GSK and Clover Biopharmaceuticals collaborate on coronavirus vaccine
Multinational pharmaceuticals titan, GSK (LON:GSK) have told the market that they have teamed up with Clover Biopharmaceuticals are to collaborate on a coronavirus vaccine.
Shares in GSK trade at 1,631p (-1.63%). 24/2/20 12:40BST.
Writing at this moment – it seems that the coronavirus has been around for months, however in the few weeks that it has dominated news headlines, the number of incidents have been rising.
Clover said that they have entered a research collaboration deal with GSK for Clover’s “protein-based coronavirus vaccine candidate” known as COVID-19 S-Trimer.
“We are proud to contribute to cutting edge research from scientists at Clover Biopharmaceuticals in China as part of our strategy to make our adjuvant technology available to selected partners who have a promising vaccine candidate against the newly emerged coronavirus.” said Thomas Breuer, Chief Medical Officer of GlaxoSmithKline Vaccines.
“The use of an adjuvant is of particular importance in a pandemic situation since it may reduce the amount of vaccine protein required per dose, allowing more vaccine doses to be produced and therefore contributing to protect more people.”
The public sector are still adjusting their response and approach to the outbreak of the coronavirus – however the input from the private sector has been positive.
Despite the number of affected individuals decreasing by the day, the larger issue still needs to be addressed.
The collaboration deal between Clover and GSK will hopefully bring about a positive vaccine which can be deployed with effective use to combat the coronavirus spread.
“At Clover we look forward to evaluating the combination of GSK’s pandemic adjuvant system and our S-Trimer as a vaccine candidate. Utilizing our proprietary Timer-Tag© technology that has been shown to be recognized by antibodies produced by multiple previously-infected coronavirus patients, S-Trimer is being rapidly developed to support global efforts in combating this current and any future coronavirus outbreaks,” said Joshua Liang, Chief Strategy Officer and Board Director at Clover
“We are proud to work with GSK, and we are encouraged by the progress of our S-Trimer vaccine program,” said Steven Gong, VP Business Development & Strategy at Clover. “To this end, we recognize that collaborations will be critical to accelerating the development of a successful new vaccine in times of emergency, and we continue to invite any interested regulatory, academic or industry parties to contact us for this noble common cause.”
Fresnillo give update on Juanicipio project
Fresnillo Plc (LON:FRES) have seen their shares jump as they gave shareholders an operational update on Monday.
Shares in Fresnillo trade at 740p (+4.02%). 24/2/20 12:03BST.
The mining firm said that it has accelerated the development of the Juanicipio project in Mexico’s Zacatecas state.
Following this update, Fresnillo added that they expect to start producing gold and silver at this site by mid 2020 – which is ahead of anticipated schedule.
Currently, Juanicipio is 56% owned by Fresnillo and 44% owned by partner MAG Silver Corp (TSE:MAG).
Fresnillo continued to share the good news, by saying that construction is well underway, engineering is complete, and all major process equipment has been purchased and received on site.
The mine’s capital expenditure has increased by 11% to $440 million from its estimate of $395 million back in January 2018 – however the firm has remained confident that results will be yielded from this.
The newly operating mine is expected to reach 85% name plate capacity in the fourth quarter of 2021, and 90% to 95% in 2022.
Fresnillo said that they are expecting total average annual production of 11.7 million ounces of silver, 43,500 ounces of gold, with an initial mine life of 12 years – which is an impressive group of statistics.
Octavio Alvídrez, Chief Executive Officer of Fresnillo plc, said:
“Juanicipio is an outstanding project which will generate strong returns for our shareholders, and significant benefits to the region. We continue to de-risk and refine the best construction plan that will drive the most value and ensure we capitalise on the opportunity that Juanicipio presents. I am pleased to confirm we are accelerating development of the underground mine and as a result, I expect the mine will be producing silver and gold ahead of schedule in 2020.”
George Paspalas, Chief Executive Officer of MAG Silver, added:
“We are very excited about the decision to bring forward the underground mine development of the Juanicipio project. Producing quantities of saleable mineralisation provides a very beneficial de-risking opportunity that gives confidence to both partners that the originally envisioned plant production ramp up may be improved.”
Fresnillo’s fourth quarter
At the end of January, Fresnillo reported a quarterly rise in gold output however annual production has fallen short of expectations. Fresnillo, told the market that they had produced 233,744 ounces of gold in the fourth quarter of 2019, 11% higher on the previous quarter and 0.7% higher year-on-year. Looking on an annualized basis across 2019, Fresnillo saw gold production fall 5.1% to 875,913 ounces. In December, it had set guidance at 885,000 ounces, from previous guidance of 880,000 ounces to 910,000 ounces. Within the silver production sector, fourth quarter production was impressive standing at 13.8 million ounces. Silver production did see a 3.7% climb from third quarter production, however this figure did represent an 11% fall on the figure on year ago. In 2019, the figure was 54.6 million ounces, 12% lower year-on-year. Fourth-quarter production improved on the third quarter due to higher quarterly grades at San Julian and Saucito, but fell on the prior year due to a year-on-year fall in grades at Saucito and lower volumes at San Julian. The update today will certainly impress shareholders, and the new operational mine should give Fresnillo confidence to deliver strong production volumes once production commences.AB Foods expect strong Primark performance but speculate over coronavirus impact
AB Foods plc (LON:ABF) have told the market that the coronavirus may impact their half year results.
The multinational firm have said that they expect to announce their interim results at the end of April – however the recent outbreak of the coronavirus may dampen these.
Primark sales and performance remained strong – the firm said, and that this retail business is yet to be impacted by the coronavirus.
The first half ends on February 29 for AB, and the firm said that expects growth in sales and adjusted operating profit to rise from £639 million from a year ago.
The firm said: “For the half year, we expect sales growth for the group and expect adjusted operating profit to be ahead of last year on both a lease-adjusted and reported basis. On a lease-adjusted basis we expect adjusted earnings per share to be ahead of last year, with lower net financial expenses offsetting an increase in the effective tax rate. On a reported basis, the dilutive effect of the adoption of IFRS 16 on earnings will result in a small reduction in adjusted earnings per share in the first half.
We expect strong growth in adjusted operating profit in the second half, driven by profit growth for Primark and a second half weighting of the AB Sugar profit recovery. As a result, our outlook for the full year for the group is unchanged with progress expected, on both a reported and a lease-adjusted basis, in adjusted earnings per share.”
Following the outbreak of the coroanvirus, AB Foods have said that the main priority of the firm is the the health and safety of colleagues – and that businesses could be effected.
The firm concluded “A number of our food businesses have operations in China. The Chinese sugar campaign was completed in January before the outbreak developed significantly. Our AB Mauri, AB Agri and Ovaltine factories are operating, but at reduced capacity due to labour and logistics constraints.”
Looking at the performance of their retail brand Primark, AB Foods have said that they expect first half sales to be 2.5% higher year on year, and 4.2% at constant currency.
On a reported basis, Primark’s first half operating profit will be ahead of the prior year – with UK sales expected to be 3% higher and EU sales rising 5.3% at constant currency, helped by growth in France, Belgium and Italy.
AB Foods commented:
“Sales in the Eurozone are expected to be 5.3% ahead of last year at constant currency with particularly strong sales growth in France, Belgium and Italy. Our new store in Milan traded ahead of expectation and our store in Ljubljana, Slovenia continued to trade strongly. Like-for-like sales for the Eurozone were 0.5% ahead, continuing the much-improved performance reported in the January trading statement. This was driven by excellent like-for-like sales in France and Italy and, at this early stage, a notable improvement in Germany which was delivered through a series of operational changes made by the new management team.
Our business in the US continued to perform strongly, delivering like-for-like sales growth, with particularly strong trading at the store in Brooklyn. Together with the contribution from the planned store openings at American Dream, New Jersey and Sawgrass Mills, Florida, we expect a much-improved operating result for the year.”
AB Foods’ January update
A few weeks back, AB Foods told the market that their Christmas trading was strong within an impressive update. The firm reported a sales rise at its Primark store portfolio over the 16 weeks period, which included the festive trading session. The update also told shareholders about an impressive rise in their sugar unit, and the ingredients sector also saw revenues increase. AB noted that the Grocery unit did not see as significant growth as other sectors, with sales remaining flat year on year. Primark was the standout department for the firm, were sales grew 3% year on year, which the firm attributed to a rise in Primark selling space. In the UK, Primark sales saw growth of 4% year on year, however on a like for like basis there was marginal decline. The company noted that it has improved its like for like sales across the entirety of its Primark Group, however exact figures were not provided. Since its financial year end on November 14, retail selling space grew by 200,000 square feet. At January 4, Primark had 15.8 million square feet, up from 15.1 million square feet the year before. AB told shareholders that they wanted to add even more trading space for Primark retail, which goes against the trend of other British retailers. Shares in AB Foods trade at 2,542p (-1.59%). 24/2/20 11:56BST.Bunzl see steady 2019 as North American business performs strongly
Bunzl plc (LON:BNZL) have told the market that 2019 was a positive period for the firm, seeing a rise in revenues across the year.
The firm alluded to tough market conditions, and wider political turbulence in their update – however it seems that Bunzl have worked through this to produce a steady set of results.
Across 2019, Bunzl reported that revenue had jumped 2.7% £9.33 billion from £9.08 billion in 2018 – this drove an increase in pretax profit by 6.7% from £424.8 million to £453.3 million.
North American businesses was particularly strong for Bunzl – where revenues climbed 3.7% to £5.47 billion.
Within their Continental Europe sector, revenues also rose 1.8% to £1.83 billion. Notably, in the Rest of the World, revenue rose by 5.6% to £781.6 million.
Commenting on today’s results, Frank van Zanten, Chief Executive Officer, said:
“Against the background of mixed macroeconomic and market conditions which prevailed during 2019 across the countries and sectors in which we operate, I am pleased to report that Bunzl has produced another resilient performance with an increase in operating margin. It is particularly good to see continued strong cash conversion and free cash flow growth.
Looking forward, although we continue to see challenging trading conditions in many of our markets, our strong competitive position, diversified and resilient businesses and ability to consolidate our fragmented markets further should lead to improved growth at constant exchange rates principally due to the impact of the good level of recent acquisition activity. Bunzl has a strong balance sheet with significant financial capacity and acquisitions remain a key element of our strategy. The acquisition pipeline is promising and a number of discussions are ongoing.”
Optimism pays off for Bunzl
In December, Bunzl gave shareholders an optimistic forecast to meet targets within a tough market. Bunzl expected revenue for 2019 to rise by 2% with revenue at constant rates rising by 1%. Underlying revenue, London-based Bunzl noted, is set to be flat on 2018. The firm saw a dip in its underlying revenue back in October, within its third quarter update and the firm alluded to economic conditions being a constraint on trading globally. Shareholders remained optimistic however, as the firm did announce the acquisition of Fire Rescue Safety Australia, which distributes specialist fire safety and personal protection equipment. From their initial forecasts, Bunzl have done well to pull a steady set of results for 2018. Shareholders will hope that this good form can be built upon across 2020. Shares in Bunzl trade at 1,974p (+1.31%). 24/2/20 11:36BST.Tracsis stays on track as first half revenues surge
Software provider for rail, traffic and wider transport, Tracsis (LON:TRCS) saw its share price rally during the Thursday session after booking significant, but expected, growth in its revenues.
For the six month period ended 31 January 2020, the company reported that its revenues had hiked up to £26 million, from £18.8 million year-on-year.
Despite the apparent significance of such jump, the company had expected this extent of change, and said trading had been ‘in line with expectations’.
While choosing not to disclose the predicted figures within their statement on Thursday, the company also said that, “adjusted Profit are also expected to be ahead of the previous year”, where they stood at £4.2 million and £3.9 million respectively.
Tracsis went on to say that its Rail Tech and Services division traded ‘well’ as a result of recurring software revenue and multi-year contract wins. It also said its recent acquisition, Bellvedi, had performed well, and its rail businesses’ involvement in ‘major tenders’ would pave the way for further growth.
It continued, saying its Traffic and Data Services division is ‘highly second-half weighted, and thus its good performance during H1 exceeded expectations. It added that its acquired businesses – CTM and Compass Informatics – provided ‘strong contribution’ towards these results.
Tracsis strategy looking ahead
Discussing its outlook, the company finished its statement by saying:“As highlighted previously, the Group continues to invest heavily in our technology base, and continues to make good progress developing the next generation of products for the transport industry.”
“The Group continues to review acquisition opportunities particularly in the Rail Technology & Services division as we seek to judiciously use cash balances to fuel growth.”
Investor notes
The company’s share price rallied 5.06% or 40.00p following the update, up to 530.00p per share 20/02/20 16:30 GMT. Analysts from finnCap reiterated their ‘Corporate’ stance on Tracsis stock. The Group’s p/e ratio stands at 27.96, their dividend yield is modest at 0.22%.Virgin Galactic shares go supersonic but the rise in shorts isn’t an anomaly
Space tourism company Virgin Galactic (NYSE:SPCE) is one of the few high profile innovators to top Tesla‘s (NASDAQ:TSLA) half-year rally, with its stock rocketing 310% in the last three months.
Continuing the comparison, Virgin Galactic has been dubbed ‘the Tesla of space travel’, though SpaceX may have something to say about that. Richard Branson’s long-awaited commercial space venture has proved a treat with wide-eyed investors, who tipped it over the $40 mark for the first time on Thursday.
The similarities between VG and Elon Musk’s company shouldn’t just end there though, I think. A prudent investor should take a similar approach to Virgin Galactic, to the one many have advised we take to Tesla.
Its growth potential is entirely subject to its innovative success, which is difficult to predict at the best of times, and even more difficult when we begin factoring in the commercial viability of new innovations. The best we can suggest is that an individual decides what their objectives are before investing. If you’re happy in the knowledge that you’re contributing to something potentially significant to society, with a chance of extreme success or complete failure, then fill your boots!
Should we expect complete doom or just a little gloom for Virgin Galactic?
On Thursday, Business Insider cited data from S3 Partners, which stated that the volume of VG stock shorted in the last 30 days had risen by 3.4 million, representing a 25% increase. Speaking on the increase in short positions, S3’s managing director of predictive analysis, Ihor Dusaniwsky, told BI: “Short interest, much like Virgin Galactic’s VSS Unity spaceship, has never seen such heights before,”“While there is no short squeeze at the moment, there is a very good chance shorts may start covering as even higher stock borrow rates make a losing trade too painful to hold onto,”
So, Dusaniwsky doesn’t think there’s a short squeeze coming in the near future. However, the unavoidable stat to note is that short-sellers have lost $440 million in mark-to-market this year. So – while I wouldn’t suggest throwing money hand over fist at VG, I would equally warn against being overly bearish on the stock, either. Its continued rise certainly isn’t a sure thing, and based on today’s analysis, if you’re not involved in Virgin Galactic I’d advise you to keep it that way.
Have Morgan Stanley sounded the death knell for VG’s rally?
Falling short of prophesying a price collapse, Morgan Stanley (NYSE:MS) prompted a temporary VG price dip as it published its analysis on Thursday.
While noting that the company were currently outstripping both Tesla and Apple (NASDAQ:AAPL) in Wall Street sales, Morgan Stanley see price consolidation on the horizon.
Speaking to CNBC, MS Analyst Adam Jonas said,
“A modest correction is overdue, and frankly, healthy, in our opinion,”
“Even Spaceships Must Return to Earth. [… Virgin Galactic] deserves a bit of a breather here,”
He added that it’s difficult “to identify significant thesis changing/accelerating events since the time of our initiation in early December of 2019.”
“The stock is trading 70% above our $22 price target with around 60% upside to our $60 bull case,”
Looking ahead, Morgan Stanley think VG has attained a fortuitous position, and that the time is right for the company to launch a capital raising campaign.
“Why not raise capital now?”
“While the company has sufficient levels of liquidity to meet the needs of launching its commercial service, investors may nonetheless ask, or even encourage, management to consider adding to the coffers, given unpredictable market conditions,” Jonas said.
Now, Virgin Galactic has 82.48 million shares in issues, its market cap stands at $5.93 billion. After a dip during the session, VG shares recovered and rallied by 2.12%, but then dropped for a second time. They’re now down by 0.59%, to $37.11 per share. Terrorist arrested following London Mosque stabbing
Scotland Yard announced they had launched an investigation into the attempted murder of the muezzin of the London Central Mosque.
The victim, who is in his seventies, was taken to a major trauma centre, but thankfully his injuries have since been deemed non-life-threatening.
A witness at the scene, Abi Watik, said the victim was a regular at the Mosque, and that the attacker, “[…] was praying behind him and then he stabbed him”. Watik added that the attacker, “was silent the whole time”.
The attack was carried out by a white male, who was wearing a red hoodie, barefoot and brandishing a knife. His appearance was revealed in footage posted on Twitter, after he was handcuffed by police.
The Met Police Service were alerted to the incident which took place at ten past three on Thursday afternoon. Following the attack, a Met spokesperson commented, “Officers attended along with paramedics from the London ambulance service. A man was found with stab injuries. “He was treated by paramedics before being taken to hospital … A man was arrested at the scene on suspicion of attempted murder. A crime scene has been put in place. Inquiries continue.” Following up on the victim’s condition, the Ambulance Service stated, “We sent an ambulance crew, a paramedic in a car and an advanced paramedic practitioner to this incident in Regent’s Park. “We treated a man at the scene and took him to a major trauma centre.” The Muslim Council expressed their concern following the incident, fearing that the UK’s Muslim community will be even more on-edge after other recent attacks.” The motive behind the stabbing has not yet been made clear, nor have the identities or possible associations between the attacker and victim been publicised. The assumption of many at this point, will likely be that the attack was politically-motivated. Two things we can be certain of, are that it was a hateful act carried out by a terrorist, and that the perpetrator should be handled with the contempt befitting that title. Many have – and continue – to work tirelessly to protect the rights and safety we often take for granted in our society. The best we can do is work together to preserve that vision, and condemn today’s events.BREAKING NEWS: We are hearing unconfirmed reports that a muadhin has been stabbed at London Central Mosque. More details to follow. pic.twitter.com/YQhU50hrBM
— 5Pillars (@5Pillarsuk) February 20, 2020
The FTSE was once again the front-runner in a forgetful session
Awaiting an eventful Friday, Thursday was almost an entirely stagnant session across global equities, with FTSE retaining its place at the top of the pile.
The Dow Jones sat shy of its all-time high mark and both the CAC and DAX didn’t move far off of their respective opening positions.
For the third day in a row, the FTSE saw the biggest gains, today lead by the continued slide of Sterling, and positive data posted by some of its largest-cap members.
Retail data was surprisingly positive, but investors wait with bated breath for Friday’s manufacturing results.
Speaking on the lack of market movements during the Thursday session, Spreadex Financial Analyst Connor Campbell commented:
“It was a forgettable session, the markets lacking direction as they wait for Friday’s manufacturing data.”
“Matching the inertia of its Eurozone peers, the Dow Jones did nothing after the bell. Opening flat, it sits at 29340 – one good session away from reclaiming its 29500-tickling all-time highs.”
“As mentioned, the Eurozone was devoid of drama this Thursday. The DAX shed a handful of points as it continued to lurk just under 13800, while the CAC was flat a bit above 6100.”
“The FTSE was the sole major index to push higher; then again, unlike the DAX and Dow, it is nowhere near its own record peak.”
“Adding 0.3%, the UK index touched 7480, boosted by the likes of Lloyds (LON:LLOY) and Smith & Nephew (LON:SN).”
The FTSE was also boosted by BAE Systems plc (LON:BA), which bounced over 3% on an 8.9% rise in year-on-year revenues.“The real difference maker, however, was sterling’s latest slide. Despite a broadly positive week for data – Thursday saw a better than forecast swing in retail sales, from -0.5% to 0.9% month-on-month – the pound is having a bit of a nightmare.”
“Cable’s 0.3% drop pushed it to a near-3 month nadir of $1.2878, while a 0.5% fall against the euro took sterling to an 8-day low of €1.19045. The currency is afflicted by a variety of issues, from the upbeat tone of the ECB’s latest meeting minutes, to the dollar’s safe-haven appeal, to the pre-trade negotiations slanging match between the UK and EU.”
Spectris shares bounce following special dividend payment
Shares in Spectris plc (LON:SXS) have jumped following a strong set of 2019 full year results.
Following these strong results, the firm has decided to pay a special dividend which has been driven by its strong performance and its restructuring program.
The Chief Executive said: “We have announced a special dividend of £175 million, in line with our capital allocation policy. 2019 has been a year of delivery upon which to build in 2020. We are intent on further improving our operating margin, to at least previous highs, and enhancing capital returns, as we continue to work on asset optimisation and managing the portfolio.”
The firm reported pretax profit of £259.3 million in 2019 – this represented a 19% growth from the £218 million figure just one year ago.
Notably, revenues also jumped by 1.7% to £1.63 billion from £1.6 billion.
On an organic, constant currency like-for-like basis, revenue increased by 0.4%, Spectris said. The sales contribution from acquisitions were broadly offset by disposals, and there was a 1.5% positive impact from foreign currency exchange movements.
The firm added that its profit improvement program lead to annualized benefits of £25.5 million, as restructuring costs incurred totaled £52.2 million.
The firm declared an annual dividend payment of 65.1 pence, which shows a 6.7% rise from 61p paid for 2018.
Spectris notably proposed a £175 million special dividend and share consolidation. The special dividend of 150p has been noted, and the firm said that in order to maintain the comparability of the company’s share price a supporting share consolidation will take place – subject to shareholder approval.
Andrew Heath, Chief Executive, said:
“2019 saw demonstrable progress in executing our Strategy for Profitable Growth. The successful delivery of our profit improvement programme, combined with an increased emphasis on deploying the Spectris Business System, enabled us to deliver increased profit and operating margin expansion, against a weakening macroeconomic backdrop …
Absent a material impact from coronavirus, for 2020, we anticipate that markets will remain challenging in the first half with a recovery only currently forecasted to emerge later in the year. We expect limited top-line growth and will, therefore, continue to concentrate on self-help initiatives to drive further cost-efficiency and ensure a more resilient and profitable business.
The combination of focusing on our customers, driving operating leverage and the repositioning and simplification of our portfolio, alongside a refreshed capital allocation framework, form the basis for delivering a significant and sustainable increase in shareholder value.”
Shares in Spectris trade at 2,874p (+5.04%). 20/2/20 13:36BST.
TBC Bank shares spike over 6% as annual profits surge 15%
TBC Bank Group PLC (LON:TBCG) have seen their shares spike following a strong set of annual results, published on Thursday.
The Georgian bank said that it had seen a double digit rise in annual profit which was the headline statistic in the annual update.
The firm praised the strong performance in its corporate lending department, as this sector drove the firm’s strong loan book performance.
Across 2019, TBC Bank recorded GEL585.5 million in pretax profit, which is a 15% climb compared to GEL510.2 million in 2018.
The firm also said that its’ net interest income rose 3% in 2019 from GEL778 a year ago to GEL801.5 million.
The bank also told the market that operating expenses rose 9.7% in 2019 to GEL450.7 million from GEL411.0 million in 2018, and, as a result, its cost-to-income ratio worsened to 39.9% from 37.8% – which was one of the dampened takes from the update.
TBC finished 2019 with a gross loan book of GEL12.66 billion, again showing a 22% rise from the GEL10.37 billion figure seen at the end of 2018. Notably, net interest margin fell from 6.9% to 5.6%.
Looking at their customer deposits, these amounted to GEL10.05 billion, up 7.5% from the year before at GEL9.35 billion.
A notable rise came from TBC’s retail loan book, where this was up 7.5% year on year. Corporate Loans grew 47% while its Micro, Small, & Medium Enterprises loan book rose 18%.
Going forward, the firm said that it had laid solid foundations for further customer initiatives and that there are ambition plans in place.
The CEO of TBC Bank commented:
“In 2019, we recorded strong financial results and made significant progress against our strategic priorities, including the development of customer focused ecosystems and international expansion in Uzbekistan. This lays a solid foundation for further development of these initiatives and I am very excited about our ambitious plans for 2020. Our leading digital capabilities, outstanding customer experience and advanced data analytical capabilities, coupled with our strong team spirit, make me confident that we are well positioned to achieve sustainable growth and to deliver superior results to our shareholders. Therefore, I would like to reiterate our medium-term targets: ROE of above 20%, cost to income ratio below 35%, dividend pay-out ratio of 25-35% and loan book growth of around 10-15%.”