Nektan see revenue growth from strong B2B sales, but loss widens
Nektan PLC (LON:NKTN) have reported a rise in their annual revenues, however told shareholders that annual loss has widened.
In the year to June 30, 2019, the mobile gaming and casino technology platform recorded a pretax loss of £6.4 million compared to £5.0 million the year before.
Nektan alluded to factors such as restructuring costs and a £2.8 million loss on the removal of its subsidiary firm Respin LLC.
However, shareholders will be pleased as the firm saw its revenue climb 14% to £22.6 million from £19.9 one year ago. Looking at the revenue growth, the firm praised the sharp rise in business-to-business sales as the main factor for the results posted today.
Following this success, Nektan said that there is a plan to focus on business-to-business sales as part of its strategic review.
At the beginning of January, Nektan sold its loss-making UK business-to-consumer unit, allowing it to focus on its B2B business.
Gary Shaw, Interim Chief Executive Officer of Nektan, said:
“The restructuring represents an important milestone for Nektan. We can now focus on executing our strategy of becoming a dedicated casino technology and gaming content provider globally. These initial results support the Directors’ decision to focus solely on B2B opportunities.
Trading for the six months to 31 December 2019 saw the Group achieving more than double the revenues for the same period last year. The last few months have seen an intense period of activity culminating in now having 34 sites live. With the majority of these going live at the back end of the calendar year, combined with a 3-4 month ramp up period, we expect to report further significant revenue growth during the current quarter (Q3 2020) – early signs in January underpin this. As a result, the Group continues to anticipate reaching monthly EBITDA break-even by the end of this financial year.”
Fastjet meet expectations however still ponder over Zimbabwe options
Fastjet (LON:FJET) are a firm that have been under pressure over the last few months, and today they have updated the market following a tough few months.
Fastjet updated shareholders today by telling them that trading had been in line with management expectations and stated the need for further funding by the end of February in order to sustain good trading.
The budget airline said that funding will be required so that it can continue to carry out its restructuring plan.
Notably, the firm said that discussions to dispose of its Zimbabwe operations were still ongoing, following much turbulence.
Part of the restructure plan was for Fastjet to sell off its Zimbabwe portfolio for a reported $8 million to Solenta Aviation, which holds a 60% stake in Fastjet.
In October the company had announced it suspended flight operations in Mozambique amid “ongoing supply and demand challenges”. During the first six months of 2019, revenue from Mozambique had fallen to $2 million from $4 million a year prior.
Notably, the firm said that its revenue including Zimbabwe is forecasted to be $42 million, compared to the $39 million figure one year ago.
Loss after tax is expected to be $7 million to $8 million compared to a loss of $65 million the year before.
Fastjet express their needs
In the trading update on Monday, Fastjet said the following: “As previously announced the Board expects further funding will be required by the end of February 2020 to enable the Group to continue operating in its current form. The Directors believe, based on current financial projections and funds available and expected to be made available, that the Group will have sufficient resources to meet its operational needs until the end of March subject to forecast revenues not being impacted by any unforeseen circumstances. To address this funding requirement the Group remains in active discussions with an investor consortium led and underwritten by Solenta Aviation Holdings Limited and other local investors in Zimbabwe (the “Investor Consortium”), in relation to the disposal of the Group’s holding in fastjet Zimbabwe (the “Disposal”). The Investor Consortium is finalizing its due diligence on Fastjet Zimbabwe and securing the required regulatory approvals. The Group is also seeking to establish the extent of any outstanding contingent or other liabilities and related transactional costs which may or may not be material to the Group. The final negotiations with the Investor Consortium including the final consideration payable will be concluded once this exercise is completed. Whilst discussions with the Investor Consortium are ongoing there can be no guarantee of a successful outcome. If the Group is unable to carry out the restructuring proposal by the end of March 2020 it would be unable to continue trading as a going concern.”Zimbabwe problems
In November, the firm saw its shares plummet after considerations were made to sell its operations in Zimbabwe. “Fastjet Zimbabwe has increased its year on year revenue despite the difficult trading conditions following the introduction of a new currency which effectively devalued the existing currency by up to 15 times its previous value at official rates and has pushed inflation rates to above 200%,” Fastjet added. The Zimbabwe sale would also relieve Fastjet off $5.4 million in debt and $3.2 million in future aircraft orders. The proceeds from the sale would be used to fulfill debt obligations and fund future capital projects into 2021. Shares in Fastjet trade at 0.17p (+1.18%). 27/1/20 13:04BST.Discovering investment art in LA
Sponsored by Red Eight Gallery
One of our hottest new discoveries for 2020 is the young rising star Cayla Birk who recently celebrated her first solo show in Los Angeles. Born in Florida to a single mother, Birk credits her love of travel and her eclectic childhood to her success as an artist and her diverse body of work.
Birk’s practice draws on a wide range of influences including writers, thinkers, and musicians such as Jack Kerouac, Ella Fitzgerald, and Chuck Palahniuk. Her signature style mixes traditional media like acrylic paints with more unusual materials to create a striking juxtaposition of bold gestures and provocative lettering. Birk’s quick mind and versatility shine through in her work with connections made from one project to another through recurring themes and concerns rather than aesthetic continuity.
“My artwork re-conceptualizes social and cultural subject matters”, explains Birk in her artist’s statement. “In my work, I allude to popular iconography, musical lyricism, and current verbal slang that pervade societal culture. Having engaged subjects as diverse as enlightened secret orders, hip-hop music and contemporary design, my work reproduces familiar visual signs, arranging them into new conceptually layered pieces.”
Birk’s “Periodic Table of Relevance” project is a prime example of how she revels in taking common, everyday symbols and breathing new meaning into their familiar forms. This series of canvases portrays the elements of the periodic table with a provocative twist; each letter abbreviation is given a false name and an alphanumeric cypher hidden in the atomic weight at the bottom of the canvas. For example, “Br” becomes “brunch” and “V” is named “versace”. The viewer is also invited to interact with each piece via a conical flask which reveals the secret meaning of each atomic weight.
Another related project is “Birktone” which plays on the familiar Pantone colour swatches. Each colour is linked to pop icon, famous figure, or concept such as “The Grass On The Other Side” for a bright shade of green. As with “Periodic Table of Relevance” the project allows the viewer to see something familiar in a new light and challenge their own preconceptions of the world around them.
Following her first solo show in Los Angeles last year, Cayla Birk’s artworks have received a significant uptick in interest from collectors around the globe. This is the ideal moment to invest in a rising star of the international gallery circuit while prices remain accessible.
AstraZeneca give double update on Monday including Brilinta outcome
AstraZeneca plc (LON:AZN) have told the market they have sold a range of hypertension drugs, and have updated shareholders about the outcome of two drug trials.
The FTSE 100 listed pharmaceutical giant today updated shareholders by saying it has sold the commercial rights to its Inderal, Tenormin, Tenoretic, Zestril, and Zestoretic to Basildon-based Atnahs Pharma for $350 million upfront.
Astra added that they may also get a further $40 million depending on sales between 2020 and 2022.
Notably, the sale excludes provisions in the USA and India, which had been sold prior to the announcement this morning.
“These are important established medicines, and the divestment to Atnahs ensures they will continue to be available to patients. This transaction supports our strategy to realise value from our portfolio of non-core mature brands, enabling further investment in new medicines,” said Ruud Dobber, the executive vice-president of BioPharmaceuticals at Astra.
Astra’s Drug trial outcomes
AstraZeneca also updated the market about the outcomes of drug trials for two new medications. The pharmaceutical giant said that the Brilinta medication met its primary endpoint in a third phase trial, which showed positive conclusions including the reduction in the risk of death in strokes compared to conventional painkillers. Enhertu, a gastric cancer treatment, also met its primary endpoint, in a phase II trial. Astra said the drug achieved a “statistically significant and clinically meaningful improvement” in the response and survival rate of patients with unresectable or metastatic gastric of gastroesophageal cancer. “Results of the phase three THALES trial showed Brilinta, in combination with aspirin, improved outcomes in patients who had experienced a minor acute ischaemic stroke or high-risk transient ischaemic attack. We look forward to sharing the detailed results with health authorities,” said Mene Pangelos, the executive president for BioPharmaceuticals R&D at Astra. “Gastric cancer is usually diagnosed in the advanced stage and patients face markedly high mortality rates, making the need for new therapies especially urgent,” said Jose Baselga, executive vice-president of Oncology R&D. “Given the previous results seen in our HER2-positive development programme and now in HER2-positive metastatic gastric cancer, we believe this antibody drug conjugate has the potential to redefine the treatment of patients with HER2-expressing cancers.”Astra end trial for Epanova
A fortnight ago, Astra said that they would be ending the trial for their Epanova drug. The firm added that this could lead to a $100 million impairment, something which will worry shareholders. Astra said that this decision was based on a recommendation by an independent monitoring g committee, which said that Epanova is “unlikely to demonstrate a benefit to patients” with mixed dyslipidaemia who are at increased risk of cardiovascular disease. Mene Pangalos, Astra’s executive vice president of BioPharmaceuticals R&D, said: “It was important to assess the potential benefit of Epanova in mixed dyslipidaemia. We are disappointed by these results, but we remain committed to addressing the needs of patients in the cardiovascular space where we have an extensive pipeline.” Shares in AstraZeneca trade at 7,505p (-2.01%). 27/1/20 10:35BST.
Citi sets an ambitious tone for 2020 with $150 million Impact Investing fund
On January 17th, New York-based global bank Citi (NYSE:C) announced the launch of the $150 million Citi Impact Fund, an investment drive aimed at “double bottom line” US-based private sector companies which generate financial profit and have a positive impact on society.
CEO Michael Corbat commented on the launch, “It takes companies of all sizes to address the challenges our society faces today. While Citi’s global footprint and scale allow us to use our balance sheet to play an important role, smaller, newer, ‘double bottom line’ companies play an equally important role in driving change.”
Citi says that the Impact Fund is designed to invest in businesses which offer innovative solutions to four main societal challenges:
- Workforce Development – solutions that train and connect people to careers.
- Financial Capability – solutions that increase access to the financial system.
- Physical & Social Infrastructure – solutions that improve an individual’s way of life through housing, healthcare and transportation.
- Sustainability – solutions that address issues related to energy, water and sustainable production.
Magway surpasses Crowdcube funding target for their sustainable transportation technology
Magway, a deep-technology company providing sustainable transportation solutions, has reached overfunding in its crowdfunding campaign on Crowdcube.
The UK-based company is developing an ecommmerce distribution network which is aiming to reduce green house gas emissions.
The UK is the only country that have legally committed to eradicating green house gas emission by 2050 and while renewable energy can control carbon emissions in electricity generation, a large proportion of the UK’s green house gas emissions come from vehicles.
Impact Investing
Magway have set about creating a solution that involves vehicles running on predominantly underground tracks that transport goods from warehouses to distribution points closer to their end destination. With the adoption of ecommerce increasing at astronomical rates, Mayway’s technology will reduce congestion on the roads caused by delivering goods ordered online. This in turn will provide environmental benefits through the reduction of green house gas emissions. As their is a measurable positive impact from Magway’s business model in the form of the reduction of green house gas emissions, it can be classed as an impact investment which goes well beyond those investments that simply have ESG elements attached to them.Whilst drones have grabbed much of the headlines in recent years, underground/pipe delivery is now being recognised as a more realistic, deliverable and impactful option by many thought leaders.https://t.co/jkmnxDWxrL pic.twitter.com/u7z32kOccs
— Magway Limited (@Magway_Limited) January 13, 2020