IMCD boasts 15% profit growth during first three quarters
Speciality chemicals and food ingredients distributor IMCD N.V. (AMS: IMCD) boasted strong performance fundamentals during the first nine months of the year.
The Group reported an on-year gross profit bounce of 15% to EUR 457.3 million, while operating EBITA jumped 12% to EUR 175.7 million. The Company added that its net result before amortisation and non-recurring items also rose 10% to EUR 120.1 million,
IMCD shareholders fared similarly well, with cash earnings per share increasing 15% to EUR 2.26.
In addition to its impressive fundamentals, the Company reminded stakeholders of their acquisitions: the food ingredients business of Matrix on the 30th of August, and Monachem and Addpol on the 18th of September.
Further, IMCD strengthened its pharma activities by agreeing to acquire shares in DCS Pharma AG and 57% of the shares in Whawon Pharm Co. Ltd.
Elsewhere in drug and chemical news, Amryt Pharma Holdings Ltd (LON: AMYT), Curetis NC (AMS: CURE) and Integumen PLC (LON: SKIN) also boasted revenue growth.
Cannabis Investor Forum 2019 Opening Remarks
Cannabis Investor Forum 2019 opening remarks by Barry Gibb. Barry touches on the fundamentals of the cannabis market and looks at the key areas for investment in 2020.
Find out more about the Cannabis Investor Forum 2019 here.
Labour suffers large-scale cyber attacks
Labour announced that it suffered a large-scale cyber attack yesterday afternoon.
Cyber Attack
The attack impacted Labour’s digital platforms. Security procedures dealing with the attack slowed down Labour’s campaign projects amid preparations for the upcoming general election. The cyber attack was not successful due to Labour’s strong digital security systems. It has been reported that there has not been any breach of data privacy due to the cyber attack. Although the cyber attack failed, it still caused problems by interrupting Labour’s campaign activities. After Labour’s digital security systems prevented the cyber attack, Labour restored its campaign activities. Labour contacted the National Cyber Security Centre to report the cyber attack. The cyber attack intended to overwhelm Labour’s digital system with large numbers of traffic until Labour’s digital system collapsed. If the cyber attack was successful, it would harm Labour’s campaign activities by significantly slowing down or paralysing Labour’s election preparations. Furthermore, Labour detected millions of cyber attacks coming primarily from Russia and Brazil.The Distributed Denial of Service (DDoS)
Cyber attacks intended to take Labour’s digital systems entirely offline in order to slow Labour’s activities down. All of the cyber attacks detected were DDoS attacks (The Distributed Denial of Service). These cyber attacks take digital systems offline, and make them collapse by flooding computer service with too much traffic. DDoS attacks paralyse digital systems without breaking into them. Labour informed campaigners regarding the problem caused by cyber attacks to explain why Labour’s digital systems were working slower than usual.Cloudflare
Labour works with Cloudflare (NYSE: NET) to protect its digital systems. Cloudflare provides DDos cyber attack protection to web users. For example, Cloudflare filters traffic to prevent digital systems from collapsing. The company filters illegitimate requests received by digital systems to prevent DDos cyber attacks. Furthermore, Cloudflare backs up company data by storing versions of digital systems on its servers. As cyber attacks become more common, the demand for cyber attack prevention systems such as Cloudflare increases.Kantar: growth slows for supermarkets
New data revealed on Tuesday that growth has slowed for supermarkets in the UK as political uncertainty and a very damp autumn provided a backdrop for sales.
The latest Grocery Market Share report by Kantar revealed that year-on-year supermarket sales grew by 1.0% over the past 12 week period.
“This period saw an increased focus on seasonal events and promotions. The final quarter of the year is associated with holidays and festivities, and retailers are always looking for ways to capitalise on seasonal events to attract shoppers,” Kantar said.
Pumpkin sales grew 6% this year in October in preparation for Halloween celebrations. Indeed, the data revealed that over a tenth of British households brought home a pumpkin.
Kantar said that attention has already turned towards Christmas – £17 million has already been spent on mince pies this year.
“It’s never too early to start thinking about Christmas, particularly for grocery retailers. With many supermarkets already unveiling their festive advertising campaigns, the starting gun has been fired on the race to be Christmas number one,” Kantar added.
The data reveals that Lidl, which has worked to encourage larger shopping trips this year, was the fastest growing bricks and mortar retailer across the period, with sales increasing by 8.8%.
Meanwhile, Aldi saw a sales growth of 6.7%.
The four largest retailers struggled, Kantar said. Asda’s sales declined 1.2% and Morrisons’ dropped 1.7%. Additionally, Tesco saw its sales drop by 0.6% and Sainsbury’s decreased by 0.2%.
Just last week, Sainsbury’s revealed a decline in profits in its half year results.
Meanwhile, Morrisons said at the start of September in its half year results that pre-tax profits rose, though it warned that the extended Brexit process has weighed on customer behaviour.
Shares in WM Morrison Supermarkets plc (LON:MRW) were down on Tuesday, trading at -0.10% as of 10:53 GMT. Shares in Tesco plc (LON:TSCO) were also down, trading at -1.44% as of 10:54 GMT Tuesday. J Sainsbury plc shares (LON:SBRY) were up on Tuesday, trading at +1.57%.
ITV confirms full year guidance
ITV (LON:ITV) said on Tuesday in a third quarter trading update that it is on track to deliver its full year guidance.
Shares in the broadcaster were up during trading on Tuesday morning.
ITV said that it will deliver is full year guidance. It is confident that ITV Studios will deliver revenue growth of at least 5% at a 14% to 16% margin, the company said in a statement.
For the nine months to 30 September, total external revenues were down 2% amounting to £2.2 billion.
Meanwhile, total ITV Studios revenue increased by 1% to £1.1 billion.
ITV Studios delivered a successful range of new and returning programmes in the third quarter and expects a strong fourth quarter, especially in the US.
“ITV’s overall performance for the first nine months of 2019 was as we expected, and although the economic environment continues to be uncertain, we are making good progress in executing our strategy,” Carolyn McCall, ITV Chief Executive, said in a company statement.
BritBox was successfully launched, the Chief Executive added, and the digital video subscription service launched with the BBC has received positive feedback so far.
“ITV Studios’ performance in 2019 will benefit from a very strong second half delivery schedule and our Q3 performance reflects this, with good growth across the business, particularly from ITV America with Love Island US and the part delivery of Hell’s Kitchen and Snowpiercer. We expect this performance to continue in Q4, and over the full year we are confident that we will deliver at least 5% growth in ITV Studios’ total revenues at a margin of 14% to 16%,” the Chief Executive said.
The Chief Executive continued: “On screen and online viewing performed well with highlights including four of the five highest rating new dramas so far this year and the Rugby World Cup which saw a peak audience of 12.8m viewers during the final. We have reached our 2021 target of 30m registered users on ITV Hub ahead of plan. We have an exciting schedule for the remainder of the year and into next year, including I’m A Celebrity… Get Me Out of Here!, Sticks and Stones, England qualifiers for the 2020 European Football Championships, The Masked Singer, Flesh and Blood, and the return of Saturday Night Takeaway and Liar.”
Earlier this year at the start of August, the broadcaster confirmed that there will be two series of its popular dating reality TV show Love Island on ITV2 in 2020.
The show has received backlash for its controversial nature.
Shares in ITV plc (LON:ITV) were up trading at +0.12% as of 10:07 GMT Tuesday.
Adidas close German and US robot factories
Adidas AG (ETR: ADS) have announced that they will close their German and US robot factories in an update delivered on Monday by the sportswear and footwear giant.
Adidas notified shareholders that the closure was to allow production to be closer to customers, saying on Monday deploying some of the technology in Asia would be “more economic and flexible”.
The robot initiative launched by Adidas formed part of a plan to fulfill demand for faster delivery of new styles to its major markets and to counter rising wages in Asia and higher shipping costs.
It originally planned a global network of similar factories, however operations have been ceased following decisions made by seniority.
Martin Shankland, Adidas head of global operations, said the factories had helped the company improve its expertise in innovative manufacturing, but applying what it had learnt with its suppliers would be “more flexible and economic”.
Adidas has shifted most of its production from Europe to Asia and now relies on more than 1 million workers in contract factories, particularly in China and Vietnam, where low labour costs have been exploited.
Adidas announced that all operations at the robot factories would be ceased by April 2020.
In a time where competitors such as Nike (NYSE: NKE) and JD Sports (LON: JD) have seen a boost in profits and business performance, Adidas will be looking to streamline costs and boost competitiveness.
Additionally, big time competitor Sports Direct (LON: SPD) have been involved in a conflict with the CMA but have still recorded quarterly gains across financial 2019.
Adidas still has technological aspirations. Today, the company said it would further concentrate its resources on “modernizing its other suppliers” and, with Oechsler’s assistance, continue to explore “4D technology,” a 3D-printed midsole that has been used on sneakers such as the Futurecraft 4D and Alphaedge 4D.
“Whilst we understand adidas’ reasons for discontinuing Speedfactory production at Oechsler, we regret this decision,” Dr. Claudius M. Kozlik, chief executive of Oechsler admitted today. “At the same time, we look forward to continuing our close and trusting cooperation with adidas in the area of 4D sole printing.”
Credit Suisse appoint new head of Investment Banking and Capital Markets divison
Credit Suisse (SWX: CSGN) have appointed a new head of Investment Banking and Capital Markets in David Miller, who is the bank’s current global head of credit.
Miller, who joined Credit Suisse in 2000, has been charged with improving the performance of the business, which saw a 6% drop in third quarter revenue reflecting a sharp fall in advisory fees for mergers and acquisitions.
Credit Suisse follow a long list of global banks who have seen performance drop with slow market conditions alongside economic and political tensions.
HSBC (LON: HSBA) and Lloyd’s (LON: LLOY) are two noteworthy names which have seen their third quarter profits fall after timid trading updates.
Additionally, German titan Deutsche Bank (ETR: DBK) are in crisis after reporting a third quarter loss, amid speculation about the bank’s survival prospects.
Switzerland’s second-biggest bank has seen its market share in big mergers and acquisitions fall this year, Refinitiv data shows.
Competitors including UBS (SWX: UBSG) have also said they will cut investment banker numbers after a disappointing performance led to restructures in the division.
Miller will replace James Amine, who is stepping down to take on a newly created job as the New York-based head of Private Credit Opportunities, Credit Suisse bank said. Additionally, Miller will earn a seat on the Executive board of Credit Suisse.
Miller’s most recently served as the bank’s Global Head of Credit, head of Global Credit Products and a member of the Global Markets management committee.
“Credit Suisse will greatly benefit from his deep experience across capital markets and investment banking, combined with his broad client relationships both in the U.S. and internationally,” Chairman Urs Rohner said.
Analyst Javier Lodeiro at Zuercher Kantonalbank said: “We are positive that a new CEO is coming. He will lead the turnaround of this unit.”
Credit Suisse informed shareholders that the changes would be of immediate effect, which stresses the urgency of the drastic turnaround that is required.
In a time of a global banking decline, many firms are finding ways to change business structure and operations to improve trading figures.
However, it may take a lot more than personnel changes to drive business in a time of both political and economic hostility.
Shares of Credit Suisse dipped 0.61% to CHF12.96 after the news hit headlines. 11/11/19 14:53BST.
Two Cannabis based drugs approved for NHS use
Two new cannabis based drugs have been issued for NHS in the treatment of epilepsy and multiple sclerosis, as developments into cannabis based medication continue to grow in the UK pharmaceuticals market.
Both medicines have been grown and developed in the UK, as approval was won and announced on Monday morning.
The new medications follow guidelines from the drugs advisory body NICE, which looked at products in treatment for several conditions.
Doctors will be able to prescribe Epidyolex, for children with two types of severe epilepsy – Lennox Gastaut syndrome and Dravet syndrome – which can cause multiple seizures a day.
Clinical trials have shown the oral solution, which contains cannabidiol (CBD), could reduce the number of seizures by up to 40% in some children.
Epidyolex was approved for use in Europe in September, but in draft guidance NICE initially said it was not value for money.
The medication will cost between £5,000 and £10,000 per patient per year, but the manufacturer GW Pharmaceuticals (NASDAQ: GWPH) have agreed a lower price with the NHS.
The new legislation will excite existing cannabis pharma firms such as Cannabics Pharmaceuticals Inc (OTCMKTS: CNBX) and InMed Pharmaceuticals Inc (TSE: IN) who will look to support the looser regulation on medical cannabis issuance.
Millie Hinton, from the campaign End Our Pain, said the guidelines were “a massive missed opportunity”.
“It is particularly devastating that there is no positive recommendation that the NHS should allow prescribing of whole plant medical cannabis containing both CBD (cannabidiol) and THC in appropriate cases of intractable childhood
epilepsy,” she said.
“It is this kind of whole plant extract that has been shown to be life-transforming for a significant number of children, including these involved in the high-profile cases of last year which led to medical cannabis being legalised.”
She added: “This restrictive guidance is condemning many patients to having to pay for life-transforming medicine privately, to go without or to consider accessing illegal and unregulated sources.”
Decisions about the issuance of the drug are varied around the UK, but for now NHS England has issued the drug for the treatments specified, showing a positive attitude from healthcare legislators.
The other treatment, Sativex, is a mouth spray that contains a mix of THC and CBD.
It has been approved for treating muscle stiffness and spasms, known as spasticity, in multiple sclerosis. But doctors will not be allowed to prescribe it to treat pain.
It was the first cannabis-based medicine to be licensed in the UK after clinical trials, and has been available on the NHS in Wales since 2014. It costs around £2,000 a year per patient.
Prof Helen Cross, a consultant in paediatric neurology at Great Ormond Street Hospital, who led UK trials of Epidyolex said it was “great news”.
“Dravet and Lennox Gastaut syndromes are both complex difficult epilepsies with limited effective treatment options and this gives patients another option… that could make a difference to care,” she said.
Galia Wilson, chairwoman of Dravet Syndrome UK, said: “Many families come to us asking about the potential of cannabis-based medicines, particularly cannabidiol, and we are thrilled that one is now available on the NHS.”
The developments have also been positive as firms such as Freyherr have been listed on the NEX, which shows both an increasing awareness to the use of cannabis based medication and also increasing popularity.
Industry experts have also been quick to praise NHS England following the approval this morning.
Ley Sander, Medical Director at the Epilepsy Society and Professor of Neurology at University College London, said: “This new drug will bring hope for some families and EU approval feels like a positive step. Medicinal cannabis, however, still remains a medical minefield and there are many hurdles ahead.
“CBD was not recommended by NICE for prescription on the NHS. It is important that the pharmaceutical industry continues to work with the medical advisory body to ensure that drugs are cost effective and that its long-term effects are clear.”
Additionally, Simon Wigglesworth, the deputy chief executive at Epilepsy Action, welcomed the decision to recommend Epidyolex. However, he said there were many thousands of people with other complex and treatment-resistant epilepsies who could potentially benefit from cannabis-based medicines.
There was a lack of high-quality clinical evidence, he said, particularly around products that contain THC. “Though this is disappointing, we appreciate that clinical research is vital to ensure that any treatment recommended for use in the NHS is safe and effective,” Wigglesworth said.
“We are aware of ongoing efforts to bring forward research into cannabis-based medicines for epilepsy, including those containing THC, at pace.”
The work to allow the full issuance of cannabis medication is still far from achieved, but steady headways are being made.
Legislators need to work with healthcare professionals, industry experts, charities and those that have been personally affected by conditions such as MS.
Elinor Ben-Menachem, professor of neurology and epilepsy at the University of Gothenburg’s Sahlgren Academy, said: “LGS and Dravet syndrome are two of the most severe and difficult-to-treat forms of childhood-onset epilepsy, with few patients achieving adequate seizure control. The EMA approval of Epidyolex will bring hope to patients and families, with the potential to better control seizures and improve quality of life.”
The evidence is there for health benefits, but there has to first be an acceptance that this medicine could be the way forward for child treatment, particularly with cases such as Billy Caldwell and Alfie Dingley.
Genevieve Edwards, director of external affairs at the MS Society, said: ‘We’ve been campaigning for access to Sativex for years, and it’s brilliant Nice has finally listened.
‘These guidelines are an important first step, but don’t go far enough. No cannabis-based treatments have been recommended to treat pain, a common symptom of MS.’
She said evidence shows cannabis-based treatments could help around 10,000 people with MS get relief from pain and spasms when other treatments have not worked.
There still seems to be some reluctance to fully integrate cannabis based medications into the NHS armory, however if these medications have benefits particularly to children then the gains have to be exploited.
