Bigblu Broadband swings to profit with 22% revenue jump

Jamie Gordon
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3
Bigblu Broadband swings to profit with 22% revenue jump
Satellite internet provider to rural areas Bigblu Broadbend PLC (LON: BBB) booked improved fundamentals during the first half of 2019, with results pushing into the green and the Company expecting to narrow their net debt going forwards. The Company’s revenues bounced 21.9% on a year-on-year comparison, up to £30.5 million. Meanwhile, their adjusted revenue jumped 56.4% to £4.3 million in a comparison of the same periods.

Bigblu debt did expand by £5.0 million to £16.90 million during H1 2019. However, between the end of H1 2018 and H1 2019, there was a £5.4 million positive turnaround in operating profit, with the Company managing to swing to positive £0.7 million by the end of the period.

The outlook for the Company’s shareholders remained mixed, but certainly improved on-year. Adjusted EPS hiked from 0.5p for H1 2018, to 2.7p for H1 2019. Losses Per Share narrowed from 12.1p to 1.2p during the same period.

Bigblu Broadband comments

Andrew Walwyn, CEO of BBB, said,

“This was another period of expansion for the Company as we successfully developed our routes to market and customer base. The combination of our technology agnostic product portfolio and strong distribution partnerships ensured that we remained at the forefront of the rapidly growing global alternative super-fast broadband industry. Importantly, given the relationships and product sets we now have in place, we are clearly demonstrating strong organic growth. As such, we are extremely excited by the recent extension of our agreement with EBI, which has performed strongly to date, and the funding now in place to accelerate Quickline’s fixed wireless network roll-out.”

“This means that we are well placed to grow our customer bases across our products and territories and benefit from increasing margins due to the improved infrastructure and proven partnerships already in place.”

“We therefore expect strong organic growth to continue for the remainder of the current financial year following the EBI extension and believe the Quickline funding will result in a significant increase in our UK fixed wireless customer base.”

“We are extremely excited by the growth opportunities ahead and expect the strong demand for our solutions to increase further as we adopt new products with faster broadband speeds and unlimited download limits whilst driving down the cost of customer acquisitions and churn during the second half of the current financial year.”

Investor notes

The Company’s shares rallied 2.27% or 2.35p and closed at 105.85p a share 28/08/19 15:55 BST. Numis analysts reiterated their ‘Buy’ stance on Bigblu Broadband stock. Elsewhere in the tech sector, there were updates from; Avanti Communications Group PLC (LON: AVN), Maestrano Group (AIM: MNO), Vitec Group plc (LON: VTC), TT Electronics (LON: TTG), SDL plc (LON: SDL), Dialight Plc (LON: DIA) and Seeing Machines (LON: SEE).

The Queen consents to proroguing Parliament

Jamie Gordon
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16
The Queen consents to proroguing Parliament
The Privy Council meeting took place at Balmoral, with Jacob Rees-Mogg, Natalie Evans and Mark Spencer in attendance as the Queen consented to PM Boris Johnson proroguing Parliament. https://platform.twitter.com/widgets.js “It is this day ordered by Her Majesty in Council that the Parliament be prorogued on a day no earlier than Monday the 9th day of September and no later than Thursday the 12th day of September 2019 to Monday the 14th day of October 2019, to be then holden for the despatch of divers urgent and important affairs, and that the Right Honourable the Lord High Chancellor of Great Britain do cause a Commission to be prepared and issued in the usual manner for proroguing the Parliament accordingly.” the key Privy Council text read today. Following what has been described as a ‘constitutional outrage’, legal professionals and constitutional experts have stated they believe it is only a matter of time until legal challenges are presented to the incumbent government, particularly in regard to the length of the Parliament shut-down (five weeks, the longest proroguing since 1945).The first of these challenges is expected to come from Scotland.

Immediate thoughts

Reacting to the news, former Tory deputy PM Michael Heseltine commented, “On hearing the news whilst on holiday in Montenegro, I am appalled by the government’s announcement,” “The government’s decision is a constitutional outrage. A government which is frightened of parliament is frightened of democracy. I hope that every member of parliament, in feeling this humiliation, will use every legal and constitutional weapon to obstruct a government proposing to force on the British people a historic change for which they have long since lost any mandate.” MPs Jo Swinson and Ana Soubry are among the first members of the House who have written to the Queen, requesting a meeting to discuss today’s passing of the ‘undemocratic proposal’. Labour leader Jeremy Corbyn weighed in with a better late-than-never attempt at opposing the Conservative-led government, lamenting Boris’s actions as ‘a smash and grab’ on democracy.

Looking forwards

Today’s move was largely foreseeable. Boris needed a majority to pass his topsy-turvy secondary legislation (No-Deal preparations) as primary legislation, that could stand up to judicial review. He was never going to get a Parliamentary majority and thus proroguing Commons was the only was he could get his motions passed; once he sought Royal approval he was likely to get his way, lest the Queen risk bolstering the Republican case. Boris’s big brother, Mr Trump, also weighed in on the UK situation in the coming month. https://platform.twitter.com/widgets.js We’ll no doubt bore you with further updates and opinions as they emerge. For now, is my No-Deal with pluses prediction becoming more likely by the hour (not smug, but probably right)? Other market and macro financial updates have come from; No-Deal Brexit preparations, UK GDP during the second quarter, the London Stock Exchange Group (LON: LSE), the US-China currency manipulation debacle, and analysts’ outlook for markets and currencies.  

Boris Johnson plans to suspend parliament: reactions

Dina Caruso
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Boris Johnson plans to suspend parliament: reactions
News emerged on Wednesday that Boris Johnson will attempt to block parliament until 14 October. The Prime Minister has asked the Queen to suspend parliament ahead of the Halloween Brexit deadline. The GBP/USD took a hit, sinking to around 1.2200 following the announcement. The move was met with backlash because it limits MPs’ ability to block a no-deal departure from the European Union. Below are a collection of reactions to the Prime Minister’s actions. Nicola Sturgeon, current First Minister of Scotland, took to Twitter to comment: https://platform.twitter.com/widgets.js Philip Hammond, British Conservative politician, said that the move was “profoundly undemocratic”. https://platform.twitter.com/widgets.js British Labour Party politician David Lammy said on Twitter that “Boris Johnson wants to suspend democracy to force through a No Deal Brexit against the will of Parliament and the country.” https://platform.twitter.com/widgets.js British Author Carole Cadwalladr addressed citizens across the pond: https://platform.twitter.com/widgets.js British Labour Party politician Andrew Adonis said that “a kind of coup is taking place” and that: https://platform.twitter.com/widgets.js In addition to the reactions shared on the social media platform Twitter, Nigel Green, Chief Executive and Founder of deVere Group, provided a comment. “It could be argued that Boris Johnson’s decision to ask the Queen to suspend parliament, and therefore to prevent democratically elected representatives of the people doing their job, is deeply unconstitutional and has the hallmarks of a tin-pot dictator,” Nigel Green said. “It is likely to be a tactic to spook negotiators into making concessions to the Withdrawal Agreement. Whether it will work remains to be seen. It will almost certainly be challenged in the courts.” “What we do know for sure though is that this step will inflict further unnecessary economic damage on an already extremely vulnerable UK economy,” Nigel Green warned. “Depressingly, recession is looming for Britain and Johnson’s highly controversial tactics seriously increase the uncertainty which will further drag on investment and trade.” “In addition, it will further batter the beleaguered pound, which reduces people’s purchasing power. Weaker sterling means imports are more expensive, with rising prices typically being passed on to consumers.” “Brexit has plunged Britain into an existential crisis that will last for generations.”

James Fisher and Sons shares dip despite revenue and dividend hike

Jamie Gordon
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0
James Fisher and Sons shares dip despite revenue and dividend hike
Marine engineering services company James Fisher and Sons plc (LON: FSJ) booked a mixed set of financial results during the first half of FY19, which saw their share price dip during trading on Wednesday. The Group’s revenues jumped 10% on a year-on-year comparison for the same period, up to £286.90 million. The Company’s dividend per share paid during the period increased by the same margin, up 10% to 11.30p per share. While James Fisher and Sons statutory operating profit rose fractionally by 1%, both its underlying profit before tax and underlying diluted EPS dipped by 4% on-year, to £20.9 million and 33.20p.

James Fisher and Sons comments

Chief Executive Officer, Nick Henry, said,

“The Group has made good strategic progress in the first half with the acquisition in Brazil and the purchase of two dive support vessels. We remain well positioned across all four of our divisions with significant growth opportunities ahead. As previously advised, the phasing of projects has made the year more weighted to the second half, which will also begin to benefit from the investment committed to in the first half. The Group remains well placed to deliver an improved financial performance in the year and to continue to provide future value to its shareholders.”

Investor notes

The Company’s shares have widened through the day, down 5.88% or 125.00p to 2,000.00p per share 28/08/19 14:23 BST. Analysts from Jefferies International reiterated their ‘Hold’ stance on James Fisher and Sons stock. The Group’s p/e ratio is 23.74 and their dividend yield is 1.55%. Elsewhere in the oil and gas sector, there have been updates from; Eco Atlantic Oil and Gas Ltd (AIM: EOG), Valeura Energy Inc.(LON: VLU), President Energy PLC (LON: PPC), Mosman Oil and Gas Limited (AIM: MSMN) and Nostrum Oil and Gas PLC (LON: NOG).    

Loungers revenues and profits bounce over 20% during the full year

Jamie Gordon
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2
Loungers revenues and profits bounce over 20% during the full year
Food and drink outlet operator Loungers PLC (LON: LGRS) booked healthy growth across financial performance indices during the full year ended April 31 2019. The Group’s revenue jumped 26.4% on a year-on-year basis, to £153.0 million, and adjusted operating profit bounced 23.3% to £12.4 million. Loungers also reported adjusted EBITDA growth of 23.7% to £20.6 million and their adjusted EBITDA margin dropped slightly by 0.2% on-year. Further, the Company’s like-for-like sales grew 6.9% and cash generated from operations hiked 13.5% to £22.4 million. The Group added that it added 25 sites over the course of the year, taking its total number to 146 cafes, bars and restaurants. Loungers shares were admitted to the AIM post year end and raised £83.30 million.

Loungers comments

Nick Collins, Chief Executive Officer, said,

“These results represent a strong performance for the financial year ending 21 April 2019 and are in line with both our, and the market’s, expectations. Our revenue and profit growth not only reflect the continued success of the roll-out, but also our unwavering focus on our customers, the evolution of our proposition and how we support and invest in our teams.”

“Our admission to AIM post the FY19 year-end has meant almost 600 employees have had the opportunity to become shareholders in Loungers plc and it is fantastic that their hard work and commitment can be rewarded in this way.”

“Our new financial year has started well and our roll-out strategy for both brands is on schedule. I remain confident about the outlook and future growth prospects for the Group.”

Investor notes

Despite the positive update, the Company’s shares dipped 0.49% or 1.00p to 205.00p a share 28/08/19 12:37 BST. Analysts from Peel Hunt and Liberum Capital both reiterated their respective ‘Buy’ stances on Loungers stock. Elsewhere, there have been updates from other food and drink retailers; The Coca-Cola Co (NYSE: KO), Devro plc (LON: DVO), Greencore Group plc(LON: GNC), NWF Group plc (LON: NWF), Cranswick plc (LON: CWK) and Nestle SA (SWX: NESN).

Thomas Cook shares plunge following Fosun rescue deal

Dina Caruso
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1
Thomas Cook shares plunge following Fosun rescue deal
Thomas Cook (LON:TCG) shares tumbled over 11% on Wednesday after it announced that it had agreed on a rescue deal. The British global travel group said that it had reached a “substantial agreement” between China-based Fosun Tourism Group, its core lending banks and a majority of its senior noteholders. The deal will see Fosun offer £450 million in exchange for at least 75% of the travel group’s tour operating business and 25% of its airline. The company’s core lending banks and noteholders will also inject £450 million, in return for 75% of Thomas Cook’s airline and 25% of its tour operator. Thomas Cook added in a company statement that “the recapitalisation is expected to result in existing shareholders’ interests in the recapitalised and reorganised Group Airline being significantly diluted”. Moreover, the travel group said that the board’s current intention is to maintain its listing. “However, the implementation of the proposed recapitalisation may, in certain circumstances, result in the cancellation of the Company’s listing,” the company warned in a statement. Earlier in June, Thomas Cook confirmed that it had received a takeover approach from the Chinese tour business Fosun. It has been under pressure recently with falling profits – in May the travel group reported a £1.5 billion loss for the first-half of the year. The business also revealed earlier this year that it was set to close 21 stores, focusing instead on online growth. Thomas Cook, the leading leisure travel group, is supported by 21,000 employees and has 200 own-brand hotels. Shares in Thomas Cook Group plc (LON:TCG) were trading at -11.02% as of 12:57 BST Wednesday.

Avanti Communications shares drop as its backlog widens

Jamie Gordon
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3
Avanti Communications shares drop as its backlog widens
UK based satellite provider Avanti Communications Group PLC (LON: AVN) saw its share price dip sharply on Tuesday, crowned by a seemingly optimistic but hardly in-depth trading update from the Company. Avanti Communications said that their EBITDA for the first half was ‘in line with Company budget’, and that their guidance remained positive for the full-year, with further material growth forecast in 2020.

The Group added that its backlog had increased 80% to $156.4 million at 30 June 2019, up from $87 million on-year.

Operationally, the Company said that it had successfully launched HYLAS 3 post period end, and had completed a 1.5 lien credit facility.

Avanti Communications comments

Kyle Whitehill, CEO, said,

“The steady progress in the first half of 2019 has set the foundations for the remainder of the year. We expect to see a material contribution from Government bandwidth opportunities in the second half of 2019.”

Regarding its operations, the Company’s statement read,

“Avanti connects people wherever they are – in their homes, businesses, in government and on mobiles. Through the HYLAS satellite fleet and more than 180 partners in 118 countries, the network provides ubiquitous internet service to a quarter of the world’s population.”

“Avanti is the first mover in high throughput satellite data communications in EMEA. It has rights to orbital slots and Ka band spectrum in perpetuity that covers an end market of over 1.7bn people.”

“The Group has invested $1.2bn in a network that incorporates satellites, gateway earth stations, datacentres and a fibre ring.”

Investor notes

Since markets opened on Wednesday, the Company’s shares have dipped 17.30% or 0.11p to 0.52p a share 28/08/19 11:06 BST. Neither a r/e ratio or dividend yield are available, their market cap is £10.82 million. Elsewhere in the tech sector, there were updates from; Maestrano Group (AIM: MNO), Vitec Group plc (LON: VTC), TT Electronics (LON: TTG), SDL plc (LON: SDL), Dialight Plc (LON: DIA) and Seeing Machines (LON: SEE).

GBP/USD sinks as Boris Johnson plans to ask Queen to suspend Parliament

Dina Caruso
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8
GBP/USD sinks as Boris Johnson plans to ask Queen to suspend Parliament
The GBP/USD is trading around 1.2200 as Boris Johnson attempts to block parliament until 14 October. News broke on Wednesday that Prime Minister Boris Johnson has asked the Queen to suspend parliament ahead of the Halloween Brexit deadline. After the suspension period, a new Queen’s Speech will occur to reveal the PM’s “very exciting agenda”. However, the move has sparked a wave of backlash because it limits MPs’ ability to block a no-deal departure from the European Union. Boris Johnson insisted that “there will be ample time” both before and after the 17 October Brussels summit for MPs to debate the nation’s departure from the European Union. “We’re not going to wait until October 31st before getting on with our plans to take this country forward,” the PM continued. “This is a new government with a very exciting agenda to make our streets safer, it’s very important we bring violent crime down, we need to invest in our fantastic NHS, we need to level up education funding across the country, we need to invest in the infrastructure that’s going to take this country forward for decades and we need to deal with the cost of living, moving to a high wage, high productivity economy … and do to that we need new legislation … that’s why we are going to have a Queen’s Speech and we are going to do it on October 14th,” Boris Johnson said. https://platform.twitter.com/widgets.js Philip Hammond took to Twitter to express backlash towards the “profoundly democratic” situation: https://platform.twitter.com/widgets.js

OptiBiotix Health shares in free-fall despite operational progress

Jamie Gordon
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5
OptiBiotix Health shares in free-fall despite operational progress
Biotechnology company OptiBiotix Health PLC (LON: OPTI) has seen its share price dive despite gaining new licences and partnerships during the first half of the year. Regarding licences and approvals; the Group gained a CE mark for its SlimBiome product, its cholesterol and blood pressure reducing Lactobacillus plantarum LP-LDL probiotic strain was determined as Generally Recognized As Safe by the FDA and it launched its LP-LDL in the pharmacies of Spain’s largest department store. Regarding parternships, OptiBiotix appointed; Zeon Lifesciences Ltd to manufacture and supply SlimBiome in India, EIWA Trading Company to import, market and distribute Lactobacillus plantarum LP-LDL in Japan, DKSH International Limited to distribute SlimBiome in Italy and Spain, and Extensor to import, market and distribute their own-label GoFigure® products in Poland. The Group also reached an agreement utrilinea Srl to develop a food supplement containing LP-LDL, for hypertension reduction. The Company also raised £1.025 million through convertible loan notes, to fund an IPO of its subsidiary ProBiotix Health.

OptiBiotix Health comments

Stephen O’Hara, CEO, stated,

“This has been an exciting half year period, with twelve commercial deals signed, six for SlimBiome and six for LP-LDL, making a total of 44 deals since mid-2017. The large number of agreements signed in the last two years demonstrate early commercial progress. The next stage of the process is to ensure these agreements deliver recurring revenue streams to build sales growth in 2019 against a continued low-cost base and create profitable divisions across all areas of the Company.”

“We are particularly proud of achieving the CE mark and medical device status for SlimBiome Medical product and GRAS status for LP-LDL which are both significant milestones. As we continue to move towards a commercial business, I would like to thank our shareholders for their continued support and we look forward to an exciting future commercialising our technology in this fast growth area.”

Investor notes

After a slight recovery, the Company’s share price dipped 30.33% or 20.02p to 45.98p a share. Neither the Group’s dividend yield nor their p/e ratio are available, their market cap is £38.88 million. Elsewhere in health and medical news; NMC Health (LON: NMC), Astrazeneca plc (LON: AZN) and ValiRx Plc (LON:VAL).

Bury takeover collapses, expelled from English Football League

Dina Caruso
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0
Bury takeover collapses, expelled from English Football League
Bury’s potential takeover bid from C&N Sporting Risk has collapsed, leaving the club expelled from the English Football League. The football club had been given an extension to the original Friday deadline, with the new deadline set at 5pm on Tuesday to finalise the deal with C&N Sporting Risk. Bury, the League One club, issued a statement on its website eighteen hours ago, telling supporters the club understands “that this is a difficult and emotional time for all supporters given the recent news regarding a potential takeover”. The last team to be expelled from the English Football League was Maidstone, after it faced liquidation back in 1992. “The EFL Board met earlier this evening and, after a long and detailed discussion, determined that Bury FC’s membership of the English Football League be withdrawn after the deadline passed at 5pm today (Tuesday 27 August) without a successful resolution,” a statement reads on the EFL website. The EFL Board unanimously determined with “enormous regret” that Bury’s membership be withdrawn after all options were fully considered, including late expressions of interest. League One will now be made up of 23 teams for the remainder of the season. Only three will face relegation to provide a full 24 teams for the following season. https://platform.twitter.com/widgets.js
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