British Pound finds optimism following December Economic Growth
The British Pound has appreciated on Tuesday following positive reports of UK Economic Growth in December.
The data from the ONS, painted a positive picture on Tuesday where December was a positive month for the UK economy, however on a quarterly basis economic growth remained flat.
Despite quarterly growth remaining flat, it seems that there was not much hope in the first place as this matched both analyst and market expectations.
Annual GDP for the fourth quarter was 1.1% which showed progression from the 0.8% figure that expectations had set out before the update.
On that note, the British Pound has seen highs today of 1.1858 against the Euro and is currently seeing a 0.0237% appreciation, which currency traders will be hopeful about considering the volatile nature of the British Pound.
Notably, on Tuesday the pound has seen lows of 1.1821 which was a dip from yesterday’s closing price of 1.1834.
The Pound will expect fluctuations across the next few months, much is happening in the world and it seems that Brexit is continuing to take its toll as PM Johnson continues to fight legislators in Brussels on a Brexit withdrawal deal.
The British Pound found optimism today following a positive period of Economic Growth, where gross domestic product grew 0.3% on a monthly basis, reversing a 0.3% decline seen in November and above consensus forecasts for a 0.2% rise.
“Although there is some evidence, both externally and in this dataset, that there has been stockpiling taking place in late 2019 ahead of the second planned EU exit date in October, initial estimates indicate that this was to a lesser degree than that taking place ahead of the original planned EU exit date in March,” said ONS.
The Pound will still see much turbulence over the next few months, and the ONS said that UK GDP was “particularly volatile” in 2019.
Despite the ongoing crisis with the coronavirus, combined with stunted Brexit negotiations it seems that currency traders are staying cautious and on edge as the Pound ebbs and flows everyday as negotiations and global events unfold.
William Hill agree deal with CBS Sports as digital expansion plan thrives
William Hill (LON:WMH) have announced that they have agreed a deal with CBS Sports in the US.
William Hill said that they have agreed a strategic partnership with CBS to be an exclusive book and wagering data provider as part of their plans to diversify into foreign markets.
The bookmaker said that the partnership is set to roll out in March on digital platforms that broadcast CBS Sports, as a full rollout is expected later down the line.
CBS have said that they will use William Hill’s odds, experts and sports books to increase their digital offerings and expand their presence in the US Sport broadcasting market.
William Hill will also exploit benefits including the exclusive rights to promote its brand across CBS’s range of digital platforms and networks.
“We’re thrilled to launch this momentous partnership, which will allow us to deepen our investment and further extend our leadership in delivering multi-platform sports wagering content, while providing William Hill with unprecedented reach for their market-leading betting platform as they continue to grow their industry leading US business,” said Jeffrey Gerttula, executive vice president & general manager of CBS Sports Digital.
“Becoming the official sports betting provider to CBS is another major step forward for William Hill in our US expansion,” said William Hill Chief Executive Ulrik Bengtsson. “Now we have exclusive media, branding and promotional rights across CBS’ leading digital sports properties, to take the William Hill brand further and faster in the US.”
William Hill start 2020 strongly
In January, the firm also updated the market by saying that they expect profits to be ahead of expectations. In their trading update, the firm said that adjusted operating profit from continuing operations is expected to be in range of £143 million to £148 million, ahead of market and management expectations. The firm said that favorable sports results allowed the strong end to the year, which will please shareholders. Initial guidance was in the range of £50 million to £70 million, as the firm alluded to “favorable sporting results in December, above the long term gross win margin range”. Online once again grabbed the headlines as this sector grew for the fourth consecutive quarter, whilst weakness in gaming net revenue was offset by a strong sporting gross win margin, the bookmaker said. The deal with CBS should place William Hill in strong footing within the US Sports broadcasting market, and drive their plans to grow using digital platforms and networks. Shares in William Hill trade at 184p (+3.56%). 11/2/20 11:17BST.Marks and Spencer appoint current Greencore CFO
Marks and Spencer Group PLC (LON:MKS) have appointed current Greencore Group PLC (LON:GNC)’s Chief Financial Officer in a similar role.
Marks and Spencer have said that interim CFO Said Surdeau will remain with the firm, as they look to help Eoin Tonge from Greencore adjust and transition into his new role.
Marks and Spencer said that Tonge has held a few different roles, and has been with Greencore since 2016. Prior to this he was the MD of the Grocery Business for two years and was previously the Chief Strategy Officer from 2009-2014.
Steve Rowe commented, “Eoin’s appointment concludes a rigorous search for a world-class finance director. He brings in-depth knowledge of food, as well as strategy and operations, and is another addition to the very strong management team we are building to transform M&S.”
Eoin Tonge commented, “Marks & Spencer is a brand that I have admired as a customer as well as a supplier for some time. I’m excited to be joining the Board and management team to drive forward the transformation of the business, realise its full potential and make it special again.”
Need for change at Marks and Spencer?
Marks and Spencer have not exactly had the most easy of times in the British retail market over the last few months. In January, the firm saw its UK sales decline leading to shares crashing. The FTSE 250 listed firm said that performance has seen improvements on a like for like basis, however total sales declined in its Clothing and Home sector. Notably, the period mentioned includes the festive holidays however British supermarkets seemed to have lost ground. In the 13 weeks period which ended December 28 the firm said that its total UK sales dipped 0.6% year on year to £2.77 billion, however on a like for like basis this was a 0.2% rise. Total sales were 0.7% lower at £3.02 billion, and this includes its international unit which saw a 2.3% fall in sales to £251 million. The British supermarket mainly attributed its growth in UK trading to food unit, where sales climbed 1.5% year on year to £1.7 billion. Notably in the food unit, the firm saw a 1.4% rise on a like for like time scale. The change of directorate may come at a good time for Marks and Spencer, as it seems that the firm is facing a tricky period as it was recently demoted out of the elite FTSE 100. Shares in Marks and Spencer trade at 179p (-1.62%). 11/2/20 11:05BST.Ocado shares jump 4% despite wider pretax loss reports
Ocado Group Plc (LON:OCDO) have seen their shares jump over 4% as the firm reported revenue growth in its Tuesday update.
Ocado said that revenue growth was driven by increased demand in the last few months of trading, however its loss widened in its recently ended financial year.
The FTSE 100 lister said that pretax loss had widened across its financial year. The loss widened to £214.5 million from the £44.4 million figure a year ago, which was attributed to higher operating expenses.
Breaking this down further, the firm said that administrative expenses grew substantially by 88% to £314.2 million year-on-year.
Notably, distribution costs rose 18% to £571.8 million, which were the two biggest contributors to the widened loss reported this morning. Finance costs also doubled to to £30.9 million from £14.7 million one year ago.
Following a hazard in February 2018, where a fire destroyed one of their Andover customer fulfillment centers, this led to lower capacity to operate. However, this was somewhat compensated for when it agreed a a deal with Wm Morrison Supermarkets PLC (LON:MRW) to withdraw from the Erith customer fulfilment centre.
On a better note, Ocado reported revenue growth of almost 10% during the year from £1.6 billion to £1.76 billion which was driven by higher order numbers and strong consistent trading.
Looking forward, Ocado speculated that it is expecting revenue growth between the range of 10% to 15% in its current financial year.
Tim Steiner, Chief Executive Office commented:
“We are pleased to report results which show strong momentum in the business. Although statutory results reflected a combination of factors, including the impact of the Andover fire, the underlying performance of Ocado Retail and the successful growth of Ocado Solutions were very encouraging.
Our progress over the last twelve months, which includes signing our eighth and ninth Solutions clients, Coles in Australia and Aeon in Japan, and successfully maintaining strong growth post-Andover, has demonstrated many of Ocado Group’s most important characteristics: resilience, innovation, focus and execution. It is these qualities that will enable us to continue to develop the Ocado Smart Platform to meet the evolving needs of our partners at the cutting edge of online grocery retail.
The first half of this year will see a new milestone for Ocado Group; the opening of the first customer fulfilment centres for our international partners. These state-of-the-art robotic facilities are a core part of an end-to-end solution embracing automated fulfilment, an intuitive and easy to use webshop, and hyper-efficient last-mile delivery which will enable Sobeys and Groupe Casino to deliver the same outstanding customer experience to consumers in Canada and France as Ocado Retail does today here in the UK.
The landscape of grocery retailing globally is changing. We are excited to be able to play a leadership role through Ocado Retail, our joint venture with M&S, and through our Solutions partnerships, as we fulfil our mission of “changing the way the world shops”.
Ocado agrees deal with Aeon
In November, the firm told the market that it had struck a deal with Japanese firm Aeon. The agreement outlines the development of a national fulfillment network to serve the whole of the Japanese market, which kept shareholders optimistic. With this in place the firm expects sales capacity of around ¥600bn (£4.24bn) by 2030, growing to approximately ¥1tn by 2035. Aeon chief executive Motoya Okada said: “We see Ocado as a state-of-the-art, exciting and transformative partner aligned with our strategy of accelerating Aeon’s digital shift to serve Japan’s consumers.” Ocado said it expected an additional £25m of operating costs in fiscal year 2020 to implement the service. Shares in Ocado trade at 1,269p (+4.31%). 11/2/20 10:53BST.TUI report widened first quarter adjusted loss
TUI (LON:TUI) have given shareholders a mixed update on Tuesday, following a turbulent period of trading for all names in the airline and travel industry.
The travel and holiday operator reported a widened first quarter adjusted loss, and therefore changed its guidance range for annual earnings.
The firm also said that continued delays with Boeing (NYSE:BA) with the delivery of 737 aircrafts had affected trade, and subsequently led to a slower than expected period of trading.
For the three months ending December 31, the company’s underlying loss before interest & tax increased 77% to €146.9 million from €83.1 million the year prior.
Notably, TUI did see revenue rising 7.7% to €3.85 billion from the €3.57 figure just one year ago.
TUI attributed this loss to stunted growth and performance in the Holiday Experiences Unit, along with higher costs in the cruise sector and a €45 million replacement charge following ongoing supply issues from Boeing.
First quarter underlying earnings before interest, tax, depreciation and amortisation totaled €111.5 millions from €27.2 million a year ago, as net loss narrowed by just under 6% to €105.5 million.
TUI gave shareholders a positive tone when they announced expectations to record high single digit percentage growth across 2020, which seemed to boost the share price on Tuesday.
Annual EBIT is now expected to be between €850 million to €1.05 billion versus previous €R950 million to €1.05 billion guidance range.
Going forward the firm said:
“FY20 in terms of booking trends has started exceptionally well, with the UK delivering its best bookings volume month in the company’s history. We are pleased with customer booking development to date for both programmes however the Boeing 737 Max grounding continues to weigh on our operational performance, with an extended grounding now expected for the rest of the financial year. We will continue to focus and deliver on our four strategic initiatives as outlined in our FY19 full-year results update; progress of our initiatives and our Markets and Domain Transformation Programme are on track.
For our Hotels & Resorts business, as indicated at our FY19 full-year results, we plan to grow this segment through both asset-right and asset-light approaches. We currently have 17 hotel openings planned for the year, with a number in our key brands Riu and Robinson through an asset-right approach. For our flagship leisure brand TUI Blue, we plan expand to almost 100 hotels through asset-light re-positioning of our existing hotel portfolio. During Q1, one new TUI Blue hotel was opened and nine re-positioned.”
TUI’s new dividend policy
In December, the firm announced that they had completed their financial year in steady footing despite difficulties in the market. In addition to this, TUI made changes to its payout policy for dividends, in effect from 2021. The firm said the new policy is expelled to result in lower payouts, but shareholders will be guaranteed a minimum distribution irrespective of the market environment of the tourism industry. TUI intends to pay a core dividend payout of between 30% and 40% of the its underlying EAT, with a guaranteed minimum payout of €0.35 per share a year. Forecasting for the future the firm expects underlying earnings before interest and taxes for current financial 2020 in the range of between €950 million to €1.05 billion.New routes for 2020
As mentioned, TUI also made plans to expand their offering of routes this Summer. In October, the firm said that they would be adding extra services and destinations to a number of UK airports. An extra 194,000 seats have been posed increasing Birmingham Airport’s capacity for TUI customers. Flights from Glasgow airport have also been announced from 2020. New flights from Glasgow Airport have gone on sale today with Bodrum Flights operating on Mondays and Fuerteventura on Sundays. TUI expanded the length for inclusive holidays, by now offering 10 or 11 day packages to eight destinations including Orlando, Antalya and Zakynthos. 2020 will be a year of consolidation for TUI, however the future does look bright as the firm looks to integrate its new services and routes into its’ portfolio. Shares in TUI AG trade at 959p (+12.13%). 11/2/20 10:34BST.Tekcapital subsidiary Belluscura fight to battle coronavirus spread
Tekcapital (LON:TEK) have said that one of its subsidiaries in Belluscura PLC have filed a patent for an oxygen device which treats respiratory diseases.
Interestingly, Tekcapital noted that the new device could treat patients that had been diagnosed with the coronavirus.
The firm said: “The latest patent application covers devices and systems for treating people suffering from ARDS including patients suffering from the coronavirus. The primary cause of death from respiratory viruses like the coronavirus and influenza, are the result of the fluids accumulating inside the alveoli (the tiny air sacs of the lungs) which ultimately leads to the failure of the transfer of oxygen to and carbon dioxide out of the blood. The current primary treatment for ARDS is oxygen therapy along with ventilator support.”
The epidemic of the coronavirus continues to dominate news headlines, and since the outbreak millions have been wiped off Chinese shares and stocks, and the death toll and those infected just continue to rise and rise.
The development from Tekcapital may have come at a time where it may not just benefit the firm, but have global applications.
Despite the numerous attempts from global governments to tackle the coronavirus, it seems that the issue is falling quickly out of hands.
Commenting on the patenting activities, Bob Rauker, CEO of Belluscura, said:
“We are very excited about our next generation oxygen technologies. With the launch this year of our first product, the X-PLOR™ portable oxygen concentrator, into the respiratory treatment field where over 250 million people suffer from chronic obstructive pulmonary disease (COPD), the third leading cause of death, it is critical that we continue to innovate into the ever-expanding oxygen therapy market.”
Clifford M. Gross Ph.D., Executive Chairman of Tekcapital plc commented:
“We are pleased to see the additional progress of Belluscura as it continues to strengthen its intellectual property in the oxygen therapy space to help patients afflicted with acute respiratory distress caused by the Coronavirus. Additionally, we anticipate that Belluscura is likely to receive FDA clearance for their portable oxygen concentrator within the next 90 days. ”
Tekcapital succeed with Salarius
Tekcapital updated the market in October, which enlightened shareholders about their their portfolio company Salarius Ltd (NASDAQ:SLRX) expanding. Tekcapital owns 97.5% of the share capital of Salarius ltd. In Salarius portfolio update, consumers were given an insight into Microsalt stating “Salarius, is the developer and manufacturer of a proprietary low sodium salt called MicroSalt.” Salarius have worked an agreement with a diversified snack manufacturer to include Microsalt in the production of company snacks. However, no financial terms of the contract have been published. The patented Microsalt has been a product development funded by Tekcapital, and the success has paid off after landing this huge contract. Tekcaptial have seemed to tap into an exciting market with the development of Microsalt. The low sodium ingredients market is estimated to reach $1.76 billion by the end of 2025, with a compound annual growth rate of 11.7%. By using Microsalt, firms are given the flexibility of creating the same snacks with less sodium content, without giving up quality and taste. Shares in Tekcapital trade at 5p (+9.28%). 10/2/20 15:29BST.Panther Metals surges 50% as Annaburroo gets green light
Shares in Panther Metals (LON:PALM) have rallied over 50% on Monday afternoon, as the firm told its shareholders that it had won an exploration permit for its operations in Australia.
Panther Metals shares trade at 4p (+52.90%). 10/2/20 15:05BST.
The firm said that the exploration permit at the Annaburroo gold project in Australia had been granted, and it seems that this has caught shareholder optimism.
The Annaburroo Gold Project comprises a single licence (EL32140) covering an area of 149.8km2, located 105km to the southeast of Darwin, Northern Territory.
Grab samples at the asset have found gold grades of 61.2 grammes pet tonne and 50.8 grammes per tonne.
Darren Hazelwood, CEO, commented:
“The grant of the Annaburroo Gold Project license allows the Company to proceed with its maiden exploration programme on its fully-owned gold exploration projects in the Northern Territory. I expect this programme to commence from Q2 of 2020. With the Company fully funded into 2021 for our planned work programmes, we look forward to reporting on the corresponding results of these programmes accordingly.
Meanwhile, the appointment of Dr. David Groves is another seminal moment for the Company, confirming recognition from within the geological community of Panther Metals commitment to excellence in its pursuit of economic mineral discoveries. I would like thank Dr. Groves for agreeing to join the Company at this important time and I personally look forward to engaging with one of the most widely respected geologists in the world”.
Panther Metals continue to grow
In October, the firm gave another impressive update to shareholders where it announced had secured its first exploration licence in the Northern Territory, Australia. Its Exploration Licence Application regarded it Marrakai Project, which is located in Pine Creek Orogen. The ELA covers an area of 10.1 square kilometres, which has been the recorded source of some 500 ounces of gold nuggets (the largest of which was 30 ounces) and other ‘geochemical anomalies’. Speaking on the update, CEO Darren Hazelwood remarked, “The granting of the Marrakai licence cements Panther’s entry into the Australian exploration space. Our stated aim was to target the commodity rich jurisdictions of Australia and North America. I’m delighted to confirm to the market Panther Metals has, once again, achieved its goals.” Panther Metals should be very pleased with the reaction to the update provided, and this should spark shareholder confidence for 2020.Trans-Siberian Gold shares jump 6% following positive estimates in Russia
Trans-Siberian Gold (LON:TSG) have seen their shares jump on Monday following developments made regarding their Russian operations.
The firm said that they had reported a mineral resource estimation of one million ounces of gold at their Rodnikova deposit.
Looking at the JORC-compliant estimate, this indicated a mineral resource estimate of 3.1 million tonnes at a grade of 5.3 grammes of gold per tonne, for 519,000 ounces of gold.
The estimate also found an inferred mineral resource of 3.2 million tonnes of gold at a grade of 4.8 grammes of gold per tonne, for 491,000 ounces of gold.
Alexander Dorogov, Chief Executive Officer of TSG, commented:
“It is pleasing to confirm a 1million ounce gold Mineral Resource Estimate at Rodnikova. The JORC Mineral Resource Estimate validates previous reported estimates under the GKZ classification and also the value-created following its cost-effective acquisition last year.
We remain on track to deliver an initial scoping study in Q2 2020. This study will assist in de-risking the project by establishing the framework for understanding the economics of future mine development scenarios and will also provide guidance for near-term exploration programmes to maximise the delineation of further economic mineralisation”.
Trans-Siberian’s Vein 25
A few weeks back the firm also updated the market on their Asacha Gold Mine operations. The company said high-grade gold intersections were obtained in a more or less complex structural environment, with initial drilling results of 133 grams per tonne of gold and 57 grams per tonne of silver at over four meters. The firm told shareholders that it will continue drilling over the next few months as it plans for a second drill to be mobilized adding to the site. In addition to the north extension of Vein 25, five other target areas will be drill tested during the year. To achieve this, the firm said that its board has approved a 2019/20 drilling program totaling 25,000 meters with the potential for further expansion.Strong start to 2020
Trans-Siberian Gold have started 2020 very well, despite a slowdown at the end of 2019. The firm saw its shares in red after mineral estimation analysis had been overestimated. The total measured, indicated, and inferred mineral resource for the Kamchatka-located mine has fallen to 313,000 ounces of gold and 675,000 ounces of silver as at the start of December 2019. The estimate before the results were published was 553,000 ounces of gold and 1.3 million ounces of silver which showed a 43% and 93% drop respectively. Trans-Siberian have seen a few hits and bumps along the way, however today’s update has sent a positive message to shareholders. The firm will hope that the good run can continue and continue to lift share price. Shares in Trans-Siberian Gold trade at 58p (+6.42%). 10/2/20 14:51BST.Halifax: house prices grow in January
New data revealed that house prices rose in the month of January as the outcome of December’s general election seems to have provided some political stability.
According to the latest Halifax House Price Index, house prices in January were 4.1% higher than in the same period a year prior.
The data also revealed that house prices rose by 0.4% on a monthly basis.
“Irrespective of political persuasion, the election result has provided us with a clear path ahead, which in turn has improved market sentiment,” Iain McKenzie, CEO of The Guild of Property Professionals, said in a statement.
“With signs of stability returning to the market, even if ever so slight, we are seeing the fires of the property market reignite, with activity once again on an upward trajectory which we anticipate will continue at a modest rate over the coming months,” the CEO continued.
Russell Galley, Managing Director at Halifax, also commented on the data: “A number of important market indicators continue to show signs of improvement. We have seen a pick-up in transactions with more buyer and seller activity consistent with a reduction in uncertainty in the UK economy.”
“However, it’s too early to say if a corner has been turned. The recent positive figures may actually represent activity that would ordinarily have been expected to take place last year, but was delayed by economic uncertainty. So while housing market activity has undoubtedly increased over recent months, the extent to which this persists will be driven by housing policy, the wider political environment and trends in the economy,” Russell Galley continued.
Commenting on the future, Russell Galley added: “Looking ahead, we still expect a moderate rate of house price growth over the course of the year. Demand is likely to continue to exceed the supply of properties for sale across the UK, with the subdued pace of new building also adding to upwards price pressure. The environment for mortgage affordability should stay largely favourable. However with the growth in rental costs accelerating, many first-time buyers will continue to face a significant challenge in raising necessary deposits.”
Blackfinch Group launch technology focused Spring VCT
Blackfinch Group announced that they have launched their first Venture Capital Trust, which targets growth-stage tech-enabled companies.
The Gloucester-based investment and asset manager launched the Blackfinch Spring Venture Capital Trust, which will encompass a portfolio of technology and technology-enabled companies, which have already raised funding, gained traction and are seeking to accelerate the scale-up process.
The Blackfinch Spring VCT will also be a follow-on funder for the Blackfinch Ventures EIS Portfolios, which puts a focus to technology start-ups at the heart of its investment procedures.
Blackfinch Ventures targets high-growth opportunities, supporting start-ups, early stage and growth-stage businesses with technological potential. The focus is on disruptive businesses, offering products that address real world needs, with the capability to make an impact in global markets.
Richard Cook, Founder and CEO of Blackfinch Group, said:
“This launch marks a key milestone in Blackfinch’s continued growth and will further enhance the product range we offer to advisers and their clients. The Blackfinch Spring VCT will invest in companies operating across multiple sectors. The VCT will focus on its own high-quality deal flow as well as follow-on funding for the highest performing companies in the Blackfinch Ventures EIS Portfolios. These are innovative new firms at the growth stage of their development, bringing a higher chance of success.”
Dr Reuben Wilcock, Ventures Director at Blackfinch, said:
“The Blackfinch Ventures team will carefully select strong, new opportunities from all around the UK, backing some of the country’s most talented founders. The Blackfinch Spring VCT will give clients the chance to diversify their portfolios through exposure to the tech sector. The VCT is targeting dividends of 5% p.a. by 2024; additional benefits include venture capital tax relief and the potential for special dividends through earlier exits and those that exceed projected performance.”
Last week, I had an opportunity to catch up with Dr Reuben Wilcock to discuss the new launch and all things investment related.
Dr Reuben has been working at Blackfinch since February 2019, and held an initial position as a Ventures Partner then transitioned into the Director of Ventures. He has played an instrumental role in the launch of the Blackfinch Venture Capital Trust, and speaking with him I managed to pick his brains on a few topics.
As mentioned previously, Blackfinch have looked to put technology at the heart of their investment process. This certainly complements the background of Dr Wilcock, having had a background in Electronic Engineering having studied at PHD level at the University of Southampton.
Notably, he has published over 45 research papers in his field and has experience dealing with high tech start-up companies, having founded Future Worlds in February 2015. Future Worlds has supported over 250 entrepreneurs and helped launch over 50 companies and start-ups, where Dr Wilcock has used his experience to help young talented people gain investment into some very interesting projects and businesses.
The combination of expertise and knowledge has made him the perfect character to kickstart the new VCT project for Blackfinch.
The Venture Capital Trust Scheme was set up by the government in 1995, and provided an opportunity for the private sector to invest into high growth companies, with the end goal to stimulate jobs and boost employment.
Speaking to Dr Wilcock on the Venture Scheme he told me “The VCT is a great opportunity for investors to diversify their portfolio. Investors can benefit from 30% initial income tax relief on the sum invested and, depending on performance, tax-free dividends and growth”.
Looking at Blackfinch as a firm, I was informed that the investment choices within the VCT are thoroughly scrutinised before decisions are made. It was interesting to note that a thorough laid out process is conducted, where all members of the ventures team are consulted on a firm. The focus for Blackfinch is the potential of the company they are researching, and that the products can make a significant difference otherwise known as a “disruptive product”.
Dr Reuben spoke to me, also adding that Blackfinch particularly wanted to focus their interests on companies that operate in big, growing markets, typically with a market value of at least £1 billion, with room to expand with growing trends. The Blackfinch Spring VCT targets investors who have the appetite for high-risk return, and want to help accelerate the growth of smaller companies with big potential.
Interestingly, Blackfinch have made a real effort to understand and get to know the person behind the business, their values and what difference they are trying to make in the world of technology and business. This forms one of the main criteria of Blackfinch’s investment choices.
Going forward, I was told about three areas which seem particularly intriguing to Blackfinch and Dr Reuben.
- Food technology – with the rise of vegan eating habits, and many people now making an ensured emphasis to cut down meats in their diets this was an area which had a lot of potential. Dr Reuben informed me that many consumers and businesses are now focusing on the way that food is made, delivered, packaged and shipped. The rise of environmentalism has never been so important, and investing into the food technology industry is one that will drive trends, change the nature of food patterns and is a sector which creates a lot of impact.
- The next sector is one that has been really accelerating over the last few years. The rise of financial technology or “FinTech” has been an interesting new consideration for investors and businesses. This was highlighted as an emerging market, and certainly there are many developments that need to be made.
- The final sector which was of note was the fitness technology industry. Dr Reuben spoke to me about the importance of personalization, and how there is an added emphasis placed on people’s activity and diets. The fact that people now don’t have time to be working out fitness plans and regimes has brought about the rise of fitness technology. This is a growing market, and one that Blackfinch identified to have huge consumer and investor potential.
As our conversation progressed, it was interesting to see how Dr Wilcock had laid out a definitive strategy to ensure that the companies that Blackfinch would be investing into had a balance between potential and risk, and it was impressive speaking to someone who had such a vast range of experiences and industry knowledge.
As our conversation continued, we reached the final question which I had which looked at examples of companies that Blackfinch had already invested in.
I was delighted to be informed of three very different companies that had been identified by Dr Wilcock and his team, and the three are as below.
The first company, was one called TENDED. This is a firm that is slightly different from the sectors that had been outlined previously, however one that had huge philanthropic purpose, and certainly a firm that was changing the dynamic of the approach to personal safety with an impressive combination of technology and enterprise.
In essence, TENDED offer a range of products which look similar to a smartwatch or a fitness band, however the main purpose is different to counterparts such as the Fitbit. The TENDED device can tell whether the individual using it gets into an accident or gets into any unwanted trouble.
Using smart technology, this allows the user to quickly contact an emergency number which has been preregistered onto the device. One of the main strengths which Dr Wilcock spoke about was the look of the product and also the easy nature of user interface, which was one of the primary reasons for investing into this company. Blackfinch initially invested into this company in April 2019, and the firm has grown and developed working with Blackfinch over the last few months.
The second company which was mentioned was KINTERACT. This firm once again have managed to make themselves stand out in the market, combining the power of education with technology.
Kinteract offer a simple way for teachers and parents the ability to track their child’s educational progress and offer insights into where developments can be made.
Using the Kinteract technology software, teachers can log observations to recommend learning and development for children’s curriculum and subjects of learning. The firm have really made an effort to make the learning process one that is inclusive, as parents and teachers are given a user interface platform which allows instant dialogue through the Kinteract app.
Additionally, the firm offer additional services such as location sharing and progression updates for parents and teachers to monitor how a child is performing in all aspects of his or her life, which is a brilliant development in the world of children’s learning.
The best thing about this product I feel is that it is such a versatile and portable product, which is built around a “rich and fluid data set” about the child and what the best ways for the child to develop his or her learning.
On their website, Kinteract emphasize that this is not just a product for children and that the applications are unlimited all the way to adult learning and graduates who are looking to really nail down and tailor a unique learning experience.
It is so apparent to see why Blackfinch have invested in this company, and it seems like the potential is huge for the firm.
Another interesting company which was noted by Dr Wilcock was called Kokoon. Upon further research into the company my initials thoughts were that this was just a normal headphone company, however I was not more wrong.
Where Kokoon have differentiated themselves in the market is that the headphones and products they supply allow the user to look at their brain and psychological activity.
Interestingly, Kokoon is a company which has looked to expand their dimensions as their headphones allow companionship with other apps providing therapy and mediation solutions for those that require services such as CBT courses or sleep aids.
Blackfinch through this investment have combined two key areas of development, technology and science. Kokoon have used scientific expertise to market their products, and it was a breath of fresh air to see that already 15,000 headsets had been sold showing the massive potential for this product to be the first of its’ kind in the market.
Through this investment, Blackfinch changed the nature of their investments as I was told that this was a company that was in the latter stages of its developments, tailing from the traditional narrative that Blackfinch only invest in start up or early stage businesses. However, this does show a degree of flexibility from Blackfinch which should attract both investors and businesses to work with them.
As our conversation concluded, it was clear to see that Dr Wilcock, Richard Cook and the team at Blackfinch have really done their research into the launch of their new Venture Capital Trust, and by giving the examples of firms that they have invested in, this really sets a high benchmark for future performance.
Richard Cook added that, “Blackfinch has always been very entrepreneurial and as part of that our growth has been driven by supporting groundbreaking new businesses. As an early stage investor with extensive experience in founding and growing companies, we are now applying this to supporting innovative new firms through the Blackfinch Spring VCT.”
The Blackfinch team were a pleasure to work with and it was great for me to catch up with the man managing the expert team that drove the new technology based VCT, and certainly it is something which I would recommend to go and have a look at, as the future looks very bright for budding entrepreneurs and investors that want to work with Blackfinch.