GMB reports 622 staff injured in Amazon UK warehouses
The GMB union reported that 622 staff have suffered ‘serious injuries’ or ‘near misses’ while working at Amazon warehouses in the UK, over the last three years.
For injuries to be counted in the findings, they needed to be severe enough to prevent a member of staff from performing their regular duties for a minimum of a week, or by suffering fractures, amputations, crushing, scalping or burning.
Euro weakens on Tuesday reflecting weaker investor confidence
The Euro has weakened on Tuesday morning, reflecting weaker sentiment in European markets following a combination of global factors and political battles.
The coronavirus is still continuing to take its toll on the global economy, however the Euro has managed to tread in steady footing since the outbreak.
PM Johnson will once again lock horns with the European Union to discuss further terms of the Brexit withdrawal bill and this could cause forex markets to shake across this week.
Yesterday, the French Foreign Minister warned Boris Johnson that Brexit negotiations could turn into a ‘battle’ with neither side wanting to make concessions.
The European currency did weaken toady, which was close to the three year low that it reached yesterday. A survey conducted in Germany reflected weak investor confidence – leaving a pessimistic tone for European markets.
The Euro has notably lost 3.4% of its value against the US Dollar so far this year in 2020, according to Reuters. Weak confidence in European markets has dampened the price of the Euro as the big titans such as Germany have seen reductions in their gross domestic product and manufacturing output.
The Euro Zone may be more vulnerable than once thought by analysts – and spooks to the Euro from Brexit negotiations are still expected across 2020.
The British Pound has still remained volatile – as forex traders remain cautious over investments with the coronavirus still at large and many disputes ongoing with EU negotiations.
The Euro against the Pound has slipped 0.3781%, and has seen a high today of 0.8348 and lows of 0.8298 – reinstating the fragility of the Euro.
Germany is one of the biggest drivers of the European economy – however output has declined over the last few months which has lead to a bruised Euro and there has not been much recovery in the Mediterranean economies of Portugal, Greece and Spain, who are all going through their respective troubles.
Some time must be given to the Euro to allow a bounce back following such a volatile period – however Brexit negotiations will continue to dominate British and European news headlines until all terms are completed.
Tekmar shares crash 27% as coronavirus continues to dampen business
Tekmar Group PLC (LON:TGP) have seen their shares plummet as the firm told the market that they are set to miss expectations.
The firm said that financial 2020 earnings will miss market and analyst expectations, but should remain in line with results posted one year ago.
Tekmar alluded to the current coronavirus crisis as the main factor which led to the poor performance outlined today.
We have had news of the coronavirus spreading around the globe for a few weeks now – and Tekmar are not the only business that have been affected by the outbreak.
The coronavirus has had disastrous effects on not just businesses, but also stock indices and general welfare of people.
A few weeks on from the initial outbreak, it seems that the situation is now being controlled. However UK Health Secretary Matt Hancock did warn that the coronavirus or COVID-19 could be around for months.
Tekmar reported a pretax profit of £2 million, with revenue of £28.1 million.
The firm alluded to mandatory business operational closures and suspensions which hampered business. Additionally, travel restrictions played a part in bruising the firms’ performance.
Tekmar added that the company had decided to officially shut down its Shanghai Office, notably this office serves the Asia Pacific region.
Alasdair MacDonald, Chairman of Tekmar Group, said: “The disruption caused by the outbreak of the coronavirus on the Group’s activities and performance has been unpredictable and rapid, impacting the Group materially in our crucial, heavily weighted Q4 period. With the situation in China and the surrounding APAC countries evolving, we are not yet able to evaluate the full impact of the virus on FY21 and will provide further updates as necessary.”
Tekmar’s fortune falls short
In December, the firm reported that it had seen a positive start to its financial year. The Group’s posted a ‘Record Order Book’ of £15.9 million, which was up 23.26% year-on-year for the same period. Its headline status was earned, however, with its fundamentals. Its revenues widened from £7.1 million to £17.1 million on-year for the six month period, while its EBITDA swung from a £0.8 million loss, to a £2.0 million profit. Tekmar Group continued and said that the long term global outlook for its key markets was improving, with forecasts fro future wind generation up 43.5% year-on-year. The Group also stated that it remains debt-free, with a positive cash balance of £3.9 million.Namaka also hit by the coronavirus
Tekmar joined Namaka (LON:NAK in alluding to the coronavirus as the main factor which led to poor results. The recruitment firm said that trading to the end of March has met expectations, however the final quarter presented challenges. Namaka said that revenue was bruised by the outbreak of coronavirus in both Hong Kong and Singapore, as local businesses look to delay new hiring until the virus assessment has been fully completed. The firm said: “The impact of Coronavirus on revenues for both Hong Kong and Singapore have been immediately felt. As a result of the curbs on movement of people imposed by regional governments, firms are currently choosing to delay, in some cases indefinitely, the start dates of new hires until the full impact of the virus has been determined, directly impacting revenue recognition for the Group.” The coronavirus is now seemingly under control – and there will be a hope that business operating particularly in China can bounce back from the troubles seen in the last few weeks. Shares in Tekmar Group trade at 112p (-27.18%). 18/2/20 11:48BST.Feedback’s loss widens in first half due to rising operating expenses
Feedback PLC (LON:FDBK) have seen their loss widened in the first half following rises in costs and expenses.
Feedback is a specialist medical imaging technology company providing innovative software and systems, through its fully-owned trading subsidiary, Feedback Medical Limited.
The firm told the market that there had been a shift in focus – more towards strategy which led to rising costs and ultimately a wider loss.
Dr Tom Oakley, CEO of Feedback, commented:
“We have deliberately changed the Company’s strategy to focus on the Cadran portfolio and transition into the emerging mobile medical market; this strategy is already bearing fruit.”
Within the half year period, which ended on November 30 the firm reported a pretax loss of £691,000 which was further widened from £407,000 in the same period just one year ago.
Revenue did climb 14% year on year for the firm, from £269,000 from £236,000 which was a positive take for shareholders.
However – operating expenses rose 49% which was the main attribute to the widened loss. Feedback reported operating expenses of £956,000 from £642,000 one year ago.
Feedback remained confident for future speculation, saying that its new strategy should generate higher recurring revenue – as it moves away from a traditional software sales model towards a software as a service model.
Oakley concluded:
“During the past six months, we completed the development of our new flagship product, Bleepa™. Following its launch in September at the NHS Expo, we have received significant interest and entered our first Pilot study within an NHS setting, from which early indications show great promise. We believe that Bleepa™ has the potential to revolutionise the way clinicians are able to communicate with each other and advance treatment of their patients, quickly.
“Further evidence of the new strategy gaining traction is our first commercial contract of the Cadran platform outside of the NHS. With growing momentum and the strengthening of our Board with the appointment of Adam Denning, 2020 is looking to be a promising year for Feedback.”
Feedback agree deal with Imagine Engineering
Feedback said that it had agreed a commercial partnership agreement with Imagine Engineering LLC to support the installation and refitting of a modernized fluoroscopic medical equipment across the US. Imaging Engineering is the manufacturer of an X-ray fluoroscopy product, “Insight Essentials” which enables the capture of fluoroscopy and X-ray images using low-cost hardware. Fluoroscopy is a form of dynamic X-ray capture which enables real time, moving patient imaging and is commonly used for a number of imaging investigations within gastroenterology, orthopaedics and interventional radiology. Under the terms of agreement, Feedback Medical, Feedback’s wholly owned subsidiary, will receive a license fee for each installation performed by Imaging Engineering and will have no commitment beyond maintaining and providing the software. Shares in Feedback trade at 0.81p (-4.71%). 18/2/20 11:32BST.UK Budget set to go ahead on 11th March
It has been a busy week for British Politics, and the media has been struggling to keep up with changes to governmental positions.
Only a few days back, the cabinet reshuffle was taking place, with MP’s ebbing and flowing from Boris Johnson’s internal government committee.
One of the significant departures was Sajid Javid who reigned as Chancellor following issues over the employment of advisors and ministers.
Following this resignation, it was announced that the young Rishi Sunak would be replacing Javid as the Chancellor.
Sunak today has told the British media that the government will not be changing the date of the budget.
The new Chancellor was strong to reiterate his stance that the 11th March will still be the day that the new budget is revealed.
Following speculation that there could be a delay in the announcement of the budget, Sunak has taken a hands on approach in his first few days of office.
Sunak tweeted saying that he was cracking on with preparations and that he would deliver the promises made by PM Johnson in the Conservative Party election manifesto in December.
Certainly, this is an interesting time for British Politics. The Cabinet now has a fresh look, with a much younger feel or so it seems. Many questioned whether it was too early for Rishi Sunak to step into the role of Chancellor of the Exchequer, however he was Chief Secretary to the Treasury before taking up his position – showing a blend of youth and expertise. Sunak has a wide range of experience and expertise, and certainly the appointment of a younger Cabinet member may allow PM Johnson to advocate policies which connect to a younger audience of British People. British Politics is now in its transition phase – and there is a lot more to come for Boris Johnson. The current epidemic of coronavirus continues to dominate news headlines, whilst yesterday the French Foreign Minister warned the UK Government that Brexit negotiations could turn into a ‘battle’. There are questions which still need answering – however the budget date has remained the same. This will give both MP’s and the British people something to look forward to and finally some consistency in politics.Cracking on with preparations for my first Budget on March 11. It will deliver on the promises we made to the British people – levelling up and unleashing the country’s potential. pic.twitter.com/5msCVfJWN8
— Rishi Sunak (@RishiSunak) February 18, 2020
Angling Direct shares dive 10% on profit warning from slow post-Christmas trading
Angling Direct PLC (LON:ANG) have seen their shares dip on Tuesday following a profit warning from the firm.
The fishing tackle and equipment retailer said that post Christmas trading had been weaker than expected which led to the warning today.
Shares in Angling Direct trade at 61p (-10.44%). 18/2/20 10:55BST.
The firm said that winter flooding after Christmas had led to lower levels of fishing activity, which reduced the demand for products.
Following this slower period of trading, the company has speculated that its oss before interest, tax, depreciation, and amortisation will be no more than £500,000 for its financial year, which ended in January.
Notably, last year Angling Direct posted a pretax loss of £266,000.
The firm did hold a positive sentiment, as it achieved good growth across its financial year. Revenues rose by 27% to £53.1 million, as in store sales surged 41% and 12% on a like for like basis.
The online sector is one which has been blooming for many British businesses, and here, online sales rose 13%.
The firm said:
“Not with standing the strong growth the Company has delivered this year, a disappointing trading period, post-Christmas, influenced by exceptional winter flooding, has impacted profits. The lower levels of fishing activity meant that the higher margin, consumable products, were hit disproportionally. In addition, a more prudent approach has been taken to some legacy costs, which, taken together, lead the Company to believe that it will deliver a pre-IFRS 16, EBITDA loss of no more than £0.5 million. The Company continues to have a strong balance sheet and held cash of £5.9 million at the 31 January 2020.
The Company opened its first store of the January 2021 financial year in Warrington on 13 February and the Company is pleased to note that this resulted in a record sales and attendance for a store opening day.”
Angling Direct’s record Black Friday
At the start of December, the firm saw their shares in green following a record Black Friday performance. Across this period, Angling Direct said it has supplied 5,868 new customers, with Black Friday transactions up 29% to 18,204. Profit during the Black Friday week was up 50% on last year, the company noted. Additionally, the retailer said that they would be opening a new store in the UK. The fishing tackle equipment retailer said the store opening – which took place in November – brought the total number of Angling Direct stores across the UK to 33. The new store, an independent former fishing tackle store, is located in Snape Hill Road, Darfield, and has been completely renovated in order to stimulate trading and business.Eric’s Angling Acquisition
Angling Direct also made a notable acquisition a few months back in the form of Eric’s Angling Centre. The deal was valued at £1.1 million as Angling Direct looked to stampede their influence on the market. Eric’s reported revenues of £5.2 million in 2018 and looks like a sound investment for Angling Direct. Eric’s angling own two stores in strong angling communities, and Angling Direct saw this opportunity to expand market dominance. Steve Blow of Eric’s Angling commented on the move “It gives me great comfort to hand over the business, which I have assisted in building over the last 30 years, to Angling Direct”. After operating for over thirty years, Eric’s saw this as potential to join forces with an angling superstore to widen customer base. Angling Direct will publish their financial results on 13th May 2020, and shareholders will be keen to see what the next year holds.Glencore see lower annual profits due to weaker commodity prices
Glencore PLC (LON:GLEN) have told the market that annual profit has been bruised, however has still beaten market and analyst predictions.
The mining firm said that profits were damaged by weaker commodity prices and trade uncertainty, but the fact that market expectations were beaten remains a positive factor for Glencore.
Glencore reported adjusted earnings before interest, tax, depreciation and amortisation of $11.60 billion for 2019, a 26% fall from a year ago.
Despite the 26% fall, this still beat company-compiled analyst consensus which was predicted to be $11.25 billion.
With regards to their dividend, the CEO commented:
“We are again recommending to shareholders a 2020 base distribution of $0.20 per share, payable in two equal instalments, which is comfortably covered (c.1.5x) by current annualised business free cashflow generation, even applying the presently weakened coronavirus discounted commodity prices.”
Adjusted earnings before interest and tax dived 55% to $4.15 billion, while Glencore reported a net loss attributable to equity holders of $404 million after a profit of $3.41 billion the year before.
Notably, the company’s net debt remains above their target range which was $10 billion to $16 billion, and currently stands at $17.56 billion.
The current net debt is 19% higher than the figure one year ago, and was higher than market forecasts of $17.12 billion.
Within its industrial mining unit, there was a 32% fall in adjusted Ebitda to $9.0 billion due to weaker prices, mainly from coal and cobalt.
Glencore’s Chief Executive Officer, Ivan Glasenberg, commented:
“Our performance in 2019 reflected the prolonged and uncertain trade deal negotiations, generally weaker prices for our key commodities and some operational challenges experienced at our ramp-up/development assets. Adjusted EBITDA declined 26% to $11.6 billion.”
“Our Marketing business finished 2019 on a strong note, generating Adjusted EBIT of $2.4 billion, in line with 2018, with an excellent performance from oil and a stronger second half metals’ contribution, helping to offset the cobalt headwinds experienced in the first half.”
Glencore are also planning to step up their efforts to promote environmentally friendly policies. The firm outlined thier intentions to commit to the transition of a low carbon economy.
This follows many other oil majors and miners who are slowly seeing the importance of conducting business in a sustainable and ethical manner.
Glasenberg concluded:
“We are also pleased to report progress against our commitments to the transition to a low-carbon economy. We are on track to achieve a near doubling of our first GHG target with a reduction in Scope 1 and 2 emissions intensity of c.10% since 2016. Also, in line with our commitment to a Paris consistent strategy, we project a c.30% reduction in absolute Scope 3 emissions by 2035, including natural depletion of our coal and oil resource base over time.”
“Looking ahead, in the short-term, we are closely watching coronavirus developments and potential scenario impacts on global growth and markets. As shown over many cycles, our business has various defensive cashflow characteristics, stemming primarily from marketing activities, but also material exposure to precious metals and infrastructure and expected countercyclical working capital inflows. Our priorities for 2020 remain being focused on delivering sustainable long-term returns for all stakeholders, including via delivering a step-change in safety performance, realising the potential of our ramp-up assets, seizing further operational efficiencies, strengthening our balance sheet and managing the transition to Glencore’s next generation of leadership.”
Glencore’s steady start to 2020
A fortnight ago, the firm gave an update to the market reporting their production volumes. Copper production fell 6% giving a total of 1.37 million tones, the firm said that this was caused by the scaling down and and placement into temporary care and maintenance of Mutanda in the Democratic Republic of the Congo, as well as Mopani’s extensive smelter refurbishment shutdown in Zambia. However, the performance of the Katanga mine in Congo was something to note for shareholders as this allowed cobalt output to surge 10% to 46,300 tonnes. In zinc mining operations, production was slightly up by 1% to 1.08 million tonnes, as gains in Australia and Peru accounted for slowdowns in Kazakhstan for safety reasons and at Antamina in Peru due to mine rescheduling. Nickel production was down 3% at 120,600 tonnes, as the firm alluded to maintenance stoppages at Koniambo in New Caledonia as the main result for slumping production. Coal production rose following new acquisitions in 2018 which were Hunter Valley Operations and Hail Creek in Australia. Within this, thermal coal output was up 5% to 123.9 million tonnes, and coking coal up 23% to 9.2 million tonnes. Shares in Glencore trade at 228p (-3.57%). 18/2/20 10:48BST.BHP see rising interim profits and revenues
BHP Group PLC (LON:BHP) have seen their profits and revenues increase as reported within their interim update on Tuesday.
BHP Chief Executive Officer, Mike Henry said :
“We delivered a strong set of half-year results, grounded in solid operational performance. Underlying EBITDA was up 15 per cent, to US$12 billion, and return on capital employed increased, to 19 per cent. With solid cash flow, the Board announced an interim dividend of 65 US cents per share, our second highest on record.
BHP is in good shape. We have passionate and committed people hungry to perform. We have brought together high quality assets in a simple portfolio that allows us to create value at scale. Our balance sheet is strong and we have embedded a Capital Allocation Framework which drives discipline and better decisions.”
BHP said that the rises in both profit and revenues were caused by higher commodity prices and favorable currency movements.
Within the six month period, which ended December 31, the miner saw its pretax profit rise by 15% to $7.79 billion from $6.80 billion one year ago.
Notably, revenue also spiked 7.5% from $20.74 billion to $22.3 billion, which was probably the headline statistic from today’s update.
Profit was aided by favorable currency movements and higher prices, despite the mining titan reporting lower volumes of production and increased costs. Profit from operations also rose 13% year-on-year to $8.31 billion from $7.33 billion.
As a result of the strong results, BHP lifted its interim dividend by 18% to 65 US cents per share compared to 55 cents the prior year.
The dividend was still raised despite net debt rising by 21% to $12.84 billion from $10.64 billion.
Looking at individual metal production guidance, BHP have told the market that iron ore production for 2020 should remain between 242 million and 253 million tonnes from 238 million tonnes the year before.
Copper guidance was unchanged for its financial year which ends in June, which should lie within the 1.71 million and 1.82 million range.
Coal production is expected to be between 41 million and 44 million tonnes for metallurgical coal and 24 million and 26 million tonnes for energy coal. Across financial 2019, BHP saw 42.4 million tonnes of metallurgical coal and 27.5 million tonnes of energy coal produced.
Henry concluded “From these strong foundations, we will build on our momentum to deliver exceptional performance. I intend for BHP to be unquestionably the industry’s best operator – safer, lower cost, more reliable and more productive – with our portfolio and capabilities fit for the future. We will be open to new ideas, more connected to those around us and more commercial in our thought and actions.
Despite near term uncertainty – due to the coronavirus outbreak, trade policy and geopolitics – we remain convinced about the positive underlying fundamentals of our commodities. We see enormous potential to reliably deliver exceptional financial and operational performance, and to grow value and returns.”
BHP’s confidence pays dividends
In January, the firm maintained their annual production guidance which reflected a confident sentiment within the firm. The firm said that it had reported a solid performance in copper and iron production, however it saw a decline in petroleum and coal. For the six months to the end of December, BHP’s copper production was 885,400 tonnes, up 7% from 825,300 tonnes the year before, which will impress shareholders in this division. BHP said that they have kept their annual production guidance unchanged within the range of 1.71 million tonnes to 1.82 million. Notably, iron ore production for the six month period increased by 2% to 121.4 million tonnes, seeing a 2% climb from the 119.3 million figure one year ago. BHP also reported record production at Jimblebar in Australia, which has driven the firm to stay within its guidance figures. Annual iron ore output has remained stable and is estimated to be between 242 million and 253 million tonnes, but metallurgical coal production dipped 2% year on year to 20.3 million tonnes from 20.6 million. Looking at BHP’s petroleum business, the firm told shareholders that production declined by 9% to 57.4 million barrels of oil equivalent from 63 million barrels due to natural field declines and other weather conditions. Shares in BHP trade at 1,662p (-1.75%). 18/2/20 10:34BST.HSBC to axe 35,000 jobs as it watches its profits fall by a third
Multinational investment bank and financial services group HSBC Holdings (LON:HSBA) announced on Tuesday that it would be implementing a large-scale job-cutting programme, as its full-year profit before tax contracted 33% year-on-year, down to $13.3 billion.
The company continued to lay on the woeful news, telling investors that it was pessimistic about the outlook for 2020. It joined Apple (NASDAQ:AAPL) in noting that Coronavirus had and would continue to have an adverse impact on the company’s trading – with the bulk of its profits coming out of Asia – and they should therefore brace themselves for a rough few months.
“Depending on how the situation develops, there is the potential for any associated economic slowdown to impact our expected credit losses in Hong Kong and mainland China,” said Noel Quinn, HSBC interim Chief Executive.
“Longer term, it is also possible that we may see revenue reductions from lower lending and transaction volumes, and further credit losses stemming from disruption to customer supply chains. We continue to monitor the situation closely.”
Quinn went on to say that the bank would downsize its global workforce by 15%, and by a more considerable number than the 10,000 forecast by analysts.
It added that the upcoming job cuts were part of its plan to cut costs by $4.5 billion by 2022. It did not say which of the 64 countries it operates in would be hardest hit by the cut-backs, but it is thought its London-focused investment banking business could be among the casualties.
“The totality of this programme is that our headcount is likely to go from 235,000 to closer to 200,000 over the next three years,” Quinn said to Reuters.
Following the update, the company’s shares are down 5.71% or 33.70p, to 557.00p 18/02/20 09:44 GMT. Analysts from Shore Capital reiterated their ‘Hold’ stance on HSBC stock. The Group’s p/e ratio stands at 12.19, while its dividend yield is ambitious at 6.99%.
Apple crunched by Coronavirus as sales fall short
Sharp losses at the start of the Tuesday session were prompted by Apple (NASDAQ:AAPL) issuing a profit warning, amid disruption caused by the outbreak of the Coronavirus.
The company’s Chinese stores and international delivery of stock have been hampered by the outbreak of the illness, and as such it said it expected to miss its $63-67 billion revenue target. This led to further dread in Asian equities, while European indexes began the day on a low note.
The company said it was suffering because of a ‘slower return to normal conditions’ than anticipated – ‘worldwide iPhone supply will be temporarily constrained’ because of outbreak-related manufacturing issues in China.
Apple soured
Providing some colour to the update, the company’s statement read: “Work is starting to resume around the country, but we are experiencing a slower return to normal conditions than we had anticipated,” the company’s statement read. “As a result, we do not expect to meet the revenue guidance we provided for the March quarter.” “All of our stores in China and many of our partner stores have been closed. Additionally, stores that are open have been operating at reduced hours and with very low customer traffic. We are gradually reopening our retail stores and will continue to do so as steadily and safely as we can.” “As the public health response to Covid-19 continues, our thoughts remain with the communities and individuals most deeply affected by the disease, and with those working around the clock to contain its spread and to treat the ill. Apple is more than doubling our previously announced donation to support this historic public health effort.” “The health and wellbeing of every person who helps make these products possible is our paramount priority, and we are working in close consultation with our suppliers and public health experts as this ramp continues.” Following the update, the company’s shares are down 3.65% or $11.85 to $324.95 during pre-market trading 18/02/20. Its market cap stands at $1.42 trillion, while its dividend yield is modest at 0.95%.Elsewhere on Tuesday
Commenting on early session movements, Spreadex Financial Analyst Connor Campbell commented,“Tim Cook and co. weren’t the only ones sounding alarm bells on Tuesday. South Korea claimed it was facing an economic ‘emergency’ due to the illness, while in its half year update BHP Group (LON:BHP) maintained its guidance but stated it will revise its estimates if the virus isn’t ‘demonstrably well contained within the March quarter’. Glencore (LON:GLEN) also said it was monitoring the situation closely, after posting better than forecast full year earnings.”
“Though not disastrous, especially when compared to some of the losses seen early on in the outbreak, Europe nevertheless got off to a bad start. The FTSE barely held above 7400 as it fell 0.4%; the DAX shed 100 points, slipping from its all-time highs, while the CAC was back at 6050 following a 0.6% fall. Looking ahead a bit and the Dow Jones is facing an Apple-led 200 point drop when the bell rings on Wall Street.”
“Investors could get a further taste of what the economic atmosphere is like regarding the coronavirus with the latest ZEW economic sentiment readings. The German figure is forecast to drop from 26.7 to 20.0, with the Eurozone-wide number down from 25.6 to 21.3.”
“Sterling was also down this Tuesday, slipping 0.2% against dollar and euro alike ahead of the morning’s UK jobs data. Wage growth, including bonuses, is expected to fall from 3.2% to 3.1% month-on-month, with the claimant count change up from 14.9k to 20.2k. As for the unemployment rate, that’s expected to remain unchanged at 3.8%.”