Higher services growth at Speedy Hire

Andrew Hore
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Higher services growth at Speedy Hire

Speedy Hire (LON: SDY) continues to grow its services much faster than its hire revenues, according to its AGM trading statement.
In the first quarter of the current financial year, the equipment hire and services provider grew higher margin services revenues by 13.4%, compared with 1.2% growth in hire revenues. The disparity in growth rates is increasing.
In the year to March 2019, continuing revenues were 6% ahead at £389.2m, while underlying pre-tax profit was 19% higher at £30.9m. Services revenues were 10% ahead and hire increased by 3.5%.
Attempts to broaden the smaller company custome...

Walker Crips shares dip on lower profits and flat AUM

Jamie Gordon
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Walker Crips shares dip on lower profits and flat AUM
Investment management company Walker Crips Group plc (LON: WCW) said it had consolidated its position by innovating to expand its business base. This came along with the following results as part of the Company’s trading statement for teh full year ended March 31 2019.

The Company said that revenue remained the same as 2018, at £30.5 million. Similarly, Group AUM and Discretionary AUM remained level at £5.0 billion and £3.3 billion respectively, on a year-on-year basis.

Underlying operating profit before tax and exceptional items, however, fell from £906,000 to £434,000 on-year, while reported profit before tax also dropped from £924,000 to £489,000 for the full year.

Walker Crips comments

Attached to the update, Company Chairman David Gelber added the following insights,

“Notwithstanding this, reported revenue has remained stable with a significant improvement in fee income, offsetting the decline in broking commissions of £2.3 million.”

“The Group continues its efforts to help clients achieve greater returns by transferring to our discretionary or portfolio-managed mandates, which also generates more stable fee-based revenue. These efforts, and the decline in less predictable transaction-based shared commission income during the year, mean the ratio of non-broking revenue to total income has improved to 71.6% (2018: 64.1%).”

“We are closely monitoring the Government’s progress around Brexit and the impact of the present uncertainty. Given the Group’s predominantly UK centric customer base and operations, the impact of Brexit manifests in second order effects including lower trading volumes as the uncertainty influences investor sentiment. During this period, we continue to maintain a material cash buffer, regulatory capital headroom and a dividend policy that allows continued investment in new revenue stream initiatives, technologies to improve customer experience and achieve procedural and process efficiencies, and to build our ‘Software as a Service’ offering. We are committed to a programme of tightly controlling non development expenses, pushing through revenue initiatives and creating new product offerings.”

CEO Sean Lam then continued,

“Last year, we embarked upon a new vision – “Walker Crips, a Technology Driven Financial Services Company”. All the core objectives of shareholder value, customer service, operational effectiveness and efficiency, are still there, but only by emphasising and investing in technology as the delivery mechanism will the core objective be achieved. Our transformation is underway and gathering pace as we progress toward this objective.”

Investor notes

The Company’s shares dipped 2.78% or 0.75p to 26.25p a share 11/07/19 14:56 GMT. Elsewhere in wealth management, there have been updates from; Liontrust Asset Management PLC (LON: LIO), Mattioli Woods (LON:MTW), Intermediate Capital Group plc (LON:ICP) and Babcock International Group PLC (LON:BAB).

Liontrust Asset Management net inflows and AUM rise in last quarter

Jamie Gordon
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Liontrust Asset Management net inflows and AUM rise in last quarter
Specialist independent fund management company Liontrust Asset Management PLC (LON: LIO) issued a trading update for the period from 1 April to 30 June.

The Company noted that net inflows more than doubled from £320 million for the same period in 2018, to £725 million for the quarter in 2019.

Further, assets under management increased by 11% from £12.7 billion on 31 March, to £14.1 billion on 30 June 2019.

Liontrust Asset Management comments

Company Chief Executive John Ions, said,

“Liontrust has had a successful start to the new financial year, with net inflows of £725 million over the quarter and AuM reaching £14.1 billion on 30 June 2019. This maintains the momentum behind the business of the past year and shows that our growth strategy is on track.”

“This has been achieved through strong long-term investment performance, the quality of Liontrust’s sales and marketing, the increasing breadth of our client base and the robust infrastructure of the business.”

“The level of net inflows also demonstrates the continued attraction of actively managed funds which can demonstrate rigorous and repeatable investment processes.”

“We are well positioned to sustain the Company’s growth trajectory and will accomplish this by maintaining focus on our business strategy, ensuring we continually meet client and investor expectations and through the excellence of our fund management, sales, marketing and administration teams.”

The Company did caveat these projections and insights, however, “These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that have not yet occurred. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements and forecasts. As a result, the Liontrust’s actual future financial condition, results of operations and business and plans may differ materially from the plans, goals and expectations expressed or implied by these forward-looking statements.”

Investor notes

The Company’s shares rallied 2.85% or 22p a share to 794p a share 11/07/19 16:35 GMT. Numis analysts reiterated their ‘Add’ stance on Liontrust stock. Elsewhere in asset management; Mattioli Woods (LON:MTW), Intermediate Capital Group plc (LON:ICP) and Babcock International Group PLC (LON:BAB) posted updates.

European property: what can £650,000 get you?

Dina Caruso
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European property: what can £650,000 get you?
The average London property price stands at £654,925 for July 2019, according to current Zoopla estimates. But what if you could spend the equivalent of this elsewhere in the world? We take a look at what roughly £650,000 can get you in three cities dotted around Europe.

Milan, Italy

Located in the northern Italian region of Lombardy, Milan is one of the fashion capitals of the world. From its famous Gothic Duomo that towers over the city, to the Santa Maria delle Grazie convent that houses Leonardo da Vinici’s “The Last Supper”; Milan is a popular destination among tourists as it offers Italian history, art and culture mixed with a cosmopolitan vibe. But what about actually moving to the city for good? According to current Right Move listings, a three bedroom flat in Milan with bright terraces will set you back €682,000. The apartment currently being advertised at the above price is located west of the city in San Siro and is well connected to the centre with metro, tram and bus links close by. The apartment itself has four rooms in a modern building with breathtaking panoramic views over the city.

Budapest, Hungary

Capital City of Hungary, many tourists flock to Budapest each year to experience its nightlife, spas, culture and history for themselves. The city is split by the River Danube, with the Chain Bridge connecting the hills of the Buda district to flat Pest. The equivalent of £648,000 will get you a three bedroom apartment in the heart of Budapest, as listings on Right Move show. The 155 sqm property is located on the third floor of an old classical building with a lift, constructed by the same architect of the Hungarian Opera House. The Hungarian Opera House, one of the city’s most famous landmarks, is directly opposite the apartment. The apartment boasts three bedrooms, one walk in closet, one living room, one work/guest room, two kitchens, two bathrooms, three toilets and a fireplace.

Amsterdam, the Netherlands

Known for its unique yet intricate canal system, Amsterdam is the Capital City of the Netherlands. Home to the Van Gogh Museum, Amsterdam is perhaps better known among young people for its relaxed laws concerning marijuana. According to Right Move, €650,000 can get you a two bedroom apartment just south of the city centre. The apartment is flooded with natural light and is located in one of the most visually charming lanes in Amsterdam Zuid. The property is just a walk away from the Amsterdam Zuid train station, connecting the area to Central Station. A number of primary and secondary schools can be found close to the property. The apartment has a wood floor throughout, with the exception of one of the bedrooms and the kitchen. It also still has several of its original stained-glass features.

Keras Resources positive results in Nayega Manganese test

Jamie Gordon
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Keras Resources positive results in Nayega Manganese test
Technologically innovative metal producing company Keras Resources PLC (LON: KRS) saw its share price rally modestly after the test of a 10,000 tonne sample of its Nayega Manganese Project yielded promising results. In concluding highlights, the Company discussed the resource’s properties. It stated that Nayega ore is suited to production of silico-manganese alloy and that Nayega manganese leaches more favourably than South African carbonate ores. The Company added that solutions produced contained minimal impurities, which would be optimal for downstream processing.

The big news, however, came with the following confirmation,

“Significant growth potential for manganese as a replacement for cobalt in lithium-ion batteries as producers look to secure cost competitive, responsibly mined long term raw material supply”

The Company are now seeking off-takers to expand production, with the aim of increasing the resource’s saleable tonnes per month from 6,500 to 13,000.

Keras Resources comments

The Company’s CEO, Russell Lamming, attached the following comments to the update,

“We are exceptionally pleased that the bulk sample from Nayega was successfully delivered on time, within budget and has been underpinned by encouraging chemical analysis which further consolidates the commercial viability of the Nayega mine. The bulk sample produced higher than expected manganese content and, due to the expected relatively high silica content, it has been determined that the ore is better suited to the production of silico-manganese rather than the production of ferro-manganese. The bulk sample results comprehensively proved up the Project from mine to market and we look forward to moving forward following receipt of the Exploitation Permit which is currently outstanding.”

“In addition, with the inherently volatile nature of the downstream manganese alloy market and the growing demand for a cost effective, responsibly mined replacement for cobalt in the production of lithium-ion batteries, we have started additional leach testwork on the Transitional and Saprolitic zones of the Nayega orebody that were not tested in the bulk sample. It is widely understood that reductive leaching is not always amenable to all manganese minerals, let alone able to selectively dissolve the manganese content of the ore, so the initial testwork results are a very encouraging first step. It is our intention to follow up this work with a further detailed testwork programme aimed at optimising the leaching conditions and studying the purification processes required to ensure the production of a battery grade of manganese. I look forward to updating our shareholders when practicable.”

On volumes and production expansion, the Company said, “Current proposed planning, subject to the award of an exploitation license, is to double current production capacity from 6,500tpm to 13,000tpm of saleable ore through a plant upgrade which will include a downstream screening circuit to produce these size fractions. The plant as currently configured is capable of producing some 75,000 tons per annum, which would result in a substantial profit for Keras. However, on receipt of the exploitation licence Keras expects to expand and improve the plant to add more value as well as increasing production. The Company intends this to be financed in conjunction with an offtake agreement rather than equity funding.”

Investor notes

After bouncing over 20%, the Company’s shares have plateaued (relatively), up 4.21% or 0.017p to 0.42p a share 11/07/19 14:33 GMT. Elsewhere in the mining and minerals sector, recent updates have come from; Jubilee Metals Group PLC (LON: JLP), Ariana Resources plc (LON: AUU), Caledonia Mining Corporation Plc (TSE: CAL), Regency Mines Plc (LON: RGM), Acacia Mining PLC (LON: ACA), Arc Minerals Ltd (LON: ARCM), Thor Mining PLC (LON: THR) and Premier African Minerals (LON: PREM).

PetroTal provides update on output and unrest at Bretaña field

Jamie Gordon
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PetroTal provides update on output and unrest at Bretaña field
Peru-focused oil and gas developer and producer PetroTal Corp (CVE: TAL) provided an update at the Bretaña field in Block 95 in Peru. BN 95-3D (3D) came online mid June with production at 3,500 bopd, it averaged 2,875 bopd over its first 24 days of production. Full field Bretaña production averaged 3,000 bopd in Q2 and averaged 5,350 bopd since 3D came online.

The Company also announced that they had spud the BN 95-2WD (2WD), which will act as the primary well for water disposal. Upon 2WD’s completion, PetroTal plans to turn the existing water drainage well into an oil producer.

PetroTal statement

Manolo Zuniga, President and Chief Executive Officer of the Company, provided the following insights,

“We are very pleased to have achieved quarter on quarter production growth of 300 percent, a direct result of the team’s success and experience. We averaged 3,000 BOPD in the second quarter and exceeded the production milestone of 500,000 total barrels of crude oil in June 2019. We are making good progress on the water disposal well and are excited to start the workover of the existing water disposal well making it the fourth oil producer in the Company’s brief history.”

“Our latest equity raise has allowed PetroTal to have a great deal of financial flexibility, with no debt. We will continue to optimize the capital structure, providing stakeholders exposure to a truly independent oil company with double digit growth through development drilling alone, complemented by substantial exploration potential at Osheki in Block 107. We continue to host companies in the data room to review the Osheki opportunity, with the potential of engaging a joint venture partner to drill the prospect in 2020.”

“It is a testament to PetroTal’s philosophy that the Bretaña field is the only one still producing normally during the protests. This is a reflection that the local communities believe we are working on behalf of all stakeholders, promoting the fair distribution and proper use of the government take from the Bretaña Project. Though we cannot guarantee Bretaña will not eventually be shut as a consequence of their demands, we would expect this would be for a relatively short period of time.“

On the social unrest in the Northern jungle of Peru, “Since July 5, the northern jungle region of Peru has been enduring social unrest as the local communities are demanding solution to a series of demands, including a larger share of the Government take towards the local populations where the crude oil is produced. This is something the Company supports, combined with the training of local officials responsible for deploying the money.”

Investor notes

The Company’s share price stood at 0.34 CAD as of the previous close 10/07/19 15:38 GMT. Numis analysts retain their ‘Buy’ stance on PetroTal stock. Elsewhere in the oil and gas sector, there have been updates from; Hurricane Energy plc (LON: HUR), TLOU Energy Ltd (ASX: TOU), Eland Oil and Gas PLC(LON: ELA), IGas Energy PLC (LON: IGAS), Anglo African Oil and Gas (LON: AAOG), Nostra Terra Oil and Gas plc (LON: NTOG), Prospex Oil and Gas Plc (LON: PXOG) and TomCo Energy Plc (LON: TOM).

Properties sell 82% more on average in areas with less smokers

Dina Caruso
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Properties sell 82% more on average in areas with less smokers
New data has emerged revealing that areas with fewer smokers see properties sell for 82% more on average, according to the property finance specialists One77 Mortgages. One77 Mortgages worked with recent data from the ONS on the proportion of current smokers by local authority above the age of 18. According to the data, in areas where just 4-10% of the population smoke, the average property price is £335,716. This figure is 82% above the average house price of £184,878 found in areas where 19-26% of the population smoke. According to the data, as the percentage of smokers increases, property prices steadily decline; simply living in an area with more smokers seems to have an impact on property value. Chorley, Lancashire, is the best location for a smoke-free property purchase with smokers accounting for 8.02% of the population and average house prices of £175,092, One77 Mortgages said. “It’s common knowledge that smoking can impact the sale and price of an individual property, acting as a huge deterrent for those buyers that don’t smoke, but it would seem that it also plays a part on a much broader scale,” Alastair McKee, Managing Director of One77 Mortgages, said in a statement. “Properties in areas home to a lower proportion of smokers are selling for a much higher price on average and while this may not have been a selling point for those listing their homes on the market traditionally, it certainly should be now,” the Managing Director continued. “Particularly in slower market conditions, savvy sellers should look to utilise every positive aspect they can think of to stand out from the crowd and although a lower proportion of smokers might not be important to everyone, for some it certainly will be.” Recently leaked documents allegedly show that the UK government plans to end smoking by 2030. Plans were leaked to the Daily Mail, outlining the initiative to plant quit leaflets inside cigarette packets themselves.

Jubilee Metals acquires Sable Zinc Kabwe refinery

Jamie Gordon
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Jubilee Metals acquires Sable Zinc Kabwe refinery
South Africa and Zimbabwe focused metal processing company Jubilee Metals Group PLC (LON: JLP) posted an update on its existing ventures, as well as news on the update of another prospect in Zimbabwe. On its existing undertakings, the Company noted that commissioning of Eland Platinum’s recovery plant had reached flow stability on the floatation circuit and that the grinding circuit was set to be introduced by mid-July this year. The production of saleable platinum grade metals was to be expected during August 2019 at the Eland Plant. The Company added that the DCM fine chrome project reached 5,000 tonnes of on spec chrome concentrate in June 2019. On the Zimbabwe prospect acquisition, Jubilee Metals said that it had met the conditions and that final competition commissioning approval had been received for the Sable Zinc Kabwe refinery, from the Zambian Competition and Consumer Protection Commission (“ZCCPC”). “Circuit upgrades ready to commence integration with the Sable Zinc Kabwe refinery to process lead, zinc and vanadium,” the Company added. Jubilee Metals comments The Company’s CEO, Leon Coetzer, responded to the update, “Jubilee continues to demonstrate progress with the implementation of its strategy to diversify earnings through both widening our existing metals exposure with the implementation of additional projects as well as expanding our geographic footprint with our Kabwe project in Zambia.” “I am delighted that we have successfully achieved all conditions precedent for the implementation of the Sable Zinc Kabwe acquisition with the final approval from the ZCCPC being ratified and completion formalised. With the design process near finalised, this allows Jubilee to commence with the circuit upgrade and expansion of the Sable Zinc Kabwe refinery for the processing of the Kabwe tailings to produce zinc, vanadium and lead. The first phase of the project targets the production of Vanadium Pentoxide (V2O5) and a zinc concentrate with phase two bringing the zinc metal refining step and lead concentrate online.” “The PlatCro PGM project, which has the potential to add 30,000 ounces per annum of PGM production to our existing 30,000 ounces, has reached its first phase commissioning targets achieving stable flow rates through the Eland PGM Plant. The next commissioning target is to bring online the grinding circuit set for mid-July 2019. We expect to achieve saleable PGM concentrates during August 2019.” “Our ground-breaking DCM Fine Chrome project continues to deliver on expectation producing in excess of 5,000 tonnes of chrome concentrate during the month of June 2019. With this success, we now target to integrate the fine chrome solution into our other operations.” On its acquisition, the Company said in its statement, “Jubilee is pleased to announce that the ZCCPC has granted final authorisation for the Acquisition with both Jubilee and Glencore acknowledging that all CPs to the Acquisition have been satisfied. The final administrative process for the Sable Zinc Kabwe refinery handover and share transfer has commenced with the parties agreeing to target completion by the end of July 2019.” Investor notes The Company’s share price rallied 5.65% or 0.18p to 3.28p a share 11/07/19 11:55 GMT. Elsewhere in the mining and minerals sector, recent updates have come from; Ariana Resources plc (LON: AUU), Caledonia Mining Corporation Plc (TSE: CAL), Regency Mines Plc (LON: RGM), Acacia Mining PLC (LON: ACA) Arc Minerals Ltd (LON: ARCM) Thor Mining PLC (LON: THR) Premier African Minerals (LON: PREM) and Pathfinder Minerals (LON: PFP).    

Bank of England: UK financial system can withstand chaotic Brexit

Dina Caruso
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Bank of England: UK financial system can withstand chaotic Brexit
The UK financial system is strong enough to cope with a “worst-case disorderly” Brexit, the Bank of England said on Thursday. The Bank of England said in its Financial Stability Report that the nation’s core financial system, including banks, dealers and insurance companies, is resilient to, and prepared for, a variety of risks such as a disorderly departure from the European Union. It also noted that the perceived likelihood of a no-deal Brexit has increased since the beginning of 2019, and increased uncertainties surrounding the UK’s departure from the European Union has lead to a decline in the sterling exchange rate. Despite this, the Bank of England said that the UK banking system remains strong enough with continue to withstand the UK economic and financial pressure that accompany Brexit. The Bank of England emphasised that financial stability is not the same as market stability — significant volatility and asset price changes are to be expected in a disorderly Brexit. As the race to lead the Conservative Party reaches its final lap, the winner and new Prime Minister is expected to be announced on 23 July. With Boris Johnson and Jeremy Hunt facing the final battle, political uncertainty surrounding the UK’s departure from the European Union prevails. Data recently emerged revealing that 72% of small businesses in the UK are putting their business decisions on hold and not planning to increase investment, with Brexit uncertainty cited as having a negative impact on firms seeking investment. UK house prices have also been hit, with growth in June remaining weak as uncertainty surrounding the nation’s departure from the European union remains chaotic.

Ariana Resources publishes results from Salinbas Gold Project

Jamie Gordon
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Ariana Resources publishes results from Salinbas Gold Project
Turkey-based gold mining company Ariana Resources plc (LON: AUU) today announced the results from its Salinbas Gold Project. The Company holds a 100% interest in Salinbas via its shareholding in Greater Pontides Exploration B.V. In the recent testing, ‘Salinbas-type’ mineralisation was identified in several holes within c.120m from the surface, in the area connecting Salinbas and Ardala.

At 39 metres, the Company encountered 1.01 g/t of gold in a 12 metre inertsection; at 89 metres it discovered 2.29 g/t of gold in a 6 metre inetrsection; and at 111 metres, an 11 metre intersection yielded 5.33 g/t of gold.

The Company noted the results as displaying ‘significant’ mineralisation, with further results from the laboratory pending.

Ariana Resources comments

The Company’s Managing Director, Dr. Kerim Sener, added to the update,

“We are very pleased to report our preliminary drilling results from the Salinbas Gold Project, since it became 100% held by Ariana. These results, while only partial at this stage, demonstrate the development of a major magmatic-hydrothermal system in the vicinity of the Ardala Cu-Au-Mo porphyry. The latest data confirms that the mineralised part of the Ardala porphyry, which is enriched in precious and base-metals, does connect intimately with the Salinbas gold-silver zone and that the two systems should in fact be treated as one. This was a prediction from our earlier geological modelling and is a finding that bodes exceptionally well for the discovery of further mineralisation in the vicinity, particularly in the immediate surrounds of the Ardala porphyry. This is an area, which to date, has been poorly explored. Consequently we continue to remain excited by the exploration upside of the project and look forward to commencing our follow-up work programmes.”

Investor notes

The Company’s shares dipped during Thursday morning trading, down 1.01% or 0.024p to 2.35p a share 11/07/19 11:35 GMT. Panmure Gordon retains their ‘Buy’ stance on Ariana Resources stock. Elsewhere in the mining and minerals sector, recent updates have come from; Caledonia Mining Corporation Plc (TSE: CAL), Regency Mines Plc (LON: RGM), Acacia Mining PLC (LON: ACA) Arc Minerals Ltd (LON: ARCM) Thor Mining PLC (LON: THR) Premier African Minerals (LON: PREM), Pathfinder Minerals (LON: PFP) and AfriTin Mining Ltd (LON: ATM).
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