Cranswick shares jump on ‘encouraging’ quarter

Jamie Gordon
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2
Cranswick shares jump on ‘encouraging’ quarter
UK food producer Cranswick plc (LON: CWK) posted what it described as an ‘encouraging’ first quarter. Revenues were up 1.5% for the three months to 30 June 2019, compared to the same period on-year. Far East exports were up 10% due to the African Swine Fever outbreak in China, and UK pig prices were up 10%.

Regarding expansion of its operations, the Company acquired Mediterranean food company Katsouris Brothers for a £43.5 million interest. They also invested in a poultry primary processing facility at Eye in Suffolk. The new facility cost £75 million and will double the Company’s current processing capacity.

Cranswick commented

Company CEO Adam Couch, said,

“We have made a positive start to the year and our capital investment programme, which is building a platform for future growth, remains firmly on track. We continue to make pleasing progress on the new Eye poultry facility and our new continental products facility in Bury is now performing strongly and in line with the original business case.”

“I am delighted to announce the acquisition of Katsouris Brothers, a leading supplier of Continental and Mediterranean food products. This acquisition strengthens our existing continental products business and broadens our offering in a number of fast-growing, plant based, non-meat product categories.”

“The family behind Katsouris Brothers has created long lasting and sustained relationships with suppliers and the business has a strong customer base. We look forward to building on this and continuing to invest in the facilities and the team, over the years ahead.”

Investor notes

The Company’s shares rallied 9.24% or 238.00p following the update, up to 2,814.00p a share 29/07/19 14:04 BST. Liberum Capital analysts reiterated their ‘Buy’ rating while Peel Hunt retained their ‘Hold’ stance. The Company currently has a p/e ratio of 17.85 and a dividend ratio of 1.98%. Elsewhere, there have been updates from other food and drink retailers; Nestle SA (SWX: NESN), Fuller, Smith and Turner plc (LON: FSTA), Compass Group plc (LON: CPG) and SSP Group PLG (LON: SSPG).

Greggs on a roll

Andrew Hore
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0
Greggs on a roll

Greggs (LON: GRG) is set to report impressive interim figures on 30 July and upgrades are possible. However, the share price has already performed strongly, which means that the prospective multiple is high.
Like-for-like sales growth has been in double digits and the results announcement will provide indications of whether that can continue. Comparisons will be tougher in the second half.
While the vegan sausage roll has taken the headlines, the growth is based on much more than that. Widening the product range has added to revenues and making sure that customers do not have to wait too lon...

Rebould Resources updates on Romanian, Californian and UK operations

Jamie Gordon
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2
Rebould Resources updates on Romanian, Californian and UK operations
AIM-listed oil and gas project investment company Reabold Resources PLC (LON: RBD) today issued operational updates on its projects in Romania, California and the UK. The Company said that in Romania, rig mobilisation and drilling was expected to occur imminently for the Parta Well. Danube Petroleum (a Company within which it holds a considerable interest) is set to mobilise a rig at the Iecea Mare well and commence spudding eight days later. In California, both the VG-3 and VG-4 wells are now in production, with the Company adding that permits for an additional three wells at West Brentwood had been secured. At the Burnett 2A and 2B wells, contractor IMS plan to re-enter and clean out the perforated zones in order to restore the commercial oil flow rates indicated during testing. Regarding Reabold Resource activities in the UK offshore, its rig site survey has commenced at the Curlew-A site, with completion forecast to be before the week’s end. Schlumberger Oilfield UK issued a best resource estimate of 38.8 mmboe for Curlew-A.

Reabold Resources comments

Co-CEO of the Company, Sachin Oza, stated,

“We are very pleased with the progress being made across the Reabold portfolio. In particular, the increased cash flow generated from California is highly complementary to the larger scale assets in the UK and Romania.”

“We look forward to results from both the West Newton test programme and the IM-1 well in Romania during Q3, both of which have the potential to deliver material returns in a success case.”

Investor notes

Following the update, the Group’s shares have dipped marginally by 0.087% or 0.001p to 1.15p a share 29/07/19 13:22 BST. The Company’s p/e ratio and dividend yield are unavailable, their market cap is £46.74 million. Elsewhere in the oil and gas sector, there have been updates from; Trinity Exploration and Production PLC (LON: TRIN), Union Jack Oil PLC (LON: UJO), Nu-Oil and Gas PLC (LON: NUOG) and PetroTal Corp (CVE: TAL).  

Cora Gold further gold mineralisation at Zone A prospect

Jamie Gordon
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5
Cora Gold further gold mineralisation at Zone A prospect
West African focused gold mining company Cora Gold Limited (LON: CORA) today announced an extension of high grade gold mineralisation at its Sanankoro Gold Discovery in Southern Mali. The mineralisation was discovered at depth at the Company’s Zone A prospect, where two Reverse Circulation drill holes demonstrated gold at 90-100 metres from the surface. Grades included a 27 metre segment at 2.43g/t and 36 metres at 2.40g/t of gold.

The Company said the mineralisation was identified at a 250 metre high-gold zone, which plunges towards the North and provides a target for future exploration. Cora Gold added that the drilling stage of the current programme had been completed at the Sanankoro Gold Discovery during Q3 2019.

Cora Gold comments

Company CEO Jonathan Forster, stated,

“These two deeper RC holes have demonstrated perfectly the continuity of high grades at Sanankoro that are present along strike and also to depths of over 100m at the Zone A prospect.”

“The depth of oxidation in this part of Zone A appears to be around 110m, enhancing the prospect’s overall mineability, which would likely consist of an open pit operation with potential for depth extensions. The results of these two holes are then an important step in the objective of identifying potential starter pit areas for any future mining project.”

“The results highlight the apparent northerly plunge of the higher-grade zone, which remains open to depth and as such remains an attractive exploration target. This latest drill programme has highlighted the inherent potential at Sanankoro that is still to be fully realised and I look forward to updating shareholders with further upcoming results.”

Investor notes

After rallying by around 2.5%, the Company’s shares have now dipped to 2.29% below market opening price, down 0.12p to 5.39p a share 29/07/19 12:432 BST. Elsewhere in the mining and minerals sector, recent updates have come from; Serabi Gold PLC (LON: SRB), Kavango Resources PLC (LON: KAV), Ariana Resources plc (LON: AUU), Rio Tinto plc (LON: RIO) and Bushveld Minerals Limited (LON: BMN).

F&C Investment Trust strong NVA but underperforms against benchmark

Jamie Gordon
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1
F&C Investment Trust strong NVA but underperforms against benchmark
Investment trust and equity management company F&C Investment Trust PLC (LON: FCIT) have posted their best NAV returns for twenty years, but said they missed the benchmark set by the existing record because of slow recovery of private equity valuations. The Company stated that its Net Asset Value total return gained 14.4% during the first half, representing the strongest returns for over two decades. However, the company noted that this lagged behind its benchmark of 16.4%, with markets recovering from what the Group described as the ‘sharp falls seen in the latter part of 2018’.

The Group stated that the recovery witnessed in global equities had yet to fully filter through to private equities, and subsequently the -1.4% returns of their Private Equity portfolio were ‘detrimental’ to the overall returns of their investment portfolio. In the long run, the F&C Investment Trust expects private equity to continue enhancing its returns.

The Company also told investors that gearing stood at 6.9%, the latest issue of debt has a blended rate of 2.2% and Beatrice Hollond will succeed Simon Fraser as Chairman upon his retirement, effective 31 December 2019.

F&C Investment Trust comments

Paul Niven, Fund Manager of FCIT, said:

“Equity markets remain supported by reasonable valuations and fundamentals and investors have so far viewed the more accommodative stance recently taken by policymakers as positive, despite increased risks. In any event we will adhere to our strategy of holding concentrated individual portfolios that are managed, as a whole and on a sustainable basis, to provide global diversification, lower volatility and lower risk with the aim of achieving outperformance and real rises in dividends over the longer term.”

Incumbent chairman, Simon Fraser, said:

“The political and economic backdrop can be expected to remain uncertain, particularly for the UK given the unclear outcome of the Brexit negotiations. As ever, there will be opportunities for FCIT. As a closed-ended listed investment company, we are not constrained by asset sales to meet redemptions. Our share capital structure gives us the flexibility to take a longer term view and stay invested while taking advantage of illiquidity throughout normal and volatile markets. Our debt profile is now highly diversified by maturity and we have locked in borrowing at historically low rates of interest. This and our Ongoing Charges figure of 0.65% leaves us very well positioned to continue the delivery of long-term growth in capital and income for our shareholders.”

Investor notes

The Company’s shares have rallied 0.65% or 4.69p since the update, up to 727.69p a share 29/07/19 12:04 BST. The Group’s dividend yield currently stands at 1.52%. Elsewhere in asset and investment management, there have been updates from; River and Mercantile Group PLC (LON: RIV), Brewin Dolphin Holdings plc (LON: BRW), Hansard Global plc (LON: HSD), AJ Bell PLC (LON: AJB) and Intermediate Capital Group plc (LON: ICP).

River and Mercantile Group finishes year with strong Q4

Jamie Gordon
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1
River and Mercantile Group finishes year with strong Q4
Asset management company River and Mercantile Group PLC (LON: RIV) finished the financial year with growth in its assets under management and improved investment performance. During the fourth quarter, AUM grew 10% to £39.8 billion, with investment performance adding £0.5 billion and positive across all divisions. Net flows for the period were £3.0 billion – equivalent to 8% of opening AUM – and gross sales were £2.8 billion (including a £2.0 billion structured equity mandate for a local government pension scheme). During the full year, the Company’s AUM rose 18% to £39.8 billion and investment performance added £0.6 billion. Net flows stood at £5.4 billion, representing 16% of opening AUM; gross sales finished at £6.9 billion.

River and Mercantile Group comments

Company CEO James Barham, stated,

“This quarter has seen strong growth in AUM/NUM, with continued positive sales of structured equity mandates in Derivatives Solutions and global equity mandates in Institutional Equities. In addition, investment performance for the period was positive across all divisions.”

“We have discussed the benefits of our diversified business model for a number of years and in particular our low beta characteristics compared to many of our asset management peers. It was interesting to see this proven during the fourth calendar quarter when equity markets fell significantly, yet both our assets and revenues remained resilient. We continue to develop a range of Macro strategies, many of which will provide positive absolute returns in negative equity markets.”

“In the year, we have seen a strong return to growth from our Fiduciary Management business as the market normalises following the CMA review. We expect activity levels to increase as we move into a window during which we expect a significant number of legacy mandates across the market to undertake formal reviews.”

“We continue to have a positive outlook on markets, which we believe are supported by a stable environment. Globally, valuations still look fair, credit conditions are improving and overall economic conditions are on the up. Accordingly, our River FOURcast is indicating STABLE over the next six month period and we have therefore positioned our client portfolios for continued growth, however, there is obvious political risk in certain markets and we will continue to monitor developments in this area.”

Investor notes

The Company’s shares have rallied 4.14% or 11.00p following the update, up to 277.00p a share. Numis analysts have upgraded their stance on River and Mercantile Group stock from ‘Add’ to ‘Buy’, their p/e ratio currently stands at 12.17 and they have a dividend yield of 4.74%. Elsewhere in asset and investment management, there have been updates from; Brewin Dolphin Holdings plc (LON: BRW), Hansard Global plc (LON: HSD), AJ Bell PLC (LON: AJB), Intermediate Capital Group plc (LON: ICP) and Highcroft Investments plc (LON: HCFT).

Ryanair first quarter profits fall 21%

Dina Caruso
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1
Ryanair first quarter profits fall 21%
Ryanair posted a 21% fall in first quarter profits on Monday, with Germany and the UK highlighted as its weakest markets – the latter as a result of Brexit concerns on consumer spending. The Irish low-cost airline said that for its first quarter of the 2020 financial year, profits dropped 21% to €243m, driven by lower fares, higher fuel costs and higher staff costs. Additionally, the budget airline said that average fares dropped 6% over the period. Traffic was up 11% to 42 million guests, and 239 new routes and 4 new bases were launched. It also added that it has become the first EU airline to publish monthly CO2 emissions.
“Our balance sheet is one of the strongest in the industry with over 60% of our fleet debt free. In May the Board approved a €700m share buyback programme and in Q1 we returned almost €100m to shareholders,” Ryanair’s Michael O’Leary said in a company statement. “Revenues rose 11% to €2.3bn. A 6% decline in average fare to €36 stimulated 11% traffic growth to 42m guests. The two weakest markets were Germany, where Lufthansa was allowed to buy Air Berlin and is selling this excess capacity at below cost prices, and the UK where Brexit concerns weigh negatively on consumer confidence and spending,” Michael O’Leary added. Ryanair added that in June, Malta Air became the fourth airline added to the Ryanair Group. As for its guidance, Ryanair warned that the weak fare environment has spilled over into the second quarter, and it therefore expects its first half fares to be down by roughly 6%. It expects traffic to grow by 7% to over 152 million, which is slightly less than the previously guided 153 million figure as a result of the Boeing MAX delivery delays. The delivery of Ryanair’s first five Boeing 737 MAX aircrafts have been delayed from the first quarter to January at the earliest. Shares in Ryanair Holdings plc (LON:RYA) were trading at +3.04% as of 08:50 BST Monday.

Just Eat shares soar on Takeaway.com merger details

Dina Caruso
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4
Just Eat shares soar on Takeaway.com merger details
Rivals Just Eat and Takeaway.com agreed in principle on Monday on the key terms of an £8.2 billion all-share deal. The possible merger would create one of the largest online food delivery platforms with 360 million orders worth €7.3 billion in 2018. Shares in Just Eat soared following the announcement, up 23% on Monday morning. The online food order and delivery service, Just Eat, is headquartered in London, England. Takeaway.com is a Dutch company also specialised in online food ordering and delivery. “The Board of Just Eat and the Management Board of Takeaway.com are pleased to confirm that they have reached an agreement in principle on the key terms of a possible all-share combination of Just Eat and Takeaway.com to create Just Eat Takeaway.com N.V.,” Just Eat said in a company statement. “The Possible Combination has compelling strategic logic and represents an attractive opportunity for both companies to build on the strong individual platforms of Just Eat and Takeaway.com with the potential to deliver substantial benefits to respective shareholders, customers, employees and other stakeholders,” the company continued. If the merger goes ahead, then the current Chairman of Just Eat, Mike Evans, will assume the role of Chairman of the Supervisory Board of the combined business. Additionally, Jitse Groen, currently CEO of Takeaway.com, will assume the role of CEO of the combined business. The food delivery market has seen players such as Deliveroo and Uber Eats increase competition. Indeed, news emerged earlier in May that Amazon (NASDAQ:AMZN) was set to invest in the food delivery app Deliveroo, just days after rival Uber’s listing on the New York Stock Exchange (NYSE:UBER). At the start of the year, Time Out sold its stake in Flyt Limited to Just Eat. Shares in Just Eat plc (LON:JE) were trading at +22.75% as of 08:11 BST Monday. Shares in Takeaway.com NV (AMS:TKWY) were up 2.51% as of 09:11 CEST Monday.

Belgian shock for Sports Direct

Andrew Hore
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0
Belgian shock for Sports Direct

An enormous potential tax bill from Belgium is just one of the problems for Sports Direct International (LON: SPD) and its lateness in reporting its annual results is not helping to make investor attitudes towards the company more positive.
The results were published at 5.19pm on Friday, well after the close of trading and later than originally planned. So, there is likely to be a significant share price response on Monday.
The potential contingent liability of €674m, which is more than £600m, caught the eye. That is what Belgian tax authorities say that Sports Direct owes in unpaid VAT, plus...

Digital future for Reach

Andrew Hore
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0
Digital future for Reach

Reach (LON: RCH) is the owner of the Daily Mirror and other well-known newspaper titles and interim figures on Monday should provide some indications of how the company can make the most of its titles in a digital format.
 
In a recent trading statement management said that digital projects were progressing the benefits should start to show through in the second half. There may be a limited contribution in the interims but further information about how the digital projects are progressing will provide an indication of the full year outcome.
 
Trading
 
Revenues are likely to ...

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