Supreme Court rules Boris Johnson’s prorogation of Parliament unlawful

Jamie Gordon
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Supreme Court rules Boris Johnson’s prorogation of Parliament unlawful
Just past mid-morning on Tuesday a new precedent was set for the UK’s separation of powers-based democracy. The Supreme Court ruled that Boris Johnson’s advice to the Queen in favour of suspending Parliament for five weeks, was not only unlawful but in turn that the prorogation was ineffective and non-existent. The judgement of eleven justices was delivered by Lady Hale, who – after a three-day emergency hearing last week over discrepancies in interpreting the UK’s uncodified constitution – agreed unanimously that not only was it the place of the court to examine Boris Johnson’s advice to the Queen, but subsequently rule that the advice in question was illegal. Delivering the verdict, Lady Hale stated, “The question arises in circumstances which have never arisen before and are unlikely to arise again.” “This court has concluded that the prime minister’s advice to Her Majesty was unlawful, void and of no effect. This means that the Order in Council to which it led was also unlawful, void and of no effect should be quashed.” “This means that when the royal commissioners walked into the House of Lords [to prorogue parliament] it was as if they walked in with a blank sheet of paper. The prorogation was also void and of no effect. Parliament has not been prorogued.” Lady Hale continued, “It is for parliament, and in particular the Speaker and the Lord Speaker to decide what to do next. Unless there is some parliamentary rule of which we are unaware, they can take immediate steps to enable each house to meet as soon as possible. It is not clear to us that any step is needed from the prime minister, but if it is, the court is pleased that his counsel have told the court that he will take all necessary steps to comply with the terms of any declaration made by this court.” “The court is bound to conclude, therefore, that the decision to advise Her Majesty to prorogue parliament was unlawful because it had the effect of frustrating or preventing the ability of parliament to carry out its constitutional functions without reasonable justification.” Following the judgement, little time or energy was spared by those calling for Parliament to reconvene with immediate effect, with additional fervour used by those who didn’t hesitate to lambaste the currently preoccupied prime minister.

In what will likely be one of the rare and final moments of glee left in John Bercow’s tenure, the Speaker of the House stated following the verdict,

“I welcome the Supreme Court’s judgement that the prorogation of Parliament was unlawful.”

“The judges have rejected the Government’s claim that closing down Parliament for five weeks was merely standard practice to allow for a new Queen’s Speech.”

“In reaching their conclusion, they have vindicated the right and duty of Parliament to meet at this crucial time to scrutinise the executive and hold Ministers to account,”

He concluded, “As the embodiment of our Parliamentary democracy, the House of Commons must convene without delay. To this end, I will consult the party leaders as a matter of urgency.”
Responding to what was ultimately their victory, the lawmaker who brought the Scottish case, Joanna Cherry, and lawyer and activist, Gina Miller, reacted to this morning’s news.
Mrs Cherry said in the Chamber,
“This is an absolutely momentous decision,”
“There is nothing to stop members of Parliament such as myself and my colleagues from resuming immediately”

“I am absolutely delighted that the United Kingdom Supreme Court has agreed with Scotland’s Supreme Court,”

On Boris Johnson, Mrs Cherry concludes, “His position is untenable and he should have to guts to do the decent thing and resign,”

Speaking on behalf of his client Gina Miller, James Lisbon, executive partner at Mishcon de Reya, commented, “We are glad that the court recognised the threat to the rule of law caused by a prorogation based on misleading advice given to the Queen.” “This second success for our client Gina Miller in the Supreme Court is a testament to her resolve to take whatever steps are required to ensure executive overreach does not become a feature of our democracy.” “This case shows that our courts can be relied on to hold the executive to account when necessary and is evidence of the robustness of our system of separations of powers.” The prime minister is currently attending the UN climate conference in New York, and will probably feel like his sweet big apple has just gone a little sour. Hardly the end of the road for Brexit, or – yet – for the prime minister, today’s verdict throws a spanner in the works for Boris Johnson, but likely means he’ll face a wall of bombast from a Labour party which much of the electorate currently consider to be dangerous and unelectable. Going forwards, today’s verdict should warm the hearts of those fearing our unwritten constitution places no value on due process, and that even if the courts in London got it wrong the first time, the courts in Scotland were happy to offer recourse for democracy. If you are fearing the uncertainty of a potential general election, and the woeful offerings provided by all parties, we can offer only slight cause for hope – Elsewhere in markets and macro economic news, there have been updates from; the collapse of Thomas Cook (LON: TCP), ECB stimulus, the bid for the London Stock Exchange (LON: LSE), Lloyds Banking Group PLC (LON: LLOY), Jo Johnson quitting, Hilary Benn’s Brexit delay bill, Parliament being prorogued, Barclays (LON: BARC) and Deutsche Bank (ETR: DBK).

AG Barr profits down, profit outlook unchanged

Dina Caruso
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0
AG Barr profits down, profit outlook unchanged
AG Barr (LON:BAG), the maker of Irn-Bru and Rubicon, posted a decline in profits on Tuesday in its results for the six months ended 27 July. The soft drinks manufacturer did however confirm that it expects to meet its revised profit expectations, which it issued back in July. Shares in the company were up during trading on Tuesday. AG Barr said that, for the six months ended 27 July, revenue amounted to £122.5 million, compared to the £136.9 million figure recorded in 2018. Meanwhile, the company posted a statutory profit before tax of £13.5 million, down on the £18.2 million seen in the prior year. “Our innovation performance and pipeline remain strong with encouraging initial trade and consumer response to the recently launched IRN-BRU Energy range, which following the initial launch in Scotland, is now planned to roll out across the wider UK market later in the year,” AG Barr said in its interim results. Indeed, AG Barr launched its Irn-Bru Energy range in July, and has seen an “encouraging” initial trade and consumer response. AG Barr said that “we did however underestimate the volume benefit we received in 2018 from both one-off trading factors and favourable weather”. “This, combined with some specific brand challenges, saw a deterioration in financial performance as per the revised market guidance issued in the pre-close trading update on 16 July 2019,” the soft drinks manufacturer added. Indeed, in July the company warned of a 20% decline in annual profits, blaming the poor weather and the impacts surrounding last year’s sugar tax. Roger White, Chief Executive, added that “our focus remains on delivering long-term growth”. “We have plans in place to address our specific brand related challenges and are ensuring that the business is appropriately scaled to perform in the current market,” the Chief Executive continued. Shares in A.G. Barr plc (LON:BAG) were trading at +4.78% as of 12:11 BST Tuesday.

Moss Bros revenue up in half year results

Dina Caruso
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2
Moss Bros revenue up in half year results
Moss Bros Group plc (LON:MOSB) posted a rise in revenue on Tuesday in its half year results. Shares in the formal dress wear retailer were up during trading on Tuesday morning. Moss Bros said that, for the 26 weeks ended 27 July, total group revenue excluding VAT amounted to £65.4 million – 1.4% up on the previous year. Meanwhile, online sales across all platforms grew by 20% when compared to the same period a year prior. Moss Bros added that online sales from all channels now represents 15% of its total sales. However, the company added that loss before tax widened to £2.7 million, deeper than the £1.7 million figure recorded for the first half of 2018. Earlier this year, the company posted a £4.2 million loss for the year in its annual results, blaming warmer weather and a “volatile” trading environment. Indeed, many retailers have struggled for survival amid the gloomy trading environment to have hit the UK high street. Moss Bros confirmed that it expects to deliver full year results in line with market expectations. “Our online sales continue to grow strongly as a result of increased investment in new customer acquisition to our own website www.moss.co.uk and we are also seeing positive momentum of product sold via the Next online marketplace as we expand the product options stocked via that site,” Brian Brick, Chief Executive Officer, commented on the results. “Growth of online revenues remains central to our future success and has now reached 15% of our total sales,” the Chief Executive Officer continued. “We are acutely aware of the challenges which we face in our Hire business. We plan to invest in a focused way in updated product to ensure that we remain relevant in terms of product offer. We are also actively investigating what newer and fresher hire or rental services can be offered to address changing customer requirements as soon as Spring next year, whilst ensuring that we maintain our market leading position for customers not simply wishing to purchase their formalwear outright.” Shares in Moss Bros Group plc (LON:MOSB) were trading at +5.70% as of 08:10 BST Tuesday.

Thomas Cook collapse: reactions

Dina Caruso
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4
Thomas Cook collapse: reactions
News emerged on Monday that the British global travel group, Thomas Cook (LON:TCG), had collapsed, leaving thousands of British holidaymakers stranded abroad. Meanwhile, some Thomas Cook customers have accused other airlines of capitalising on the collapse of the travel company. The BBC reported that in some instances, the prices for replacement flights have tripled. Roughly 800,000 Brits had bookings set for the future with the failed travel company. As customers and staff took to Twitter to share their experiences, we take a look at some online reactions to news that Thomas Cook has collapsed. https://platform.twitter.com/widgets.js https://platform.twitter.com/widgets.js https://platform.twitter.com/widgets.js https://platform.twitter.com/widgets.js https://platform.twitter.com/widgets.js https://platform.twitter.com/widgets.js

Everyman Media Group profits rise

Dina Caruso
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0
Everyman Media Group profits rise
Everyman Media Group (LON:EMAN) plc posted a strong six month period of growth on Tuesday, driven by increasing admissions and the amount spent on food and drinks. Revenue for the six months grew 16% to £28.9 million and operating profit increased 14% to £1.6 million. Everyman Media Group said that these were supported by increasing admissions and the amount spent on food and beverages. Admissions were up by 9.4% to 1.5 million across the period and the cinema company experienced continued growth in average food and beverage spend, up by 13.2% to £6.95. Meanwhile, Adjusted EBITDA increased by 61% to £6.6 million, up from the £4.1 million figure recorded the year prior. Everyman Media Group, which saw its box office market share grow to 3% from 2.5% for the same period a year earlier, added that it has committed to an additional 15 new venues, of which four are expected to open in the second half of the year. “The appetite for Everyman has never been stronger with our continued roll-out allowing us to deliver exceptional experiences to more audiences across the UK with our increasing footprint,” Crispin Lilly, Chief Executive Officer of Everyman Media Group, commented in a company statement. “As a result, we have seen progress across both our financial and operational KPIs, with growth in revenue and operating profit driven by increasing admissions and F&B (food and beverages) spend. This has resulted in the record market share we are reporting today,” the Chief Executive Officer added. Crispin Lilly said that the company remains “confident that there is significant room for expansion,” as Everyman Media Group is set to open its first international site in Ireland next year. At the beginning of the year, the cinema company posted a rise in profits on the back of new openings. Shares in Everyman Media Group plc (LON:EMAN) were trading at +0.49% as of 16:25 BST Monday.

Markets suffer Monday blues as PMIs turn indices red

Jamie Gordon
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0
Markets suffer Monday blues as PMIs turn indices red
From the bell, there was an aura of grey skies in the air. Not only were there rain clouds over the UK but also over market sentiment following the early announcement of Eurozone flash PMIs in the morning, which cemented red fundamentals across the board throughout Monday. Speaking on the market’s dull trudge to the final bell, Spreadex Financial Analyst Connor Campbell commented,

“The markets spent the day in various shades of red, the tone set by the morning’s alarming Eurozone flash PMIs.”

“Thanks to those woeful PMI readings – the choice cuts were from the manufacturing sector, with the German figure at 41.4 and the region-wide number at 45.6 – the Eurozone was the worst performing area. Losing 140 points the DAX neared a 2-week low, while the CAC dropped under 5620 as it fell 1%; the pair was maybe saved from anything worse by the prospect of the ECB’s recently announced stimulus.”

“Having tumbled last Friday, the Dow Jones didn’t really do much after the bell. Nevertheless, a 0.1% decline pushed the index back below 26900 – like the DAX, its worst level since September 11th.”

“The FTSE was in an interesting situation this Monday. The overall tone of the markets ensured it spent most of the session at a loss. However, its decline was capped at around 0.2%, thanks to both the pound’s losses – Brexit anxiety sent it 0.4% lower against the dollar and 0.1% against the euro – and movements in its travel sector.”

“The market never leaves time to mourn. In other words, investors swiftly moved to potential winners in the travel sector following the collapse of Thomas Cook. Tui maintained an 8.5%, 7-month high-hitting rise, while easyJet climbed 4.1%. British Airways-owner IAG, on the other hand, fell 1.6%.”

Some enjoyed success on Monday, with hedge funds collecting pay-outs on their short positions on Thomas Cook. By-and-large however, the week has begun with the familiar lacklustre tone which has shrouded the majority of fundamentals thus far in 2019. Elsewhere in markets and macro economic news, there have been updates from; ECB stimulus, the bid for the London Stock Exchange (LON: LSE), Lloyds Banking Group PLC (LON: LLOY), Jo Johnson quitting, Hilary Benn’s Brexit delay bill, Parliament being prorogued, Barclays (LON: BARC) and Deutsche Bank (ETR: DBK).

Microsaic Systems shares in free-fall despite revenue bounce

Jamie Gordon
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1
Microsaic Systems shares in free-fall despite revenue bounce
Developer of point of need mass spectrometry instruments Microsaic Systems PLC (LON: MSYS) saw its share price dive following the publication of their half year results, despite what would appear to be some move towards a positive trajectory. The Company reported that total revenues grew 30% year-on-year during the first half, up to £0.33 million. Similarly, the Group booked twelve instrument orders for H1 FY19, nearly equal to the entirety of FY18.

Microsaic Systems added that its cash balance narrowed by £1.3 million during the first half, but pointed to progress it had made in their small and large molecule detection offerings.

Microsaic Systems comments

Glenn Tracey, CEO, said on the update,

“We are encouraged with the progress made in the first half of the year, including revenues ahead of the same period last year and with instrument orders received for shipment in 2019 almost equal to the total number of orders received during 2018. We believe that there are opportunities to further accelerate revenue growth in small molecule markets by selling Microsaic-branded complete systems integrating specific third-party sample preparation and separation equipment with Microsaic’s mass detectors. These new systems will be commercialised by Microsaic directly in selected markets in Europe and through our partners in North America and Asia, particularly in China. This will complement our current strategy of seeking new OEM and distribution partners in selected geographies.”

“Bioprocessing remains a very exciting growth opportunity, and we continue to make good progress in developing products to meet specific bioprocessing applications, particularly in partnership with MIT and the Centre for Process Innovation (“CPI”), ahead of planned commercialisation. Microsaic has increased its industry profile and continues to garner interest in the use of its technology as a novel approach to the in-situ analysis of biologics during their manufacture.”

Investor notes

The Company’s shares have continued their decline through the day, down 39.94% or 0.62p to 0.93p per share 23/09/19 14:13 BST. Neither a p/e ratio nor a dividend yield is available for Microsaic Systems, their market cap is £4.34 million. Elsewhere in the tech sector, there were updates from; Petards Group plc (LON: PEG), SCISYS Group PLC (LON: SSY), Pebble Beach Systems Group PLC(LON: PEB), ULS Technology PLC (LON: ULS), Midwich Group PLC (LON: MIDW), ProPhotonix Ltd (LON: PPIX) and Frontier Developments PLC (LON: FDEV).

Union Jack Oil continues to gush cash despite revenue growth

Jamie Gordon
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1
Union Jack Oil continues to gush cash despite revenue growth
UK focused onshore oil and gas company Union Jack Oil PLC (LON: UJO) saw its red lines dip deeper into negative territory during the first half of 2019. In spite of its revenues growing modestly by £3,365 to £76,409, the Company’s operating losses expanded almost £67,000 to £486,609. This was led by gross losses widening by £27,000 to £44,633, and total administrative expenses rose almost £40,000, to £441,976. The situation remained consistent but glum for Union Jack Oil investors, with basic and diluted EPS remaining at negative 0.01p. The Company added that initial drilling identified a 45 metre gas column at their West Newton A-2 propsect, and “the likely presence of a 35 metre live oil column with API Gravity oil of 33º to 34º in the top of the Dinantian interval” at their Biscathorpe-2 conventional well.

Union Jack Oil comments

Speaking on the results, David Bramhill, Executive Chairman, said,

“We have seen significant progress at our three key project interests, namely West Newton, Biscathorpe and Wressle. Developments at these three assets can be expected to provide an active stream of newsflow throughout the remainder of 2019 and beyond.”

“At West Newton A-2, the result of the Extended Well Test has the potential to dramatically transform Union Jack. We anticipate further progress in our ongoing technical evaluation and appraisal of the West Newton A-1 and A-2 discoveries in the coming months that will help us confirm that West Newton is one of the largest onshore UK oil and gas ventures in recent decades.”

“An ongoing technical evaluation at Biscathorpe also has the potential to identify a material resource with significant upside, as in the case of West Newton.”

“Assuming our appeal at Wressle is supported and production from Wressle is established, under the current oil price environment, Wressle would provide material cash flows after project operating costs net to Union Jack. Bearing in mind Union Jack’s modest annual general and administrative costs, Wressle is expected to convert Union Jack into a cash flow positive company at the corporate level.”

“The Board remains both confident and optimistic and the future of Union Jack looks bright.”

Investor notes

After dipping around 1.92%, the Company’s shares stood at 0.26p per share 23/09/19 12:41 BST. SP Angel analysts reiterated their ‘Buy’ stance on Union Jack Oil stock, their market cap is £30.87 million. Elsewhere in oil and gas news, there have been updates from; Prospex Oil and Gas PLC (LON: PXOG), IGAS Energy PLC (LON: IGAS), Trinity Exploration & Production PLC (LON: TRIN), Baron Oil PLC (LON: BOIL), Cabot Energy PLC (LON: CAB) and Reabold Resources PLC (LON: RBD).

Marks & Spencer CFO steps down

Dina Caruso
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0
Marks & Spencer CFO steps down
Marks & Spencer Group plc (LON:MKS) announced on Monday that its Group Chief Financial Officer will step down. Shares in Marks & Spencer were down on Monday. The British multinational retailer said that Humphrey Singer has decided to leave the business. It added that a succession process is now underway. In order to ensure an orderly transition, Humphrey Singer will work alongside the Group Chief Executive Officer, Steve Rowe, and the board. An exact date of departure is yet to be confirmed, Marks & Spencer said. Humphrey Singer will continue with his responsibilities until then, the company added. “I feel privileged to be a part of the challenging but hugely rewarding turnaround at Marks & Spencer,” Group Chief Financial Officer, Humphrey Singer, said in a company statement. “The transformation taking place is of a scale, depth and pace not seen before at the company,” Humphrey Singer continued. “After eighteen months of working with Steve to lead the transformation strategy and rebuild the finance function I have decided that now is the right time to move on. I will continue to give the business my all and work with Steve and the Board to ensure we continue to make progress and that there is an orderly handover to my successor.” The Group Chief Executive Officer, Steve Rowe, added that Humphrey Singer has been a “huge asset” to Marks & Spencer. “He has helped to establish the foundations of our transformation with a stronger balance sheet, robust financial controls and a much keener focus on reducing our cost base,” Steve Rowe continued. “In addition, he was a critical part of the team which guided Marks & Spencer through the deal to create our joint venture with Ocado and subsequent equity raise.” Ocado Retail (LON:OCDO) is a joint venture between Ocado and Marks & Spencer, which was completed in August. It recently posted an 11.4% rise in retail revenue in its third quarter results. Shares in Marks & Spencer Group plc (LON:MKS) were trading at -3.55% as of 11:55 BST Monday.

World High Life to acquire Love Hemp

Dina Caruso
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0
World High Life to acquire Love Hemp
CBD and medicinal cannabis investment company World High Life plc (NEX:LIFE) said on Monday that it would buy Love Hemp in a £9 million deal. Love Hemp is a London-based supplier of a range of CBD and Hemp products. With over 40 product lines, Love Hemp has established agreements with over 1,200 stores in in the UK, including leading brands such as Ocado, Holland & Barrett and WH Smith. “The Directors of LIFE believe that this transaction will help World High Life significantly accelerate its expansion plans across the United Kingdom and Europe, with a focus on Germany over the course of 2020,” World High Life said in a company statement. “If completed, the transaction will also give World High Life access to Love Hemp’s extensive online distribution network and access to the 1,200 convenience stores in the UK, including leading high street stores such as Holland & Barrett and WH Smith, through which Love Hemp currently sells its products,” World High Life added. Though the UK may be far from full legalisation of the drug for recreational purposes, medical use of the drug has seen big breakthroughs. The two main cannabinoids from marijuana that are of medical interest are THC and CBD. Unlike THC, CBD does not make people high when consumed. Instead, CBD offers a range of anti-inflammatory, anti-pain and anti-psychotic properties. Elsewhere in the sector, earlier in July Sativa Group opened its first CBD wellness retail store in Bath. It provides a range of over 50 CBD products, and offers consumers the opportunity to try CBD infused coffee and tea.
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