feel-good factor outweighs sources of friction
After claiming the top spot as the shorters’ widow-maker in 2019, and watching its share price bounce by over 100%, Tesla (NASDAQ:TSLA) shares once again rallied by a minimum of 8% in pre-market trading on Wednesday, despite a series of worrying developments.
Tales of Tesla woe
In the last 24 hours alone, several announcements should have acted as headwinds for a Tesla stock rally, but appear to have been overlooked. Stock in Virgin Galactic (NSE:SPCE) has gone supersonic, bouncing 13.10% as Wall Street pundits dub the company a safer and more attractive alternative to Tesla. Further, despite a widely publicised 2.2% revenue growth in the fourth quarter, fears over the longevity of Tesla’s profitability could potentially be roused by the announcement that its US revenues were down 34% year-on-year, while its Q3 revenues were likewise down 39% on-year. These fears could perhaps by compounded by Tuesday’s announcement that Tesla was ordered to stop working on its Berlin Gigafactory. This set-back – though perhaps temporary – should possibly grind the gears of onlookers at least to some extent. Its Shanghai factory has acted as a source of joy in recent months – a delay in its chance to access the European market with greater ease certainly isn’t good news. Additionally, and recanting an age-old problem Tesla seems to encounter, it is struggling with the supply side of its expanding solar business. After acquiring SolarCity for $2 billion in 2016, the company has sought to increase its stake in the solar energy market. The recent launch of its long-anticipated solar roof has been crowned with long waiting lists and warnings of equally long installation processes. While we can somewhat celebrate the demand for Tesla products and the strength its innovative prowess offers to its product pipeline, its recurring difficulty to expand its output and struggle to expand its manufacturing sites limit its potential – deterring future customers with long waits and doing no favours in proving its business acumen. Lastly, reports have come out of two Tesla cars being tricked into speeding by vandals. The vandals, who were inappropriately over-credited as ‘hackers’ stuck black tape on a speed sign, changing the number form 35 to 85, and in essence giving the Tesla onboard computers the impression they needed to speed up. Though many will feel this says more about human stupidity than functional problems, bad press, and fuel for the fire of luddite scepticism, are certainly harmful to the company’s mission.The good mood trumps prudence
The problem is – I’d like to think – Tesla’s role as a disruptive company trying to do good, means consumers and investors alike will be naturally inclined to give the company the benefit of the doubt. The volume of news, and the personality of Elon Musk, guarantee the brand is never far off of the agenda, and this sheer overload of updates mean negative press tends to leave a lasting impact. As much as there are worries over malfunctions and hacks of Tesla’s trailblazing hardware, it has undoubtedly been a force for good, too. Only yesterday, two Tesla Model X cars were involved in the same crash, but both cars’ passengers lived to tell the tale because their autopilots activated their emergency breaks, saving the lives of eight people.Musk responded personally, with an understated but no doubt proud “I’m glad you’re all ok” (followed by a heart emoji). These kind of stories will likely become more and more common as time goes on – the company isn’t just in command of a niche by creating these safer vehicles, but investors will be attracted by the idea that they’re putting their money into something good, in the process of making money. The catalyst of the company’s rally today, though, was a new all-time high call on its stock by Piper Sandler (NYSE:PIPR), who gave the company a target price of $928 per share. This isn’t the first bullish call to come out of Wall Street on Tesla stock, with Argus Research’s $808 target seeing the company’s shares bounce 19%, but it does give some more credence to the idea that its price will have a sustained upwards direction of travel. The call was also seconded by Bernstein (NYSE:AB) analysts, who stated that they saw no immediate negative catalysts on the horizon for Tesla stock.Hey @elonmusk Your car saved my life.. and by boyfriends.. and my mothers.. and a family of five. Thank you https://t.co/UuQTNmetuZ
— Kitty McConnell (@Kitty_McConnell) February 18, 2020
Chaarat Gold note annual production increases and higher reserves
Chaarat Gold Holdings Ltd (LON:CGH) have seen their annual production rise in an update on Wednesday afternoon.
Chaarat is a gold mining company which owns the Kapan operating mine in Armenia as well as Tulkubash and Kyzyltash Gold Projects in the Kyrgyz Republic.
The gold miner noted that annual production had increased at its Kapan mine in Armenia – which shareholders should be impressed with in a highly saturated market.
In addition to this, the Chaarat also reported that reserves had risen at the Tulkubash project in Kyrgyz Republic.
The firm noted “The objective of the drilling programme was to test targets northeast of the prior Resource boundary, enhance the project economics by adding ore to the previously defined pits, and to increase understanding of prospectivity of the wider licence area.”
Looking at gold production figures, the firm noted that gold equivalent output had increased at the Kapan project by 60,252 ounces in 2019 from 56,424 in 2018.
Sales also surged by 8.5%, from 50,915 ounces to 55,255 ounce – Chaarat added.
Going forward, Chaarat have forecasted gold equivalent production of 55,000 ounces in 2020. Notably, this would see an 8.7% dip year on year, however the firm has remained confident in delivering these expectations.
At the Tulkubash gold project, proven and probable reserves were boosted by 14% to 25 million tonnes from 22 million tonnes, following a drilling programme.
Artem Volynets, Chief Executive Officer, commented:
“I’m pleased to report the results of the 2019 drilling programme at our Tulkubash gold project in the Kyrgyz Republic. The drilling programme followed the announcement of the 2019 Feasibility Study and has delivered a 14% increase in the ore reserve statement to 749koz at a higher grade of 0.95g/t, adding even more years of life to what was already an economically robust project, while also improving our understanding of this exciting asset. The next phase of the work programme is focused on further developing the mine plan within the next couple of months. First production is still expected in late 2021.”
Shares in Chaarat Gold Holdings Ltd trade at 35p (-0.56%). 19/2/20 14:45BST.
Tertiary Minerals narrow loss as shares recover from 325% surge yesterday
UPDATE: 15:52BST – Tertiary Minerals saw theirs shares fall today following a 325% surge post RNS yesterday. The share fall is not attributed to the loss but rather a recovery from the rise yesterday.
Tertiary Minerals (LON:TYM) have seen their shares dive nearly 50% despite the firm narrowing its annual loss.
The firm noted that reduced impairment charges was the main driver for the narrowed annual loss, however shareholders do not seem so optimistic.
The Chairman of the firm commented on the loss by saying:
“Whilst we raised a modest amount of money in early 2019 to fund our activities in the first half of the year, fundraising for Tertiary and its peers at near market prices has been nearly impossible in the second half of 2019 and we have not been prepared to accept opportunistic offers of heavily discounted share placings.
Instead, following the end of the financial year, we accepted an offer of funding from Bergen Global Opportunity Fund, LP, a U.S. based institutional investment fund and raised an initial £232,000 before expenses through the issuance of zero-coupon convertible securities as part of a facility having a nominal value of up to £653,000. “
Shares in Tertiary Minerals trade at 0.39p (-49.02%). 19/2/20 14:17BST.
The mineral miner told the market that it had reported a pretax loss of £831,507 in the year which ended in September.
This was much better than the loss recorded a year before this, which stood at £2.3 million. Impairment charges fell considerably, from £2 million to £442,917.
Despite impairment charges falling, revenues also fell to £189,742 from £218,841, which is what shareholders have seemed to note.
The Chairman Patrick Cheetham commented:
“As a Board we have faced some difficult decisions in 2019 as our fluorspar projects have not sustained the value they once added to the Company and our efforts to acquire a more advanced project are limited by our size and available financial resources. Consequently, the Board initiated a parallel back-to-its-roots strategy of gold and base metal exploration with an emphasis on low cost value adding acquisition and exploration of gold and base metal projects in Nevada, USA. Nevada is ranked as the most desirable mining jurisdiction in the world by the Fraser Institute and in 2018 produced 5.58 million ounces of gold …
Market commentators are anticipating a better year for small cap companies in 2020 and we look forward to reporting news from our exciting new gold and base metal projects in Nevada over this coming year.
Our Annual General Meeting for the year ended 30 September 2019 will be held in our offices in Macclesfield this year, on Thursday 19 March 2020.”
Tertiary see progress in Nevada
A few months back, Tertiary minerals saw their shares rally as they reported zinc mineralization in Nevada. The Company said that the two zones – the Valley Prospect and the East Slope Prospect – would now undergo follow-up exploration and drilling. Preliminary observation of the Valley Prospect revealed a thick skarn zone potentially 350 metres long and 8 metres thick. A rock sample taken from historic shaft spoil assayed 7.5% zinc, 4.3% lead and 180 g/t of silver. This included a 175 metre long 250-500 ppm zinc soil anomaly. Past rock sample assays display up to 20.9% zinc, 0.11% cobalt and 198 ppm silver. The narrowed loss for Tertiary is good news, however shareholders have not reacted in the most optimistic tone. The firm has work to do across 2020 to see whether it can swing to a profit and win over shareholder sentiment.National Milk Records profits more than half on cyber attack
Supplier of dairy and livestock services National Milk Records (OTCMKTS:NMRPF) reported that its first half performance had been hampered, following a cyber attack on the 13th of September.
The Group’s turnover was down from £11.7 million to £10.7 million year-on-year for the first half, though it added that 59% of this change could be attributed to one-off seasonal activity in 2018.
The main change was in the company’s profits, which were down from £1.1 million to £0.4 million before tax, while its EBITDA also dropped from £1.3 million to £0.6 million.
Aside from dealing with the adverse effects of the hack, the company reported that its debts had widened from £2.1 million to £2.4 million. However, it added that its investment in tangible and intangible assets jumped from £0.3 million to £0.7 million on-year, while its net assets increased from £2.8 million to £4.1 million.
National Milk Records dealing with the hack and looking ahead
Responding to the attack and the first half results, Managing Director Andy Warne commented:“We are pleased to report that despite an interruption to our services following the previously reported cyber-attack, NMR has emerged stronger having protected our revenue streams and substantially reinforced our cyber protection and restoration capability. We are particularly pleased to note that revenues from our Disease Testing services have grown by 4% year on year as we pursue our strategy of focusing on our core customers and greater penetration of our milk testing services. […]”
“The financial impact of the cyber-attack has been via additional credit to customers for interrupted services, the over-provision of testing in the labs to protect revenue streams, and additional costs for system protection and cyber-consultancy services. Whilst the quantum has been greater than previously envisaged, the direct financial impact is fully contained in the first half of the year. During the second half of FY20 we expect to trade broadly in line with our prevailing growth expectations for this period, albeit some initiatives having been delayed by the cyber-attack. Taken together, this updates our previous guidance. […]”
“With regards to the British Dairy industry, calendar year 2019 saw the highest level of milk produced in Great Britain for 27 years. There is some consequent downward pressure on milk prices which may reduce milk volumes to a small extent, however we remain positive that the UK dairy market offers strong opportunities and look forward to a successful second half of the year and beyond.”
Investor notes
The company’s shares are currently trading at US $1.36 per share 10/02/20. National Milk Records has a market cap of $22.09 million, their dividend yield stands at 2.40%.Laura Ashley shares surge 45% as Wells Fargo approve lending
Laura Ashley Holdings plc (LON:ALY) have seen their shares bounce 45% on Wednesday afternoon.
Shares in Laura Ashley trade at 2p (+45.45%). 19/2/20 14:03BST.
The firm has seen a difficult period of trading over the last few months, and shares have been volatile. Questions were posed as to whether the firm could survive in an increasingly cutthroat British retail market.
The British High Street has notably seen the collapse of a few different firms over the last few months, and Laura Ashley have seen trading mixed over recent times.
The media put Laura Ashley under heavy pressure on Monday, when issues over company financing raised.
Today, Laura Ashley have given shareholders a confident update and seem to have answered critics in the media.
The homeware retailer said that it had secured approval to utilize funds from its working capital facility with Wells Fago. The funds that had been approved met its immediate funding requirements, following the statement issued on Monday.
Laura Ashley further reenforced their position that this did not constitute a cash injection by MUI Asia into the company.
The firm commented this afternoon “Laura Ashley Holdings PLC is pleased to announce that discussions between Wells Fargo and MUI Asia Limited relating to the Group’s immediate funding requirements have concluded and the Group should be able to utilise requisite funds from its working capital facility with Wells Fargo to meet its immediate funding requirements. As previously announced, this is not a cash injection by MUI Asia Limited into the Group.”