Avacta Group PLC (LON:AVCT) have seen their shares spike as the firm told the market about a new joint venture.

Avacta’s focus is on its proprietary Affimer technology which is an engineered alternative to antibodies that has application in Life Sciences for diagnostics, therapeutics and general research and development.

Today, the firm saw its shares spike 7.43% to trade at 18p. 8/1/20 11:49BST.

Avacta have landed an impressive joint venture in South Korea with titan Daewoong Pharmaceutical Co Ltd (KRX:069620).

Avacta will hold a 45% stake in the joint venture, as this new project looks to develop a new class of mesenchymal stem cells which will produce affimer proteins.

These type of stem cells are used as agents for the treatment of autoimmune and inflammatory diseases.

In the partnership, Daewoong will be providing the technology to access the generation of stem cells from a single donor.

Additionally, Avacta have pledged to develop these affimer proteins, which will be integrated into the stem cells.

The icing on the cake was reached for Avacta, when Daewoong said they will totally cover research & development costs for Avacta’s development of the proteins.

“Cell and gene therapies are attracting intense clinical and commercial interest. We are very excited to establish this joint venture with Daewoong, one of the top pharmaceutical companies in Korea, to develop the affimer platform in this important therapeutic area. Our vision is to combine our platforms to create the next generation of cell therapies, for which the potential is huge,” said Chief Executive Officer Alastair Smith.

Rise of Gene Therapy market

Many pharmaceutical firms are looking at the gene therapy market as a way to expand market presence and become a market innovator.

In this sector, a noteworthy name in Yourgene (LON:YGEN) is worth mentioning.

Yourgene Health is an international molecular diagnostics group which develops and commercialises genetic products and services. The group works in partnership with global leaders in DNA technology to advance diagnostic science.

The firm has seen a productive few months of trading, and in December the board remained confident to smash expectations.

The molecular diagnostics group said that in the six months ended September 30, its’ revenue doubled to £7.8 million from £3.9 million in the comparative period a year ago.

Notably, gross profit rose to £4.7 million from £2.0 million which will impress shareholders in a period of tough market conditions and stiff competition.

Roche make move into Gene Therapy

Another notable merger into the gene therapy market came from Roche Holding Ltd. Genussscheine (SWX:ROG).

In December, Roche announced that they had completed the purchase of gene therapy specialist Spark Therapeutics Inc (NASDAQ:ONCE).

The deal is valued at $4.3 billion and has been formally completed following clearance from the British and US competition authorities, and becomes Roche’s second acquisition in a short space of time following the recent deal with US based Promedior.

Roche has purchased US based Spark Therapeutics to expand in gene therapy and boost its market in hemophilia A, where Roche’s existing drug will surpass $1 billion in sales across 2019.

Certainty, Avacta seemed to have landed a winner here. The innovative nature of the company combined with the titan technology and reputation of Daewoong will certainly please shareholders.

Resolute Mining Limited (LON:RSG) have reassured shareholders for 2020 guidance following a mixed year for the firm.

Resolute reportedly missed their production guidance after they saw problems at their operations in Mali, which stagnated production and supply lines.

In the three month period, ending in December the firm reported production of 105,293 ounces of gold which saw a 2% rise.

Looking at the yearly figures, the report was a little disappointing. Annual production totaled at 384,371 ounces which fell short of the guidance which was given by Resolute around the 400,000 benchmark.

The firm was quick to defend itself as it said that production volumes lost in 2019 would be made up across 2020 as the firm looked to please shareholders about the resilient nature.

The Syama mine, which is located in Mail accounts for over 50% of total production or Resolute and henceforth the disruptions significantly skewed production totals.

“The unscheduled material loss of production from the Syama sulphide circuit was balanced by the outperformance of the Syama oxide circuit, and strong performance from Resolute’s Mako gold mine in Senegal and the Ravenswood gold mine in Queensland,” said Resolute.

John Welborn – Managing Director and Chief Executive comments

“Syama sulphide production fell well short of our expectations in both the September and December quarters. Our operating and project teams have worked hard to offset lost production with strong performance from our other operating assets.

“The repairs to the Syama roaster are now complete and the sulphide circuit is ready for a strong performance in 2020. In addition to managing the challenge of the Syama roaster repairs, we have made significant progress in delivering on our strategy during 2019.”

“We have now fully commissioned the Syama underground mine, refurbished the Syama sulphide circuit, acquired the Mako gold mine on highly value accretive terms, generated excellent exploration success at Tabakoroni, completed stage one of the Ravenswood expansion project, and significantly progressed the strategic review of Bibiani. With a pipeline of growth opportunities and Syama positioned to deliver on its potential, I am highly optimistic for 2020,” Welborn continued.

Optimism for Resolute?

In December, the firm made two big announcements which would have pleased shareholders. Firstly on December 16, the firm said that it had appointed a new CFO.

Resolute said it had appointed Stuart Gale as chief financial officer with effect from January 20, 2020. He will be replacing Lee-Anne de Bruin, who will be stepping down after three years in the role since 2017.

Gale will be joining from Australian iron ore company Fortescue Metals Group Ltd (ASX: FMG) where he was group manager for Corporate Finance for nine years since 2010.

Additionally, just a couple days on the firm signed a power supply agreement with Aggreko PLC (LON:AGK).

The plans come into action following an ensured effort to lower operating costs for Resolute, and the new plans will help reduce power costs by around 40%.

Resolute Chief Executive John Welborn said: “Aggreko is the right partner to support our power ambitions at Syama. I am delighted work has commenced and that we will deliver the power cost savings we have promised at Syama.

The initial phase of the power station is expected to be worked on and completed in early 2020.

Certainly, shareholders can carry optimism forward for 2020. It was the case that the firm did see production lower than expected, however given the confidence expressed from Resolute today there is much reason for shareholders to be excited.

Shares in Resolute trade at 66p (+1.97%). 8/1/20 11:42BST.

Shoe Zone PLC (LON:SHOE) have seen their revenues grow in what appeared to be a tough year for British retail.

Across the yearly period, the firm reported that revenue increased 0.9% to September 29, 2018, to £162 million.

Shoe Zone have told shareholders that they intend to pay a final dividend of 8 pence per share for the year, giving a total of 11.5p.

This dividend was flat from one year ago, and it shows a year of stability in what was a cut throat period for British retail.

Pretax profit slumped 41% to £6.7 million due to rising costs, as underlying profits fell 15%.

The firm does seem have to made progress from when it warned shareholders on its profit expectations in August.

Digital growth remains “key”, Shoe Zone said. Revenue from this sector rose 13% in the second half year-on-year, compared to 5.2% growth in the first half. Digital revenue was £10.6 million, up 9.3% year-on-year.

Shoe Zone reflect on tough year

“Despite it being a difficult year for Shoe Zone, the business has achieved revenue growth, and delivered underlying pretax profit marginally ahead of our revised expectations following our revaluation of freehold property,” said Chief Executive Anthony Smith.

Shoe Zone said it has made a “solid” start to its new financial year, and is currently meeting expectations. The overall outlook is “positive”, it added.

“Notwithstanding the broader sector challenges, I am delighted to be back running this market-leading business, knowing its potential to produce great results,” Smith commented.

“The core business model remains robust and combined with the refreshed strategy of Big Box expansion, higher digital growth and town centre renewal, the board is confident this enhanced strategic focus will improve customer experience, increase market share and drive shareholder returns.”

In May, the firm saw its half year revenues fall which alerted shareholders.

Shoe Zone reached revenues of £73 million, down from £73.7 million posted during the same period in 2018.

Nevertheless, product gross margins increased to 62.0%, compared to 60.6% a year ago. Meanwhile, the company reported a profit before tax of £1 million, unchanged from a year ago.

“The first half of our financial year has been positive for the Group, trading in line with management’s expectations and achieving profitable revenue growth in our two key growth areas of Digital and Big Box.

Our ongoing strategic focus continues to be on the Big Box roll out with a target of 45 stores by the end of December 2019. This is progressing to plan and we will be operating from 33 Big Box stores by the end of May.”

Competitors still performing relatively well

Rival footwear retailer JD Sports (LON:JD) posted a 10% rise in UK like-for-like sales in September.

For the 26 weeks to 3 August, JD Sports revealed a like-for-like sales growth of over 10%, going against the well-reported high street gloom.

Group revenue for the leading trainer and sports fashion retailer jumped by 47% to £2.72 billion, compared to the £1.85 billion figure recorded the year prior.

JD managed to also expand their market presence as the firm purchased purchased its smaller UK rival Footasylum (LON:FOOT) in a £90 million deal.

Additionally, footwear titan Sports Direct (LON:SPD) have given shareholders many impressive updates across 2019.

A noteworthy update came in December, where the firm saw its shares surge.

The sports titan said pretax profit in the 26 weeks to October 27 grew 21% to £90.2 million from £74.4 million reported a year earlier, as revenue rose by 14% to £2.04 billion from £1.79 billion

Sports Direct said that revenue growth was boosted by mergers and acquisitions, growth in Premium Lifestyle and Wholesale & Licensing divisions and the full period of revenue contribution from House of Fraser versus 11 weeks last year.

Sainsbury’s (LON:SBRY) have seen their shares dip as the firm reported a fall in quarterly sales.

The British supermarket reported a sales fall in its third quarter, which is notable as this did include the festive Christmas and Black Friday period.

The firm did note that sales in groceries alone increased compared to a year ago.

In the 15 weeks to January 4, total retail sales, excluding fuel, were down 0.7% from last year. Including fuel, sales were down 0.9%, which has seemed to edge shareholders.

Compared to 2018, on a like for like basis sales excluding fuel also were 0.7% lower year-on-year, but the like for like decline dropped further to 1.1% when including fuel sales.

On a more positive note, grocery sales rose 0.4% from a year ago with online grocery sales up 7.3% an area which the firm has looked to expand over the last few years.

The shift to online shopping was more blatant as one fifth of total sales across the quarter started on line, as online sales grew 5% year on year.

Clothing sales rose by 4.4%, which Sainsbury’s said was driven by both the colder weather during the quarter and its Christmas gift range.

Sainsbury’s raised the success of its subsidiary brand Argos, who reported its biggest ever Black Friday sales total for digital and tech products.

Chief Executive Mike Coupe said: “We gave our customers a great combination of quality food at good prices this Christmas and we delivered a standout performance operationally.

“Argos had its biggest digital Black Friday to date and record sales through mobile and via Argos Click and Collect, 32 million customers shopped with us across Sainsbury’s and Argos in the key Christmas week.”

Sainsbury’s added: “We invested in 127 supermarkets and 93 convenience stores in the quarter and are on track to deliver improvements to 450 supermarkets and 200 convenience stores by mid-March.

“Retail markets remain highly competitive and promotional and the consumer outlook continues to be uncertain. However, we are well placed to navigate the external environment and are executing well against our strategy.”

The firm also noted that it opened new sorters in Essex and Milton Keynes, whilst adding six new convenience stores to its portfolio.

How did rivals perform at Christmas?

Yesterday, Morrisons joined Sainsbury in a list of British supermarkets who’s saw their sales draw short.

The firm said that challenging trading conditions coupled with consumer uncertainty were the largest contributors to the slump in sales.

Morrison’s said that said like-for-like sales, excluding fuel, were down 1.7% year-on-year.

Notably, fuel sales declined 2.8% year on year across the 22 weeks period, and total sales dipped 2.9% but the figure totaled 1.8% without fuel sale considerations.

The company said: “We managed costs well throughout the period, offsetting some of the impact on like-for-like sales of the challenging trading conditions and continued uncertainty amongst customers.”

Morrisons added “Throughout the period, trading conditions remained challenging and the customer uncertainty of the last year was sustained”.

Kantar Report

Yesterday, a report published by Kantar on the British supermarket industry highlighted the dominance of Aldi and Lidl.

Aldi saw their market share rise to 7.8% during the period, as Lidl also grew to 5.9% from their previous 5.3% showing significant gain for the German firms.

A notable performance came from Ocado (LON:OCDO) who showed the fastest sales rise along with the German firms.

Ocado saw a rise of 13% in year on year sales from £345 million to £389 million, as it increased its market share to 1.3% compared to the 1.2% figure last year.

As these firms took the market by storm across the Christmas period, the traditional big four lost ground.

Asda also saw a similar slip, as the firm totaled its market share at 14.8% representing a 0.4% slip from the 15.2% figure a year ago.

Asda, who are owned by Walmart (NYSE:WMT) reported a sales decline of 2.2% year on year to £4.35 billion.

Tesco PLC (LON:TSCO) who are the biggest of the big four, also saw a slip in their market share.

The FTSE 100 listed firm saw its market share slip from 28.4% to 27.4% as sales fell 1.5% to £8.03 billion.

Certainly, amid a period of tough trading and competition from overseas brands, shareholders of Sainsbury will be expecting an emphasized effort to turn fortunes around.

Shares of Sainsbury dipped 1% to 228p. 8/1/20 11:03BST.

Topps Tiles PLC (LON:TPT) have given a confident outlook to shareholders despite tough retail trading.

The firm today said that it expects to deliver growth over the medium term as it hailed its performance in the second half of 2019.

The tile firm said that like for like retail revenue slumped for the thirteen weeks period to December 28 by 5.4%.

The firm also added that it saw a reduction in like for like revenue of 1.4% in the five weeks prior to December 28, which was a positive note.

Topps said that performance had “improved significantly” towards the end of the quarter. They previously had reported that retail like-for-like revenue in the first eight weeks of the quarter had decreased by 7.2%.

Overall customer satisfaction score in its retail division improved over the period, with a figure of 88% of customers being highly satisfied.

Additionally, a noteworthy figure was that the firm was managing its retail stores ending the period with 361 stores, with one store closure.

“Our first quarter performance reflects the full impact of the heightened political and economic uncertainty evident in the run up to December’s general election” in the UK, explained Chief Executive Rob Parker. “As expected, the retail like-for-like sales decline began to return to its pre-election trend towards the end of the quarter.”

Parker added: “As we enter 2020, we remain confident that our market-leading retail offer and growing commercial operations give us a strong platform from which to deliver sustainable growth over the medium and long term.”

Topps make some recovery after tough few months

At the start of October, the firm saw its Q4 results hit by weak consumer confidence.

The British retailer said that, in the fourth quarter, like-for-like sales decreased by 1.9%, blaming the “more challenging economic backdrop”, with uncertainty hitting consumer sentiment.

Topps Tiles added that it expects adjusted revenues for the full year to be in the region of £214 million, and adjusted pre-tax profits for the year are expected to be within the range of current market estimates (£15.5 million to £16.0 million).

Just one month on, the CEO of the company departed and was replaced by the CFO.

The company revealed that Group Chief Executive Matt Williams has decided to leave his position with effect from 29th November 2019.

Matt Williams said that he will leave the business in order to “pursue a new challenge”.

“Topps is, and will always remain, a very special company to both me and my family. It is a quality business with enormous strength in its specialism which it derives from its people and culture. It has been an honour and privilege to lead and work alongside everybody within the Topps family and I wish them all well for the future,” Matt Williams continued.

Finally, the firm saw its shares slip on the warning of a December election. Shares slipped over 3% at the end of November, over political concerns.

“At the start of the new financial year, trading conditions have become more challenging, with consumer demand weakening further since the General Election was called in late October,” the CEO warned.

“Against this backdrop of heightened political and economic uncertainty, like-for-like sales in the first eight weeks have declined,” the CEO added.

Certainly, Topps have made an good bounce back after a tough period of trading.

Shareholders will hope that 2020 can bring more stability and allow the firm to pursue its growth and expansion plans.

Shares in Topps Tiles trade at 76p (+0.79%). 8/1/20 10:48BST.