Vitec retains full-year guidance despite 2.2% drop in revenue

Jamie Gordon
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5
Vitec retains full-year guidance despite 2.2% drop in revenue
Image capture product manufacturer Vitec Group plc (LON: VTC) booked weak fundamentals during the first half ended 30 June 2019. The Company’s revenue dipped 2.2% on a constant currency year-on-year basis, to £184.2 million. While adjusted operating profit rose 0.5% to £25.8 million; adjusted profit before tax dipped 4.0% to £23.5 million, statutory operating profit dropped 8.7% to £18.9 million and statutory profit before tax dived 15.7% to £16.6 million. Vitec Group also presented a somewhat mixed set of results on its shareholder yields. Adjusted basic earnings rose 1.0% to 39.9p per share and the Group declared an interim dividend for the first half of 12.3p a share, up 7.0% on-year. Conversely, statutory basic EPS collapsed 29.3% to 27.0p. The Company said the integration of Amimon is complete and the launch of wireless video products into the broadcast sports market is set for 2020. The Group also said it was on track to take advantage of the growing e-commerce channel, with a restructuring of its Imaging Solutions sector.

Vitec Group comments

Commenting on the results, Stephen Bird, Group Chief Executive, said,

“I am pleased with Vitec’s half year performance, where we delivered results in line with expectations despite some challenges. The integration of Amimon is complete and I am excited about the opportunity to grow our wireless video capabilities, particularly in the broadcast sports market. Imaging Solutions continued to outperform a disrupted market through expanding into adjacent market segments, and is transitioning to an e-commerce business model to support future growth.”

“Over the last three years, the Group has continued to make progress executing its strategy to drive organic growth, improve margins and make value adding acquisitions. Our resources and investment are prioritised on developing new products for our faster growing brands and market segments, and our cost base is tightly managed. We also continue to look for further opportunities to add to our product portfolio.”

“Vitec is in good shape and is increasingly exposed to more growth segments of the “image capture and content creation” market. We are pleased to confirm that our outlook for the current year is unchanged, whilst we remain mindful of geopolitical challenges and FX movements. Notwithstanding these uncertainties, we continue to expect a strong 2020, benefitting from the summer Olympics, US Presidential elections and the targeted growth initiatives already underway.”

Investor notes

Following the announcement, the Company’s share price dipped 3.59% or 40.00p to 1,075.00p a share 08/08/19 16:27 BST. Peel Hunt analysts reiterated their ‘Buy’ stance on Vitec stock. The Group’s p/e ratio stands at 11.96, their dividend yield is 3.39%. Elsewhere in the tech sector, there were updates from; TT Electronics (LON: TTG), SDL plc (LON: SDL), Dialight Plc (LON: DIA), Seeing Machines (LON: SEE) and Bidstack Group PLC (AIM: BIDS).

Coca-Cola European Partners profits and EPS spike during H1

Jamie Gordon
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2
Coca-Cola European Partners profits and EPS spike during H1
Coca-Cola European Partners, subsidiary of manufacturer of non-alcoholic beverages manufacturer The Coca-Cola Co (NYSE: KO) booked an impressive sheet of fundamentals during the first half of 2019. The Group’s profit before tax jumped 22.0% on a year-on-year comparison against H1 2018, up to €508 million. Their operating profit also spiked 20.0% to €726 million, pushed by revenue growth of 7.0% on-year, to €5.8 billion. Unit case volumes rose 2.0% to 1.2 billion. Coca-Cola European Partners also presented an appealing offering to shareholders, with H1 diluted EPS jumping 25.5% and the Group declaring an interim dividend payment of 0.62p a share, up 19.0% on-year.

Coca-Cola European Partners

Company Chief Executive Officer, Damian Gammell, offered the following insights,

“We are taking the decisions today to invest in the capabilities that we know we will need to win tomorrow. All underpinned by an aligned relationship with The Coca-Cola Company and a strong sustainability agenda, particularly around packaging, where we are taking action and leading innovation.”

“We have delivered a good first-half performance, reflecting our continued focus on driving profitable revenue growth through price and mix realisation and solid in market execution, alongside the successful closure of our merger commitments. We remain focused on building this momentum, albeit following a strong third quarter last year, including scaling up on some of our exciting innovations like Coke Energy and the recently launched Costa ready-to-drink coffee in Great Britain.”

“We are today reaffirming our full-year guidance for 2019. We remain confident in our annual growth objectives over the mid-term, which make for an attractive investment story underpinned by a strong and flexible balance sheet. This, alongside healthy dividend growth and the continuation of our share buyback programme, collectively demonstrate our focus on delivering sustainable value for our shareholders.”

Investor notes

Its parent Company’s shares have rallied 0.038% or 0.02p to 53.20p a share 08/08/19 10:37 GMT. The Group’s dividend yield is 2.36%, its market cap is $25.77 billion. Elsewhere, there have been updates from other food and drink retailers; Devro plc (LON: DVO), Greencore Group plc(LON: GNC), NWF Group plc (LON: NWF), Cranswick plc (LON: CWK), Nestle SA (SWX: NESN) and Fuller, Smith and Turner plc (LON: FSTA).

Hargreaves Lansdown rallies as full-year revenues and AUA rise

Jamie Gordon
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1
Hargreaves Lansdown rallies as full-year revenues and AUA rise
Financial services company Hargreaves Lansdown PLC (LON: HL) have seen their share price rally after posting a set of largely impressive fundamentals for the full-year. The Company published an 8% on-year rise in Assets Under Administration,, up to £99.3 billion. Similarly, revenues were up 7% to £480.5 million and profit before tax grew 5% to £305.8 million. However, Hargreaves Lansdown did note that new business inflows were down 4% on a year-on-year comparison, down to £7.3 billion. Its shareholders enjoyed similar success; its diluted EPS grew 5% to 52.0p a share, and its ordinary dividend per share and total dividend per share both rose 5% to 33.70p and 42.0p respectively.

Hargreaves Lansdown comments

Chris Hill, Chief Executive Officer, stated,

“We are pleased with the underlying strength and resilience of our business and our increase in market share. We continue to focus on our clients’ evolving needs and where we see opportunities for growth. We now have a record 1,224,000 clients and Assets Under Administration (AUA) of £100 billion.”

“The second half of the financial year was particularly strong, supported by our best ever tax year end with clients continuing to use their ISA and SIPP allowances. Our Active Savings launched with a full tranche of term deposits and through considerable momentum, now has over £1bn AUA. Our HL Select Global Growth Shares fund now has over £350 million Assets Under Management and is our most successful Select fund launch to date.”

“I have apologised to all clients who have been impacted by the recent problems around the Woodford Equity Income Fund, because we all share their disappointment and frustration. In these difficult times we recognise the financial and personal impact the gating of the fund has had on them. Our priority is to support them, keep them informed and ensure that the fund reopens as soon as is practicable.”

“We recognise that there are industry headwinds, but we continue to execute our strategy and remain on track. We are confident that we are well placed to help our clients prosper, whilst continuing to deliver strong and sustainable returns for shareholders.”

Investor notes

Following the announcement, the Company’s shares rallied 9.05% or 165.93p to 1,998.93p per share 08/08/19 14:53 BST. Peel Hunt upgraded its rating from ‘Hold’ to ‘Add’, while Shore Capital analysts reiterated their ‘Hold’ stance on Hargreaves Lansdown stock. The Group’s p/e ratio stands at 36.88 and their dividend yield is 1.61%. Elsewhere in large financial player and investment trust news, there have been updates from; London Stock Exchange Group (LON: LSE), RIT Capital Partners plc (LON: RCP), F&C Investment Trust PLC (LON: FCIT), River and Mercantile Group PLC (LON: RIV) and Hansard Global plc (LON: HSD).

Savills revenue growth offset by falling sales volumes

Jamie Gordon
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1
Savills revenue growth offset by falling sales volumes
Global real estate services provider Savills plc (LON: SVS) saw its profits dip during the first half of 2019, despite seeing Group revenue jump on a year-on-year basis. The Company reported a 16% growth in first half group revenue, up 16% to £847.0 million. Despite this, its underlying profit for the period dipped 12% on constant currency, down £4 million to £38.4 million (£1.6 million relating to implementation of IFRS 16). Group profits before tax dipped 7% to £24.7 million.

Though ahead of market trends, UK Residential sales volumes were down 1.5%, however Letting revenues grew 26%. Further, Savills Investment Management revenue rose by 20% and Facilities Management revenue jumped 27%.

Savills comments

Commenting on the results, Mark Ridley, Group Chief Executive, said,

“Given the lag effect of significant investment in recruitment in the preceding period and facing some challenging transactional market conditions, we had anticipated a slight decline in profits for the first half of 2019. The Group has delivered a resilient first half performance reflecting both the robustness and geographic diversity of our market positions generally, and the strength of our less transactional businesses.”

“In many markets, particularly the UK and Hong Kong, political and economic uncertainty has considerably reduced the volume of real estate trading activity in recent months, although occupier demand remains robust. Underlying demand for the secure income qualities of real estate remains high, but these macro uncertainties weigh on investor sentiment and make predictions in respect of near term market activity difficult to determine with accuracy. Continued investor demand, restricted supply and expectations of continued low interest rates suggest that, if political clarity emerges, the medium and long term dynamics of the real estate markets in which we operate remain positive.”

“Despite this environment, we have a robust pipeline of activity for the second half, and we currently continue to anticipate that our performance for the full year will be in line with the Board’s expectations.”

Investor notes

The Company’s shares are down 1.90% or 18.00p to 929.50p 08/08/19 13:31 BST. Peel Hunt reiterated their ‘Hold’ stance on Savills stock. The Group’s p/e ratio stands at 12.18, their dividend yield is 1.68%. Elsewhere in property development and estate agency news, there have been updates from; Bellway plc (LON: BWY), Tritax Big Box REIT PLC (LON: BBOX), Belvoir Group PLC (AIM: BLV), Intu Properties plc (LON: INTU) and LSL Property Services plc (LON: LSL).

Bellway revenues expected to rise, attempt to cut affordable homes rejected

Jamie Gordon
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1
Bellway revenues expected to rise, attempt to cut affordable homes rejected
UK residential property developer Bellway plc (LON: BWY) issued its update for the full-year today, and it is expected that both revenue and profits will rise on a year-on-year basis. The Company said that its growth strategy for FY19 had yielded strong results, with full-year revenue expected to rise 8% on-year to £3.2 billion, and profits expected grow in line with market estimates. Bellway also noted volume growth, with completions rising 5.7% to a record level of 10,892. It said its margin continued to moderate towards a ‘more normalised’ level. The Company boasted a strong order book of 4,878 homes and in turn potential to deliver further volume growth. They also stressed their commitment to build quality and customer care, despite having attempted – and failed – to reduce the proportion of affordable homes by 10% at the Shepherds Walk development

Bellway comments

Jason Honeyman, Chief Executive, commented, “Bellway has concluded another successful year, further increasing the supply of much needed new homes and delivering a record number of housing completions. Quality and customer care remain a priority for the business and this has helped the Group achieve recognition as a five-star homebuilder2 for the third year in succession. Trading conditions remain stable and customer confidence is resilient. This, together with a strong forward order book and a healthy balance sheet, ensures that Bellway is well placed to continue its long term growth strategy.”

Investor notes

After a slight recovery, the Company’s shares are down 2.91% or 84.00p to 2,798.00p 08/08/19 12:53 BST. Peel Hunt analysts retained their ‘Add’ stance, while Liberum Capital analysts reiterated their ‘Buy’ rating on Bellway stock. The Group’s p/e ratio stands at 6.81 and their dividend yield is 5.11%. Elsewhere in property development and estate agency news, there have been updates from; Tritax Big Box REIT PLC (LON: BBOX), Belvoir Group PLC (AIM: BLV), Intu Properties plc (LON: INTU), LSL Property Services plc (LON: LSL) and Countryside Properties PLC (LON: CSP).

Tritax Big Box expands portfolio and widens profits

Jamie Gordon
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3
Tritax Big Box expands portfolio and widens profits
Real estate investment trust Tritax Big Box REIT PLC (LON: BBOX) posted profit growth alongside an expanded portfolio during the first half of 2019. The Company told investors that operating profit before changes in fair value had extended 5.7% on a year-on-year basis, to £60.7 million for H1 2019. Its portfolio value also grew 12.6% in an on-year comparison, up to £3.85 billion, with rent roll also rising 3.5% to £166.8 million. Its shareholders also enjoyed improvements on-year, with the company declaring a dividend for the period of 3.425p per share, up 2.2% on-year. Similarly, adjusted EPS lifted modestly, up 0.9% to 3.41p a share. Despite these positives, Tritax Big Box total return for the six month period was down by 4.68 points to 0.42%, and EPRA net asset value per share dipped 1.8% to 150.08p.

Tritax Big Box comments

Company Chairman Sir Richard Jewson KCVO, JP, stated,

“The long-term fundamentals of our market are positive. The sector continues to benefit from the structural change in shopping habits, as consumers switch from the high street to buying online, creating ongoing demand for logistics space to fulfil these orders.”

“With Brexit contributing to an uncertain economic environment and making it more difficult for companies to grow their profits, the operational efficiencies and cost savings offered by Big Boxes remain compelling to occupiers. Businesses across industries have signalled their intentions to invest in logistics infrastructure, including new warehouse facilities as well as systems and automation, to facilitate efficient supply chains. The environmental impact of real estate also creates demand for modern, energy efficient buildings like ours, which support our customers’ sustainability programmes.”

“The quality of our Portfolio and customer base means that, irrespective of conditions in the wider economy, we are confident of continuing to deliver secure and growing dividends to Shareholders, as part of an attractive Total Return over the medium term.”

Investor notes

The Company’s shares have dipped 1.50% or 2.20p to 144.60p a share 08/08/19 12:03 BST. Liberum Capital Analysts reiterated their ‘Hold’ stance on Tritax Big Box stock. The Group’s p/e ratio stands at 21.49 and their dividend yield is 4.61%.
Elsewhere in property development and estate agency news, there have been updates from; Belvoir Group PLC (AIM: BLV), Intu Properties plc (LON: INTU), LSL Property Services plc (LON: LSL), Countryside Properties PLC (LON: CSP) and Ashley House Plc (LON: ASH).

Burford hit by short selling criticism

Andrew Hore
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0
Burford hit by short selling criticism

Litigation finance provider Burford Capital (LON: BUR) has an impressive share price record since flotation a decade ago, and it is still around six times the original placing price, but it has fallen sharply over the past month. A report by a short seller has knocked the share price of the AIM-quoted company.
The share price slumped 516p to 605p having fallen the day before, and this is barely much more than one-third of the price less than a month ago. The stated NAV is $7.17 a share, so the share price is still trading at a small premium, even after the fall.
Muddy Waters published a 25 p...

Morgan Sindall construction posts 18% profit growth

Jamie Gordon
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0
Morgan Sindall construction posts 18% profit growth
British construction services company Morgan Sindall Group PLC (LON: MGNS) saw its shares rally as it booked impressive first half profits and boasted strong yields for its shareholders. While revenue was flat between H1 2018 and 2019, adjusted operating profit grew 18% to £37.5 million and adjusted profit before tax jumped 20% to £36.3 million. The state of play for investors was equally positive. Morgan Sindall declared an interim dividend of 21.0p a share, up 11% on-year. Further, adjusted earnings per share rose 15% on-year to 64.2p. Notable divisional performances came from Partnership Housing and Urban Regeneration, up 39% and 36% respectively.

Morgan Sindall comments

Commenting on today’s results, Chief Executive, John Morgan said,

“We have had a strong first half of the year and these results underline the significant operational and strategic progress being made across the Group. Our strong balance sheet including our net cash position is a significant differentiator for us, allowing us to make the right long-term decisions for the business, which best positions us in our markets for continued sustainable growth.”

“There is much positive momentum across the Group and with our high quality, growing order book, we are excited by the opportunities ahead. Following our strong first half performance and with the current visibility we have of the rest of the year, we now expect to deliver a result for the full year which is slightly ahead of our previous expectations.”

Investor notes

Following the update, the Company’s shares rallied 8.11% or 90.00p to 1,200.00p a share 07/08/19 16:36 BST. Peel Hunt analysts reiterated their ‘Buy’ stance on Morgan Sindall stock. The Group’s p/e ratio stands at 7.31, their dividend yield is 4.42%. Elsewhere in property development and estate agency news, there have been updates from; Belvoir Group PLC (AIM: BLV), Intu Properties plc (LON: INTU), LSL Property Services plc (LON: LSL) and Countryside Properties PLC (LON: CSP).      

Cora Gold confirms further gold mineralisation at Selin Project

Jamie Gordon
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5
Cora Gold confirms further gold mineralisation at Selin Project
Gold mining company Cora Gold Ltd (LON: CORA) continued an eventful few weeks with the publication of results for a selective infill drill programme for its Selin project at the Sanankoro Gold Discovery in Southern Mali. This comes only days after announcing further mineralisation at the Zone A project on the same field. The Company said that gold oxide mineralisation extended up to s depth of 90 metres. They recorded potential commercial mineralisation subsections of 25 metres at 2.81 g/t, 19 metres at 1.61 g/t and 9 metres at 2.37 g/t. In addition to the mineralistion at the Selin prospect, the Company noted potential deposits at the North Bokoro project.

Cora Gold comments

Jonathan Forster, CEO, stated, “We are extremely pleased with the results of the infill drilling, which continues to demonstrate potentially economic mineralisation in the near surface oxide portion of the Selin prospect. Infill drilling has provided a good measure of the continuity of gold mineralisation at the Selin prospect with the zone now totalling approximately 2,250m in length with oxide mineralisation extending locally up to 90m at depth. The Selin prospect demonstrates good potential for future extraction through low cost open pit mining and the enhanced knowledge of the continuity of oxide mineralisation significantly justifies a further exploration programme to investigate the deeper sulphide mineralisation.” “Reconnaissance exploration drilling has confirmed that primary, potentially economic gold structures exist in areas extending away from the Selin prospect and provides guidance for future drilling in these areas. Our regional exploration work is demonstrating that there is still significant further potential available across Sanankoro and Cora’s portfolio.”

Investor notes

The Company’s shares have rallied 2.13% or 0.12p to 6.00p a share 07/08/19 16:30 BST. The Group’s p/e ratio and dividend yield are unavailable, its market cap isb £5.81 million. Elsewhere in the mining and minerals sector, recent updates have come from; 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).

TT Electronics shares dip despite impressive fundamentals

Jamie Gordon
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1
TT Electronics shares dip despite impressive fundamentals
Global electronics components manufacturer TT Electronics has seen its share price dip during trading on Tuesday, despite booking a bumper set of fundamentals. The Company posted strong sales ahead of costs, with revenues jumping 23% (20% on constant currency) on a year-on-year basis to £238.2 million for the first half, and operating profits up 32% (27% on constant currency) to £19.2 million. Regarding its investors, underlying earnings per share grew 28% to 8.8p, while statutory EPS dipped from 4.4p to 3.3p between H1 2018 and H1 2019. First half dividends increased 8% on-year from 1.95p to 2.10p. TT Electronics said that during the period, it had undergone improvements in operational efficiency and secured ‘significant’ customer wins.

TT Electronics comments

Richard Tyson, Chief Executive Officer, said:

“We have delivered strong revenue and profit growth alongside further margin progression in the first half despite a tougher market backdrop.”

“The evolution of TT into a higher quality, better balanced Group reflects our strategic focus on picking the right customers in the right markets and investing in the right capabilities. The actions we have taken to concentrate on sensing, power and connectivity solutions across aerospace and defence and medical, whilst refining our portfolio of businesses through acquisitions and disposals have transformed TT.”

“We believe our strategy to position TT to benefit from “electronics everywhere” will continue to strengthen the Group. Despite the current macroeconomic environment, our first half performance and order momentum position us well to make further progress in 2019 and beyond.”

Investor notes

After a slight recovery, the Company’s shares are down 3.76% or 8.30p to 212.70p a share 07/08/19 13:47 BST. Peel Hunt Analysts have reiterated their ‘Buy’ stance on TT Electronics stock. The Group’s p/e ratio stands at 13.64 and their dividend yield is 3.04%. Elsewhere in the tech sector, there were updates from; SDL plc (LON: SDL), Dialight Plc (LON: DIA), Seeing Machines (LON: SEE), Bidstack Group PLC (AIM: BIDS) and Nektan PLC (LON: NKTN).
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