Gooch and Housego cuts outlook, COO to depart
Gooch and Housego reported its interim results for the six months to March-end on Tuesday, with shares falling on the back of the announcement.
The company, which specialises in manufacturing optical components and systems, warned that full-year profits would be between £3.5 million and £4 million.
Whilst revenue for the period grew by 7.4%, the company said that the industrial laser market had proved ‘challenging’.
This was attributed to risks in the microelectronics sector, alongside geo-political uncertainties such as the ongoing US/China trade dispute.
In addition, Gooch & Housego said it would increase its interim dividend increased to 4.3p, up slightly from 4.2p the year before.
This was said to be ‘reflective of the Board’s longer term confidence in the business’ whilst also recognising ‘challenging industrial laser trading conditions’.
Mark Webster, Chief Executive of the firm, commented:
“Trading in the last six months has reflected trends previously reported. G&H has long been aware of the risks associated with the cyclical nature of the microelectronics sector and more recently the continued impact of the US/ China trade dispute. Our industrial laser order book has increased since our last update, but we now forecast the industrial laser business will not return to ‘normal’ levels in FY 2019.
In a separate release, it was also announced that its chief operating officer Alex Warnock is to step down from his role.
Gooch & Housego said in the statement that they would not replace Warnock, and instead the three manufacturing heads would report directly to the chief executive of the company.
Shares in the firm (LON:GHH) are currently trading down -22.52% as of 13:43PM (GMT).
888 shares rise on trading update
888 issued a trading update for the period from 1 January to 18 May on Tuesday, causing shares to rise.
The online gaming company said that group revenue climbed 6% on a like for like basis, and 2% increase on a reported basis.
888 attributed this to increased marketing investment, alongside the launch of the Group’s Orbit Casino platform.This in turn aided new acquisition, which was boosted by 20% year on year.
Overall, growth was driven by a 29% increase in Sport and a 13% jump in Casino, which partly offset by flat growth in Bingo, and a 28% decline in Poker.
Itai Pazner, CEO of 888, commented:
“888 has enjoyed a solid start to the year with strong momentum in Casino and Sport across a number of the Group’s major regulated markets. Whilst Poker has remained challenging, we were pleased to see an improving revenue trend in Q1 2019 against Q4 2018. In addition, we are very encouraged by a 20% increase in first time depositors across the Group’s B2C business in the Period; this reflects 888’s outstanding marketing capabilities and is a key indicator of our growth prospects.
As a diversified operator that owns its own technology, the Board continues to believe that 888 has a unique platform to deliver continued growth in the dynamic global online gaming industry.”
888 was founded back in 1999. It is headquartered in Gibraltar and is listed on the London Stock Exchange.
Shares in the firm (LON:888) are currently trading up +4.39%, as investors react to the latest trading update.
Intu appoints new chief financial officer
Intu announced the appointment of Robert Allen, formerly at Crest Nicholson, as its new chief financial officer.
Intu confirmed that Allen would assume his role as of Monday 10 June of this year.
Before his two years at Crest Nicholson, he held a number of senior finance roles at British American Tobacco Plc.
Chief Executive Matthew Roberts commented on the appointment:
“I am delighted that Robert is joining us. He will bring to intu his extensive and highly relevant experience of refinancings, M&A, treasury, IT and investor relations, helping drive our strategy of delivering strong underlying centre performance, adapting to the fast-changing retail environment and making smart use of capital. I would also like to take this opportunity to thank Barbara Gibbes for undertaking this role on an interim basis.”
Intu properties is a real estate investment company, with specific interests in managing shopping centres.
The firm is listed on both the London Stock Exchange and it Johannesburg equivalent. It is a constituent of the FTSE 250 Index.
Intu owns various shopping centres including the Manchester Arndale Centre, Lakeside shopping centre in Essex and Broadmarsh in Nottingham, as well as Puerto Venecia in Spain.
Shares in the company (LON:INTU) are currently down -2.75% as of 11:37AM (GMT).
Wizz Air passenger numbers up 22% for May
Wizz Air (LON:WIZZ), the largest low-cost airline in Central and Eastern Europe, posted its passenger statistics for May 2019.
Shares in the company were trading slightly higher during mid-morning trading.
The Hungarian airline flew 3,470,889 passengers in May, a 22.4% rise compared to the 2,836,380 figure from the same month a year prior.
The low-cost people carrier also added 9 new routes from/to Poland and Ukraine, in addition to opening a new Polish base in Krakow.
Additionally, Wizz Air was named 2019 Airline of the Year by Air Transport Awards, the only international prizes that award all the main categories of the air transport industry, the company added in its announcement.
In May, the company also celebrated 15 years of operation, in addition to reaching the 200 million carried passengers milestone.
Wizz Air boasts a fleet of 113 Airbus A320 and Airbus A321 aircraft, offering over 650 routes from 25 bases, connecting 146 destinations across 44 countries.
The company is listed on the London Stock Exchange and is included in the FTSE 250 and FTSE All-Share Indices.
In April, the airline confirmed that trading in the fourth quarter of its financial year is in line with expectations and net profit for the year will be at the upper end of its guidance range.
Elsewhere in aviation, several airlines have been battling for survival as of late, with WOW air suspending all flights amid financial difficulties.
Lufthansa (ETR:LHA) posted a deeper loss for its first-quarter of 2019, citing higher fuel costs. It lost €342 million, which is almost nine times deeper than that of the first-quarter a year prior.
Equally, airlines have begun to reveal the damage caused by the global grounding of the Boeing 737 MAX aircraft, with American Airlines (NASDAQ:AAL) posting a $350 million blow.
As of 10:31 BST Tuesday, shares in Wizz Air Holdings plc (LON:WIZZ) were up 2.02%.
Shares in Deutsche Lufthansa AG (ETR:LHA) were up 2.16% as of 11:27 CEST Tuesday.
Shell updates strategy and provides financial outlook to 2025
The Anglo-Dutch oil and gas company Royal Dutch Shell (AMS:RDSA) has updated investors on its strategy on Tuesday, in addition to setting out a financial outlook until 2025.
The company also revealed that it remains on track to deliver on its previous 2020 commitments.
The company’s Chief Executive Officer, Ben van Beurden, summed up the key points of the update as follows:
“Increased organic free cash flow outlook, greater potential distributions to shareholders and confidence in our world class investment case given our high-margin portfolio, improving returns and a globally recognised brand.”
Shell has delivered on a range of commitments since its last Management Day in 2017. This includes achieving $10 billion additional cash flow from operations from new projects.
“We have reshaped our company with a focus on value and have demonstrated a clear track record delivering on our ambitious promises made at our Management Day in November 2017,” the Chief Executive Officer of Royal Dutch Shell, commented on the announcement.
As for its financial outlook, Shell aims to complete its $25 billion share buyback programme – which is one of the world’s largest share buyback programmes – by the end of next year.
Looking ahead to 2025, van Beurden has set out a “robust” financial outlook, which includes the potential to make distributions to shareholders of $125 billion in the form of dividends and share buybacks. This compares to the roughly $52 billion in shareholder distributions between 2011-2015.
Shell also aims to increase organic free cash flow to roughly $35 billion in 2025 at $60 per barrel.
In terms of its strategy update, it has re-focused its strategic themes into three categories. These categories are Core Upstream, Leading Transition and Emerging power.
“All this adds up to a forward-looking strategy that ensures Shell is well-placed to continue to deliver a world class investment case and thrive in the energy transition,” the Chief Executive Officer continued.
In May, Shell posted a 2% decrease in its profits for the first quarter but still beat a company-provided consensus. It also revealed its highest-third quarter profits in four years at the end of 2018.
At 10:15 CEST Tuesday, shares in Royal Dutch Shell plc (AMS:RDSA) were trading at -1.04%.
BRC: UK retail sales drop 2.7% in May
UK retail sales dropped by an annual 2.7% last month according to data from the British Retail Consortium.
According to the British Retail Consortium’s data, the decrease is the biggest fall since 1995.
Additionally, like-for-like sales decreased by 3.0%. Total three-month average for food came in at 1.9%, followed by the total three-month average for non-food at -1.1%.
“With the biggest decline in retail sales on record, the risk of further job losses and store closures will only increase,” Helen Dickinson OBE, Chief Executive of the British Retail Consortium, commented on the data. “With retail conditions the toughest they have been for a decade, politicians must act to support the successful reinvention of our high streets and local communities,” the Chief Executive continued.
The Chief Executive emphasised the striking differences between May 2019 and May 2018. The latter year brought the UK continuous sunshine, with the atmosphere of the nation driven by the lead up to the World Cup, in addition to the Royal Wedding. May 2019, however, has merely added to the political and economic uncertainty that already existed.
Paul Martin, UK Retail Partner at KPMG, also commented on the data saying that “April may have provided retailers with some light reprieve thanks to Easter, but May’s staggering fall of 3% like-for-like is a stark reminder of the industry’s ongoing issues, which for many require urgent attention.”
Indeed, both in store and online retailers have struggled for survival among the tough trading conditions to hit the UK high street. Retailers across the country have battled for survival amid store closures and staff cuts.
As for the performance of the Food and Drink sector, Susan Barratt CEO at IGD said “we’ve now entered a tough period for year-on-year sales comparisons with the Royal Wedding last May, the men’s football World Cup from June and exceptionally warm weather throughout last summer.”
Perhaps 2018 was a year of highs in comparison to a year of political and economic uncertainty that has unravelled so far, as yearly comparisons show.
PayPal to invest in Swedish fintech start-up Tink
PayPal will back the Swedish fintech company Tink in a €10 million investment.
Launched in 2012 with the aim of improving banking, Tink began with a consumer app which has today become a platform that provides tools to users in order to “let anyone build the future of financial services across Europe,” its website reads.
Based in Stockholm, the fintech company allows banks and other fintech start-ups to obtain financial data with more ease.
The investment will be used to expand its current team, develop more products and establish connections with other banks, according to Reuters. This investment follows the €56 million raised earlier this year in February from investors, including Insight Venture Partners.
Tink currently has 150 employees serving 9 European markets from two offices.
According to Tink’s Chief Executive and Co-Founder, Daniel Kjellén, “this is where the market is heading.”
“You see two mega trends in banking: a move from analog to digital and from closed to open,” the Chief Executive and Co-Founder continued.
Fintech, short for financial technology, is the technology that competes with the more traditional financial methods in the delivery of financial services. Technology is used as a a method to improve financial services and the activities that occur in the sector.
Elsewhere in fintech, Klarna Bank, another Swedish company, recently received an investment from the American singer, rapper, record producer, television personality, entrepreneur and actor, Snoop Dogg. Snoop Dogg’s investment firm, Casa Verde, previously added cannabis companies to its portfolio, but also decided to purchase a stake in the Swedish fintech start-up.
In the UK, fintech companies such as Crowd Cube, Monzo and PayBase are leading the way, with Funding Circle (LON:FCH) being the first UK fintech company to be listed on the London Stock Exchange.
As of 18:22 GMT -4 Monday, shares in PayPal Holdings Inc (NASDAQ:PYPL) were last trading at -3.85%.
Coca-Cola HBC posts positive forecast following bumper Q1
Coca-Cola HBC (Hellenic Bottling Company) AG (LON:CCH), the third largest Coca-Cola (NYSE:KO) bottling anchor targets a steady annual rate of growth for the next six years.
The company has produced a sales record of over two billion unit cases and achieved an Ebit margin of 10.2% in 2018.
Its forecast released earlier today targeted a comparable earnings before interest margin of 11% by 2020, and a margin improvement of 20 to 40 basis points per annum from 2020.
The most notable forecast however, is that the company are targeting an average revenue growth of 5-6% per year on a constant currency basis, until 2025.
Coca-Cola HBC comments
“In 2016 we set out a bold plan for 2020 to deliver strong growth in revenue and margins,” said Coca-Cola HBC Chief Executive, Zoran Bogdanovic. “We are delivering against these targets and we go into the final stages of this plan as a considerably stronger and more capable organisation.” “Today we have announced a new and ambitious plan to continue our strong growth to 2025 which, guided by our vision to become the leading 24/7 beverage partner, targets another step up in financial performance.” “The plan builds on our recent consistent, strong performance and the considerable progress we have made in strengthening our business.”Bumper Year for Coca-Cola HBC continues
This forecast follows news from earlier in the year, that the company’s Q1 revenue had jumped 4.7% on-year, On the posting of the results, Bogdanovic commented, “We have started the year well, delivering solid growth in revenues despite the impact of this year’s late Easter. Volume growth accelerated compared to last year and our ongoing revenue growth management initiatives continue to deliver improvements in price/mix.” “This good start sets us up well to deliver on our plans and make 2019 another year in which we achieve FX-neutral revenue growth above our targeted range with another step up in margins.” Further, the company successfully acquired Serbia’s foremost confectionery company, Bambi (LON:BMBI). “This acquisition represents an excellent opportunity to create additional value for Coca‑Cola HBC, its customers and shareholders. It adds iconic, complementary consumer brands to our portfolio of leading beverage brands, as well as consumer-focused innovation capabilities. It further strengthens our relevance with customers and allows us to increase our presence in key consumption occasions, such as the start of the day, on the go and at home snacking and refreshment.” said the company’s Chief Executive.Investment notes
Despite the positive news, the company’s shares dipped during trading on Monday, down 4.73p or 0.17% and closing at 2,847.27p per share 03/06/19 16:39 GMT. UBS and Deutsche Bank analysts reached a consensus with their ‘Buy’ stances on Coca-Cola HBC stock, while Shore Capital have their rating ‘Under Review’.Trump sparks tensions with Sadiq Khan before even landing
President of the US, Donald Trump, has sparked tensions with the Mayor of London, Sadiq Khan, before even stepping foot on UK soil.
During his journey to London Stansted, the President took to Twitter to express his views concerning the Mayor of London.
According to Trump, Sadiq Khan has done a “terrible” job as Mayor of the capital, whilst also being “foolishly nasty” towards the President of the US. Additionally, Trump called the Mayor of London a “stone cold loser” who should focus his time on combating “crime in London” rather than on Trump.
Moreover, Trump said that Khan reminds him of their “very dumb and incompetent” mayor of New York City, Bill de Blasio.
Despite these comments, Trump finished by adding that he look forward to be a “great friend” to the United Kingdom, equally looking forward to his visit.
https://platform.twitter.com/widgets.js.@SadiqKhan, who by all accounts has done a terrible job as Mayor of London, has been foolishly “nasty” to the visiting President of the United States, by far the most important ally of the United Kingdom. He is a stone cold loser who should focus on crime in London, not me……
— Donald J. Trump (@realDonaldTrump) June 3, 2019
https://platform.twitter.com/widgets.js “This is much more serious than childish insults which should be beneath the president of the United States,” responded a spokesman for Khan, according to the BBC. “Sadiq is representing the progressive values of London and our country warning that Donald Trump is the most egregious example of growing far right threat around the globe,” Khan’s spokesman continued. The President of the US will be greeted with the return of the giant baby blimp that will take to the skies of London in honor of his arrival. The Trump baby blimp was also flown over Parliament Square back in July 2018 during the US President’s visit to the capital. Permission to fly the baby blimp was granted by the Greater London Authority, lead by Khan, and the Civil Aviation Authority. At the end of last week, the FTSE 100 and other major European indices sank following Trump’s announcement that he will impose a 5% tariffs on all Mexican goods. These are set to begin on the 10th June, beginning with a 5% tariff that will gradually increase.….Kahn reminds me very much of our very dumb and incompetent Mayor of NYC, de Blasio, who has also done a terrible job – only half his height. In any event, I look forward to being a great friend to the United Kingdom, and am looking very much forward to my visit. Landing now!
— Donald J. Trump (@realDonaldTrump) June 3, 2019
