Ferguson consider two options for US listing, as shares jump over 6%
Ferguson PLC (LON:FERG) have told the market about their intentions to list in the United States following a planned demerger of its UK and US business.
Ferguson stated that they see New York as the US businesses’ “natural long-term listing location”. As a result, shares have jumped on Tuesday morning.
Shares in Ferguson trade at 7,334p (+6.29%). 4/2/20 11:09BST.
The FTSE 100 listed company announced that it will be commencing a $500 million share buyback plan over the next twelve months, to allow it to meet its long term growth targets.
Ferguson added that strong cash generation coupled with added opportunities to invest in organic growth and acquisitions means that the firm has resources and cash available for investment.
Interestingly, when considering its future strategy, the plumbing and heating company said that its capital allocation priorities remain unchanged.
Investment priorities continue to be through organic growth which will exceed underlying market growth, which in turn will fund their ordinary dividend.
Plans of a demerger of the UK and US businesses surfaced last year, and today the firm has said that following the separation of the two segments they will be listed on different exchanges – this will allow complete independence and stop shareholder conflict.
Ferguson told the market that it is considering two options for a listing program for the future.
The first involves seeking shareholder approval for an additional listing of ordinary shares in the US, this would mean that Ferguson would seek an additional listing of its shares on a major US stock exchange whilst maintaining its existing premium listing on the London Stock Exchange.
If this plan is to go forward, the firm would require shareholder consent of 75% and even if this passed Ferguson would require a separate shareholder vote to cancel its London premium listing.
The second option is to seek shareholder approval for a primary listing in the US. Ferguson would seek a change of primary listing of ordinary shares to a major US stock exchange.
The FTSE 100 lister said it expects to make a further announcement following the conclusion of the consultation, likely to be in the spring of 2020.
Commenting on the proposals Geoff Drabble, Ferguson’s Chairman said:
“In assessing Ferguson’s future listing structure, the Board’s approach has been to consider carefully what is in the best interests of the Company and its stakeholders over the long-term. The Board believes that Ferguson’s natural long-term listing location is the USA but it is mindful that this is a complex issue for many of our existing shareholders. We will now commence a period of further consultation with our major institutional shareholders and will listen carefully to their feedback before setting out any firm proposals in the Spring.”
Glencore see steady 2019 with higher production in zinc, cobalt and coal
Glencore PLC (LON:GLEN) have seen a steady performance across 2019 as the firm reported their findings on Tuesday morning.
Glencore have seen a mixed year, and have been making news headlines following an investigation from the Serious Fraud Office a few weeks back.
Today, the firm gave an update on production saying that they saw higher production from zinc, cobalt and coal operations.
However, copper, gold, silver and nickel performance was stunted in what seems to be a mixed annual update.
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.
One of the best performers was in the coal department, as this rose 8% giving a total of 139.5 million tonnes.
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.
Finally, entitlement interest oil production of 5.5 million barrels was 0.9 million barrels (19%) higher than in 2018, reflecting the benefits of the drilling campaign in Chad and first oil from the Bolongo field in Cameroon.
Glencore announce new Non Executive Director
In an update today, Glencore also updated shareholders about the appointment of a new Independent Non-Executive Director. The firm said that Kalidas Madhavpeddi will be assuming the new position with immediate effect. Madhavpeddi has over 30 years of experience in the international mining industry, including being CEO of China Molybdenum International (China Moly) from 2008 to 2018. Tony Hayward, Chairman, stated: “The Directors are extremely pleased to welcome Kalidas Madhavpeddi to our Board. Kalidas has extensive knowledge of the resources industry coupled with business experience across all continents, including over 10 years as the CEO of China Moly. His experience includes substantial involvement in operations and business dealings with both Phelps Dodge and China Moly in the Democratic Republic of the Congo. We look forward to benefitting from his experience and insights.”Glencore’s bribery investigation
In December, it was reported that the Serious Fraud Office had commenced an investigation into Glencore following bribery allegations. As a result, the firm saw their shares dive 8.5% on December 5th. In a statement to the stock market, the company said: “Glencore has been notified today that the Serious Fraud Office has opened an investigation into suspicions of bribery in the conduct of business of the Glencore group.” The SFO said: “The SFO confirms it is investigating suspicions of bribery in the conduct of business by the Glencore group of companies, its officials, employees, agents and associated persons. Certainly, Glencore have had a turbulent year as the firm has been placed in bad media spotlight following a couple of encounters with the SFO. Glencore will hope that 2020 will be a year of positive media image, growth and rebuilding. Shares in Glencore trade at 231p (+4.45%). 4/2/20 10:58BST.BP report fall in fourth quarter and annual earnings
BP plc (LON:BP) shares have jumped on Tuesday morning as the firm gave an update on their fourth quarter operations.
The oil and gas major reported a fall in fourth quarter and annual earnings, as both oil and gas prices remained volatile in the quarterly period.
Notably, this would be the last time Chief Executive Bob Dudley would be delivering the firms results after a long term with the firm.
Dudley commented:
“BP is performing well, with safe and reliable operations, continued strategic progress and strong cash delivery. This all supports our commitment to growing distributions to shareholders over the long term and the dividend rise we announced today. After almost ten years, this is now my last quarter as CEO. In that time, we have achieved a huge amount together and I am proud to be handing over a safer and stronger BP to Bernard and his team. I am confident that under their leadership, BP will continue to successfully navigate the rapidly-changing energy landscape.”
Looking at profit figures however, BP have managed to beat analyst and market expectations as the firm raised its annual dividend.
It seemed that shareholders remained optimistic, as shares spiked almost 5% on Tuesday morning.
Shares in BP trade at 473p (+4.48%). 4/2/20 10:29BST.
In the three month period to December 31, underlying replacement cost profit fell 26% year-on-year to $2.57 billion from $3.48 billion. For the full-year, it declined 21% to $9.99 billion from $12.72 billion.
Notably, the oil multinational saw revenues fall 6% to $71.11 billion from $75.68 billion in the fourth quarter, with 2019 revenue declining 6.8% to $278.40 billion from $298.76 billion.
BP made the market aware that they do not measure success on traditional profit lines, and rather tend to use RC which is replacement cost.
This is defined as the replacement cost of inventories sold in the period, this measure allows the firm to show shareholders that crude oil and derivatives can fluctuate in price, so the RC measurement gives consistency in results.
The company upped its fourth quarter dividend by 2.4% year-on-year to 10.5 cents.
Speaking on the dividend rise, Brian Gilvary Chief Financial Officer said
“We continue to make strong progress on our divestment programme, with announced transactions totalling $9.4 billion since the start of 2019. We are ahead of our target of $10 billion of proceeds by end-2020, and now plan a further $5 billion of agreed disposals by mid-2021. Net debt fell $1 billion in the fourth quarter, and with further disposal proceeds expected, and assuming recent average oil prices, we continue to expect gearing to move towards the middle of the 20 to 30% range through this year. Together with the continued strong operational momentum, growing free cash flow, and our confidence in delivery of 2021 free cash flow targets, this underpins our announcement today of an increase in the dividend to 10.5 cents per ordinary share.”
Pretax profit was down in the fourth quarter to $239 million from $249 million. Across the full-year period, it more than halved to $8.15 billion from $16.72 billion.
Looking at operating fees, BP saw impairment costs of $2.68 billion across the fourth quarter and on an annualized basis total impairment totaled $6.89 billion for 2019.
“The impairment charges, which are substantially all reported in the Upstream segment, principally relate to BP’s ongoing divestment program. They include $1.99 billion in the fourth quarter and $4,70 billion in the year relating to heritage BPX Energy assets. $258 million in the fourth quarter and the $1.26 billion in the year relating to the group’s interests in its Alaska business and $244 million in the year relating to the group’s interests in Gulf of Suez oil concessions in Egypt.”
Looking at output, BP noted that fourth quarter output did rise by 2.7% to 2.7 million barrels of oil equivalent per day, and for the full-year, climbed 3.8% to 2.6 million barrels of oil equivalent per day.
Speculating for 2020, BP commented:
“We expect full-year 2020 underlying production to be lower than 2019 due to declines in lower margin gas basins. We expect reported production to be lower due to the above factor and the impact of the ongoing divestment programme.
We expect first-quarter 2020 reported production to be lower than fourth-quarter 2019 due to the impact of our ongoing divestment programme and planned seasonal maintenance and turnaround activities.”
BP’s Third Quarter Results
The third quarter proved tough for BP, as the firm saw their results take a hit. The company said that underlying replacement cost profit for the third quarter of the year amounted to $2.3 billion, considerably lower than the $3.8 billion figure recorded a year prior. BP added that a divestment-related, non-cash, non-operating after-tax charge of $2.6 billion caused a reported loss of $700 million for the quarter. “BP delivered strong operating cash flow and underlying earnings in a quarter that saw lower oil and gas prices and significant hurricane impacts,” Bob Dudley, Group Chief Executive, commented on the results. BP are making ground, however the macroeconomic world has meant that oil and gas prices have been fluctuating, and this could be an important factor across 2020 for shareholders to consider.
Verona Pharma appoint new CEO and CFO
Verona Pharma Plc (LON:VRP) have seen their shares crash 10% as the firm announced a couple of new senior management changes on Monday afternoon.
Shares in Verona Pharma trade at 47p (-10.00%). 3/2/20 15:36BST.
The firm said that former Dova Pharmaceuticals Inc boss David Zaccardelli had been appointed as president & chief executive officer.
Notably, Dova Pharmaceuticals former chief financial officer, Mark Hahn, will join as CFO. This will be a non-board position and is effective from March 1. Hahn has also been CFO at Cempra Inc.
Zaccardelli was president and CEO of Dova until it was bought by Swedish Orphan Biovitrum AB in November 2019. His other significant previous roles include chief operating officer at United Therapeutics Corp.
Zaccardelli’s appointment is effective from Friday and comes at a time where Verona have seen recent successes.
“We are very pleased to have both Dr. Zaccardelli and Mr. Hahn join Verona Pharma. They are highly experienced leaders with a proven track record of working together to create significant value for shareholders. We believe we have a strong team in place to lead Verona Pharma into its next phase of growth. The team will focus on the US and worldwide opportunities to help COPD patients in need of additional treatment,” said Dr. David Ebsworth, Chairman of Verona Pharma.
“I thank Dr. Karlsson for his leadership in building Verona Pharma into a strong company with a Phase 3 program for ensifentrine expected to begin in 3Q 2020, and also Mr. Morgan for his support through the US IPO process. Together, Dr. Karlsson and Mr. Morgan successfully raised significant capital, listed Verona Pharma on Nasdaq and used these funds to generate data supporting the strong efficacy and safety profile of ensifentrine in COPD. I am pleased they will continue to support the transition to ensure the further success of Verona Pharma.”
The appointment of Zaccardelli seems an interesting one, however the new appointment has vast experience in the industry and should take Verona in the right direction.
Speaking on his new role Zaccardelli said:
“I strongly believe it is a transformational time to join Verona Pharma to ensure the full potential of ensifentrine, a first-in-class, inhaled, dual inhibitor of the phosphodiesterase 3 (PDE3) and phosphodiesterase 4 (PDE4) enzymes for the treatment of respiratory diseases including COPD, asthma and CF. In addition, the recently reported Phase 2 clinical trial results of ensifentrine added to inhaled tiotropium, a long acting anti-muscarinic (“LAMA”) commonly used to treat patients with COPD, underscores its potential for a significant impact on the treatment for patients with COPD. Verona Pharma will continue to focus on developing new treatments for patients with unmet medical need.
“I am also excited Mark Hahn is joining Verona as CFO as part of the executive leadership team. He has extensive experience in both finance and public pharmaceutical companies having raised more than $600 million to support novel product development at previous companies. In addition, we have effectively collaborated together in the leadership of previous companies including Dova resulting in the acquisition by Sobi.”
Verona’s positive Ensifentrine trial
A few weeks back, Verona gave an impressive update to the market which saw its shares surge over 50%. The firm said that its Phase 2b clinical trial of nebulized Ensifentrine met its primary endpoint. The four weeks trial, which is currently being undertaken is being studied within severe chronic obstructive pulmonary disease patients is now reaching its conclusion. The drug was administered twice daily in combination with tiotropium, a treatment used in the management of chronic obstructive pulmonary disease and asthma. Verona are currently trialling four different doses of the new medication, which are 0.375 milligram, 0.75 milligram, 1.5 milligrams and 3.0 milligrams. Verona said the drug hit its “primary endpoint” for a dose-related positive effect on lung function when compared with a group taking a placebo that has no medical benefit.British Bars and Pubs round up – a cocktail of results and performances
The British bars and pubs scene has been busy over the last few weeks and months. Different firms have seen different results across the festive trading period, where firms look to make ground and reach peak business trading levels.
Here is a roundup of the most recent updates from the main names in the industry giving a full overlook of their recent performances.
J D Wetherspoon
When looking at the British pub market, the first name that automatically springs to mind is J D Wetherspoon plc (LON:JDW). Wetherspoon is known to be the home of a cheap pint, discounted pitchers and home to many university students looking for a pint and a cheap meal. The main spokesperson of the company, Tim Martin has been an advocate for Brexit and was one of the main figures for the “Leave” Campaign back in June 2016, and since then has voiced his opinion over many issues of politics, economics and governance on both British and European politics. So how have Wetherspoons performed?November update
In November, the firm saw their shares spike following a bullish quarterly update. The British pub chain boasted strong sales figures, which increased across the quarter as customers spent more its nearly 900 pubs across Britain and Ireland. The company reported higher demand for coffee, pink gin, real ale and breakfast. Additionally beer sales rose significantly as British consumer trends changed by the quarter. J D Wetherspoon’s like-for-like sales rose 5.3%, which exceeded both market and analyst expectations.Job Pledge
A few weeks on from the bullish update, Wetherspoons pulled a rabbit out of the hat with an update which promised a job creation pledge. Wetherspoon updated the market by saying that they plan to open between 50-60 new pubs and hotels. These new branches will be located within in small and medium-sized British towns and cities but also in London, Edinburgh, Glasgow, Birmingham and Leeds as well as the Irish cities of Dublin and Galway. “Wetherspoon will not be entering into any deal like everyone else,” a company spokesman said. The planned opening of these new pubs and chains meant that Wetherspoons told the British people that they will create 10,000 new jobs which is certainly something that will win over the support of the British public.Festive trading
The Christmas and New Year period allowed Wetherspoon to continue their fine run of form. A few weeks back the FTSE 250 listed rom saw a rise in like for like sales across the 12 weeks period ending January 19, which included the festive trading season notably. Across the twelve weeks period, the firm saw total sales climb 4.2% with like for like sales 4.7% higher, an impressive feat to show the market. Total year-to-date sales also rose by 4.9% which reflected the successful nature of the firm in the recent weeks. The British pub chain said that it is expecting to open up an additional 10 to 15 and spending £80 million on new units and extensions at existing pubs. Additionally, Wetherspoon alluded to £57 million so far this financial year that it has spent on freehold reversions of 18 pubs. Although the company said it is in “a sound financial position”, come the July year-end net debt is expected to be between £780 million and £820 million, “slightly higher than previously anticipated, due to higher than anticipated capital expenditure.” Following a strong few months of trading, it is clear to see that Wetherspoon’s are continuing to dominate the British pub market, and plans for growth and expansion are well underway which could impose their position as a market leader. Interestingly, the last few months has also given room for some other firms to make ground.Loungers – an exciting new arrival
In December, Loungers (LON:LGRS) saw their shares rally following an impressive interim update. Loungers is an operator of café/ bar/ restaurants across England and Wales under two distinct but complementary brands, Lounge and Cosy Club. For the 24 weeks to October 6, the pub and restaurant firm saw its revenue climb22% on the year before to £79.8 million, with the pretax loss narrowing to £2.5 million from £4.3 million. On a like-for-like basis, revenue growth was 5.4%, a figure Loungers said was “sector leading”. Loungers reported an adjusted pretax profit of £2.6 million, after a £4.3 million loss the year prior. It is on track to open 25 new sites during its current financial year, and has a “strong” pipeline further ahead. The target is for 25 new sites to open per year. “Looking ahead, the strength of our financial 2020 openings to date and the continued evolution of our offer further underpins our confidence in continuing our current growth rate of 25 new openings per year and the potential for more than 400 Lounges and 100 Cosy Clubs across the UK,” said CEO Collins. Notably, Loungers built strongly from their previous update in August.Loungers continue to grow
In August, the firm booked healthy growth across financial performance indices during the full year ended April 31 2019. The Pub and Restaurant Group’s revenue jumped 26.4% on a year-on-year basis, to £153.0 million, and adjusted operating profit bounced 23.3% to £12.4 million. Loungers also reported adjusted EBITDA growth of 23.7% to £20.6 million and their adjusted EBITDA margin dropped slightly by 0.2% on-year. Further, the Company’s like-for-like sales grew 6.9% and cash generated from operations hiked 13.5% to £22.4 million. Loungers shares were admitted to the AIM post year end and raised £83.30 million. Collins said “Our admission to AIM post the FY19 year-end has meant almost 600 employees have had the opportunity to become shareholders in Loungers plc and it is fantastic that their hard work and commitment can be rewarded in this way.” Loungers are a firm that are for sure on the rise, and the market should be prepared for the vast expansion and development that Loungers could see across 2020. In my opinion, out of all the British bar and pub chains, Loungers is definitely a firm to keep an eye on as they separate themselves within a competitive market with their unique bar themes and layouts.Revolution Bars
Revolution Bars (LON:RBG) are an another pub like chain, but have their markets split as they operate cocktail bars and run like a night club at the weekends. Revolution is a brand which stands out in my mind, and a smile comes to my face when I think about the fun range of cocktails, flavored vodka’s and bizarre drinks that they provide, many which I have tasted. In January, the firm reported a seventh successive year off record Christmas sales and this lead to a rise in first half revenue. In the four weeks to December 31, the firm saw a 4% rise in like for like sales, as weekly sales during the period averaged £65,000. In the first half period, ending December 28 revenues grew 3.4% to £81.2 million from £78.5 million on year ago, as like for like sales also rose by 1.2%. Rob Pitcher – Chief Executive Officer said: “I am delighted with our Christmas trading and the steady improvement in our like-for-like* sales performance over the first half is further evidence that our key initiatives are driving both operational and financial improvement. Considerable strides have been made in rebuilding customer loyalty and driving sales and profit from the existing estate, creating a stronger business with significant cash generation.” Revolution continue to grow from strength to strength, but do not boast as many chains compared to Wetherspoon. However, the firm does operate in a niche market. Looking at the results over Christmas in the last few years however, Revolution is a brand which holds respect in the British bar and pub market.Fuller, Smith & Turner – mixed time for pub chain
Strong start in July
Fuller, Smith & Turner (LON:FSTA) had seen a positive period of trading in July, as the firm reported revenue grows in a year where the Company were particularly active in terms of operational and strategic developments. The Group’s revenue was £431.1 million for the full year 2019, up 7% on 2018 at £403.6 million. EBITDA was also 3% from £70.9 million for FY18 to £73.2 million for FY19. On the other hand statutory profit before tax was down from £43.6 million to £26.1 million for FY19, following separately disclosed items of £17.1 million. Adjusted profits were also flat year-on-year at £43.2 million. On its operations, the Company said it saw 4.9% like-for-like sales growth from Managed Pubs and Hotels. Like for like profits rose 1% on good performance from Tenanted Inns.November profit warning
Fortunes changed hands for Fuller, Smith and Turner as the firm issued a profit caution to shareholder in November. The statement provided updated shareholders saying that annual profit was set to be unchanged. The firm alluded to costs with the separation of its brewing business came in significantly higher than expected.Mitchells and Butlers quietly make ground
A firm which went under the radar was Mitchells & Butlers plc (LON:MAB), a pub chain which holds names such as Harvester, Toby Carvery, All Bar One, Miller & Carter, Premium Country Pubs, Sizzling Pubs, Stonehouse, Vintage Inns, Browns, Castle, Nicholson’s, O’Neill’s and Ember Inns. The firm saw its shares spike in November, as it gave an impressive update to the market. In the 52 weeks to September 28, Mitchells & Butlers recorded £177 million in pretax profit, 36% higher than the £130 million reported the year before. Revenue grew 4.2% year on year to £2.24 billion from £2.15 billion, with total sales up 3.9%. Total like-for-like sales grew by 3.5%, with strong performances across all of Mitchells & Butlers brands contributing to “continued, consistent outperformance” of the market, the company said. Chief Executive Phil Urban commented: “These strong results reflect the work we have done over the last few years, first to build sustained sales growth and then to convert that into profit growth.City Pub Group disappoint
City Pub Group (LON:CPC) gave shareholders a disappointing update a few weeks back, as the firm saw slower festive trading compared to its counterparts. The firm said that they experienced “subdued” trading across the festive period, which dampened expectations. In its financial year, which ended on December 29 the firm said that it had performed relatively well. The firm saw its revenue rise 31% to £59.8 million, as like for like sales jumped 1.7%. Following the slower Christmas period, the firm said that adjusted earnings before interest, tax, depreciation, and amortisation for the year is now expected to be slightly below market expectations, between £9.1 million and £9.2 million. However, a number of one-off factors in the last quarter of its year held back fourth-quarter performance. “The Rugby World Cup did not have the impact that we expected. Political uncertainty culminating in the December election held back sales until the result was known and unhelpful weather during November and December dampened trading further,” said the company. “There were also disruptions on South West trains throughout December due to industrial action, which had an impact on our London estate.” Certainly, there is no disguising the fact that Wetherspoon are still leading the market. The significant growth of the firm combined with the cheap food and drink offers is something that the British public have simply not been able to resist. Despite the growth and dominance of Wetherspoon, the growth of firms such as Loungers and Revolution Bars is important to recognize. Although these firms do operate in competition with British pubs, they are seeming to attract a niche market which is bringing positive results.FireAngel feel exceptional costs burden as shares drop over 8%
FireAngel Safety Technology Group PLC (LON:FA) have said that it expects exceptional charges to weigh down on its 2019 results which has left shares in red.
The firms’ mission is to protect, save and improve our customers’ lives by making innovative, leading-edge technology simple and accessible.
FireAngel said that exceptional charges will arise from stock provisions and impaired development costs, which will skew the direction of their annual results.
The firm was formerly known as Sprue Aegis, and has made good progress over the last few months however today’s update will give shareholders a slightly alarming feeling.
FireAngel have said that it will record an approximately £3.2 million exceptional charge on top of previously announced exceptional charges totaling £2.1 million.
The firm did say that it had also incurred a £1.4 million fine for “increasing the legacy battery warranty provision for increased product replacement costs” and £700,000 “for restructuring and fundraising costs”.
Notably, a further £3.2 million non-cash charge will also be imposed on the firm, as this results from a review of FireAngel’s product lines and its development plans for the future as part of a plan “to become a more technology-led connected home solutions provider”.
FireAngel expects annual sales to rise by 20% to around £45.5 million from £37.6 million and to post an underlying operating loss of about £2.9 million versus £2.0 million in 2018.
The underlying 2019 figure does not include exceptional charges, which amount to £5.3 million roughly combined with a £37,000 charge for share based payments.
On a worse note, the firm said that a further 300,000 products could be faulty due to “third-party supplied battery impedance issue, first identified in April 2016”.
However, the firm has tried to reassure customers and shareholders by saying that the problems were not critical and that it only affects a minority of products.
FireAngel said “Whilst this increase represents a small percentage of the overall production volume, is not a safety critical issue and impacts only certain products and territories, the Group will set aside a further provision for this increased volume which is expected to be approximately £2.7 million, the cash cost of which is expected to be incurred over the next three financial years. This is still being evaluated by the Company and remains subject to audit.”
“The Board is conducting a thorough investigation into the failures in certain of the Company’s historical manufacturing quality review processes. It does not anticipate that there will be any further increase in the number of units impacted as it relates only to units produced at one of the Company’s previous manufacturers in China up to the end of March 2018. The units produced at the Company’s manufacturing partner in Poland since April 2018 are not affected.”
Worryingly, this is 30% more than what FireAngel had anticipated however, the firm told shareholders that it has set £2.7 million aside for which the cash cost will be accounted for over the next three years.
John Conoley, Executive Chairman of FireAngel, commented:
“FireAngel’s results continue to be negatively impacted by legacy issues as a result of certain historically poor internal processes. However, the strategic decision to invest heavily in future technology is proving to be correct. The fruits of the investment made in connected technology are now beginning to come through in successful real-world trials, the financial benefits of which are expected to be realised in the short, medium and long term. We look forward to providing further updates at the time of our full year results.”
FireAngel – Mears Limited partnership
A little while back, the firm agreed a partnership with Mears Limited (LON:MER). Mears is responsible for the maintenance, repair and upgrade of over 700,000 UK properties. The agreement will see the two companies join in an exclusive partnership. The agreement will see FireAngel supply Mears with an integrated home management system. As a result, Mears will introduce FireAngel’s UK Trade team to a number of clients effective immediately. Moreover, Mears will use FireAngel as its preferred safety product provider. Certainly, this is a worrying update for both the firm and shareholders. FireAngel will have to look to address their public media image along with faulty products in order to gain market reputation once again. Shares of FireAngel trade at 14p having dropped 8.13% on Monday. 3/2/20 14:19BST.Porvair expect profits to be higher following growth in aerospace and industrial unit
Porvair PLC (LON:PRV) have told the market that they expect profit to be higher in their recent financial year, however shares are in red.
Shares in Porvair trade at 760p (-3.31%). 3/2/20 13:41BST.
The firm said that it saw a substantial rise in its aerospace and industrial unit revenue, which contributed to the strong trading across its recently ended financial year.
Describing their aerospace and industrial unit division the firm said:
“The Aerospace & Industrial division designs and manufactures a wide range of specialist filtration products, demand for which grows as aerospace and industrial customers seek cleaner, safer or more efficient operations.”
In its financial year ended November 30, the filtration and environmental technology firm’s pretax profit rose 17% to £14.0 million from £12.0 million.
Revenue surged by 12% to £144.9 million from £128.8 million. This revenue rise was particularly led by Porvair’s Aerospace & Industrial division, where revenue jumped 28% at £64.7 million from £50.5 million.
Shareholders will be pleased as the firm recommended a final dividend of 3.2 pence per share, which sees a 6.7% climb from 3 pence year on year.
Ben Stocks, Chief Executive, said:
“These results demonstrate the benefits of Porvair’s strategy. Some segments have grown in 2019, others have maintained momentum through operational improvements. 2020 is likely to be similar. The Group’s fundamentals are robust.
Over the last ten years, Porvair has delivered revenue growth of 162% (10% CAGR). The Group is positioned to benefit from global trends: tighter environmental regulations; growth in analytical science; the expansion of air travel; the replacement of plastic by aluminium; and the drive for manufacturing process efficiency. These trends offer opportunities for which the Group develops differentiated products. Trading in 2020 has started well, order books are healthy and investment plans are on track. Recent acquisitions are trading as expected. The Group is looking forward with confidence.”
Porvair have remained confident to deliver results to shareholders in the future, and their growth strategy looks to be settling in well with the overall direction of the firm.
Porvair forecasted saying that “These results demonstrate the benefits of Porvair’s strategy. Some segments have grown in 2019, others have maintained momentum through operational improvements. 2020 is likely to be similar. The Group’s fundamentals are robust. Over the last ten years, Porvair has delivered revenue growth of 162% (10% CAGR).
The Group is positioned to benefit from global trends: tighter environmental regulations; growth in analytical science; the expansion of air travel; the replacement of plastic by aluminium; and the drive for manufacturing process efficiency. These trends offer opportunities for which the Group develops differentiated products. Trading in 2020 has started well, order books are healthy and investment plans are on track. Recent acquisitions are trading as expected. The Group is looking forward with confidence.”