NewRiver Reit shares spike following Northern Irish park purchase

Ishen Patel
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NewRiver Reit shares spike following Northern Irish park purchase

NewRiver Reit PLC (LON: NRR) have seen their shares spike on Monday, after the firm announced the purchase of a Northern Ireland retail park for £40 million.

NewRiver Reit is a firm focused on real estate in the retail and leisure property sector, and boasts an impressive portfolio of 29 shopping centers, 22 retail warehouses, 14 high street units and 359 public houses.

Shares in the FTSE250 (INDEXFTSE: MCX) listed firm spiked 1.78% to 182p. 25/11/19 11:31BST.

The firm confirmed the purchase of Lisburn Retail Park for £40 million from property rival Intu Properties PLC (LON: INTU).

The park has 231,000 square foot of retail space as well as 1,200 car park spaces and 18 acres of development land.

The site boasts anchor tenets such as Sainsbury’s (LON: SBRY) and B&Q, owned by Kingfisher PLC (LON: KGF) who have seen their shares slip last week.

We are pleased to announce that we have exchanged contracts to acquire Sprucefield Retail Park,” NewRiver Chief Executive Officer Allan Lockhart said. “This high-quality asset will generate £3.7 million of annualised net property income, which will be highly accretive to underlying funds from operations and significant in improving our dividend cover, which is our key priority.”

“In addition to an attractive long-term income return, the development land offers the opportunity to deliver significant capital growth, leading to a very attractive total return,” Lockhart added.

Intu Chief Executive Officer Matthew Roberts said: “We announced our new strategy at the interim results in July. A key element of this is fixing the balance sheet which includes creating liquidity through disposals. We are pleased to conclude this transaction, which along with the part-disposal of intu Derby and other sundry asset sales in 2019 brings the year to date disposals total to £268 million.”

The sale comes at no surprise as Intu have seen their shares crash following a period of poor trading. Where competitors are making gains, this acquisition will come at a pleasing time for shareholders of NewRiver. In the market rivals have been busy, Growthpoint (JSE: GRT) are close to formalizing a deal for UK based Capital and Regional (LON: CAL) in a reported £150 million deal.

Icing on the cake for Cake Box shareholders

Ishen Patel
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Icing on the cake for Cake Box shareholders

Cake Box Holdings PLC (LON: CBOX) have seen their shares spike on Monday after the firm increased its interim dividend.

Cake Box operate in a niche market which supplies both fresh and egg free cream cakes for all occasions. The firm has hit the ground running following societal trends of increased vegetarian and vegan eating habits.

Shares of Cake Box spiked 5.9% on Monday to 147p. 25/11/19 11:15BST.

Cake Box increased its interim dividend by 33% following positive progress in their interim update.

In June, the firm reported strong profit gains following the opening of new stores across the country, and the interim figures will only put icing on the cake.

Cake Box is returning 1.6p per share for the six months to September 30, up 33% from the 1.2p paid a year before, with cash generation remaining “strong”.

The company’s pretax profit rose 27% to £1.7 million with revenue climbing by 6% to £8.8 million.

Like-for-like sales growth was 6.9%, rising from 4.4% for the same period a year before.

“During the period our focus has been on the consolidation of our strategy as we continue to grow the business through rolling out new stores, improving our customer offer and expanding our customer base, which is attracted to our unique, egg-free proposition,” said Chief Executive Sukh Chamdal.

“Our continued momentum has again led to a good financial performance during the half.”

Nine stores were added to the portfolio during the half, and more will come in the second half of its year.

Since the half’s end trading has been “encouraging”, Cake Box continued, and the company said it is on track for “another” year of growth.

Chamdal added: “With initiatives continuing apace to enhance our product offer, and with strengthened operational capabilities through our new warehouse and distribution facilities, we remain on track for another year of growth.”

Shareholders of Cake Box will be thoroughly pleased with the update and should be looking forward to strong trading figures in the next update.

In the market, competitors such as Finsbury Foods (LON: FIF) and Coca Cola (LON: CCH) have seen their sales increase in their most recent update.

Additionally, big time rival Greggs (LON: GRG) reported strong trading figures a week ago, which causes shares to rally.

Just Eat Takeaway.com saga continues

Ishen Patel
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Just Eat Takeaway.com saga continues

The ongoing saga between Just Eat (LON: JE) and Takeaway.com (AMS: TKWY) continues to take its course, as both firms look to complete a merger deal following internal and market pressures.

Shares of Just Eat were 0.19% to the good on Monday morning, trading at 754p. 25/11/19 11:02BST.

There has been a never ending story between the two firms about completing a merger deal, as the deal first hit news headlines in July.

However, the persistence of Prosus (JSE: PRX) has stopped the two firms agreeing a deal, as Prosus have expressed strong interest in the London based Just Eat.

Just Eat is a FTSE100 (INDEXFTSE: UKX) listed firm, and it is understandable given its size and stature why both Takeaway.com and Prosus are keen on making the acquisition.

In the initial deal proposed at the end of July, Just Eat shareholders would get 0.09744 Takeaway.com shares for each Just Eat share held, which valued Just Eat at 731 pence per share based on Takeaway.com’s closing share price on July 26 of €83.55.

The bid submitted by Prosus showed a 20% appreciation to Takeaway.com’s offer.

On Monday, Just Eat told shareholders to back the deal submitted by Takeaway.com and neglect the substantial £4.9 million bid that was proposed by Prosus.

Takeaway.com Chief Executive Jitse Groen added: “This merger combines the two most profitable European food delivery websites: Just Eat in the UK and Takeaway.com in the Netherlands. We believe it is realistic to expect Germany, which is already more than double the size of our Netherlands’ business, will over time trend towards the Dutch earnings before interest, tax, depreciation, and amortisation margin.

“The strong cash generating capability of these profit pools will continue to fuel the growth of the combination. Our team has a proven ability to win in competitive markets and has defeated numerous competitors in many countries, whether large scale tech giants or well-funded, own-delivery challengers. We remain strongly committed to the merger.”

“Your board believes that the Takeaway.com combination provides Just Eat shareholders with greater value creation than the Prosus offer,” it said in a letter to investors today, reiterating its belief that the Prosus deal “significantly undervalues” the company.

PetroTal shares rally following optimistic production guidance update

Ishen Patel
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2
PetroTal shares rally following optimistic production guidance update

PetroTal Corp (LON: PTAL) have seen their shares rally on Monday after the firm gave shareholders a positive outlook.

PetroTal reported the completion of drilling at its second horizontal well on the Bretana field in Peru, which gave shareholders optimism on Monday.

PetroTal is an oil and gas development and production company. The firm focuses on development of oil assets and oil fields, and has main operations in Canada.

Shares of PetroTal rallied 20.33% on Monday morning to 25p. 25/11/19 10:46BST.

Following the completion of the Bretana field operation, the firm increased its year-end production guidance which would have appeased shareholders.

The 5H well reached the target Vivian formation at the prognosed vertical depth of 2,696 metres, PetroTal said, and 700 metres of the planned 870 metres horizontal section have been drilled, which is inside the main productive oil reservoir.

The well tie-in and initial production tests are expected to take place within three weeks, and PetroTal have said that they confirm to commission the central production facility following the conclusion of the test.

This will allow the expansion of nominal production facility to 10,000 barrels of oil per day, and 40,000 barrels of water per day.

Based on recent field production experience of production 8,000 barrels of oil per day with a facility having 5,000 bopd nominal capacity, PetroTal expects its central production facilities to be able to handle the order of 15,000 barrels per day.

Following these strong predictions and solid performance, the production guidance has been lifted for the end of 2019 to 11,000 to 13,000 barrels per day.

This shows good progress from the initial 10,000 figure once quoted.

In a time where the oil and gas industry has seen slumps, this will come as good reading for shareholders.

Big name titans such as Shell (LON: RDSA) and SABIC (TADAWUL: 2010) have reported poor trading figures in their respective updates.

Additionally, both Nostrum Oil (LON: NOG) and Chariot Oil (LON: CHAR) have seen their shares dip following revenue shrinks.

“We set ourselves an ambitious target of achieving 10,000 bopd by year-end 2019, so to exceed this is of great testament to the team we have assembled. I would like to congratulate our operations and drilling team for executing at an extremely high level since we started operations two years ago, and showcasing that we can handle more oil than the equipment’s nominal capacity which is now allowing us to forecast higher 2019 exit oil rates and, importantly, a strong production base as we enter 2020,” said Chief Executive Manolo Zuniga.

The top end of the London property market

Dina Caruso
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The top end of the London property market
Data revealed on Monday the prime streets in London where buyer activity remains “robust”. The findings are set against the backdrop of a wider property market freeze amid an uncertain political climate as the nation prepares to depart from the European Union. The London lettings and estate agent Benham and Reeves took a look at property sales between the £3 million and £10 million range, as well as those amounting to £10 million and over, over the last year. The findings reveal the capital’s popular high-end streets and how much home buyers are paying to live there. According to the data, the prime market saw a total of 917 sales across the city with an average price paid amounting to £4.5 million, and with sales totally £4.1 billion. Southwark’s Blackfriars Road was the most highly sought after area in the prime market, receiving 51 sales over the last year totalling £227.5 million. Bishops Avenue and Chiltern Street both came second, with 13 sales. As for London’s super prime market, there have been 79 sales in total over the past year, at an average of £17.2 million per sale. Sales in this market total £1.4 billion worth of property. “The continued political and economic uncertainty caused by our prolonged departure from the European Union has had an impact on buyer sentiment across London’s high-end market, and we’ve seen this caution lead to a fall in transactions and a decline in the price achieved during a sale to a certain extent,” Managing Director of Benham and Reeves, Anita Mehra, commented on the data. “However, to have seen as many as six sales transact over the ten million pound mark on one street alone is proof that London remains one of if not the most desirable market in the world, despite this tougher landscape,” Anita Mehra continued. “In addition to this, it seems as though we have very much seen the bottom of the market over the last few months and there has already been a notable uplift in buyer and seller activity which is already stimulating the prime and super-prime markets.”

BHP increase stake in SolGold causing shares to rally

Ishen Patel
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0
BHP increase stake in SolGold causing shares to rally

BHP Group PLC (LON: BHP) have announced on Monday morning that they will increase their stake in SolGold Plc (LON: SOLG).

SolGold PLC is an Australian gold and copper mining company. The firm has specialities in exploration, mine development, investment, finance and law.

Only a few days ago, BHP announced two new senior appointments which looked to turn around the companies mixed performance in financial 2019.

BHP is a FTSE100 (INDEXFTSE: UKX) listed firm, and the interest shown into SolGold has caused shares to rally.

Shares of SolGold rallied 7.25% to 21p on Monday. 25/11/19 10:32BST.

SolGold’s headline project is the Alpala deposit on the Cascabel project in Ecuador, with a pre-feasibility study due to be completed by the end of the first quarter of 2020.

BHP has signed up for a further 77 million SolGold shares at 22.15 pence each, giving a total approximate investment of £17.1 million.

BHP will hold 282.7 million SolGold shares after the deal, making it marginally the biggest shareholder with a 14.7% stake.

BHP have also been issued with 19.3 million share options exercisable at 37p within five years.

“SolGold is pleased to welcome BHP into a further position in the company. SolGold’s view is that the agreement endorses its view of SolGold’s commanding Ecuadorean copper and gold exploration footprint, and in particular the robust Alpala deposit,” said SolGold Chief Executive Nick Mather on Monday.

Additionally, as well as BHP SolGold has a majority shareholder in Newcrest Mining Ltd (ASX: NCM).

The recent share purchases follow an unsuccessful attempt in late 2016 by BHP to buy a 10% stake in SolGold for $30 million. BHP also had looked to take a 70% direct interest in the Cascabel project for a further $275 million, but this was rejected by SolGold. This move comes at a good time for SolGold, and the investment will allow further expansion and development into new explorations. Other firms in the mining industry have been busy, and shares have been volatile. Hochschild Mining (LON: HOC) have seen their shares plummet on Friday, after they cut their production guidance figures.  

Louis Vuitton owner to acquire Tiffany in $16 billion deal

Dina Caruso
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Louis Vuitton owner to acquire Tiffany in $16 billion deal
The owner of Louis Vuitton (EPA:MC) confirmed on Monday that it will acquire Tiffany (NYSE:TIF) in a $16.2 billion deal. The jewellery maker, whose little blue boxes have become iconic, was founded in 1837 after Charles Lewis Tiffany opened the first store in downtown Manhattan. Luxury group LVMH said that its acquisition of Tiffany will strengthen its position in the world of jewellery, whilst also increasing its presence across the pond. LVMH owns brands such as Christian Dior, Fendi and Moët & Chandon. Bernard Arnault, Chairman and Chief Executive Officer of LVMH, said that the business has “immense respect and admiration” for Tiffany. “We will be proud to have Tiffany sit alongside our iconic brands and look forward to ensuring that Tiffany continues to thrive for centuries to come,” Bernard Arnault continued. Meanwhile, Alessandro Bogliolo, Chief Executive Officer of Tiffany, also commented: “Tiffany has been focused on executing on our key strategic priorities to drive sustainable long-term growth. This transaction, which occurs at a time of internal transformation for our legendary brand, will provide further support, resources and momentum for those priorities as we evolve towards becoming The Next Generation Luxury Jeweller. As part of the LVMH group, Tiffany will reach new heights, capitalising on its remarkable internal expertise, unparalleled craftsmanship and strong cultural values.” Roger N. Farah, Chairman of the Board of Directors of Tiffany, added that “following a strategic review that included a thoughtful internal process and expert external advice, the Board has concluded that this transaction with LVMH provides an exciting path forward with a group that appreciates and will invest in Tiffany’s unique assets and strong human capital, while delivering a compelling price with value certainty to our shareholders.” Earlier this year in June, the New York jewellery company said that first quarter sales had declined as lower tourist spending hit its profits. Shares in LVMH Moët Hennessy Louis Vuitton SE (EPA:MC) were up on Monday, trading at +1.84% as of 09:44 CET.

Hochschild shares plummet after production guidance cuts

Ishen Patel
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Hochschild shares plummet after production guidance cuts

Hochschild Mining Plc (LON: HOC) have seen their shares plummet on Friday after the firm announced it would be cutting its 2020 guidance for its Pallancata project in Peru.

Shares in the established mining company plummeted 8% on Friday to 171p. 22/11/19 16:08BST.

Shares in the FTSE250 (INDEXFTSE: MCX) crashed after the disappointing announcement from the specialist British based silver and gold mining firm.

Hochschild have operations in North, Central and South America.

The announcement made on Friday morning will disappoint shareholders, as the firm gave shareholders an optimistic update after an uncertain quarterly update.

Precious metals firm Hochschild said it is still “firmly on track” for its 2019 output guidance of 457,000 gold equivalent ounces or 37 million silver equivalent ounces.

Hochschild added that its overall production target for 2020 is 432,000 gold equivalent 35.0 million silver equivalent ounces ounces, which includes a drop in Pallancata’s expected production to 7 million silver equivalent ounces.

Chief Executive Ignacio Bustamante, said: “Our ongoing strategy is expected to deliver consistent production at competitive costs in 2020, with, once again, an increase in output at Inmaculada. Following permitting delays at Pallancata, we have decided to give our brownfield exploration team more time to deliver additional resources and have therefore reduced the operation’s expected production to 7 million silver equivalent ounces. However, we remain excited by the geological potential surrounding all our operations.

Bustamante added that: “Costs are expected to rise moderately due to a one-off $22 million project to increase tailings capacity at Inmaculada and the reduced production at Pallancata.”

Shareholders of Hochschild will be thoroughly disappointed following the reassurance that was given following the disappointing quarterly update, and upon reflections on the stock price, shareholders are not best pleased. In an industry where competitors have made ground, this will be a concern for seniority and stakeholders. Serabi Gold (LON: SRB) and Eurasia Mining (LON: EUA) have seen their shares surge following strong quarterly updates, whilst Bluejay Mining (LON: JAY) have announced a share placing plan to raise funds for operations in Greenland.

Flash UK Services PMI at lowest level since July 2016

Dina Caruso
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Flash UK Services PMI at lowest level since July 2016
New data revealed on Friday that the Flash UK Services PMI fell to the lowest reading since July 2016. The GBP/USD fell below 1.29 following the gloomy PMI data. The IHS Markit/CIPS Flash UK Services PMI Business Activity Index fell to 48.6 in November, indicating a modest reduction in service sector output. The report said that service providers continued to link weaker demand to the delayed outcome of the nation’s departure from the European Union, and the consequential prevailing uncertainty. Founder and CEO of REL Capital, Andy Scott, provided a comment: “Purchasing managers within the services sector are telling us that they are more pessimistic now than at any time since July 2016 and the recent decline in sentiment has been notable albeit not dramatic given that nine of the last twelve months have shown positivity in these numbers. It’s a similar tale with manufacturing.” “As ever of late, it’s the political environment that is hurting us,” Andy Scott continued. “Probably not a leave vs remain balance as such, but the fact that uncertainty prevails and now accentuated by the third general election in five years. Let us hope that one way or other the election result is decisive on December 12th. If not, we can expect more negativity as a consequence of continuing unwelcome uncertainty.” Chris Williamson, Chief Business Economist at IHS Markit, also commented on the data: “With an upcoming general election adding to Brexit-related uncertainty about the outlook, it’s no surprise to see UK businesses reporting falling output and orders in November. The decline signalled by the flash PMI follows stagnation in October and adds to what has been the survey’s worst spell since the recession of 2008-9.” “The weak survey data puts the economy on course for a 0.2% drop in GDP in the fourth quarter, and also pushes the PMI further into territory that would normally be associated with the Bank of England adding more stimulus to the economy,” the Chief Business Economist continued.

Nationwide Building Society half year profits decline

Dina Caruso
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0
Nationwide Building Society half year profits decline
Nationwide Building Society reported a decline in profits on Friday in a half year report. The company said that underlying profit before tax amounted to £307 million, down when compared to the £460 million figure recorded during the first half of the year prior. Nationwide Building Society explained that profits during the period were affected by an additional PPI charge. The deadline for customers to claim mis-sold payment protection insurance (PPI) passed at the end of August. Elsewhere, RBS (LON:RBS) warned at the start of September that it expected a hit of up to £900 million after a rise in PPI claims towards the end of the deadline. Meanwhile, Lloyds Banking Group (LON:LLOY) also said that it will be setting aside a sum to settle any claims of mis-sold PPI. Nationwide Building Society said that profits also took a hit as it increased investment. “In line with our expectations, our profits were lower as we invested in meeting the needs of our members, in our service and in our future,” Joe Garner, Chief Executive at Nationwide Building Society, commented on the results. “As we announced in September, profits were also affected by an additional PPI charge,” Joe Garner continued. “Our trading performance was in line with our plans. We continued to grow our mortgages, deposits and current accounts, but at a more moderate pace, as we focus on broadening relationships with our members and helping to meet more of their financial needs.” Chris Rhodes, Chief Financial Officer, also provided a comment: “We continued to take decisions in our members’ interests which impacted profits, including offering long-term good value products, our ongoing investment in simplifying our IT infrastructure, and developing innovative products and propositions to meet our members’ future needs. Profits were also impacted by an additional provision for PPI, as previously announced, as PPI enquiries rose significantly ahead of the end of August claims deadline.” The company added that as Brexit continues to develop, “considerable uncertainty” prevails and it will continue to take actions to prepare for the potential outcomes.
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