AB Foods hails strong Primark Christmas performance in stable update
Associated British Foods plc (LON:ABF) have given shareholders an impressive update on Thursday morning.
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.
A rise in EU sugar prices also helped sugar revenues climb 5% year on year, which was another notable take from the update.
Trans-Siberian Gold discover Vein 25 near Asacha gold mine
Trans-Siberian Gold (LON: TSG) have given the market another update regarding their Asacha Gold Mine operations.
TSG is focused on low cost, high grade mining operations and stable gold production from its 100% owned Asacha Gold Mine in Far East Russia.
The Company also holds the licence for the development and exploration of the Rodnikova deposit, one of the largest gold fields in South Kamchatka.
The firm said that its newly discovered zone, Vein 25 North is located 400 meters within the east zone of the Asacha mine.
Notably, Trans Siberian said that this new vein has delivered encouraging results.
The company said high-grade gold intersections were obtained in a more or less complex structural environment, with initial drilling results of 133 grams per tonne of gold and 57 grams per tonne of silver at over four meters.
The firm told shareholders that it will continue drilling over the next few months as it plans for a second drill to be mobilized adding to the site.
In addition to the north extension of Vein 25, five other target areas will be drill tested during the year.
To achieve this, the firm said that its board has approved a 2019/20 drilling program totaling 25,000 meters with the potential for further expansion.
Alexander Dorogov, CEO of Trans-Siberian Gold commented:
“We are very pleased with the strong operational performance delivered in 2019 and are accelerating our investment in the exploration and development of the Asacha Gold Mine. The recently conducted drilling programme has yielded some exciting, high grade mineralisation results at Vein 25; this is an important development target for the extension of resource mineralisation. We have an ambitious exploration programme planned in 2020 and with drilling continuing we look forward to updating the market on our progress.”
Trans-Siberian bounce back
Last week, the firm gave shareholders a disappointing update. The firm saw their shares fall when it said that analysis showed the resource at the Asacha gold mine had been overestimated.
The total measured, indicated, and inferred mineral resource for the Kamchatka-located mine has fallen to 313,000 ounces of gold and 675,000 ounces of silver as at the start of December 2019.
The estimate before the results were published was 553,000 ounces of gold and 1.3 million ounces of silver which showed a 43% and 93% drop respectively.
As Trans-Siberian Gold reported in September and October, preliminary internal estimates of Asacha “indicated the existing in-situ resource may have been overestimated”.
The Group will be conducting both underground and surface drilling campaigns during 2020.
A total of approximately 22,000m of surface drilling will target the lateral extents of the Main zone and QV25. A further 2,000m of underground drilling will be conducted on the Main zone at depth.
The update today shows the resilient nature of Trans Siberian to bounce back from last weeks update, and shareholders will hope that the Russian miner can strike gold across 2020.
“The resource will be supplemented by additional ounces targeted in an accelerated exploration programme as well as existing stockpiles. A new drilling campaign of approximately 8,000 metres around Vein 25 in the East zone is already underway. We are confident we have the time, capital and skills to upgrade the mineral resource at Asacha. Formal guidance for 2020 will follow shortly, but at this stage we anticipate annual gold production to be in line with recent years.”Shares in Trans-Siberian Gold trade at 59p (+0.85%). 15/1/20 15:40BST.
Ten Entertainment see higher sales and growth across financial year
Ten Entertainment Group PLC (LON: TEG) have seen their shares in green on Wednesday afternoon.
Shares in Ten Entertainment trade at 317p (+2.26%). 15/1/20 14:45BST.
The firm updated the market by saying that total and like for like sales were higher in its recently ended financial year.
Ten also praised the benefit of its technology re-engineering program which has caused results to climb.
Ten Entertainment reported total sales of £84.1 million in its financial year, which ended on December 29.
Notably, this figure showed a 10% increase over the previous financial year’s sales figure of £76.4 million.
Additionally, like for like sales growth was 8% which has been steady across the last few years of trading for the firm.
According to Ten Entertainment, 70% of its estate now benefits from cost efficiencies obtained through its Pins & Strings program, which reduces maintenance costs.
The firm also noted that across the year, four or more of its sites were refurbished including a “prime location” which “has received additional investment as a concept site format to trial new entertainment experiences”.
Ten expressed plans to open an inaugural new build site within the first six months of 2020, and this will strengthen its pipeline.
Its financial 2019 adjusted earnings before interest, tax, depreciation, and amortisation is expected to align with market expectations.
Duncan Garrood, Chief Executive Officer, commented:
“Ten Entertainment has had another strong year, delivering profitable sales growth. Our ever-evolving offer, providing family entertainment underpinned by tenpin bowling, is thoroughly enjoyed by increasing numbers of customers.
“We continue to innovate, increase our footprint and improve the quality of our offering which positions us well for future growth.”
TEG expects to announce its full-year results on 25th March 2020.
Ten make progress from July
In July, the firm announced sales growth and site acquisitions during the first half, and partially attributed its positive figures to digital marketing success.
The Group saw sales and like-for-like sales growth of 9.6% and 7.4% respectively, during the first half. The Company said growth in LFL sales remained stable and it owed the recent improvement to the extended period of hot weather conditions during May and June 2019.
It added that it had expanded its estate with acquisitions of sites in Southport in Q1 and Falkirk in Q2.
Both sites are existing bowling facilities, which will now undergo ‘Tenpinisation’ before contributing to profits in 2020. Ten Entertainment sites now number at 45.
Hollywood Bowl – rivals in the market
A competitor in the industry, Hollywood Bowl (LON:BOWL) have seen a successful time of trading in similar fashion to Ten. In December, the firm reported profit growth as its shares rallied.
Hollywood Bowl said that, for the year ended 30 September, profit before tax grew by 15.3% to £27.6 million, compared to the £23.9 million figure recorded the year prior.
Meanwhile, total revenues grew by 7.8% to £129.9 million, up from last year’s £120.5 million.
Hollywood Bowl added that it has six further bowling centres in the development pipeline from 2021-2023.
The company said that food and drink revenue was up 6.3% on the year before, amounting to £35 million. It said that more customers chose to spend as a result of the launch of its new menu and its enhanced bar and diner experience.
“I am delighted to report another year of strong profitable and cash generative growth, demonstrating the consistent delivery of our proven, customer-led strategy,” Stephen Burns, Chief Executive of Hollywood Bowl, commented in a statement.
The update from Ten is impressive, but shareholders still have to remember that in Hollywood Bowl a big competitor looms. At a time where British businesses are struggling, shareholders should be content.
Ten Entertainment will hope that they can build on the impressive financial year and continue to report growth and profit for shareholders.
Vistry set to report record profit levels despite Brexit gloom
Vistry Group PLC (LON:VTY) have told shareholders on Wednesday that they expect to deliver record full year profit.
The firm, who is formerly known as Bovis Homes as mentioned the political and economic uncertainties as a stagnating factor on the British property market.
Despite these complications, it seems that Vistry have managed to shake off the storm and continue to successfully trade.
“As previously reported, market uncertainty surrounding Brexit and the general election led to some increased pressure on pricing in the second half resulting in a c. 1-2% reduction in underlying sales prices for that period. This was, in part, offset by a combination of the Group’s own build cost savings and a lack of cost inflation. “
The firm told shareholders on Wednesday that full year profit before exceptional items is expected to rise above market forecasts of £181.6 million.
This is an impressive expectation, and shows growth from 2018 figure of £168.1 million with operating profit before exceptional items at £174.2 million.
The company has only recently changed its name following two acquisitions from Galliford Try PLC (LON:GFRD).
Looking at 2019 trading figures, the firm said that it had completed 3,867 new homes, 2.9% more than 3,759 in 2018 which would have pleased shareholders.
Notably, the average selling price was £279,000, up 2.1% from £273,200 the year before.
Vistry give shareholders confidence
Greg Fitzgerald, Chief Executive commented: “The Group has made further operational progress over the past 12 months and for 2019 expects to deliver another year of record profit. Building high quality new homes for our customers has been, and remains our priority, and I am confident we will finish the year as an HBF 5-star housebuilder. “We completed the transformational acquisition of the Linden Homes and the renamed Vistry Partnerships at the start of this year; integration is well under way and we are fully focused on delivering the clear and significant benefits from this exciting combination as quickly as possible.”Vistry Outlook
The company said “We are delighted to have completed the transformational acquisition of the Linden Homes and Vistry Partnerships businesses at the start of the year. Our focus is on successfully integrating these businesses and delivering the clear and significant benefits from the combination as quickly as possible.” “Whilst it is early in the year to comment on 2020 trading, we have a strong forward sales position and trading to date has been very positive, with consumer confidence returning and industry fundamentals remaining strong. We are excited about the prospects for the enlarged business and expect to report much progress in the year ahead.”Galliford Try and Vistry Deal
Vistry at the start of November, agreed a substantial home building deal with Galliford Try in a for Bovis to takeover the two Galliford housebuilding business units. The deal was announced on November 7 and was valued at £1.14 Billion, which sends out a huge statement of intent for competitors. The agreement comes after Galliford rejected a £1.05 billion bid from rival Bovis for its Linden Homes and Partnerships & Regeneration businesses back in May. In September the two confirmed they had resumed talks. Bovis was to issue shares worth £675 million and pay £300 million in cash, combined with £100 million of Galliford debt. The two firms announced that the terms from the September agreement were unchanged, and will see will see Bovis issue 63.8 million new shares to Galliford, valued at £675 million, pay £300 million in cash, and take over Galliford’s £100 million debt. Bovis also added that they will carry out a “bonus issue” of 5.7 million shares to existing shareholdersRivals in the market
This morning, rival Persimmon (LON:PSN) told shareholders that it expects a decline in full year revenue, however profit will meet expectations. Across the annual period, the firm said that revenue is expected to total £3.65 billion, a 2.4% fall from £3.74 billion last year. Notably, new housing revenue dropped 3.5% year-on-year to £3.42 billion with new legal completion volumes down 3.6% to 15,885 from 16,449. The firm said that average selling prices remained consistent with 2018, in a year of political uncertainty which has hampered the property development market. Persimmon added that they have 365 developments in construction, which remains flat year on year and plans to open 80 new sites in the first half of 2020. Shareholders of Vistry will remain optimistic, however there is no denying that the shroud of Brexit is still overhauling the British Property market. Shares in Vistry trade at 1,326p (-1.19%). 15/1/20 14:35BST.BlackRock to focus on ESG and climate change in 2020
BlackRock (NYSE:BLK) CEO Larry Fink’s 2020 letter has focused on climate change and outlined plans for the world’s largest asset manager to reduce investments in those companies that damage the environment.
Many investors have recently focused on the impact of sustainability of their portfolios and the 2020 letter signals a shift in major asset management.
“Because sustainable investment options have the potential to offer clients better outcomes, we are making sustainability integral to the way BlackRock manages risk, constructs portfolios, designs products, and engages with companies,” the firm’s global executive committee, which includes Fink, wrote in its letter to clients Tuesday.
“We believe that sustainability should be our new standard for investing.”
This has been caused by a rise in awareness of how sustainability-related factors can affect economic growth, asset values, and financial markets as a whole.
In the update, the firm said that it would be looking to help clients navigate towards this trend of ESG investing, nothing that sustainable investment options have the potential to offer clients better outcomes.
The asset management firm said as the standout headline that sustainability would be the new standard for investing, something which has hit the market by storm over the last few years.
BlackRock have said that they will make sustainability the main offering in solutions, noting that clients may have to learn further about ERISA regulation for those who are inexperienced with ESG investing.
Notably, the firm said that they will be offering sustainable solutions at fees comparable to traditional solutions, which means that investors will not incur further costs to make the shift into ESG Investing.
This will allow investors to have an easier way to access a sustainable portfolio at good value in a single ETF, something which could differentiate BlackRock from its competitors.
Currently, every active investment team at BlackRock considers ESG factors in its investment process and has articulated how it integrates ESG in its investment processes.
Active Portfolios
By the end of 2020, all active portfolios and advisory strategies will be fully ESG integrated – meaning that, at the portfolio level, our portfolio managers will be accountable for appropriately managing exposure to ESG risks and documenting how those considerations have affected investment decisions. The firm gave an example of the thermal coal market, saying that this is an industry which is significantly carbon intensive and environmentally degrading. BlackRock added that this means it is highly exposed to regulation because of its environmental impacts, which may deter ESG investors into this field. With regards to this sector, BlackRock have said that they will remove public listings of companies that generate more than 25% of their revenues from thermal coal operations, showing an emphasis on the shift to address environmental and sustainable investor needs. BlackRock’s alternatives business will make no future direct investments in companies that generate more than 25% of their revenues from thermal coal production and are looking to cut down in investing into companies that go against environmental concerns The asset manager said today that they want to promote both ESG and Impact Investing to both clients and investors as it allows a new brand of investing to take the market. The firm already provides data on their website for iShares that display an ESG score and the carbon footprint of each fund, which will make it easier for shareholders to weigh up investments based on environmental data analytics provided by BlackRock, which has given BlackRock the edge over its competitors. By the end of 2020, the firm intend to provide transparent, publicly available data on sustainability and environmental factors, including data on carbon footprint and emissions for BlackRock mutual funds – by the end of the year the rise to ECG and impact investing may mean that these data sets are the most important for investors.Increased Access to Sustainable Investing
BlackRock have reassured the market and investors that they will do all they can to improve access to sustainable investing to allow investors as much exposure to the field. As many clients may not understand this, the work that the asset management firm are doing to both educate investors and improve accessibility is certainly noteworthy. There has been a clear need for naming conventions for ESG products industry wide, giving investors a clear transparent picture whilst allowing differentiation from ESG investments compared to traditional ones. BlackRock note that they are planning to double the choice and range of ESG ETF’s over the next few years, which have included sustainable versions of current products. This was done so that clients have more choice for how to invest their money and understand the businesses which they are putting their money into. Next there will be an emphasized effort to simplify and expand ESG iShares, which will include ETF’s with a Fossil Fuel Screen. This will allow clients to integrate ESG into their existing portfolios with ease, and make the transition process more efficient. Notably, this will mean that BlackRock require three ESG ETF suites in the USA and EMEA. Firstly, one that enables clients to be able to filter certain sectors and businesses which are not appealing to investors, allowing the selection process to be more specific and tailored towards the client. Secondly, another that enables clients to improve ESG scores whilst having the opportunity to weigh up and look at other standardized market indexes, which ensures that the database that BlackRock have is continually being improved and updated. Finally, another type that enables clients to invest in companies with the highest ESG ratings, which gives clients an opportunity to study all the data provided along with profiles of the company allowing an all round assessment before investing. Following on, there will be ensured plans to work with index providers to improve choice of sustainable indexes, providing a wider variety of sustainable investment options with the data backing it up for investors. BlackRock have really focused on giving new ESG investors all the information when making the transition – something which is very important for those who are not well versed in the field. BlackRock have also recently brought about a new department which deals with impact investing, that offers clients a range of companies chosen on their positive impact to society. This has led to a commitment to launching a dedicated impact investing team, which will begin with the launch of a Global Impact Equity fund this quarter which will excite those involved in the field of impact investing. Impact investing solutions will be aligned with the World Bank’s IFC Operating Principles for impact Management, assessing what areas a particular firm is looking to address and how their business needs and goals match up to this. It seems that BlackRock have joined the bubble of ESG investing at a time where environmental and social responsibility have never been so important.ESG Multi Asset Fund
BlackRock now provide an ESG Multi-Asset Fund among other sustainable offerings. Notable facts from this fund show that the size of the fund is €780.798 million, with 553 holdings. This fund has a risk level of 4 out of 7 which is provided on BlackRock’s website, showing that it is a medium risk investment and investors should be expecting rewards in the media range. Notable holdings in this fund include Microsoft Corp (NASDAQ:MSFT) who have also made a pledge to ramp up their environmental concerns. The fund has returned 5.08 on an annualized basis over the past three years against a benchmark of 5.99%.Blackrock Global High Yield ESG and Credit Screened Fund
The size of this fund is $178.44 million, having a holdings total of 541. BlackRock have used this fund to create a safety net fund, which has a risk rating of 3 out of 7 where low rewards are expected but this is more consistent than their counterparts. Notable holdings include Xerox (NYSE:XRX), QWest Corporation (NYSE:CTAA). Notably, the fund has high exposure to the United States, which would attract investors looking to gain exposure in America.BSF Impact World Equity Fund
With regards to the impact investing arena, BlackRock offer clients the BSF Impact World Equity Fund. The size of the fund is $215.836 million, and as of December 31 has 451 holdings. As this is an impact investing fund, BlackRock have given it a slightly higher risk rating of 5 out 7 on their scale. Notable holdings in this fund include Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN) and Visa (NYSE:V). The fund has returned 25.99 on an annualized basis over the last four years, against a benchmark of 55.84%.Fidelity ESG Investing
Another firm in Fidelity (NYSE:FIS) are also making the shift towards ESG investing. The firm have said that they are becoming more engaged in the ESG ratings of the companies that they invest and offer to clients, as this has become one of Fidelity’s highest priorities of late. Fund managers in the sustainable, ethical and socially responsible investing (SRI) space are now starting to value these factors when looking at investment opportunities. Fidelity have said that they want to find the balance between finding the right investment opportunities whilst looking at the social and philanthropic values of the company, in a time where environmentalism has become important Following a study by Fidelity, they found that companies who take pride and value social issues, taking into account ECG are better companies with more potential and attract more investment, and that there will be an ensured effort to promote both ECG and impact investment. Interestingly, the firm noted that there was a middle ground between impact investing companies and companies that do not prioritize ESG values, which was highlighted in their research Fidelity noted that there is a rise in investors who are looking to engage with companies to help them become more sustainable, and that investors are now playing a more active role in allowing companies to be have more corporate responsibility. Fidelity engaged with 780 companies in 2018 on issues such as governance and remuneration, and have made a pledge to increase this as the investment scene looks to get to grips with environmental concerns of investors. This shows the effort that both Fidelity and BlackRock are making to expand their portfolios, and it may be the case that before 2020 many more strides are made to shift into the ESG arena. Certainly, the world of Impact Investing and ESG investing is young. However it seems that BlackRock and its competitors are keen to make a statement and prioritize ESG in a time where environmental and social values have never been so important.Donald Trump attacks Apple following privacy regulations
The President of the United States has launched an attack on Apple (NASDAQ:AAPL) over privacy regulations.
We are helping Apple all of the time on TRADE and so many other issues, and yet they refuse to unlock phones used by killers, drug dealers and other violent criminal elements. They will have to step up to the plate and help our great Country, NOW! MAKE AMERICA GREAT AGAIN.
— Donald J. Trump (@realDonaldTrump) January 14, 2020
The President has slammed the multinational for refusing to allow access to the iPhones “used by killers, drug dealers and other violent criminal elements.”
Trump had his say on twitter following the decision from Apple to decline requests from US Attorney General William Barr and the FBI in allowing access to an iPhone.
The case in question invalid a man who killed three sailors in a shooting last month in Florida at an Air Force base.
Barr also made his frustration public as he said “We call on Apple and other technology companies to help us find a solution so that we can better protect the lives of Americans and prevent future attacks,”
Apple in all global cases, where it has involved local police, the FBI or even the British MI5 have defended the privacy of its users.
The new profound vision of privacy has been something which Apple have developed and used as a marketing point in the latest release of iPhones, iPads and other devices.
Apple have defended the right to privacy by saying that this was a fundamental human right, as alluded to by CEO Tim Cook in 2018.
Apple has pushed back against suggestions it isn’t cooperating with authorities on the Pensacola case, saying in a statement Monday that it “responded to each request promptly … with all the information that we had.”
“We have always maintained there is no such thing as a backdoor just for the good guys. Backdoors can also be exploited by those who threaten our national security and the data security of our customers,”
“Today, law enforcement has access to more data than ever before in history, so Americans do not have to choose between weakening encryption and solving investigations. We feel strongly encryption is vital to protecting our country and our users’ data.”
Apple have been involved in their faIr share of legal battles, and faced a similar situation in 2016 when they refused to attend to a court order to unlock the iPhone of a shooter involved in the San Bernardino killing.
However, many of the big tech firms globally such as Facebook (NASDAQ:FB), Google (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT) were quick to defend the actions of Apple, which shows the emphasis on the importance of privacy to these multinationals.
Certainly, President Trump has a lot to ponder over. With the current state of affairs in Iran, combined with the planned impeachment procedures there will be a lot changes within American politics over the next few weeks.
Quiz shares crash over 11% following slow festive trading period
Shareholders of Quiz PLC (LON:QUIZ) have seen their shares crash following a poor update from the firm.
Shares in Quiz trade at 16p having crashed 11.58% on the announcement. 15/1/20 13:27BST.
The firm today gave an update on its festive trading, and shareholders will be worried about the statistics provided.
In the seven week period, which ended on January 4 the firm reported that revenue had fallen 9.3% compared to a year prior.
The company did say that it was pleased with its Black Friday sales, however trading wasn’t strong enough to suffice shareholders, as shares are still in red.
There has been a general downward trend in the British retail market, however Quiz also noted that their online sales fell 15% comparing the figures year on year.
The company noted that this was due to the ending of partnerships with third party sellers.
However, when considering just Quiz online sales from its website, shareholder would have been pleased that this sector saw a 5.9% growth in the seven weeks.
Quiz said “As previously indicated, during the Group’s current financial year QUIZ’s stores and concessions have experienced a reduction in footfall compared to the prior year. This trend continued during the Period resulting in revenue from the Group’s UK standalone stores and concessions decreasing by 7.0%.”
The firm also added, “Over the past 12 months, the group has terminated unprofitable revenue streams through a number of third-party website partners. As a result of these actions as well as weaker sales through some of the group’s remaining partners, revenues generated from third party online partners declined significantly against the prior year.”
Quiz cite challenging backdrop
Tarak Ramzan, Chief Executive Officer, commented:
“Whilst the trading backdrop has remained challenging, it is disappointing to report a decline in revenues in the Period. We were pleased that revenues through our own websites grew in the Period with less promotional activity than in the prior year, which underpins our confidence in the health of the QUIZ brand.
“We have continued to make good progress in improving gross margins and reducing costs in line with the strategic priorities set out by the Board last year. With our cash position, we remain confident that we can improve our financial performance and grow revenues. We have a clear customer focus and a flexible model that the Board continues to believe will enable QUIZ to adapt to the changing retail environment and return to profitable growth in the medium-term.”
Not much progress from half year loss
Just before Christmas, Quiz gave another disappointing update to shareholders.
The retailer said that, for the six months ended 30 September, loss before tax amounted to £6.8 million, down from a profit of £3.8 million recorded for the same period a year prior.
Meanwhile, group revenue declined 5% to £63.3 million, down from last year’s £66.7 million figure.
The company highlighted that the pressures surrounding the UK retail sector have hit its results.
“Much of the UK retail sector has remained under pressure during the period impacted by macro-economic uncertainty well as the accelerating structural shift to online retailing,” Quiz said in its results.
Boohoo captivate the market
Clothing retailer Boohoo (LON: BOO) have taken the market by storm, and posted another impressive update just yesterday.
For the four month period, which ended on December 31, the firm said that its revenue had jumped 44% to £473.7 million from the £328.2 a year ago.
Boohoo said that it expects revenue growth for its financial year, which ends on February 29 to be between 40% and 42% ahead of their previous guided range of 33% to 38%.
The firm added that t expects adjusted earnings before interest, taxes, depreciation and amortisation margin to be 10% to 10.2%, beating its previous guidance of around 10%.
Also in the update, the firm said that it had appointed former JD Sports (LON:JD) chief financial officer as its new deputy chair in the figure of Brian Small.
There is a lot of work to do for Quiz, as trading has been slumping over the last few months.
Shareholders will hope that Quiz management can restructure and develop a long term plan to put them in the market against rivals such as Laura Ashley (LON:ALY) and Boohoo.
Just Eat complete deal with Greggs for exclusive delivery rights
Just Eat (LON:JE) have updated the market on Wednesday about an exclusive partnership with Greggs (LON:GRG) for a delivery service.
The FTSE 100 listed firm told shareholders that they intention on having Greggs’ bakery food products on delivery by the end of 2020.
Greggs delivery has been trialled on Just Eat in London, Newcastle and Glasgow and plans to launch the service in Birmingham and Bristol are set to commence this week.
In the update, it was also noted that services in Manchester, Leeds, Sheffield and Nottingham will all be ready in Spring.
Just Eat’s UK Managing Director Andrew Kenny said: “We’re proud to be the only food delivery app that can bring you the likes of the Greggs vegan sausage roll wherever you are. This is an exciting exclusive partnership for Just Eat.
“Greggs has proved extremely popular with our customers, especially during breakfast, demonstrating that as a nation we love the convenience of getting our favourite food delivered – be it a Greggs bacon baguette and coffee on a Tuesday or your local Thai at the weekend.”
No surprise that Just Eat looked at Greggs
Greggs have seen a very successful trading year in 2019, and a notable update came in November. For the six weeks to 9 November, total sales were up 12.4%. Additionally, company-managed shop like-for-like sales increased 8.3% over the six week period. “Trading performance in the fourth quarter to date has continued to be very strong, despite the strengthening comparators seen in 2018,” Greggs said in a trading update on Monday. “Sales growth continues to be driven by increased customer visits and has been stronger than we had expected given the improving comparative sales pattern that we saw in the fourth quarter last year,” Greggs continued.Just Eat takeover deal
Just Eat themselves have been grabbing news headlines as two firms are competing in a proposed takeover deal. Just Eat have been flirting with rumors of a potential takeover deal, however Prosus (JSE:PRX) and Takeaway.com (AMS:TKWY) have been locked in a vicious battle to make the acquisition permanent. Just Eat updated the market by saying that they are reviewing the increased offer from Prosus and are advising shareholders to hold off from accepting the proposition. Prosus, increased its offer for London-listed Just Eat to 740 pence per share, giving Just Eat a value of £5.1 billion. The all-cash offer represents a 26% premium to Just Eat’s closing price on October 21, the day before Prosus’s first bid for the company. However no formal deal has been completed and shareholders from all three parties are speculating over the future of Just Eat. Certainly the battle for Just Eat will continue to heat up, however the deal with Greggs today seems to have captured a market which may have benefits for both firms.Resolute Mining sell Ravenswood gold mine to EMR and Golden Energy consortium
Resolute Mining (LON:RSG) have confirmed that they have sold their Ravenswood gold mine in Queensland.
The sale was confirmed after rumors hit the market on Monday, however today shareholders have been fully notified with confirmation.
On Monday, it was announced that Resolute were in talks with private equity firm EMR Capital Management Ltd, and today the mine has been sold to EMR Capital Management and Golden Energy and Resources (SGX:AUE).
Resolute said EMR is a “leading” resources-focused private equity company with “outstanding” credentials.
GEAR has coal assets in Indonesia as well as investments in two Sydney-listed miners, Westgold Resources Ltd (ASX:WGX) and Stanmore Coal Ltd (ASX:SMR).
Resolute have said that they will receive AUD100 million in cash and notes for the initial sale of the mine.
Subject to further terms of the deal, a further AUD200 million could be sent Resolute’s way dependent on gold production figures and gold prices.
The sale of Ravenswood comes at no real surprise as the firm was conducting a strategic review of these operations, however Resolute did say that it hopes the mine will produce 200,000 ounces of gold for 15 years from 2022.
in 2019, Ravenswood produced around 55,000 ounces and therefore this could be a good acquisition.
Resolute delighted with the deal
Resolute’s Managing Director and CEO, Mr John Welborn, was delighted with a strongly value accretive transaction:
“The sale of our Ravenswood Gold Mine on the terms announced today provides the opportunity for exceptional value for Resolute shareholders. We have strengthened our balance sheet with a combination of immediate cash and the potential for future upside as well as removing the requirement of a large near-term capital investment. The divestment has strong strategic merit for Resolute. We have delivered on our objective of ensuring a new long-life future for Ravenswood under a world-class operator and can now focus our attention and energy on our African portfolio and the abundant opportunities our experience provides for further growth and value creation.”
“The transaction delivers a fair share to all parties from the future value of the Ravenswood Expansion Project and effectively balances risk and reward. Our modelling at current gold prices demonstrates the expansion project at Ravenswood will be highly successful for EMR Capital and GEAR, and that the maximum value of A$300 million will be generated for Resolute. EMR Capital and GEAR are world-class mine developers and operators with outstanding track records of value generation. The EMR Capital and GEAR consortium are ideal parties to undertake the development of the Ravenswood Expansion Project. The upside sharing arrangement we have agreed aligns the interests of Resolute shareholders with those of EMR Capital and GEAR.”
“Ravenswood has been a consistent performer for Resolute for more than 15 years. Since acquisition in 2004, Resolute has mined and processed over 40 million tonnes of ore and produced almost two million ounces of gold. I congratulate the Resolute team, both past and present, for our performance at Ravenswood. We are proud of our achievements at Ravenswood and the significant economic benefits we have provided to the local community, the Queensland Government, and Resolute shareholders. We are confident Resolute’s legacy, and the interests of all stakeholders in Ravenswood, will be protected and enhanced by the new consortium.”
Resolute grow from strength to strength
It seems that the good news and optimism is surrounding Resolute right now.
On Monday, the firm saw its confidence pay off as it guided for a larger production capacity in 2020 in an update on Monday.
Resolute have announced a target of 500,000 ounces of gold in 2020 which shows a 30% rise on the 383,731 figure reported last week.
With the Syama operations, the firm has said that forecast is expected to around 260,000 ounces which shows a 7% appreciation from the 243,058 figure in 2019.
Resolute outlined an all-in sustaining cost figure of $1,090 per ounce for 2020, however this figure is still being calculated.
At Resolute’s other mine, Mako in Senegal, the company sees mining and processing carrying on at similar rates in 2020 to 2019, though grades will be lower due to depletion of higher-grade stockpiles.
Gold production at Mako is guided at 160,000 ounces in 2020, from 87,187 ounces in 2019.
Additionally, power supply agreement with Aggreko PLC (LON:AGK) is giving the chance for Resolute to make good progress.
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%.
It is fair to say that Resolute over the last few weeks have struck gold, and shareholders should remain thoroughly engaged with the future workings of the company.
Shares in Resolute trade at 62p (-0.18%). 15/1/20 12:54BST.
Hochschild Mining note production fall in fourth quarter update
Hochschild Mining (LON:HOC) have given their shareholders an update regarding their performance in the final quarter of 2019.
The firm gave a mixed update to shareholders however shares have stayed in green.
Shares in Hochschild trade at 168p (+2.44%). 15/1/20 12:24BST.
The firm said that its gold production totaled 78,050 in the three month period, however this saw a dip of 4.1% compared to the 81,370 total which was reported in the third quarter.
On a better note for shareholders, gold production figures were higher than a year ago where the fourth quarter figure in 208 was 73,100.
This was driven by a “better than expected” performance from the Inmaculada mine in Cusco, Peru.
Looking at silver production, fourth quarter production once again fell by 12% giving a total figure of 4.6 million ounces. In the third quarter, the figure delivered was 5.3 million and on a worse note, year on year silver output fell by over 20%.
On an overall basis, 2019 production for gold was 570,500 gold equivalent ounces and 46.2 million silver equivalent ounces, both down 3.0% year-on-year.
Hochschild told shareholders for 2020 that it will expect a production guidance of 422,000 gold equivalent ounces and 36.0 million silver equivalent ounces.
The firm added that total sustaining and development capital expenditure will be expected to be approximately $115-130 million including $22 million expansion of tailings storage facility at Inmaculada.
Ignacio Bustamante, Chief Executive Officer said:
“I am pleased to report that we have delivered a stronger than forecast final quarter. Consequently, the overall 2019 production figure of 38.7 million silver equivalent ounces is comfortably ahead of the 37.0 million ounce target and includes record contributions from our Inmaculada and San Jose mines. Furthermore, our costs for 2019 are expected to be in line with guidance. We have also substantially improved our financial position with strong free cashflow generation and the refinancing of our short-term debt with a new low cost $200 million loan.
“At Inmaculada, we have continued to deliver exciting drill results that are further adding to the resource base. In addition, our 2020 brownfield drilling programme is set for an early start in Peru with the welcome news that we have secured permits to drill at the exciting Pablo Sur and Cochaloma targets close to Pallancata. We will provide updates on progress at these and other campaigns as our exploration programme advances.”