Bluerock Diamonds shares dip despite Kareevlei Mine upgrade
After presenting at the UK Investor Magazine Summer Investor Evening, South African-focused diamond mining company Bluerock Diamonds PLC (LON: BRD) today announced an upgrade to the crushing circuit at the Kareevlei Diamond Mine.
The Company told investors that the installation of a larger cone crusher had been completed, and further upgrades had been made to the circuit. The circuit can now operate both the existing and new crushers simultaneously, and is able to manage what the Group sees as a likely increase in material flows.
Bluerock Diamonds said the new crusher began work yesterday and that it would be fully operational shortly.
Bluerock Diamonds comments
Mike Houston, Executive Chairman commented,
“We are pleased that the upgrade of the crushing circuit has been completed. We have taken the opportunity to make a number of improvements to the processing plant during the crusher shut down period and are confident that these improvements will have the desired effect in achieving our targeted level of production in the second half of the year. Our volume guidance for the year remains at 280,000 tonnes to 335,000 tonnes and, as previously
announced, we will refine our guidance following the end of Q3 after the reconfigured plant has been operational for two months.”
Investor notes
The Company’s shares have dipped 9.77% or 6.50p to 60.00p a share 02/08/19 14:47 BST. The Group’s p/e ratio and dividend yield are not available, their market cap is £2.04 million.
Elsewhere in the mining and minerals sector, recent updates have come from; Cora Gold Limited (LON: CORA), Serabi Gold PLC (LON: SRB), Kavango Resources PLC (LON: KAV), Ariana Resources plc (LON: AUU), Rio Tinto plc (LON: RIO) and Bushveld Minerals Limited (LON: BMN).
IAG shares rise as Q2 profits grow
International Airlines Group (IAG) posted a second quarter operating profit of €960 million before exceptional items on Friday.
The owner of British Airways said it had benefited from the timing of Easter.
Shares in IAG were trading over 2% higher on Friday morning following the announcement.
Passenger unit revenue for the quarter was up 3.1%, IAG added, and up 1.1% at constant currency.
Fuel unit costs for the quarter grew 12.4% and was up 6.3% at constant currency.
For the half year, operating profit before exceptional items amounted to €1,095 million, down 11.7%.
“In Q2 we’re reporting an operating profit of €960 million before exceptional items, up from €900 million last year,” Willie Walsh, IAG Chief Executive Officer, said in a company statement.
“Despite fuel cost headwinds, we delivered a good performance. At constant currency, fuel unit costs were up 6.3 per cent while passenger unit revenue increased 1.1 per cent, benefitting from the timing of Easter,” Willie Walsh continued.
“This highlights, once again, that our unique structure and diverse brand portfolio underpins our financial resilience and ability to deliver robust results”.
IAG said that, at current fuel prices and exchange rates, it expects its 2019 operating profit before exceptional items to be in line with 2018 pro forma.
Moreover, IAG said that passenger unit revenue is expected to be flat at constant currency, and non-fuel unit cost is expected to improve at constant currency.
In June, IAG signed a letter of intent to place a large order for Boeing 737 Max aircrafts.
As British Airways strikes are likely to occur in August, many could see disruption to their summer holiday plans.
Shares in International Consolidated Airlns Grp SA (LON:IAG) were trading at +1.96% as of 09:16 BST.
Seeing Machines fundraiser success and contract wins during FY19
AI-enabled driver monitoring technology company Seeing Machines (LON: SEE) booked strong results with OEM contract awards, positive fleet results and a successful fundraising during the full year ended 30 June 2019.
Full year revenues were up from A$30.7 million to A$ 31.8 million, and this partially owed to revenue from the Company’s fleet solution, Guardian. The monthly monitoring fees collected from this segment increased 89% during the year, and when combined with contracted recurring royalty payments in mining, represents a recurring revenue of over A$12 million.
In addition to its successful A$58.1 million fundraise in April this year, Seeing Machines told investors that OEM contract wins had pushed the projected value of contracted revenue in its Automotive business up from A$110 million for FY18 to between A$170 million and A$200 million for FY19.
Operationally, its Automotive and Aviation both secured two new contracts a piece, and their Guardian System – now connected to over 16,000 commercial vehicles – secured its first contract during the financial year.
After the period closed, Paul McGlone was confirmed as CEO of the Company and Kate Hill was appointed Chair of the Board.
Seeing Machines comments
Paul McGlone, CEO, stated, “The team at Seeing Machines has been working on our market-leading technology for almost 20 years and, with the European Union looking to mandate driver monitoring from 2024, as well as the European New Car Assessment Programme working to formalise requirements to achieve safety ratings for automakers over a similar timeframe, we are in a strong position to start seeing the benefits of years of intensive R&D and hard work start to materialise.” “In addition to the progress made with our customers, we’ve made important internal changes. Management is now in place to deliver on existing and potential programs across its transport sectors as momentum for driver monitoring and enhanced safety continues to step up around the world. Kate Hill is a great addition to the team. I speak for the whole Board when I say we look forward to working closely with her to ensure that our strategy remains applicable to emerging markets and regions focused on improving passenger safety in an increasingly mobile world.”Investor notes
The Company’s shares have rallied 0.95% or 0.042p to 4.47p a share 01/08/19 15:21 BST. Neither their p/e ratio nor their dividend yield are available, their market cap is £150.59 million. Elsewhere in the tech sector, there were updates from; Bidstack Group PLC (AIM: BIDS), Nektan PLC (LON: NKTN), Keywords Studios PLC (LON: KWS), Biome Technologies plc (LON: BIOM) and Midwich Group PLC (LON: MIDW).Bidstack acquires ad fraud prevention firm Pubguard
AI-focused in-game advertising company Bidstack Group PLC (AIM: BIDS) has made efforts to safeguard their safe brand environment with today’s acquisition of ad fraud prevention platform Minimised Media Limited, which is listed as Pubguard.
https://platform.twitter.com/widgets.js Pubguard’s technology is established within the advertising industry and will be used to protect Bidstack’s digital gaming inventory against illegal, malicious and offensive ad content on in-app mobile and desktop formats. With pressure mounting from industry leaders and 65% of advertisers present in non-brand safe locations, the Pubguard AI technology will serve to support the growth of in-media seamless branding offerings. Other offerings in this field have included the AI-enabled in-video advertising products of MirriAd Advertising plc (LON: MIRI), which intelligently recognises and places brands in film-based media. It is believed the Pubguard platform will act as a ‘ready-made solution’ to save the Company time and resources developing the offerings of its Software Development Kit. Pubguard is with Bidstack at the London eSports hub – Here East – with plans for the two to co-develop in-game viewability and refine data processes, in addition to ad fraud prevention technology.We’re delighted to announce the acquisition of @Pubguard, the ad fraud prevention platform. The move will open up new channels and growth opportunities for us and will enhance our robust brand safety processes – protecting our gaming and advertising partners! 🔒🚀 #bids #adtech pic.twitter.com/V23aaTbWfT
— Bidstack (@bidstack) August 1, 2019
Bidstack comments
James Draper, CEO of the Company, stated,
“As custodians of studio director’s artwork the prevention of fraudulent advertising is a priority for us. Pubguard brings a number of technical and commercial upsides to Bidstack. First, we are protecting gamers against fake adverts that, for example, could redirect them to adult content. Second, Pubguard brings the group technology and a brand that is respected in the gaming and digital media space.”
“As we have said previously, our intention is to grow Bidstack to become a significant media owner in the video games market. We stated Q3 would be an important period for us and I believe the purchase of Pubguard, our first venture into growth by acquisition, shows our commitment towards commercial innovation.”
“We’d like to welcome the Pubguard team into the Bidstack family and we look forward to growing the business further.”
Investor notes
Despite what could be seen as a positive update, the Company’s shares have dipped 3.41% or 1.12p to 31.88p a share 01/08/19 15:05 BST. Neither the Group’s p/e ratio nor their dividend yield are available, their market cap is £76.05 million. Elsewhere in the tech sector, there were updates from; Nektan PLC (LON: NKTN), Keywords Studios PLC (LON: KWS), Biome Technologies plc (LON: BIOM) and Midwich Group PLC (LON: MIDW).Bank of England holds interest rates at 0.75%
The Bank of England decided to hold interest rates at 0.75% on Thursday.
The UK economy has slowed as business’ uncertainties concerning Brexit “have become entrenched” and growth in the world economy has eased, the Bank of England said.
It said that growth in the UK economy has been volatile during the first half of this year, and the speed at which the economy is growing has slowed. The reduced demand for exports and the weakening investment by UK companies have been cited as factors to fuel this slow down.
The UK economy was expected to grow by 1.3% in 2019, down from May’s 1.5% projection.
Moreover, the decision comes against a backdrop of continuous trade tension between the US and China, with trade tensions intensifying since May.
The Bank of England said that the likelihood of a no-deal Brexit has further lowered interest rates and lead to a marked reduction of the sterling exchange rate.
Inflation is back at the bank’s 2% target. The Bank of England said that expects inflation to dip below the target later in the year, caused in part by lower gas and electricity prices.
“Increased uncertainty about the nature of EU withdrawal means that the economy could follow a wide range of paths over coming years. The appropriate path of monetary policy will depend on the balance of the effects of Brexit on demand, supply and the exchange rate. The monetary policy response to Brexit, whatever form it takes, will not be automatic and could be in either direction,” the Bank of England said.
Angus Dent, CEO at ArchOver, provided a comment following the Bank of England’s decision to hold interest rates at 0.75%:
“As for the currency generally, what’s happening against the Euro does seem strange. Our economy is much stronger than the Eurozone’s, and yet the currency is being battered.”
ITV announces two series of Love Island in 2020 after record-breaking success
ITV (LON:ITV) has confirmed that there will be two series of Love Island on ITV2 during 2020, as opposed to the one summer series per year format the show previously followed.
Love Island, ITV2’s reality TV show where young singles must couple up, find love and compete for a £50,000 cash prize, is the most watched programme of the year for adults aged 16-34 across any channel.
This year’s series hit new heights, breaking the 6 million viewers mark for the first time, in terms of four-screen consolidated viewing.
Love Island’s controversial nature has amounted a wave of backlash, however, with calls for the safeguarding of the contestant’s mental health growing in recent months.
Being “normal” people, the contestants who take part in the show risk not being able to cope with the fast rise to fame once they leave the Majorca-based villa in which the series is set.
In addition to the mental health of the contestants, Love Island also raises concerns for the Mental Health Foundation because it targets younger audiences who most probably already experience some kind of anxiety concerning their body.
Despite this, Love Island is back in early 2020 with the first series of the year set in a new villa in South Africa.
“Off the back of a record-breaking year, we’re delighted to be bringing an extra series of our biggest and sunniest show to the 2020 schedule,” Paul Mortimer, Head of Digital Channels and Acquisitions at ITV, commented on the announcement.
“Love Island has proven yet again to be the perfect format that engages younger audiences. In response to this viewer appetite, a new batch of young singletons will deliver some highly anticipated post-Christmas romance and drama from our new and luxurious location,” Paul Mortimer continued.
Earlier this month, we took a look at whether or not Love Island was worth the controversial backlash for ITV2.
Shares in ITV plc (LON:ITV) were trading at -1.13% as of 14.00 BST Thursday.
XP Power books lower first half profits
Critical power control solutions provider XP Power Ltd. (LON: XPP) saw their first half profits down on a year-on-year basis. The Company said the dampened profits owed to tough market and trading conditions.
Revenues were up 6% from £93.2 million to £98.9 million on-year for the first half and correspondingly, interim dividend per share also rose 6% from 33.0p to 35.0p.
Despite this, order intake was down 1% year-on-year for the first half, to £100.6 million, and adjusted operating profit dropped 12% from £20.7 million to £18.2 million. Further, the Group’s gross margin fell 210bps to 44.% and adjusted diluted earnings per share fell 17% during the same period, to 69.2p a share.
XP Power comments
James Peters, Chairman, stated, “Our results for the first half reflect tougher trading conditions in the second quarter. While growth in our Healthcare, Industrial and Technology markets remained robust, this was offset by a cyclical slowdown in the Semiconductor Equipment Manufacturing market and pressure on gross margins, resulting from the increase in USA trade tariffs on Chinese manufactured goods, historic component price inflation and product mix.” “Notwithstanding these current headwinds, we continue to win new design slots at our key customers and to take market share. We benefit from a broad customer base as demonstrated by the resilience of our Industrial, Healthcare and Technology sector performance. We are well positioned to take further share and will benefit from any recovery in the Semiconductor Equipment Manufacturing sector. While we remain mindful of potential short-term risks and macroeconomic challenges, we continue to expect an improved revenue performance in the second half of the year as a result of the increase in our order book since the year end. With a proven strategy, strong design win momentum and an expanded product portfolio, the Board remains positive regarding the future of the Group.”Investor notes
After recovering from their early morning drop, the Company’s shares have now dipped 0.49% or 10.00p to 2,030.00p a share 01/08/19 13:39 BST. Peel Hunt analysts retained their ‘Buy’ stance on XP Power stock. The Group’s p/e ratio stands at 11.58 and their dividend yield is 4.23%. Other energy sector updates have come from; AFC Energy plc (LON: AFC), Nostrum Oil and Gas PLC (LON: NOG), John Laing Environmental Assets Group Ltd PLC (LON: JLEN) and Reabold Resources PLC(LON: RBD).London Stock Exchange challenges Bloomberg with $27bn Refinitiv acquisition
The London Stock Exchange Group (LON: LSE) has acquired financial market data and infrastructure company Refinitiv for $27 billion (£22 billion). In a move that will relocate Refinitiv’s operations to the UK and will transform it into a global rival to Michael Bloomberg’s financial data business, the LSEG has made a statement of intent to compete in the US market and have a more effective presence in Asia.
Provided by Blackstone and Thomson Reuters, Refinitiv’s Eikon trading floor terminals will allow the LSEG to challenge Bloomberg’s offering. LSEG will also absorb Refinitv’s majority stake in the fast-growing bond platform Tradeweb, as well as outright ownership of currency trader FXall. The combined effect of Refinitiv’s assets will yield annual revenues of £6 billion, should the London Stock Exchange successfully pass through the inevitable antitrust legal process that comes with any transaction of this size and strategic significance.
LSEG’s deal will be the latest of a spree of deals done by the City this week, which will amount to some £35 billion. The London Stock Exchange said it would finance the acquisition with an issuing of $14.5 billion of new shares and assuming $12.5 billion of existing debt. Taking on Refinitiv’s debt will weigh LSEG’s financial performance down, and its current £1 billion of net borrowing is set to quadruple after the deal.
The Company did add that it would aim for cost savings of £350 million within five years of the deal’s close, and would attempt to reduce the net debt sum to two times its current rate within 30 months. Following the 250 job cuts by the London Stock Exchange so far this year, finance chief David Warren said there would be, “employee related efficiencies” following the acquisition, due to a combination of role overlap between the two firms and an effort to cut costs.
London Stock Exchange Group comments
Chief Executive of LSEG, David Schwimmer, stated, “The acquisition of Refinitiv is transformational […] It is a rare and compelling opportunity to combine two world class businesses and create a global financial infrastructure leader. We will continue to be a global business headquartered in the UK.” “LSEG has been prepared for whatever may come through Brexit […] We are already diversified across regions and by currencies. This transaction helps us become more global. This is not about Brexit.”Considerations and investor notes
The Company’s shares have rallied 6.97% or 462.00p to 7,088.00p a share 01/08/19 11:50 BST. UBS analysts have reiterated their ‘Neutral’ stance on London Stock Exchange Group stock, while Deutsche Bank reiterated their ‘Hold’ stance. The Group’s p/e ratio is currently 38.12 and their dividend yield stands at 0.85%. Some readers could hazard a speculative outlook for the UK based on today’s news. It might not be definitive, but making the LSEG a viable data competitor on the world stage and with America struggling to resolve its negative yield curve, perhaps suggests British businesses are not going to be left behind and resorting to exclusively reactive measures in the post Brexit era. That being said, any wider optimism for the British economy – based on today’s news – need be taken with a pinch of salt. Provided the LSEG and Refinitiv make it through lengthy legal proceedings, the deal offers only small scope for celebration for those fearing the oncoming Leave deadline. Due to the all-share nature of the acquisition, any hope of the deal being a political opportunity for Britain to assert itself in the world of finance, is limited at best. US-based Blackstone and Canadian Thomson Reuters will now be the LSEG’s largest shareholders (combined 37%) and will control approximately 30% of total voting rights with 3 seats on the Board. Nonetheless, it is positive for British business. The London Stock Exchange will be shifting from a largely transaction-based to data-based business, in an era where mass data collection, collation and selling is not only lucrative but powerful. Strategically, the Company has situated itself well to compete on the world stage going forwards, and in a city based on financial services, that is exactly what London businesses need to do. Elsewhere in financial players and the banking sector, there have been updates from; Barclays (LON: BARC), Deutsche Bank (ETR: DBK) and Lloyds Banking Group (LON: LLOY).Revolut launches commission-free stock trading service
Revolut launched a stock trading service on Thursday as an incentive to make investing more inclusive among the public.
The British fintech company announced last August that it would launch a commission-free process of being able to invest in the stock market.
“Just as we set out to fix banking, the time as come to fix trading for the better too,” Revolut said on their blog when it first announced the service.
One year later and trading is now live for Revolut Metal customers, with the service being rolled out to its Standard and Premium customers too in the next few weeks.
“Revolut Metal customers can make up to 100 commission-free trades per month in over 300 U.S. listed stocks on the New York Stock Exchange and NASDAQ with real-time prices and stock performance data. Any trades thereafter will be charged at £1 per trade. Trades with Revolut are instant, with a 0.01 percent annual custody fee and no account minimums,” the fintech company said, explaining how the process currently works.
The service also includes the ability to purchase fractional shares. Since shares can be very expensive in many popular companies such as Amazon and Google, Revolut is offering a service that allows users to purchase a certain fraction of the single share for a much smaller price.
In the UK, Freetrade said in July that it had been granted new permissions by the FCA, bringing it one step closer to offering fractional shares.
Revolut added that because it is currently only offering U.S stocks, trading is only available between 9.30-16.00 EST.
Many have been shut off from investing in the stock market due to costs, high share prices and complicated processes, but the fintech company said that it wants to make investing more inclusive.
Financial technology, or fintech for short, is the new technology that competes with the traditional financial services.
Mobile banking and cryptocurrency are a few examples of technologies that increase the accessibility of financial services to the general public.
With fintech on the rise, will the traditional financial services be able to compete with the new fintech generation?