DAG Global – hoping to give ‘Blockchain Britain’ a respectable face

Jamie Gordon
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DAG Global – hoping to give ‘Blockchain Britain’ a respectable face
With no overstatement, the ascendancy of cryptocurrencies is one of the most intriguing ripples in the financial scene in recent times – if as much theoretically as practically. However, the hype seems to have somewhat dampened in the last year or so following the Bitcoin crash, which saw its value fall from £14,748 to £2,529 per unit between the end of 2017 and the beginning of 2019, alongside a track record of facilitating money laundering activities for criminal clientele. So, what is the next step in rekindling the buzz surrounding crypto currencies, and perhaps more importantly, how can the crypto landscape become reputable? That’s where DAG Global are hoping to come in, led by Sean Kiernan. Kiernan has a background in established finance, having worked for both Zurich Financial Services and Credit Suisse, his aim is to harness what he sees as the true potential of the crypto landscape, by exposing it to regulation and central bank space normally dominated by fiat currencies. After leaving Falcon Private Bank – the first bank in the world to offer crypto products to its clients – Kiernan is seeking a banking licence for DAG Global, and believes blockchain-led finance could act as a conduit for future business growth in the UK.

Lunch with a merchant bank for the 21st century

Having met Kiernan at The Reform Club to discuss his new venture, it was ironic how aptly the venue acted as a metaphor for his vision for DAG Global. The building’s aesthetic was something between masonic and Italian palazzo, but despite the setting’s well-kept antiquity, behind the scenes its cerebral core was an office with computers side-by-side. Much like that building, Kiernan wants DAG to offer time-tested services with an innovative twist; a modern backroom for traditional practices. Being less obtuse, one of the core tenets of the Company is to use cryptocurrency and block-chain to provide loans to SMEs, who may otherwise not be able to access the same facilities as larger enterprises. This is where the prospective bank gains its innovative edge. After saying our goodbyes to Kiernan, one of DAG’s representatives, Henry Gewanter, and I reflected on the meeting as we walked down Pall Mall. He was clear about how much potential he saw in Kiernan’s vision for the UK’s first digital asset merchant bank. As we crossed Trafalgar Square, he noted that Blockchain Britain led by this kind of venture could be:
The UK’s next financial revolution: The City’s next Eurobond.
Whether this will transpire or not is something only time will tell. What we can say is that the combination of tried and tested methods with cryptocurrencies, is something which makes the digital asset merchant bank concept innovative. DAG Global currently offers a range of ongoing operations, which it hopes to expand if it is successful in securing a banking licence.

Signs of impending success

Since our discussion, DAG has gone on to commence a £15 million Series A fundraiser, aided by Herax Partners. In its statement, the Company said the funds raised would be put towards ‘further development’ and ‘provide the capital it will require for regulatory approval’. Speaking on the update, Kiernan stated, “This fundraising marks a key milestone in our development of a merchant bank for the modern age and will allow us to achieve a number of important strategic goals, including building out our systems and team as well as providing regulatory capital to expand our business beyond our current activities.” Wolfgang Menig, Partner at Herax Partners, continued, “We’re excited to be helping raise capital for such a ground-breaking and innovative company. We believe the potential market opportunity for DAG is huge and we are delighted to support them in raising the funds required at this stage of their development.” Whether DAG Global proves successful or not, the trajectory they are setting in the UK market is worth noting. In the past. integration of financial and technological spaces is what led the advent of knowledge economics. Our job going forwards is to monitor future developments. If digital asset merchant banks do become a cornerstone of the UK’s financial sector, we can thank DAG Global for setting a precedent. Elsewhere in the banking and tech sectors, there have been updates from; Lloyds Banking Group PLC (LON: LLOY), Royal Bank of Scotland(LON: RBS), Arbuthnot Banking Group Plc (LON: ARBB), Microsaic Systems PLC (LON: MSYS), Petards Group plc (LON: PEG), SCISYS Group PLC (LON: SSY) and Pebble Beach Systems Group PLC (LON: PEB).

Facebook’s Libra currency faces stiff scrutiny

Ishen Patel
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Facebook’s Libra currency faces stiff scrutiny
The plans for Facebook (NASDAQ: FB) to introduce their digital currency Libra have faltered. In the last few days, an majority of major supporters withdrew over security concerns The G7 voted unanimously that Libra, Facebook’s cryptocurrency will not go ahead until it is safe and secure for use. The social media giant faced tough scrutiny as the worlds superpowers claimed that Libra would pose risks to the global financial system. Nine major risks were identified by the introduction of Libra. Whilst Facebook may try and appease global economies, the tougher test may be battling with regulators for implementation. Many of the worries spawned from loopholes, where Libra was not ‘legally sound’ as it failed to protect consumers, and ensure that coins are not used for money laundering or funding terrorism. The French Government has already stated they would block Libra use in Europe. The draft report says “The G7 believe that no stablecoin project should begin operation until the legal, regulatory and oversight challenges and risks are adequately addressed”. Stablecoins like Libra differentiate from other cryptocurrencies such as Bitcoin (ETR: ADE) as they are pegged to global currencies such as the Euro or Pound. The future of Libra was put into question over the weekend, when many supporters withdrew over security concerns. On Monday, both Mastercard (NYSE: MA) and Visa (NYSE: V) withdrew their support, hampering the likelihood of Libra being implemented. This follows the longlist of firms who have lost faith in the new Stablecoin currency, other firms of note include Paypal (NASDAQ: PYPL), Ebay (NASDAQ: EBAY) and Stripe. However, Ebay have said they respect the Libra project “However, eBay has made the decision to not move forward as a founding member. At this time, we are focused on rolling out eBay’s managed payments experience for our customers.” Whilst Visa added “We will continue to evaluate and our ultimate decision will be determined by a number of factors, including the Association’s ability to fully satisfy all requisite regulatory expectations.” A spokesperson from the Libra Association said ““We appreciate their support for the goals and mission of the Libra project. Although the makeup of the Association members may grow and change over time, the design principle of Libra’s governance and technology, along with the open nature of this project ensures the Libra payment network will remain resilient.” Many have put into question whether they would trust Facebook with their money, with the bad reputation of Facebook being highlighted recently. The original intention of Libra was to allow people reduced transaction costs, and aid people without bank accounts. The problems with Facebook’s libra have attracted high profile US Politicians following the commencement of 2020 election campaign. Senator Elizabeth Warren, has said “What would really ‘suck’ is if we don’t fix a corrupt system that lets giant companies like Facebook engage in illegal anti-competitive practices, stomp on consumer privacy rights, and repeatedly fumble their responsibility to protect our democracy,” Senator Schatz and Brown also added “Facebook appears to want the benefits of engaging in financial activities without the responsibility of being regulated as a financial services company,” showing the concerns that Libra could be used for illegal activity. When Libra was announced back in June, plans were stated to grow from 27 member companies to over 100 in 2020. After recent events, membership has fallen to 22. In a public statement, head of Policy and Communication Dante Disparte commented ““We are focused on moving forward and continuing to build a strong association of some of the world’s leading enterprises, social impact organizations and other stakeholders to achieve a safe, transparent, and consumer-friendly implementation of a global payment system that breaks down financial barriers for billions of people. We look forward to the inaugural Libra Association Council meeting in just 3 days and announcing the initial members of the Libra Association.” Mark Zuckerberg, Facebook’s Chief Executive is due to appear in front of the House Committee on Financial Services on 23rd October to discuss concerns of Libra, where the future of Libra will be discussed. It is clear that Facebook and the G7 are miles apart in the support of Libra, there is still much work to do, much research to gather and much evidence to present. Certainly the withdrawal of Visa and Mastercard will not help the cause and may deter the global economies in the support of Libra. With many US Politicians also coming out stating resentment for the newly found cryptocurrency, for once the tables have turned with Facebook on the underside. In the technology sector, updates have been provided for Facebook, Castleton Trading and Blue Star Capital.

Blue Star Capital shares soar as Tech Investor shifts into Esports

Ishen Patel
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Blue Star Capital shares soar as Tech Investor shifts into Esports
Blue Star Capital (LON: BLU) have changed their business direction into the Esports arena, causing shares to rocket. Shareholders have enjoyed a 45.73% rise during Monday trading after a £900,000 pledge to diversify into Esports. Blue Star currently has a market cap of £2.34 million, and will only continue to grow if this Esports diversification is successful. Jonathon Bixby, one of the original founders of bitcoin miner Argo Blockchain Plc (LON: ARB) encouraged six installments of £150,000 into different Esport fields. Blue Star have aimed to go global with this shift, having stated the intent to start operations in UK, USA, Canada, Australia and Singapore. In a recent statement, Blue Star stated the interest to build up franchises in each of these countries. “Each of the companies will create or acquire a competitive esports franchise to generate revenue from tournament winnings, digital marketing opportunities, sponsorship, membership, merchandise and promotional tours and events,” the company stated. Blue Star’s Chief Executive, Tony Fabrizi has committed £20,000 in the first placing, giving him a 2.3% stake. Additionally, the new Chairman to be, Derek Law has invested £100,000. The company’s main investment is SatoshiPay, where it owns 27.9% of total capital. In Satoshipay’s most recent fund raise in March 2019, this valued BlueStar’s investment at £4.6 million. Satoshipay have plans for vertical movement into the cross border B2B payments which is estimated at £160 billion, giving investors reason to expect future revenue growth. Fabrizi added, “We have been watching the development of the esports sector of gaming closely and the rate of growth in popularity and, importantly, associated revenue being generated presents a significant investment opportunity. We are investing at an early stage and not restricting our focus to a particular region or jurisdiction as we consider this to be the best opportunity to capture value for all shareholders.” In the technology sector, there have been updates to Facebook (NASDAQ: FB), Castleton (LON: CTP), Xeros Technology (LON: XSG).

Yourgene set to hit ambitious growth target in half year update

Ishen Patel
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Yourgene set to hit ambitious growth target in half year update
Yourgene Health Plc (LON:YGEN) have released their half year update today, and look on track to reach ambitious growth targets. In a recent update, revenue had doubled in the first half of its financial year keeping in lines with management expectations. “Yourgene Health is an international molecular diagnostics group which develops and commercialises genetic products and services. The group works in partnership with global leaders in DNA technology to advance diagnostic science.” For the six months, leading up to September revenue tallied at £7.8 million, an increase by 98% from £3.9 million before. The international molecular diagnostics group stated ambitions to diversify their markets, expanding internationally and increasing market presence. This has been a successful target, where revenue growth came from Yourgene’s International Operations, which increased by over 200% rising to £5.1 million. With this success, the acquisition of Elucigene Diagnostics in April was agreed for an £8.8 million fee. Lyn Rees, Chief Executive Officer said “”I am delighted with the performance in the first half, both in terms of the organic growth delivered but also the contribution from the Elucigene acquisition and the launch of our American business.” Rees added, “We are executing on our strategy to broaden our product portfolio and to drive growth across wider international markets. We remain on track to hit our ambitious growth targets for the enlarged group and to meet market expectations for the full year” Shares in Yourgene Health Plc have increased by 5.22% during Monday trading. Revenues show positive trends with greater diversity with 20% revenues coming from reproductive health products sold by Elucigene Diagnostics. Another 17% was derived from research and oncology services situated in Asia. Non-Invasive Prenatal Testing (NIPT) products expanded significantly at 34% despite tense EU-UK relations, plans for new products are expected to reach the markets in 2020. Figures continue to impress for shareholders of Yourgene, if they sustain strong revenues and growth, shareholders could have found a company with ambitious targets, and strong business models to meet them. In the health sector, there have been updates on Ra Pharmaceuticals Inc (NASDAQ: RARX), OptiBiotix Health Plc (LON: OPTI) and NMC Health (LON: NMC).

Laura Ashley shares plunge as Finance Chief leaves

Ishen Patel
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7
Laura Ashley shares plunge as Finance Chief leaves
The share price for Laura Ashley (FRA: ASH) plunged over 26% as a result of director Sean Anglim stepping down after 20 years at the British Textile firm. Laura Ashley announced that Anglim would be replaced by Sagar Mavani. In a public statement, Laura Ashely said “The board would like to take this opportunity to thank Mr Anglim for his contribution during his tenure with the company and to wish him the very best for the future,” The stock price was discounted by 27% at 1.37p per share listed by the London Stock Exchange (LON: LSE) Mavani was appointed as group financial controller last year, and steps into the role in a tough economic and political climate. Investors have noticed fragilities in the shares of Laura Ashley following a tough sales period. Earlier this year, the high street store accounted a full year pretax loss of £10 million this year showing poor growth, poor sales and poor performance. There has also been a decline in home furnishing business sales as well as online sales. This poor performance which also showed a fall of 10.53% in revenue added to Anglim’s worries. Earlier in August, Andrew Khoo company chair said “The last twelve months have proved to be a difficult trading period for the group and indeed for the retail sector as a whole” Khoo added, “We have focused on the reasons why home furnishings have underperformed and have taken necessary steps to mitigate this, including adding new contemporary product to our ranges. We have taken active steps to listen to our customers and now believe that we are on an appropriate recovery path” g was made in August however with a new line of fashion wear with more design choice, which led to a 9.2% growth in like for like sales. Having had a historic legacy in the British fashion market being a favorite of Princess Diana in its 1980’s prime time, Laura Ashley is facing a tough test. Following the announcement that Anglim was set to depart the company, the market has had its say. Investors and shareholders alike seem that this could be a period of decline for Laura Ashley. This follows the annual report for 2019 showing a statutory loss of £14.3 million before tax. It seems following this departure that times are only set to be tougher. In the retail sector, there have been updates to Superdry Plc (LON: SDRY), Dunelm Group Plc (LON: DNLM) and Boohoo Group Plc (LON: BOO).

British Pound weakens despite Brexit optimism

Ishen Patel
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3
British Pound weakens despite Brexit optimism
After events at the weekend, both Boris Johnson and Leo Varadkar looked hopeful for a deal to be struck before the Brexit deadline. Changed levels of optimism meant that the pound fell early Monday morning. In a busy day for British Politics, where the next years legislative plans are being announced, the pound saw a slump this morning. After a tough week of up and downs for the British Pound, this morning saw a fall of 0.5% to below $1.26 (GBPUSD=X) Talks are set to continue today, and whilst the Queen announces legislative plans for Brexit at the time of writing, the national currency continues to weaken. Michael Hewson, chief market analyst at CMC Markets commented “Talks look set to continue today. However, it is hard to see any other outcome than a delay to the October deadline, with the government forced to apply for an extension by the end of the week. What that means for the government of Boris Johnson by the end of this week, is anyone’s guess, given his passionate refusal to countenance an extension.” On Friday, the pound had regained some ground after progress was made between PM Johnson and Leo Varadkar rising by 2%. Dean Turner, economist at UBS Bank said on Friday that there would still be some reluctance from market traders “The news will have cheered sterling investors, but we recommend they remain nimble with much still uncertain as the sand in the Brexit hourglass continues to run down” After both leaders concluded that there was a possibility of a deal, Forex traders quickly pounced on opportunity allowing a recovery. However this morning, optimism has faded. Following the weekends developments, traders have sold sterling slumping unit price. As the pound lowers, it has still not reached the 45 year lows once met in August showing some positive sentiment. Naeem Aslam, an analyst at Think Markets said “The view from the EU lawmakers has been pessimistic over the weekend and this has taken the wind out of sterling’s rally.Their tone has set alarms that a deal by the end of this week isn’t likely. If nothing materialises, the British prime minister will be forced to apply for an extension. Traders will continue to breathe and trade every headline.” It is clear that traders are not confident either way, and risks on the British Pound are not being taken. In current affairs, there have been updates to Facebook (NASDAQ: FB), London Stock Exchange (LON: LSE) and NMCN Plc (LON: NMCN).

Serabi Gold boast strong production figures in Q3

Ishen Patel
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12
Serabi Gold boast strong production figures in Q3
Serabi Gold Plc (LON:SRB), reported its best production figures for gold in 2019.As a result, the stock price of Serabi Gold rose by 5.2% to be valued at 9,100p at 11.28 BST on 14.10.2019. In the three months up to September, the gold producer confirmed 10,817 ounces of production. This showed an increase of 26% from 8,101 in the same period last year. In the first quarter of 2019, production tallied at 10,164 ounces whilst the second quarter saw a fall to 9,527. Despite the second quarter fall, Serabi Gold have impressive figures to back strong growth and revenue figures. Mike Hodgson CEO commented “We are delighted to report our third quarter production of 10,187 ounces of gold, which is another excellent performance and as a result the Company is very well placed to exceed 40,000 ounces of gold production for 2019 and significantly improve on the 2018 gold production of 37,108 ounces” In a press release this morning, the production figures showed an 11% increase from the same period last year. Hodgson added “As a result, the plant has now processed 132,540 tonnes year to date, which represents an eight per cent improvement over the same nine month period in 2018. The processing circuit for treatment of stockpiled gold bearing flotation tailings continued to perform well, and for the last five months processing rates have averaged over 100 tonnes per day with a total of 20,554 tonnes of an average grade of 4.13 g/t of gold having been processed during the year to date. With a considerable stock of this tailings material remaining, we expect to continue processing these stockpiles to supplement run of mine gold production beyond the year end. Serabi have publicly expressed their expectations from the final quarter, expecting figures of 40-41,000 ounces of gold reflecting a 10% rise. The Brazilian based producers gave investors strong speculation, explaining developments to their ore sorters. “The quarter also saw the much anticipated delivery of our ore sorter. The accompanying infrastructure is close to completion and we hope to start commissioning before the year end and with the expected benefits starting to be seen in the early part of 2020. Its introduction will provide benefit by creating much needed space in the process plant in turn allowing for more flexibility to improve maintenance scheduling whilst also, through the liberation of process capacity, providing the opportunity to increase gold production in 2020” Global developments have been provided by Serabi commenting on the Sao Chico Orebody “We are very excited about the prospectivity of these anomalies. They each exhibit geophysical signatures substantially better than anything else we have encountered around the Sao Chico deposit, and all have been the subject of significant artisanal mining activity, suggesting that the conductive body that we have identified has good potential to be gold bearing” Seniors stated the most impressive facts to be taken on the quarter was the results of the Preliminary Economic Assessment (PEA). Hodgson added, “In summary the results were very positive, indicating annual gold production, after an initial ramp-up period, averaging approximately 38,000 ounces per annum, a mine life of approximately nine years, average gold grades of 8.3 g/t, an AISC of approximately US$852 per ounces and an initial capex estimate of US$25 million. The costs and capital each include a 20 per cent contingency, so I feel confident that we can improve on these cost estimates” Sebira look confident to increase both production and revenue. Investors and Stakeholders will be impressed with these reports, if Sebira end 2019 with similar production figures, there is huge potential to expand revenue, growth and brand exposure. In the commodities sector, updates to Kavango Resources PLC (LON: KAV), Glencore PLC (LON: GLEN) and Resolute Mining Limited (LON: RSG) have been provided.

WeSwap: unused foreign currency research

Dina Caruso
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WeSwap: unused foreign currency research
New research revealed on Monday that an average of £90 in excess currency is brought back to the UK from each trip abroad. WeSwap conducted research from a sample of over 2000 adults in the UK, revealing the amount of excess currency returned back to Britain after trips abroad. The research also shows that 27% save the spare currency for the next trip, 19% use it at duty free and 10% use the cash to purchase gifts or souvenirs. Only 9% currently change the currency back. “Our research confirms that a huge amount of money goes to waste every year, but holidaymakers – especially those who are going away for the October half-term – should rest assured that there are ways to ensure their hard earned money stretches as far as possible,” CEO of WeSwap, Jared Jesner said in a statement. “For example, buy back services allow customers to return excess currency and swap it back into pounds – this is particularly useful as the pound’s value has been so inconsistent recently. Swapping holiday currency back to Sterling may get you more money than you first thought,” the CEO continued. “Also, it is worth bearing in mind that it is best to find free ATMs while abroad. You can also avoid further charges by withdrawing more money less often. And if an ATM or merchant asks if you want to be charged in the local currency, always say yes,” the CEO said. With the October half-term approaching, many will want to take a break from Britain and seek out some final drops of sun elsewhere. WeSwap provided a list of destinations to visit for under £90 this month:
  • Dublin, Ireland from £20
  • Toulouse, France from £24
  • Bologna, Italy from £25
  • Stockholm, Sweden from £36
  • Berlin, Germany from £48
Last month we took a look at Bologna, the heart of Italy’s Emilia-Romagna region, as a travel destination. Elsewhere in travel, news emerged last month that Thomas Cook had collapsed, leaving thousands of British holidaymakers stranded abroad.

Sophos Group shares surge after Thoma Bravo finalize purchase

Ishen Patel
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Sophos Group shares surge after Thoma Bravo finalize purchase
Earlier today, the share price of Sophos Group (LON: SOPH) rose after private US equity company Thoma Bravo bought Sophos for a reported £3.1 billion including net debt. Sophos Shareholders are set to receive $7.40 in cash earnings per share. This was a premium of 37% to the companies closing price during Friday trading. This morning, the stock price of Sophos Group (LON: SOPH) jumped by 36.69%. The Oxfordshire based business was quick to rise specializing in security software to small and medium businesses. They have grown to boast 400,000 customers in over 150 countries. However, in the last 18 months they have faced some turbulence. Shares fell in November 2018, and again in January 2019 after slow growth reports but have recovered since. Peter Gyenes, Sophos Chairman said “Thoma Bravo has deep sector expertise in cyber security software as well as a long and successful record of partnering with and investing in its portfolio companies to support long-term growth and success,” This follows Thoma Bravo’s aggressive attempts to bid into the securities market. The purchase of Sophos allows Thoma Bravo to enter this market and expose themselves to the UK market. AJ Bell anaylst Russ Mould stated ““Another day, another takeover of a UK company by a foreign business as a US private equity firm makes a bid for FTSE 250 software firm Sophos. “The downside of Sophos receiving a takeover bid is that the London market loses yet another tech stock. “There are now slim pickings for UK investors wanting to invest in mid to large technology companies, meaning they have to look further afield for opportunities and be comfortable owning overseas-listed shares or, as an alternative, leave it to a fund manager to find suitable stocks.” Thoma Bravo manages private equity valued at over $35 billion, and has completed over 200 acquisitions accounting for over $50 billion in enterprise. The move is one that will expand Thomas Bravo. As Seth Boro a managing partner described “The global cyber security market is evolving rapidly, driven by significant technological innovation, as cyber threats to business increase in scope and complexity” US based technology firms look to exploit the insecurities of the British markets as Brexit looms. Dragging out the Brexit process will have dangerous implications for investment into the UK. However, shareholders of Sophos Group will be more than happy on their returns following the confirmed buyout. In technology and finance, there has been news on, Facebook (NASDAQ: FB), Nissan (TYO: 7201), Castleton PLC (LON: CTP).

Superdry founder made CEO until 2021

Dina Caruso
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Superdry founder made CEO until 2021
Superdry said on Monday that founder Julian Dunkerton will continue as the fashion retailer’s Chief Executive Officer. Shares in Superdry (LON:SDRY) were up during trading on Monday morning. Indeed, founder of Superdry Julian Dunkerton’s contract as Chief Executive Officer has been extended until April 2021, the company said in a statement. Earlier this year, Superdry asked its shareholders to reject Julian Dunkerton’s pledge for a seat on the company’s board after he stepped back from the company a year ago. However, Julian Dunkerton made a return to the company, causing most of its board members to quit and with top executives among the board members who left their positions. “Julian has a clear vision and his creativity, ambition and leadership will be crucial for the turnaround of the business,” Peter Williams, Chairman of the Board of Superdry, said in a company statement. “I am looking forward to working alongside Julian during this period as we seek to identify his long-term successor,” Peter Williams continued. “I’m pleased that the Board has asked me to continue in the CEO role for this important phase of the turnaround,” Julian Dunkerton, Chief Executive Officer, commented on the announcement. “Since I have returned to the business full-time, I have been working with the team to put in place the plan that will turn around Superdry, with a focus on its design-led roots and strengthening the retail basics,” Julian Dunkerton continued. “We are already seeing early signs of progress and while this will take time, we are excited to realise the brand’s full potential. As CEO I am fully committed to working with the Board and everyone in the business to deliver this change over the months ahead,” Julian Dunkerton said. In June, the company delayed the release of its annual results. Shares in Superdry plc (LON:SDRY) were trading at +1.52% as of 10:24 BST Monday.
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