Midpoint Holdings and a new approach to Currency Exchange
Are we in a period of flux? While the move to tech formats is well documented, there needs to be greater discussion about the paradigm shift occurring in banking services as a whole. It is little secret that public trust in traditional banks hasn’t recovered since the financial crash, and rightly so. While discussion of this subject often boils down to something like ‘we paid for their greed’, the full picture is bleaker. Products such as CDOs – a primary cause of banks needing to be bailed out during the last financial crash – have merely been rebranded as ‘bespoke tranche opportunities’ and are still sold today. So, traditional banks haven’t really changed their ways, but perhaps consumers will force them to. Take currency exchange, for instance. If consumers begin trusting new market entrants with their assets, activities such as currency exchange could become more seamless and less of a price that we accept we have to pay. At least that’s what companies like Midpoint Holdings Ltd (TSXV: MPT) will be hoping.
Midpoint Holdings describes itself as the first currency exchange matching platform, and intends to capture prospective clientele who are disenchanted with currency exchange bid-offer spreads. The Company warns consumers against the fallacy of ‘commission-free’ currency exchange offered by the majority of forex providers, and seeks to offer an alternative with its own patented technology.
Midpoint trades currency at the prevailing interbank midmarket rates, and states that this could yield average savings of up to £1,370 on each £100,000 traded for US Dollars, and £1,360 when traded for Euros.
Biome Technologies revenues dip as 2018 ‘exceptional demand’ wanes
Commercially driven technology group Biome Technologies plc (LON: BIOM) has seen its share price fall during trading on Monday, following a fall in H1 revenues on a year-on-year basis.
The Group told investors that first half revenues narrowed to £3.6 million, down from £4.4 million for H1 2018, and causing the Company to forecast a loss before ITDA and share option charges.
The Company’s bioplastic division saw revenue rise on a year-on-year basis from £0.9 million to £1.4 million for the first half, while the Stanelco RF division saw the exceptional demand for fibre optic furnaces seen during 2018 wane, and as a result the division’s revenue dipped from £3.5 million to £2.2 million on-year.
Biome Technologies said their cash position represented its trading performance and working capital requirements, down from the end of Q1 at £2.3 million to £1.7 million at the end of Q2.
Biome Technologies statement
The Company’s statement continued, in regard to its bioplastics division,
“In line with our strategy, it has been particularly encouraging to see these growing revenues coming from three key growth drivers: a greater number of customers; a wider range of end-use application areas; and a broader geographic base. Whilst much of this growth is based on development projects that commenced some time ago, the continued global focus on the problem of plastics, both in their disposal and the climate change impact of their manufacture, is supporting the appetite for our existing products and continuing to increase our product development and customer project pipeline.”
Continuing with its update on Stanelco RF,
“Encouragingly, the division has recently signed a £1.3m contract for the supply of a number of fibre optic furnaces to a regular international customer for delivery in H2 2019. This underpins revenue expectations for the second half and underlines the further requirement for capacity in the fibre optic market.”
Looking forwards, it said,
“Our two divisions continue to perform to our expectations. We expect the growth drivers of the Bioplastics division to continue to propel it towards eclipsing Stanelco RF as the principal revenue generator for the Group within the next year or so.”
Investor notes
After a slight recovery, the Company’s shares were down 11.66% or 50.15p to 379.85p a share on Monday afternoon.
Elsewhere in the tech sector, there were updates from; Midwich Group PLC (LON: MIDW), Boku Inc (LON: BOKU), Telit Communications Plc (LON: TCM), TP Group PLC (LON: TPG) and Mobile Streams Plc (LON: MOS).
Serabi Gold maintains guidance with increased production and PEA
Brazil focused mining company Serabi Gold PLC (LON: SRB) posted a positive update for the second quarter, for its operations around the Tapajos region of Para State, Northern Brazil.
The Company stated that Q2 gold production stood at 9,527 ounces. When combined with Q1 production, year-to-date production has grown 5% compared to H1 2018, to around 20,000 ounces. Total ore mined was 44,784 tonnes at 6.72g/t during Q2, with 43,711 tonnes of run of mine ore processed through the plant at 6.72g/t. The Group added that horizontal development increased 30% quarter-on-quarter, up to 2,419 metres for Q2.
Serabi Gold then told investors that it had commenced its Preliminary Economic Assessment on the Coringa Gold Project, after the mineral resource estimate in Q1. The Company maintained its 40,000-44,000 ounce guidance for FY19.
Serabi Gold Comments
Company CEO, Mike Hodgson, added the following insights, “In the longer term we expect plant production will be further enhanced with the installation of an ore sorter, which I am pleased to report has arrived at site. The associated infrastructure is in construction, and we will commission the unit during the second half of the year. Whilst we are not forecasting production benefits from the ore sorter in 2019, we do expect a significant impact in 2020.”“After a very busy 2018, exploration has been limited to geochemical programmes over the multiple geophysical anomalies, mostly enveloping the Sao Chico orebody. Results are anticipated during the next quarter after which we hope to re-commence drilling programmes across the key targets later in the year.”
“With approximately 20,000 ounces produced for the year to date, I believe we can improve further during the second half of the year, most notably with the additional ounces the tailings treatment is now bringing. With gold prices very much in our favour as well as exchange rates, it is a good time to be a producer in Brazil. With this very encouraging first half of the year, along with the forthcoming PEA on Coringa and further positive progress on licencing and permitting, I look forward to reporting further positive news in the coming months”.
Investor notes
Following the update, the Company’s shares have dipped 3.23% or 2.00p to 60.00p per share 22/07/19 13:29 BST. Peel Hunt analysts reiterated their ‘Buy’ stance on Serabi Gold stock.
Elsewhere in the mining and minerals sector, recent updates have come from; 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).
Highcroft Investments issues positive property and ambivalent investor updates
Real estate investment trust company Highcroft Investments plc (LON: HCFT) posted its update for the six months through 30 June 2019, which revealed growth in rental income and mixed sentiments for investors.
The Company were pleased to book an 11.6% jump in gross rental income and 13.2% growth in net rental income, to £2,726,000 and £2,678,000 respectively.
Highcroft added that net investment into property increased from a £2,473,000 divestment to £11,897,000 invested on a year-on-year basis during the first half; while property valuation increased 14.3% during the first half, from £77.7 million at December 2018 to little over £88.8 million at the end of H1 2019.
Highcroft Investments comments
On these results, the Company’s statement disclosed the following, I am pleased to report continued good trading results for the 6 months ended 30 June 2019. The board is happy with the progress of its ongoing strategy of developing a high-quality income-producing property portfolio, based on carefully sourced quality assets and tenants producing stable, secure income. This strategy has resulted in property income growth of 11.6% and an increase in adjusted earnings per share of 14.4% to 37.2p. Whilst our total property valuation increased by 14.3% after the acquisition of two new properties, our like-for-like property valuation fell slightly, by 0.35%, in the period (2018 1.6% uplift). This was due to the current market sentiment, particularly in our retail assets, but also the costs associated with our two acquisitions in the period. This led to a reduction in total earnings per share to 21.9p (2018 55.8p). Our net asset value per share fell by 1.0% in the period.” On its financial news, it added, “At 30 June 2019 the cash position was £610,000 (2018 £5,057,000) while our medium-term loans totalled £26,200,000 (2018 £19,400,000), resulting in a net gearing level of 41% (2018 23%). Our loan to value was 29.5% (2018 25.6%). The medium-term loans are at fixed rates with a weighted average of 3.5%.” And looking forwards, it said, “Whilst the ongoing property investment environment, in particular the retail sector, is likely to remain challenging for the remainder of the year, we believe that our asset selection criteria have helped to ensure that our current portfolio and tenant mix create a strong base from which to continue to develop our business and generate further shareholder value.”Investor notes
Although the Company saw an expansion of its portfolio and increased rental income, the positive news for its shareholders was not quite as consistent. While the Company reported a growth in its dividend, with property income distribution up from 18.75p to 21.00p, and a 14.4% growth in adjusted earnings per share, net assets per share were down 1% and total earnings per share dived 60.8% from 55.8p to 21.9p a share. Following the update, the Company’s shares have grown 1.61% or 14.70p to 929.70p a share 22/07/19 10:05 BST. Elsewhere in asset and investment management, there have been updates from; City of London Investment Group PLC (LON: CLIG), Miton Group PLC (LON: MGR), Walker Crips Group plc (LON: WCW), Liontrust Asset Management PLC (LON: LIO) and Mattioli Woods (LON:MTW).Midwich Group sees growth in European and Asia Pacific operations
Specialist audio visual distributor Midwich Group PLC (LON: MIDW) has seen its share price rally after posting a positive trading update fro the six month period ended 30 June 2019.
The Company said it organic growth especially in its Continental European and Asia Pacific operations, which was led by contributions from its recent acquisitions.
Midwich added that H1 cash generation was ahead of Board expectations and that the Company expected cash generation for the full year to be in line with the Group’s average performance. The Board’s guidance for the Group’s full-year performance remained unchanged.
Midwich Group statement
The Company’s statement elaborated,“The Group has traded well in the first half, with top line organic growth being supported by a strong contribution from recent acquisitions. Growth was achieved across all geographies on a constant currency basis, with Continental Europe and APAC performing particularly well. Overall gross margins have improved marginally on the prior year period. The Group continues to invest in the infrastructure to develop its business, in particular the central acquisition and integration teams, as well as its start-up businesses in South East Asia and Benelux. The Group has acquired four businesses in the year to date and all are developing as expected. These businesses have given the Group access to three new geographical territories (Italy, Switzerland and Norway) as well as strengthening its capabilities in the audio and lighting segments.”
Investor notes
Following the update, the Company’s shares rallied 3.64% or 20.00p to 570.00p a share 22/07/19 12:02 BST. HSBC analysts initiated a ‘Buy’ stance on Midwich Group stock. Elsewhere in the tech sector, there were updates from; Boku Inc (LON: BOKU), Telit Communications Plc (LON: TCM), TP Group PLC (LON: TPG), Mobile Streams Plc (LON: MOS), Sophos Group plc (LON: SOPH) and MiriAd Advertising plc (LON: MIRI).
Cora Gold shares bounce on high grade gold discovery
Western Africa focused gold company Cora Gold Ltd (LON: CORA) reported high grade gold mineralisation at the Sanankoro Gold Project, located at the Yanfolila Gold Belt in Southern Mali.
The Central Selin Prospect results displayed dulphide mineralisation of 22 metres at 2.68g/t from 51 metres, 9 metres at 3.07g/t from 117 metres and 8 metres at 3.12g/t from 114 metres.
The Company’s 1-2 million ounces of gold exploration target from October 2018 was based on mineralisation up to 100 metres and did not account for mineralisation at depth.
The Group also announced the drilling of five reverse circulation holes drilled to target sulphide beneath known gold oxide mineralisation.
Cora Gold comments
Company CEO, Jonathan Forster, added the following insights,
“I am pleased to report that Cora’s exploration drill programme, which has progressed on schedule and on budget, intersected gold mineralisation on each deeper drill hole at the Selin prospect, often at grades of more than 3g/t gold. Such promising results support earlier indications that the sulphide potential at Selin could be significant, providing justification for a future drill programme that would aim to extend the gold mineralisation at depth.”
“This set of results consists of the initial, preliminary testing of a strike-length of up to just 300m of the sulphide gold mineralisation that is believed to lie underneath the 2,000m long gold oxide zone previously identified at the Selin prospect. With the sulphide zone lying at depths of typically greater than 60-80m, these initial drill holes are still considered to be near surface with open pit mining potential.”
“A previously unknown gold zone was identified in the oxide part of a deeper hole, highlighting the ongoing opportunities to make new discoveries at Sanankoro. We look forward to updating the market with further results over the coming months.
Investor notes
The Company’s shares jumped 27.25% or 1.09p during Friday trading, up to 5.09p a share 19/07/19 16:21 BST. Elsewhere in the mining and minerals sector, recent updates have come from; Kavango Resources PLC (LON: KAV), Ariana Resources plc (LON: AUU), Rio Tinto plc (LON: RIO), Bushveld Minerals Limited (LON: BMN) and Anglo Asian Mining plc (LON: AAZ).Van Elle profitability impacted by end-market volatility
UK focused ground engineering contractor Van Elle Holdings PLC (LON: VANL) has seen its profits hampered by volatility for the full year 2019.
For the year ended 30 April 2019, and before the official publication of its results on 24 July, today’s statement offered a largely anticipated overview of a difficult year for the Company.
Van Elle noted that second half profitability was impacted by end-market volatility and project slippages. While the Board had expected to report adjusted profit before tax of £5.0 million, it deemed it necessary to,
“adjust a small number of specific balance sheet items and contract accruals.”
These adjustments will ‘adversely’ affect FY19 profit by c.£0.5 million the Company said. Year end net debt is in line with expectations as laid out on 25 April 2019.
Van Elle Statement
The Company’s statement continued,
“Whilst an update on the outlook for FY2020 will be provided at the time of the results, it should be noted that, despite the encouraging momentum at the end of last year, the Group is continuing to experience customer uncertainty in some of its markets, resulting in a quiet start to the year in some segments and increased volatility in month on month performance. As set out in April, the Group has been successful in securing positions on attractive, long term contracts. Although the Company is seeing the benefits of a number of commercial and operational initiatives recently implemented, the Board is mindful that market uncertainty and the resultant volatility may persist further into the current financial year, which would limit the rate at which progress can be made.”
Investor notes
The Company’s shares have dipped 2.47% or 0.90p to 35.60p a share 19/07/19 14:29 BST. Peel Hunt analysts downgraded their stance on Van Elle Holdings stock from ‘Add’ to ‘Hold’. Elsewhere in development and engineering news, there have been updates from; Persimmon plc (LON: PSN), MJ Gleeson PLC (LON: GLE), Somero Enterprises Inc (LON: SOM), Bovis Homes Group plc (LON:BVS) and Telford Homes plc (LON: TEF).John Laing EAG acquires two Yorkshire hydro power stations
Operator of privately financed public sector infrastructure projects, John Laing Environmental Assets Group Ltd PLC (LON: JLEN) announced today that it had acquired Yorkshire Hydropower Holdings Limited.
The Company stated that the acquisition required a consideration of £4.3 million, with YHHL holding 100% of the equity in Yorkshire Hydropower Limited. This transaction represents the Company’s first investment in hydro power and expands on their existing environmental infrastructure projects. YHHL has been acquired from a group of high-net-worth investors, and holds the rights to two operational hydro projects and a battery storage system.
The first Yorkshire based project is Kirkthorpe hydro, a 500kW single turbine hydro project located on the River Calder. The second is Thrybergh hydro, a twin screw 260kW hydro project located on the River Don. The final component is a 1.2MW battery co-located at Thrybergh.
John Laing comments
Richard Morse, Chairman of JLEN, said,
“We are pleased to make our first investment into two new asset classes in run-of-river hydro and battery storage. These projects have a proven operational history, benefit from strong contractual revenues and broaden the diversification within the JLEN portfolio. Furthermore, they demonstrate the synergistic benefits of co-locating renewable energy generation and storage technology.”
The Company’s statement also enclosed the following,“Both hydro projects are accredited under the 20-year Feed-in-Tariff scheme. The battery storage project at Thrybergh is currently dedicated to a Firm Frequency Response contract.”
“This acquisition increases the total capacity of renewable energy assets in the JLEN investment portfolio to 281.16MW.”
“The acquisition was funded by the group’s internal cash resources.”