AFC Energy develops premier hydro electric vehicle charger

Hydrogen energy production company AFC Energy plc (LON: AFC) posted its half year results today, and announced its entrance into the Electric Vehicle charging market. The Group said it had entered the market with a successful demonstration of its CH2ARGE prototype, which enters operation as the first hydrogen fuel cell based electric vehicle charger. Today’s announcement disclosed details of a collaboration agreement with Rolec Services Limited – Europe’s largest charge point manufacturer – which enclosed information on the integration of CH2ARGE technology into Rolec’s charge points.

AFC Energy also boasted what it described as a ‘strong’ balance sheet to fund product development and the launch of its Go-to-Market strategy.

The Group also announced; the finalisation of engineering and design for modular electric vehicle charger units, appointment of a dedicated sales team, development of industrial scale projects, expansion of its product range through ongoing development of auxiliary products with reduced footprint and operating costs, and the longest continued operation of electrode pairing delivered under the De Nora / AFC Energy Joint Development Agreement.

AFC Energy comments

Adam Bond, Company Chief Executive Officer, said,

“The productisation of AFC Energy’s fuel cell system is now well underway. Delivery of the first hydrogen fueled EV charger for deployment across the UK later this year, to be followed by modular stationary off grid power systems, highlights the corner AFC Energy has now turned in taking its hydrogen power units to market. This in no small way has been driven by the acceleration of Government policy towards decarbonization of the transportation sector in parallel with the push for reduced air pollution from the off-grid power market.”

“The last six months has seen several important landmarks in our history, including the achievement of record electrode lives in collaboration with De Nora, further progression on the cost reduction of electrode manufacture, the bringing together of the supply chain for our systems’ mass production and the introduction of AFC Energy’s new high power density alkaline fuel cell system. I am particularly excited about the growing success in system integration we are seeing, including the potential for the steps forward in the use of ammonia as a lower cost fuel for point of use hydrogen generation, which will allow us to target new growth markets for the fuel cell, seeing AFC Energy as a leading exponent of the rapidly emerging hydrogen economy, both in the UK and internationally.”

Investor notes

The Company’s shares dipped 1.81% or 0.085p to 4.62p a share 26/07/19 16:30 BST. Both its dividend yield and p/e ratio are marked as N/A by Hargreaves Lansdown. There have been recent renewable energy updates from; John Laing Environmental Assets Group Ltd PLC (LON: JLEN), SIMEC Atlantis Energy (LON: SAE), Aquila European Renewables Income Fund (LON: AERI) and PowerHouse Energy Group (LON: PHE).

Nestle sees boosts in growth, profits and sales

Swiss-based food and drink company Nestle SA (SWX: NESN) saw bumper performance over the first half of 2019; with increases in organic growth, sales and profit. The Company booked organic profit growth of 3.6% on-year, led by its US and Brazil operations. Total sales were also up by 3.5% to CHF 45.5 billion, with net acquisitions having a positive impact of 1.1% and foreign exchange having a detracting effect of 1.2%.

Underlying Trading Operating Profit reached 17.1% and Trading Operating Profit increased to 15.5%, up 100 and 90 basis points respectively. Underlying EPS also rose 15.7% on constant currency and 14.6% on a reported basis to CHF 2.13. Following last year’s hike led by the disposal of the Group’s confectionery business, this year’s EPS was down 12.3%.

Nestle noted that its free cash flow increased by 40.4% to CHF 4.1 billion. The Group said its portfolio management was on track and its full year guidance projected sales growth of 3.5%, alongside increases in profit margin and EPS.

Nestle comments

Company CEO, Mark Schneider, stated,

“We are encouraged by our first half results and have made further progress toward our 2020 financial goals. Disciplined execution and fast innovation contributed to improved organic growth and profitability. Our growth was broad-based with our largest market, the United States, performing particularly well. Across our categories increased investment behind our brands and in innovation is clearly paying off, as reflected in our strong momentum in PetCare and the return to mid single-digit growth in coffee. Our Starbucks launch has been a great success so far and we plan on further geographic expansion and product innovation to make the most of this unique opportunity. Active portfolio management will continue to sharpen our strategic focus and position the company in attractive high-growth businesses. Our value creation model is clearly delivering the expected results and will support sustained profitable growth.”

Investor notes

The Company’s shares rallied 1.76% or CHF 1.80 to CHF 104.04 a share 26/07/19 17:30 CEST. The Group’s dividend yield currently stands at 2.40%. Elsewhere, there have been updates from other food and drink retailers; Fuller, Smith and Turner plc (LON: FSTA), Compass Group plc(LON: CPG), SSP Group PLG (LON: SSPG) and Dominos Pizza Poland (LON: DPP).

Coro Energy presentation at the UK Investor Magazine Summer Investor Evening 18th July 2019

Coro Energy CFO Andrew Dennan presents at the UK Investor Magazine Summer Investor Evening and discusses the opportunity for their South-East Asian projects. The presentation can be downloaded here.    

BlueRock Diamonds presentation at the UK Investor Magazine Summer Investor Evening 18th July 2019

BlueRock Diamond present at the UK Investor Magazine Summer Investor Evening 18th July 2019. The BlueRock Diamond board outlines the companies resources and opportunity for increasing production and improving the grade of their gems. The presentation can be downloaded here.

The Vin De France Wine Worth £26,000 A Bottle

Investment grade wines typically come with hefty price tags, but the current world record holder is about to be eclipsed by maverick winemaker Loic Pasquet from the Liber Pater estate which only began producing wine in 2006. Currently the world’s most expensive wine is the Romanée-Conti Grand Cru from the legendary Burgundy domaine which typically sells for around £20,000 to £22,000 per bottle. Loic plans to challenge this with the release of his 2015 vintage in September at a starting price of €30,000 or £26,600, which represents an eightfold increase on the price of his 2011 vintage which has a €3,000 price tag per bottle. Since founding Liber Pater, Loic Pasquet has focused on reviving forgotten Bordeaux varietals and producing the finest wines possible from his well-sited vineyards which frequently receive ratings over 90 points by top wine critics. He insists on farming organically and only uses a 150 year old plough and horse in the vineyards to avoid disturbing the ecosystem any more than is necessary. His is a true success story against a wider trend turbulence on the Bordeaux fine wine market as collectors and investors have increasingly sought out top Burgundy producers over their Bordelais cousins. Loic’s pricing strategy is based on the incredible global demand for his wines from collectors and investors and the extremely limited quantities he is able to produce each year. For the 2015 release Loic made just 550 bottles of which only 240 will be released for sale on a strict allocation basis to those already on the estate’s exclusive list. Loic plans to keep the remaining bottles and will put aside a small amount for his daughter in his personal cellar, meaning that additional bottles may become available in the future. He explained that, “normally I would enjoy wine with friends and family—but this is just for me. It’s a great wine that can be drunk young or old, today or in the next 150 years. It’s the real and true taste of Bordeaux.” The scarcity factor is also being exacerbated by the fact that no wine was produced in 2008, 2012 or 2013. In 2016 the estate was targeted by vandals who prevented the winery from processing that year’s grapes and in 2017 frost damage prevented Loic from making any wine. The limited availability of the latest vintage release is sure to prove very attractive to Liber Pater’s cult following and savvy investors with an eye for a hot ticket. These are wines whose rarity and brilliance will transform them into true classics with wide appeal for the world’s most discerning appreciators of the finer things in life. Loic’s success is also good news for the Bordeaux region in general, proving that the city’s top producers can hold their own against their Burgundian rivals in the fine wine arena. With a strong dose of passion, a relentless dedication to quality, and a touch of eccentricity, Liber Pater is proof that Bordeaux is fighting back, one vintage at a time. Download a comprehensive guide to wine investing here.

Nestle reports 3.6% first-half organic growth

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Nestle reported an organic growth of 3.6% on Friday in its half-year results for 2019. The Swiss multinational food and drink company added that it saw a continued strong real internal growth of 2.6%. Nestle said that increased growth was driven by the United States and Brazil. Moreover, free cash flow was up by 40.4% to CHF 4.1 billion. Earlier in May, Nestle announced that it had entered negotiations to sell Nestle Skin Health. The owner of the KitKat brand also acknowledged the success of the chocolate bar earlier this year, meaning it would not need to add any new businesses to its portfolio. “We are encouraged by our first half results and have made further progress toward our 2020 financial goals,” Mark Schneider, Nestle CEO, said in a company statement. “Disciplined execution and fast innovation contributed to improved organic growth and profitability. Our growth was broad-based with our largest market, the United States, performing particularly well,” the CEO continued. “Across our categories increased investment behind our brands and in innovation is clearly paying off, as reflected in our strong momentum in PetCare and the return to mid single-digit growth in coffee.” “Our Starbucks launch has been a great success so far and we plan on further geographic expansion and product innovation to make the most of this unique opportunity. Active portfolio management will continue to sharpen our strategic focus and position the company in attractive high-growth businesses. Our value creation model is clearly delivering the expected results and will support sustained profitable growth.” Nestle also confirmed its full-year guidance for 2019, expecting organic sales growth around 3.5% and the full-year underlying trading operating profit margin at or above 17.5%. Shares in Nestle SA (SWX:NESN) were up 1.98% as of 11:14 CEST Friday.

Topps Tiles seeks commercial gains

Commercial operations are likely to drive growth at tiles retailer Topps Tiles (LON: TPT) and management intends to build up a significant commercial division over the next five years.
Earlier this year, Topps acquired 80% of Strata Tiles, which has a customer base of architects and designers. This adds further scale to the commercial division based on the previous acquisition of Parkside in August 2017.
The commercial sector accounts for 45% of UK tile sales and had not been targeted by Topps previously. That means that the potential market for the group has nearly doubled. This is a fragme...

Morgan Advanced Materials strategy and profitability on track

Global producer of specialist carbon-based products, Morgan Advanced Materials PLC (LON: MGAM) posted modest revenue growth and an impressive operating profit margin during the first half of 2019. The Group’s revenues were up 1.0% and headline operating profit margin stood at 12.8%; also an improvement of 70bps organic revenue growth and benefit of efficiency actions. Morgan Advanced Materials noted that corresponding with the improvement in operating profit, headline earnings per share grew 3.0%. The Company said that its strategy implementation and expectations of profitability remained on track for the full year.

Morgan Advanced Materials comments

Company Chief Executive Officer, Pete Raby, said,

‘The Group has made good progress during the first half of the year. We are on track with the implementation of our strategy, improving our sales capability, driving new product development and improving operational performance. We have delivered organic constant-currency* revenue growth of 1.0% under more challenging end market conditions and we have expanded our headline operating margin* to 12.8%.

Looking forward into the second half of 2019 there are a number of global headwinds and uncertainties leading to a slowing of industrial markets. Based on our current assessment of business trends and orders, we expect Group revenues to be broadly flat in the second half compared to the prior year. Our expectations of profitability for the full year remain unchanged.’

Investor notes

The Company’s shares have rallied 1.55% or 4.00p to 261.80p a share 25/07/19 16:35 BST. Peel Hunt analysts reiterated their ‘Buy’ stance on Morgan Advanced Materials stock. The Company’s p/e ratio stands at 9.66 and their dividend yield is 4.20%. Elsewhere in the mining and minerals sector, recent updates have come from; Serabi Gold PLC (LON: SRB), Cora Gold Ltd(LON: CORA), Kavango Resources PLC (LON: KAV), Ariana Resources plc (LON: AUU), Rio Tinto plc (LON: RIO) and Bushveld Minerals Limited (LON: BMN).

Fuller FY sales up and Beer Business sold to Asahi

Pub and beverage company Fuller, Smith and Turner plc (LON; FSTA) saw revenues grow in a year where the Company were particularly active in terms of operational and strategic developments. The Group’s revenue was £431.1 million for the full year 2019, up 7% on 2018 at £403.6 million. EBITDA was also 3% from £70.9 million for FY18 to £73.2 million for FY19. On the other hand statutory profit before tax was down from £43.6 million to £26.1 million for FY19, following separately disclosed items of £17.1 million. Adjusted profits were also flat year-on-year at £43.2 million. On its operations, the Company said it saw 4.9% like-for-like sales growth from Managed Pubs and Hotels. Like for like profits rose 1% on good performance from Tenanted Inns.

Regarding strategy, the Company sold the Fuller Beer Business to Asahi Europe Ltd for £250 million, with completion set for post year end. The Group said they acquired The Signal Box at Euston Station to add to their pub portfolio in transport hubs, along with four bars in the City.

The Company also expanded its hotel and room portfolio, with 11 site acquisitions and 93 bedrooms added to the Group’s estate.

Fuller Smith and Taylor comments

Responding to the results, Chief Executive Simon Emeny said,

“It would be impossible to review the last financial year without mentioning the sale, post year end, of the Fuller’s Beer Business – a transformational move that has changed the face of our Company. Fuller’s has always taken decisions for the very long term and this sale was no exception.”

“It gives us an even clearer focus on sustainable growth from the higher margin part of our business and has the added advantage of putting us in a strong position to deal with potentially turbulent times ahead as the UK navigates the implications of exiting the European Union.”

“Underpinning this position is a premium pubs and hotels business in robust health. We have had another year of like for like growth that has outperformed the industry, while our successful Tenanted business has continued to build on the new turnover agreement that creates genuine, sustainable partnerships between our Tenants and ourselves.”

“Against some incredibly tough comparatives from the hot weather and football fervour of summer 2018, I am pleased to report steady trading for the first 16 weeks of the new financial year with like for like sales in our Managed Pubs and Hotels rising by 1.2% and total revenue rising by 2.3%. Like for like profits in our Tenanted Inns were down -3% against very tough comparatives.”

“This is a transformational period for Fuller, Smith & Turner, which coincides with a great deal of political and economic uncertainty. However, we can see a clear way ahead for the Company. With an exceptionally strong balance sheet, a predominantly freehold estate and a proven long-term business model, there will be undoubted opportunities and we are perfectly poised to leverage those over time as we embark on the next phase in our history.”

Investor notes

The Company’s shares were up 0.94% or 10.00p to 1,075.00p a share 25/07/19 16:30 BST. Peel Hunt analysts reiterated their ‘Add’ stance while Liberum Capital reiterated their ‘Hold’ stance on Fuller, Smith and Taylor stock. The Company’s p/e ratio is currently 16.93 and their dividend yield is 1.47%. Elsewhere, there have been updates from other food and drink retailers; Compass Group plc (LON: CPG), SSP Group PLG (LON: SSPG), Dominos Pizza Poland (LON: DPP), Premier Foods Plc (LON: PFD) and Hotel Chocolat Group Plc (LON: HOTC).  

Brewin Dolphin impressive growth despite ‘difficult’ market

British investment management and fund planning group Brewin Dolphin Holdings plc (LON: BRW) saw its funds and income increase despite what the Company described as difficult market conditions. The Company stated that total funds were up 4.0% to £44.1 billion during the quarter, up from £42.4 billion at the end of Q2. Discretionary funds also rose because of good inflows and investment performance, growing 4.3% to £39.1 billion from £37.5 billion. Discretionary net inflows grew 3.2% on an annualised rate and MPS grew at an annualised rate of 25.0%.

Brewin Dolphin total income was up 3.7% tp £87.3 million; this was pushed by a 4.0% increase in discretionary income to £76.2 million and a 22.0% growth in financial planning to £7.2 million.

The Group added that it acquisitions of Investec Capital and Investments and the staff and assets of Epoch Wealth Management LLP were on track

Brewin Dolphin comments

David Nicol, Chief Executive said:

“Our total funds grew by 4.0% during the quarter to £44.1bn. We are pleased with the overall business performance, particularly the resilience of our discretionary net inflows of £0.3bn in the quarter in challenging economic and market conditions. In this context, we are confident in our business model, strategy and long-term growth prospects, which are underpinned by our focused investment in the UK and Ireland, combined with continued operational discipline”.

Investor notes

The Company’s shares rallied 0.83% or 2.60p to 317.6p a share 25/07/19 15:58 BST. Peel Hunt, Liberum Capital and Shore Capital analysts all reiterated their respective ‘Buy’ stances on Brewin Dolphin stock. The Company’s p/e ratio stands at 14.00 and it has a dividend yield of 5.15%. Elsewhere in asset and investment management, there have been updates from; Hansard Global plc (LON: HSD), AJ Bell PLC (LON: AJB), Intermediate Capital Group plc (LON: ICP), Highcroft Investments plc (LON: HCFT) and City of London Investment Group PLC (LON: CLIG).