UK supermarket discounts mislead shoppers, study finds
Supermarket special offers continue to mislead shoppers, latest research from Which? reveals on Wednesday.
Which?, the consumer group, tracked the pricing and offers for 450 products available at Asda, Iceland, Morrisons (LON:MRW), Ocado (LON:OCDO), Sainsbury’s (LON:SBRY), Tesco (LON:TSCO) and Waitrose.
Though some of the deals were genuine, research shows that 65 instances across the year involved misleading discounts that did not genuinely represent the bargains being advertised.
The only supermarket to have all of its offers meet the guidelines issued by the Competition and Markets Authority (CMA) was Sainsbury’s.
Which? revealed the three general categories of misleading offers – multibuys, was/now discounts, and those that are always on offer.
The data shows that misleading offers were used to sell products such as Kellogg’s Crunchy Nut Cornflakes sold in Iceland, Cathedral City Mature Cheddar sold in Morrisons and Wall’s Carte D’Or Strawberry Ice Cream sold in Asda.
“We spotted a variety of offers like this across a variety of products in six of the seven supermarkets we looked at. We didn’t find any dodgy discounts at Sainsbury’s – all of its offers met the guidelines set by the CMA,” Which? said in its report.
Elsewhere in supermarket news, data by Kantar revealed the first overall growth decline in the supermarket sector since June 2016.
Earlier this year, Sainsbury’s £7.3 billion takeover of Asda was blocked by the Competition and Markets Authority (CMA) because it would have created a “poorer overall shopping experience”.
Shares in J Sainsbury plc (LON:SBRY) were trading at +1.78% as of 10:10 BST Wednesday. Tesco plc (LON:TSCO) shares were up 2.43% at of 10:11 BST, whilst Ocado Group plc (LON:OCDO) shares were down 1.78% as of 10:12 BST and shares in WM Morrison Supermarket plc (LON:MRW) were up 2.20% as of 10:12 BST.
Bisichi Mining rallies on earnings hike
Mining and property corporation Bisichi Mining PLC (LON: BISI) has seen its shares rally during Wednesday morning trading, following news that it saw consistent growth across earnings indices during the first half.
Both the Company’s EBITDA and adjusted EBITDA rose between H1 2018 and H1 2019, by £0.5 million and £0.3 million to £5.7 million and £5.6 million respectively. Likewise, the Group’s profit before tax grew £0.3 million to £4.3 million on a year-on-year comparison for the first half, with basic EPS increasing 2.50p to 24.75p during the same period.
Bisichi Mining did note that total production dropped by 15,000 tonnes on-year, and that its acquisition of the Black Wattle coal prospect remained subject to regulatory approval. It added that its UK property portfolio and planning were ‘performing well’.
Bisichi Mining comments
In the Company’s statement, the Group shared the following insights, “During the first half of 2019, Black Wattle Colliery, our South African mining operation, achieved total production of 655,000 metric tonnes, a similar level to the total production of 670,000 metric tonnes achieved in the first half of 2018. In addition, strong demand for our coal continued to impact positively on the prices achievable for our coal and overall Group revenue in the first half of the year.” “In terms of markets, we have continued to see global economic factors impacting coal demand with, at the end of June 2019, the average weekly price of Free on Board (FOB) Coal from Richard Bay Coal Terminal (API4 price) touching levels below US$65 per metric tonne, compared to US$95 at the end of 2018. Although we expect demand for our coal to remain stable, the weakening of prices in the international market may impact overall Group revenue in the second half of the year. However, in anticipation of any future negativity in our markets, management continues to focus on enhancing production efficiencies and developing new product opportunities. To that end, we have recently installed additional equipment, including a high-pressure filter plant and coal fines section in our coal processing plant at Sisonke Coal Processing.”Investor notes
The Company’s shares were up 5.00p or 4.55% to 115.00p 27/08/19 11:00 BST. The Group’s p/e ratio is 3.54, its dividend yield is 3.48% and its market cap is £12.28 million. Elsewhere in the mining and minerals sector, recent updates have come from; Polymetal International Plc (LON: POLY) Cora Gold Ltd (LON: CORA), Glencore PLC (LON: GLEN), Jubilee Metals Group PLC (LON: JLP), Ariana Resources plc (LON: AUU) and Bushveld Minerals Limited (LON: BMN).REC: low employer confidence in UK economy, hiring continues
Despite low confidence levels in the UK economy, employers are still looking to hire, new data reveals on Wednesday.
The Recruitment & Employment Confederation’s (REC) JobsOutlook report shows that employers’ confidence in the British economy remains low as the Halloween Brexit date approaches and uncertainty looms.
Despite the low confidence levels, the data shows that businesses are still seeking to hire, with the demand for permanent staff increasing in both the short-term and medium-term.
Additionally, the data shows that 46% of employers of permanent staff expressed concern about finding the correct candidates to hire, especially for those seeking candidates with Health & Social Care skills.
Moreover, 45% of public sector businesses said that they have no spare workforce capacity at all.
“Our flexible labour market continues to be one of the strongest elements of the UK economy,” Tom Hadley, Director of Policy and Campaigns at the REC, commented on the data.
“This most recent survey shows employers are still looking to take on both permanent and temporary workers as they seek to maintain stability amidst the Brexit uncertainty. More employers also seem to be trying to transfer their best temps into permanent roles as candidate shortages continue to bite across many sectors,” Tom Hadley continued.
“These skills shortages are especially acute in sectors like health and social care. With over 100,000 vacancies in the NHS and staff already working at full capacity, the government’s recent announcement on ending freedom of movement has come at the worst possible time.”
“EU workers are an integral part of our health and social care system and the UK workforce as a whole. It is essential that the government has in place a sensible transition towards an evidence-based immigration policy to help reassure employers and EU citizens.”
The REC’s JobsOutlook for June revealed an improvement in employers’ confidence in the UK economy and in their own hiring and investing since the Brexit extension.
TLOU Energy positive updates on drilling, approvals and project bids
South Africa-focused natural gas company TLOU Energy Ltd (AIM: TLOU) announced positive operational developments during the first half of 2019.
The coal bed methane project Group said that it had successfully drilled its production at its Lesedi CBM project, and that these wells were producing a sustainable flows of gas.
TLOU Energy continued by saying that it had secured environmental approval for its planned downstream development, and that it could commence commercial development. Finally, it noted that it had been identified as the preferred bidder for Botswana-based CBM gas-to-power proposal.
TLOU Energy comments
In a letter to shareholders, Company Chairman Martin McIver said,“During the last 12 months, Tlou has completed a work program including drilling of two dual lateral development wells in the Lesedi project. The wells (Lesedi 3 and 4) are located adjacent to the proposed central gas gathering and power generation facility and are currently producing gas.”
“In April 2019, the Company successfully completed targeted private placements to sophisticated investors in Botswana and Australia. Following the placements, local ownership increased significantly, with the Botswana Public Officers Pension Fund (BPOPF) now the Company’s largest shareholder.”
“This has been a highly active year for Tlou, following confirmation that the Company has been chosen as a preferred bidder for the development of the one of the first commercial CBM gas-to-power projects in Botswana, approval of the required Environmental Impact Statement and the successful drilling of two dual lateral development wells. We look forward to another successful year ahead.”
“With CBM development not previously established in Botswana, Tlou is pioneering CBM development in the region. Successful results from Tlou’s projects could potentially impact a whole new CBM basin and be a significant boost not only for Tlou, but for the whole region.”
Investor notes
The Company’s shares are currently trading up 1.19% or 0.054p to 4.60p a share. Neither the Group’s p/e ratio nor their dividend yield are available, their market cap stands at £21.16 million. 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).Eco Atlantic Oil and Gas spud the Joe-1 well
Oil and gas production company Eco Atlantic Oil and Gas Ltd (AIM: EOG) today announced the drilling of its Joe-1 well, its second exploration well on the Orinduik Block in offshore Guyana.
The well was drilled on the 25th of August using the Stena Forth drillship, which previously spud their Jethro venture. Eco Atlantic estimate the well to hold around 148.3mmboe of unrisked prospective oil resources, and is expected to take three weeks to drill. This is the Group’s second drill programme at the Orinduik Block; with the Company funded for a further six potential wells on the same Block.
Eco Atlantic Oil and Gas comments
Colin Kinley, Chief Operating Officer and co-founder of the company, stated,
“We are very pleased to have spudded on Sunday our second exploration well on Orinduik. After the discovery made on Jethro in the Lower Tertiary, which greatly derisked that age section throughout the block, we are now moving to an Upper Tertiary target in the Joe prospect where we are targeting over 100mmboe. If a further discovery is made, it will further enhance the value of the block with this shallower play. The estimated chance of success for Joe is the same as Jethro, although it is a completely different play, and we are confident in our 3D interpretation as we were ahead of the Jethro-1 discovery.”
“We look forward to continued success in our exploration efforts as we move forward to define the plays available to us in all the various geological ages and to develop this block.”
Investor notes
The Company’s shares have rallied 3.15% or 4.70p to 153.70p a share 27/08/19 15:45 BST. The Group’s p/e ratio stands at 60.70 and their market cap is £280.22 million.
Elsewhere in the oil and gas sector, there have been updates from; Valeura Energy Inc. (LON: VLU), President Energy PLC (LON: PPC), Mosman Oil and Gas Limited (AIM: MSMN), Nostrum Oil and Gas PLC (LON: NOG) and Reabold Resources PLC (LON: RBD).
UK pensioners face worst poverty rate in western Europe, study shows
Pensioners in Britain suffer the worst poverty rate in western Europe, new data reveals on Tuesday.
According to FairMoney.com, nearly one in five pensioners have said that financial stress is causing them to lose sleep at night.
Moreover, one in ten pensioners said that financial issues have caused strain in their marriage and 9% would never publicly admit that they are struggling with poverty.
The data shows that 10% have experienced issues with their mental and/or physical health as a result of financial stress, with 7% saying that money is the main source of conflict in their family.
In the mid-1980s, roughly 1% of citizens in the UK aged 65 and over lived in severe poverty. This figure has jumped to almost 6% today, meaning that pensioners in the UK suffer the worst poverty rate in western Europe.
“Something has to change. The economic crisis of 2008 has continued to have knock-on effects, with banks not lending at a fair rate and many being forced to turn to payday lenders, making their future ability to lend much more difficult,” Dr Roger Gewolb, Executive Chairman of FairMoney.com, provided a comment.
“This has happened across the board and the research today from FairMoney.com demonstrates that pensioners are trying to help out their children while battling with poverty themselves. This is not fair and if we don’t do anything, this situation will continue to cause financial and health issues for millions of British pensioners,” Dr Roger Gewolb continued.
Last week, it was reported that almost half of adults turn to their parents for financial support. Among the categories that parents help their children with lie paying for holidays, clothes shopping and university fees. But what about when parents themselves face financial difficulty?
The research from FairMoney.com shows that 6% of pensioners haven’t alway been able to afford a roof over their head.
Polymetal shares rally, guidance maintained and revenues rise
Precious metals mining company Polymetal International Plc has seen its share price rally on publication of its results for the first half of full-year 2019.
The Company booked a 20% hike in revenues on a year-on-year comparison for the same period, up to US $946 million. Alongside this, the Company’s Adjusted EBIDTA jumped 34% to $403 million and its return on assets grew 1% to 14%. However, the Group’s net earnings dipped 13% on-year to $153 million.
The on-year comparison was mixed for the Polymetal shareholders, with a declared dividend of $0.31 per share up 3% on-year for the first half. Less encouraging, though, was that adjusted earnings per share dropped 18% from H1 2018, down to $0.33 a share.
Polymetal comments
Vitaly Nesis, Group CEO, added his insights on the results, “Our strong earnings during the period reflect solid operational delivery, and most notably excellent results from Kyzyl” “Traditionally, we expect seasonally lower costs, higher production and materially stronger cash flow generation in the second half of the year, allowing us to meet our full year cost and production guidance”.Investor notes
The Company’s share price is currently up 2.20% or 24.50p to 1,140.50p a share 27/08/19 13:04 BST. RBC Capital Markets reiterated their ‘Outperform’ stance on Polymetal stock. The Group’s p/e ratio stands at 13.64 and their dividend yield is 3.25%. Elsewhere in the mining and minerals sector, recent updates have come from; Cora Gold Ltd (LON: CORA), Glencore PLC (LON: GLEN), Jubilee Metals Group PLC (LON: JLP), Kavango Resources PLC (LON: KAV), Ariana Resources plc (LON: AUU), Rio Tinto plc (LON: RIO) and Bushveld Minerals Limited (LON: BMN).Tuesday market movements show indices ready ‘to turn on a dime’
Political tensions continue to weigh on market sentiment and dampen any hopes of a prolonged rally. Last Friday’s re-escalation of trade tensions and the Yuan falling to an 11 year low on Tuesday, was countered by the idea that both the US and China would be willing to return to the negotiating table again, and impressive performance on Monday across major indices, showed markets still have the stomach for growth. Market movements on Tuesday morning didn’t fully reverse Monday’s successes but revealed just how volatile the current climate remains.
Spreadex Financial Analyst, Connor Campbell, said te following about Tuesday’s market opening,
“The open was informed by the Chinese yuan falling to a fresh 11 and a half-year low, a sign that investors are tempering their optimism about a positive outcome to the trade war appearing any time soon.”
“That wasn’t enough, however, to completely undo Monday’s rebound. Not yet, anyway. The FTSE remained trapped the wrong side of 7100, dipping 20 or so points; the DAX, meanwhile, was down 0.3%, with the CAC a smidge worse off as it dropped 0.4%.”
“For reference, the Dow Jones is similarly expected to fall 0.3% when the bell rings on Wall Street. Of course, there is a long time between now and then, and if the last few days – and August as a whole – has shown anything, it is that, at the moment, the markets can turn on a dime.”
“The pound was rather muted in its gains on Tuesday. Against the dollar it clawed back 0.2%, leaving it to tease $1.224, while against the euro sterling could only add 0.1%. The latest headlines suggest that Jeremy Corbyn could back a pre-Brexit election to try and avert no deal, though that level of uncertainty would be only mild comfort to the pound.”
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.Carpetright’s largest shareholder takes on its debt
Carpetright said on Tuesday that Meditor has agreed to purchase its £40.7 million revolving credit facility directly from the company’s current lending banks.
Shares in Carpetright were up almost 10% following the announcement.
Meditor is a substantial shareholder of Carpetright, owning just under 30% of the carpet retailer.
The £40.7 million facility was recently reduced after the sales of two Amsterdam properties.
“In connection with the arrangements Meditor did not seek any assurances from the Company, did not propose board representation and did not request structural changes in the business. Meditor has confirmed it now intends to engage with the Company with a view to providing a more stable and longer-term funding platform,” Carpetright said in a company statement.
In June, Carpetright posted a narrower loss in its full year results, returning to like-for-like sales growth in its new financial year.
Just over a year ago, its shareholders supported a Company Voluntary Arrangement (CVA) restructuring plan which closed 80 underperforming stores.
Over the past year, several retailers across the UK have struggled for survival amid the challenging trading environment to hit the retail sector.
The carpet seller lies among these retailers, issuing its fourth profit warning in five months last year.
Shares in Carpetright plc (LON:CPR) were trading at +9.31% as of 10:08 BST Tuesday.
