Everyman Media Group profits rise
Everyman Media Group (LON:EMAN) plc posted a strong six month period of growth on Tuesday, driven by increasing admissions and the amount spent on food and drinks.
Revenue for the six months grew 16% to £28.9 million and operating profit increased 14% to £1.6 million.
Everyman Media Group said that these were supported by increasing admissions and the amount spent on food and beverages.
Admissions were up by 9.4% to 1.5 million across the period and the cinema company experienced continued growth in average food and beverage spend, up by 13.2% to £6.95.
Meanwhile, Adjusted EBITDA increased by 61% to £6.6 million, up from the £4.1 million figure recorded the year prior.
Everyman Media Group, which saw its box office market share grow to 3% from 2.5% for the same period a year earlier, added that it has committed to an additional 15 new venues, of which four are expected to open in the second half of the year.
“The appetite for Everyman has never been stronger with our continued roll-out allowing us to deliver exceptional experiences to more audiences across the UK with our increasing footprint,” Crispin Lilly, Chief Executive Officer of Everyman Media Group, commented in a company statement.
“As a result, we have seen progress across both our financial and operational KPIs, with growth in revenue and operating profit driven by increasing admissions and F&B (food and beverages) spend. This has resulted in the record market share we are reporting today,” the Chief Executive Officer added.
Crispin Lilly said that the company remains “confident that there is significant room for expansion,” as Everyman Media Group is set to open its first international site in Ireland next year.
At the beginning of the year, the cinema company posted a rise in profits on the back of new openings.
Shares in Everyman Media Group plc (LON:EMAN) were trading at +0.49% as of 16:25 BST Monday.
Markets suffer Monday blues as PMIs turn indices red
From the bell, there was an aura of grey skies in the air. Not only were there rain clouds over the UK but also over market sentiment following the early announcement of Eurozone flash PMIs in the morning, which cemented red fundamentals across the board throughout Monday.
Speaking on the market’s dull trudge to the final bell, Spreadex Financial Analyst Connor Campbell commented,
“The markets spent the day in various shades of red, the tone set by the morning’s alarming Eurozone flash PMIs.”
“Thanks to those woeful PMI readings – the choice cuts were from the manufacturing sector, with the German figure at 41.4 and the region-wide number at 45.6 – the Eurozone was the worst performing area. Losing 140 points the DAX neared a 2-week low, while the CAC dropped under 5620 as it fell 1%; the pair was maybe saved from anything worse by the prospect of the ECB’s recently announced stimulus.”
“Having tumbled last Friday, the Dow Jones didn’t really do much after the bell. Nevertheless, a 0.1% decline pushed the index back below 26900 – like the DAX, its worst level since September 11th.”
“The FTSE was in an interesting situation this Monday. The overall tone of the markets ensured it spent most of the session at a loss. However, its decline was capped at around 0.2%, thanks to both the pound’s losses – Brexit anxiety sent it 0.4% lower against the dollar and 0.1% against the euro – and movements in its travel sector.”
“The market never leaves time to mourn. In other words, investors swiftly moved to potential winners in the travel sector following the collapse of Thomas Cook. Tui maintained an 8.5%, 7-month high-hitting rise, while easyJet climbed 4.1%. British Airways-owner IAG, on the other hand, fell 1.6%.”
Some enjoyed success on Monday, with hedge funds collecting pay-outs on their short positions on Thomas Cook. By-and-large however, the week has begun with the familiar lacklustre tone which has shrouded the majority of fundamentals thus far in 2019. Elsewhere in markets and macro economic news, there have been updates from; ECB stimulus, the bid for the London Stock Exchange (LON: LSE), Lloyds Banking Group PLC (LON: LLOY), Jo Johnson quitting, Hilary Benn’s Brexit delay bill, Parliament being prorogued, Barclays (LON: BARC) and Deutsche Bank (ETR: DBK).Microsaic Systems shares in free-fall despite revenue bounce
Developer of point of need mass spectrometry instruments Microsaic Systems PLC (LON: MSYS) saw its share price dive following the publication of their half year results, despite what would appear to be some move towards a positive trajectory.
The Company reported that total revenues grew 30% year-on-year during the first half, up to £0.33 million. Similarly, the Group booked twelve instrument orders for H1 FY19, nearly equal to the entirety of FY18.
Microsaic Systems added that its cash balance narrowed by £1.3 million during the first half, but pointed to progress it had made in their small and large molecule detection offerings.
Microsaic Systems comments
Glenn Tracey, CEO, said on the update,
“We are encouraged with the progress made in the first half of the year, including revenues ahead of the same period last year and with instrument orders received for shipment in 2019 almost equal to the total number of orders received during 2018. We believe that there are opportunities to further accelerate revenue growth in small molecule markets by selling Microsaic-branded complete systems integrating specific third-party sample preparation and separation equipment with Microsaic’s mass detectors. These new systems will be commercialised by Microsaic directly in selected markets in Europe and through our partners in North America and Asia, particularly in China. This will complement our current strategy of seeking new OEM and distribution partners in selected geographies.”
“Bioprocessing remains a very exciting growth opportunity, and we continue to make good progress in developing products to meet specific bioprocessing applications, particularly in partnership with MIT and the Centre for Process Innovation (“CPI”), ahead of planned commercialisation. Microsaic has increased its industry profile and continues to garner interest in the use of its technology as a novel approach to the in-situ analysis of biologics during their manufacture.”
Investor notes
The Company’s shares have continued their decline through the day, down 39.94% or 0.62p to 0.93p per share 23/09/19 14:13 BST. Neither a p/e ratio nor a dividend yield is available for Microsaic Systems, their market cap is £4.34 million. Elsewhere in the tech sector, there were updates from; Petards Group plc (LON: PEG), SCISYS Group PLC (LON: SSY), Pebble Beach Systems Group PLC(LON: PEB), ULS Technology PLC (LON: ULS), Midwich Group PLC (LON: MIDW), ProPhotonix Ltd (LON: PPIX) and Frontier Developments PLC (LON: FDEV).Union Jack Oil continues to gush cash despite revenue growth
UK focused onshore oil and gas company Union Jack Oil PLC (LON: UJO) saw its red lines dip deeper into negative territory during the first half of 2019.
In spite of its revenues growing modestly by £3,365 to £76,409, the Company’s operating losses expanded almost £67,000 to £486,609. This was led by gross losses widening by £27,000 to £44,633, and total administrative expenses rose almost £40,000, to £441,976.
The situation remained consistent but glum for Union Jack Oil investors, with basic and diluted EPS remaining at negative 0.01p.
The Company added that initial drilling identified a 45 metre gas column at their West Newton A-2 propsect, and “the likely presence of a 35 metre live oil column with API Gravity oil of 33º to 34º in the top of the Dinantian interval” at their Biscathorpe-2 conventional well.
Union Jack Oil comments
Speaking on the results, David Bramhill, Executive Chairman, said,
“We have seen significant progress at our three key project interests, namely West Newton, Biscathorpe and Wressle. Developments at these three assets can be expected to provide an active stream of newsflow throughout the remainder of 2019 and beyond.”
“At West Newton A-2, the result of the Extended Well Test has the potential to dramatically transform Union Jack. We anticipate further progress in our ongoing technical evaluation and appraisal of the West Newton A-1 and A-2 discoveries in the coming months that will help us confirm that West Newton is one of the largest onshore UK oil and gas ventures in recent decades.”
“An ongoing technical evaluation at Biscathorpe also has the potential to identify a material resource with significant upside, as in the case of West Newton.”
“Assuming our appeal at Wressle is supported and production from Wressle is established, under the current oil price environment, Wressle would provide material cash flows after project operating costs net to Union Jack. Bearing in mind Union Jack’s modest annual general and administrative costs, Wressle is expected to convert Union Jack into a cash flow positive company at the corporate level.”
“The Board remains both confident and optimistic and the future of Union Jack looks bright.”
Investor notes
After dipping around 1.92%, the Company’s shares stood at 0.26p per share 23/09/19 12:41 BST. SP Angel analysts reiterated their ‘Buy’ stance on Union Jack Oil stock, their market cap is £30.87 million. Elsewhere in oil and gas news, there have been updates from; Prospex Oil and Gas PLC (LON: PXOG), IGAS Energy PLC (LON: IGAS), Trinity Exploration & Production PLC (LON: TRIN), Baron Oil PLC (LON: BOIL), Cabot Energy PLC (LON: CAB) and Reabold Resources PLC (LON: RBD).Marks & Spencer CFO steps down
Marks & Spencer Group plc (LON:MKS) announced on Monday that its Group Chief Financial Officer will step down.
Shares in Marks & Spencer were down on Monday.
The British multinational retailer said that Humphrey Singer has decided to leave the business. It added that a succession process is now underway.
In order to ensure an orderly transition, Humphrey Singer will work alongside the Group Chief Executive Officer, Steve Rowe, and the board.
An exact date of departure is yet to be confirmed, Marks & Spencer said.
Humphrey Singer will continue with his responsibilities until then, the company added.
“I feel privileged to be a part of the challenging but hugely rewarding turnaround at Marks & Spencer,” Group Chief Financial Officer, Humphrey Singer, said in a company statement.
“The transformation taking place is of a scale, depth and pace not seen before at the company,” Humphrey Singer continued.
“After eighteen months of working with Steve to lead the transformation strategy and rebuild the finance function I have decided that now is the right time to move on. I will continue to give the business my all and work with Steve and the Board to ensure we continue to make progress and that there is an orderly handover to my successor.”
The Group Chief Executive Officer, Steve Rowe, added that Humphrey Singer has been a “huge asset” to Marks & Spencer.
“He has helped to establish the foundations of our transformation with a stronger balance sheet, robust financial controls and a much keener focus on reducing our cost base,” Steve Rowe continued.
“In addition, he was a critical part of the team which guided Marks & Spencer through the deal to create our joint venture with Ocado and subsequent equity raise.”
Ocado Retail (LON:OCDO) is a joint venture between Ocado and Marks & Spencer, which was completed in August.
It recently posted an 11.4% rise in retail revenue in its third quarter results.
Shares in Marks & Spencer Group plc (LON:MKS) were trading at -3.55% as of 11:55 BST Monday.
World High Life to acquire Love Hemp
CBD and medicinal cannabis investment company World High Life plc (NEX:LIFE) said on Monday that it would buy Love Hemp in a £9 million deal.
Love Hemp is a London-based supplier of a range of CBD and Hemp products. With over 40 product lines, Love Hemp has established agreements with over 1,200 stores in in the UK, including leading brands such as Ocado, Holland & Barrett and WH Smith.
“The Directors of LIFE believe that this transaction will help World High Life significantly accelerate its expansion plans across the United Kingdom and Europe, with a focus on Germany over the course of 2020,” World High Life said in a company statement.
“If completed, the transaction will also give World High Life access to Love Hemp’s extensive online distribution network and access to the 1,200 convenience stores in the UK, including leading high street stores such as Holland & Barrett and WH Smith, through which Love Hemp currently sells its products,” World High Life added.
Though the UK may be far from full legalisation of the drug for recreational purposes, medical use of the drug has seen big breakthroughs.
The two main cannabinoids from marijuana that are of medical interest are THC and CBD. Unlike THC, CBD does not make people high when consumed.
Instead, CBD offers a range of anti-inflammatory, anti-pain and anti-psychotic properties.
Elsewhere in the sector, earlier in July Sativa Group opened its first CBD wellness retail store in Bath. It provides a range of over 50 CBD products, and offers consumers the opportunity to try CBD infused coffee and tea.
Thomas Cook demise fuels its peers, European PMIs display ECB failure
In a return to business as usual, market indicators have resumed the downward trajectory which has become something of a home so far in 2019. Despite the efforts of its Board and shareholders, Thomas Cook collapsed on Monday morning, and this sour cherry topped the broader and equally bitter macro cake offered by the Eurozone, with disappointing PMIs illustrating that some change of the modus operandi is needed (and more simply that the ECB’s recent efforts fell short of the mark).
Speaking on Monday morning’s developments, Spreadex Financial Analyst Connor Campbell stated,
“A disappointing morning for Eurozone PMIs set the tone in the region, while the FTSE dealt with a unique situation in the travel sector.”
“The undoubted headline this Monday is the demise of Thomas Cook. The world’s oldest travel company ceased trading after failing to secure the £200 million it desperately needed for a bailout. That leaves 150,000 holidaymakers stranded around the world, sparking Operation Matterhorn, the UK’s biggest repatriation effort since World War II.”
“Such a tragic collapse – one, if not solely brought about by Brexit, then certainly hastened by that ongoing mess – leaves plenty of money on the table for its sector peers, a fact that hasn’t gone unnoticed by investors. Long-standing rival TUI surged 9% to a 7-month-plus high, helping the FTSE avoid the losses seen across the pond, while British Airways-owner IAG added 1.2% and easyJet climbed 5.2%.”
“Once again the Eurozone’s flash PMIs gave the region rather severe cause for concern, suggesting the scale of the turnaround needed may go beyond the measures announced by the ECB earlier in the month.”
“The French readings both missed estimated by quote some way, as did the German services figure. The truly alarming number, however, was the German manufacturing PMI, which came in at just 41.4 against the 44.6 forecast and the 43.5 seen last time out. That set the DAX and CAC up for a very poor start to the week; the former slumped by 130 points, with the latter shedding more than half a percent.”
Elsewhere in markets and macro economic news, there have been updates from; ECB stimulus, the bid for the London Stock Exchange (LON: LSE), Lloyds Banking Group PLC (LON: LLOY), Jo Johnson quitting, Hilary Benn’s Brexit delay bill, Parliament being prorogued, Barclays (LON: BARC) and Deutsche Bank (ETR: DBK).Prospex Oil and Gas shares drop as losses widen
Energy-focused investment company Prospex Oil and Gas PLC (LON: PXOG) has seen its shares slide on Monday following a deepening of its first half losses.
The Company booked first half net losses of £0.691 million, widening from £0.541 million year-on-year for the period.
Prospex Oil and Gas did make some progress in its financial results, as seen with a 10% cut to its admin expenses, down to £0.485 million, and an increase of almost £53,000 in shareholder equity value, to £6.35 million.
Additionally, the Group raised £0.8 million via a share placement, to cover the costs of its Suceava work programme. Further, its Bainet field continued ‘in line with expectations’ and its Podere Gallina Exploration Permit remains on course for its premier gas production in 2020.
Prospex Oil and Gas comments
Speaking on the Company’s first half results, Managing Director Edward Dawson said,“The majority of the Company’s shareholder equity value of £6,349,995 is backed by its 17% interest in the Podere Gallina licence in Italy following the commercial gas discovery there in 2018. During the period, our interest was assigned net 2P reserves of 2.26 bcf and net contingent and prospective resources of 2.40 bcf and 15.56 bcf, respectively in an updated CPR, which also assigned €4.6m (net) to the 2P reserves at the Selva field. Not only did the CPR demonstrate the significant asset backing behind the Company, but also the considerable run room that remains in terms of additional prospects and leads. Following preliminary government approval of a production concession application in January 2019, we are working with our partners to bring Selva into production at an initial rate of up to 150,000 scm/day in 2020, and in the process generate a material revenue stream for the Company.”
“Elsewhere, in Spain a multi-strand work programme is underway at the Tesorillo gas project, to de-risk up to 830 billion cubic feet (Best Estimate) of gross unrisked Prospective Gas Resources and identify potential well locations. In Romania we are evaluating reprocessed seismic data before agreeing the best way forward for the Suceava concession with our partner. Whilst the Bainet-2 well result was disappointing, we believe there are still compelling prospects and leads, not dependant on Bainet-2’s results, to be pursued in the concession. Finally, we continue to run the rule over a number of new ventures, as we focus on growing our portfolio of projects, building on our track record of participating in four new wells in three years, and at the same time adding to the two commercial gas discoveries we have made to date.”
Investor notes
The Company’s shares dropped 20.87% or 0.024p to 0.091p per share 23/09/19 10:05 BST. The Group’s p/e ratio is 1.64, they do not have a dividend yield available. Elsewhere in oil and gas news, there have been updates from; IGAS Energy PLC (LON: IGAS), Trinity Exploration & Production PLC (LON: TRIN), Baron Oil PLC (LON: BOIL), Cabot Energy PLC (LON: CAB), Reabold Resources PLC (LON: RBD) and Eco Atlantic Oil and Gas Ltd (AIM: EOG).Sports Direct makes an offer for Goals Soccer Centres
Sports Direct International plc (LON:SPD) said on Monday that it had made an offer for Goals Soccer Centres.
Shares in Sports Direct were up during trading on Monday morning.
Mike Ashley’s Sports Direct said in a statement that it had made a possible cash offer of 5 pence per share “for the entire issued and to be issued share capital of Goals, not already held by Sports Direct”.
Sports Direct already holds a significant stake in the soccer centre operator.
Shares in the soccer centre operator were suspended back in March.
Goals Soccer Centres was put up for sale at the end of August following accounting issues.
Earlier in August, it was revealed that the accounting issues were much deeper than expected – a £12 million tax accounting scandal that stems back at least a decade.
“Sports Direct is the largest shareholder in Goals, with an 18.93% shareholding. Goals has had some well-publicised difficulties and its shares are currently suspended from trading on AIM,” Mike Ashley’s retail company said in a statement.
Sports Direct said that if its offer is progressed, then it would “provide shareholders with an exit and allow them to determine what is fair value and in their best interests”.
According to Sky News, Goals Soccer Centres employs roughly 700 people and had a market value of £20 million when shares were suspended.
Earlier in July of this year, Mike Ashley’s Sports Direct faced some problems with the publication of its preliminary results, sending shares down. It blamed the complexities surrounding the integration of House of Fraser, which it had purchased the year prior, for the delay in the publication of the results.
One analyst called the delay of the results “an utter shambles,” according to the BBC.
Shares in Sports Direct International plc (LON:SPD) were trading at +0.072 as of 10:09 BST Monday.
Impact Healthcare REIT continues investment with care home acquisition
Healthcare-focused real estate investment trust Impact Healthcare REIT PLC (LON: IHR) announced on Monday morning that it had acquired a property asset outside of Bristol.
The exchange of contracts for the Argentum Lodge Care Home facility was undertaken for a consideration of £6.95 million, with initial rental income of £0.467 million.
Speaking on the acquisition, the Impact Healthcare REIT statement read,
“Argentum Lodge is a purpose-built nursing home located in the affluent village of Nailsea, approximately 10 miles to the south west of Bristol.”
“The Group has agreed to appoint one of its existing tenants, Welford, as the new tenant of Argentum Lodge, which will leave Welford operating five homes for Impact with a total of 230 beds. The terms of the new 25-year full repairing and insuring lease with Welford for the home are the same as the Group’s existing leases with Welford.”
“The acquisition further enhances the Group’s geographic and tenant diversification and is in line with its investment criteria and returns profile.”
“The Group continues to pursue a number of further acquisitions with a number in exclusivity and has a strong pipeline of potential investment opportunities.”
Following the news, the Company’s shares rallied modestly, by 0.54% or 0.60p, to 111.60p per share 23/09/19 09:37 BST. The Group’s p/e ratio stands at 12.95, their dividend yield is 5.41%. Elsewhere in property development and estate agency news, there have been updates from; Berkeley Group Holdings Ltd (LON: BKG), Redrow plc (LON: RDW), U+I Group PLC (LON: UAI), Hunters Property PLC (LON: HUNT), GCP Student Living plc (LON: DIGS), Barratt Development Plc (LON: BDEV) and Belvoir Group PLC (LON: BLV).