Thomas Cook demise fuels its peers, European PMIs display ECB failure

Jamie Gordon
-
14
Thomas Cook demise fuels its peers, European PMIs display ECB failure
In a return to business as usual, market indicators have resumed the downward trajectory which has become something of a home so far in 2019. Despite the efforts of its Board and shareholders, Thomas Cook collapsed on Monday morning, and this sour cherry topped the broader and equally bitter macro cake offered by the Eurozone, with disappointing PMIs illustrating that some change of the modus operandi is needed (and more simply that the ECB’s recent efforts fell short of the mark). Speaking on Monday morning’s developments, Spreadex Financial Analyst Connor Campbell stated,

“A disappointing morning for Eurozone PMIs set the tone in the region, while the FTSE dealt with a unique situation in the travel sector.”

“The undoubted headline this Monday is the demise of Thomas Cook. The world’s oldest travel company ceased trading after failing to secure the £200 million it desperately needed for a bailout. That leaves 150,000 holidaymakers stranded around the world, sparking Operation Matterhorn, the UK’s biggest repatriation effort since World War II.”

“Such a tragic collapse – one, if not solely brought about by Brexit, then certainly hastened by that ongoing mess – leaves plenty of money on the table for its sector peers, a fact that hasn’t gone unnoticed by investors. Long-standing rival TUI surged 9% to a 7-month-plus high, helping the FTSE avoid the losses seen across the pond, while British Airways-owner IAG added 1.2% and easyJet climbed 5.2%.”

“Once again the Eurozone’s flash PMIs gave the region rather severe cause for concern, suggesting the scale of the turnaround needed may go beyond the measures announced by the ECB earlier in the month.”

“The French readings both missed estimated by quote some way, as did the German services figure. The truly alarming number, however, was the German manufacturing PMI, which came in at just 41.4 against the 44.6 forecast and the 43.5 seen last time out. That set the DAX and CAC up for a very poor start to the week; the former slumped by 130 points, with the latter shedding more than half a percent.”

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).

Prospex Oil and Gas shares drop as losses widen

Jamie Gordon
-
1
Prospex Oil and Gas shares drop as losses widen
Energy-focused investment company Prospex Oil and Gas PLC (LON: PXOG) has seen its shares slide on Monday following a deepening of its first half losses. The Company booked first half net losses of £0.691 million, widening from £0.541 million year-on-year for the period. Prospex Oil and Gas did make some progress in its financial results, as seen with a 10% cut to its admin expenses, down to £0.485 million, and an increase of almost £53,000 in shareholder equity value, to £6.35 million.

Additionally, the Group raised £0.8 million via a share placement, to cover the costs of its Suceava work programme. Further, its Bainet field continued ‘in line with expectations’ and its Podere Gallina Exploration Permit remains on course for its premier gas production in 2020.

Prospex Oil and Gas comments

Speaking on the Company’s first half results, Managing Director Edward Dawson said,

“The majority of the Company’s shareholder equity value of £6,349,995 is backed by its 17% interest in the Podere Gallina licence in Italy following the commercial gas discovery there in 2018. During the period, our interest was assigned net 2P reserves of 2.26 bcf and net contingent and prospective resources of 2.40 bcf and 15.56 bcf, respectively in an updated CPR, which also assigned €4.6m (net) to the 2P reserves at the Selva field. Not only did the CPR demonstrate the significant asset backing behind the Company, but also the considerable run room that remains in terms of additional prospects and leads. Following preliminary government approval of a production concession application in January 2019, we are working with our partners to bring Selva into production at an initial rate of up to 150,000 scm/day in 2020, and in the process generate a material revenue stream for the Company.”

“Elsewhere, in Spain a multi-strand work programme is underway at the Tesorillo gas project, to de-risk up to 830 billion cubic feet (Best Estimate) of gross unrisked Prospective Gas Resources and identify potential well locations. In Romania we are evaluating reprocessed seismic data before agreeing the best way forward for the Suceava concession with our partner. Whilst the Bainet-2 well result was disappointing, we believe there are still compelling prospects and leads, not dependant on Bainet-2’s results, to be pursued in the concession. Finally, we continue to run the rule over a number of new ventures, as we focus on growing our portfolio of projects, building on our track record of participating in four new wells in three years, and at the same time adding to the two commercial gas discoveries we have made to date.”

Investor notes

The Company’s shares dropped 20.87% or 0.024p to 0.091p per share 23/09/19 10:05 BST. The Group’s p/e ratio is 1.64, they do not have a dividend yield available. Elsewhere in oil and gas news, there have been updates from; IGAS Energy PLC (LON: IGAS), Trinity Exploration & Production PLC (LON: TRIN), Baron Oil PLC (LON: BOIL), Cabot Energy PLC (LON: CAB), Reabold Resources PLC (LON: RBD) and Eco Atlantic Oil and Gas Ltd (AIM: EOG).

Sports Direct makes an offer for Goals Soccer Centres

Dina Caruso
-
1
Sports Direct makes an offer for Goals Soccer Centres
Sports Direct International plc (LON:SPD) said on Monday that it had made an offer for Goals Soccer Centres. Shares in Sports Direct were up during trading on Monday morning. Mike Ashley’s Sports Direct said in a statement that it had made a possible cash offer of 5 pence per share “for the entire issued and to be issued share capital of Goals, not already held by Sports Direct”. Sports Direct already holds a significant stake in the soccer centre operator. Shares in the soccer centre operator were suspended back in March. Goals Soccer Centres was put up for sale at the end of August following accounting issues. Earlier in August, it was revealed that the accounting issues were much deeper than expected – a £12 million tax accounting scandal that stems back at least a decade. “Sports Direct is the largest shareholder in Goals, with an 18.93% shareholding. Goals has had some well-publicised difficulties and its shares are currently suspended from trading on AIM,” Mike Ashley’s retail company said in a statement. Sports Direct said that if its offer is progressed, then it would “provide shareholders with an exit and allow them to determine what is fair value and in their best interests”. According to Sky News, Goals Soccer Centres employs roughly 700 people and had a market value of £20 million when shares were suspended. Earlier in July of this year, Mike Ashley’s Sports Direct faced some problems with the publication of its preliminary results, sending shares down. It blamed the complexities surrounding the integration of House of Fraser, which it had purchased the year prior, for the delay in the publication of the results. One analyst called the delay of the results “an utter shambles,” according to the BBC. Shares in Sports Direct International plc (LON:SPD) were trading at +0.072 as of 10:09 BST Monday.

Impact Healthcare REIT continues investment with care home acquisition

Jamie Gordon
-
1
Impact Healthcare REIT continues investment with care home acquisition
Healthcare-focused real estate investment trust Impact Healthcare REIT PLC (LON: IHR) announced on Monday morning that it had acquired a property asset outside of Bristol. The exchange of contracts for the Argentum Lodge Care Home facility was undertaken for a consideration of £6.95 million, with initial rental income of £0.467 million. Speaking on the acquisition, the Impact Healthcare REIT statement read,

“Argentum Lodge is a purpose-built nursing home located in the affluent village of Nailsea, approximately 10 miles to the south west of Bristol.”

“The Group has agreed to appoint one of its existing tenants, Welford, as the new tenant of Argentum Lodge, which will leave Welford operating five homes for Impact with a total of 230 beds. The terms of the new 25-year full repairing and insuring lease with Welford for the home are the same as the Group’s existing leases with Welford.”

“The acquisition further enhances the Group’s geographic and tenant diversification and is in line with its investment criteria and returns profile.”

“The Group continues to pursue a number of further acquisitions with a number in exclusivity and has a strong pipeline of potential investment opportunities.”

Following the news, the Company’s shares rallied modestly, by 0.54% or 0.60p, to 111.60p per share 23/09/19 09:37 BST. The Group’s p/e ratio stands at 12.95, their dividend yield is 5.41%. Elsewhere in property development and estate agency news, there have been updates from; Berkeley Group Holdings Ltd (LON: BKG), Redrow plc (LON: RDW), U+I Group PLC (LON: UAI), Hunters Property PLC (LON: HUNT), GCP Student Living plc (LON: DIGS), Barratt Development Plc (LON: BDEV) and Belvoir Group PLC (LON: BLV).

Thomas Cook collapses

Dina Caruso
-
14
Thomas Cook collapses
Thomas Cook (LON:TCG), the British global travel group, has collapsed leaving thousands of British holidaymakers stranded abroad. With all flights cancelled as the company has ceased trading, the UK Civil Aviation Authority has warned that customers in the UK yet to travel must not go to the airport. The government has requested that the UK Civil Aviation Authority launch a repatriation programme over the course of the next two weeks in order to bring Thomas Cook customers back home. The UK Civil Aviation Authority is set to launch the biggest ever peacetime repatriation to bring home over 150,000 British holiday makers. “News of Thomas Cook’s collapse is deeply saddening for the company’s employees and customers, and we appreciate that more than 150,000 people currently abroad will be anxious about how they will now return to the UK,” Richard Moriarty, Chief Executive of the UK Civil Aviation Authority, commented in a statement. Customers abroad are being urged to check thomascook.caa.co.uk for advice on what to do next. Chief Executive of Thomas Cook Peter Fankhauser said that the matter is “of profound regret” to himself and the rest of the board. “We have worked exhaustively in the past few days to resolve the outstanding issues on an agreement to secure Thomas Cook’s future for its employees, customers and suppliers,” Thomas Cook’s Chief Executive said. “Although a deal had been largely agreed, an additional facility requested in the last few days of negotiations presented a challenge that ultimately proved insurmountable,” the Chief Executive continued. “I would like to apologise to our millions of customers, and thousands of employees, suppliers and partners who have supported us for many years. Despite huge uncertainty over recent weeks, our teams continued to put customers first, showing why Thomas Cook is one of the best-loved brands in travel.” Earlier this year, the travel operator said that it was set to close 21 stores, placing 300 jobs at risk. It had been under pressure recently with falling profits – in May the travel group reported a £1.5 billion loss for the first-half of the year.

Billington lays strong full-year foundations with first half profit growth

Jamie Gordon
-
2
Billington lays strong full-year foundations with first half profit growth
UK structural steel and construction safety solutions specialists Billington Holdings PLC (LON: BILN) saw its shares rally on Monday morning, on the back of impressive progress illustrated in its first half fundamentals. The Company accrued revenues of £47.15 million, up 19.7% year-on-year for the period. This led its 39.8% EBITDA spike, up to £3.55 million, and a 38.1% jump in profit before tax, to £2.68 million. Additionally, the Group’s cash and cash equivalents rose 32.4% to £10.01 million. Billington Holdings shareholders saw similar progress, with EPS hiking 39.1% to 17.80p. The Company went on to add that it continued investment in its safety solutions businesses, delivered a ‘large’ European project and won two contracts worth a combined £30 million, in June 2019.

Billington Holdings comments

Company Chief Executive, Mark Smith, commented on the results,

“I am very pleased with the Group performance in the first half of the year, continuing the strong momentum from 2018. We started the year with a record order book and consequently the first half has been a very busy period for the Group across all our businesses. We have continued to build our order book with further significant contracts secured.”

“Whilst the overall market continues to be uncertain, the outlook for Billington remains positive, particularly given the Group’s ability to target a diverse range of projects insulating us, in part, from any temporary slowdowns in the market. I look forward to the remainder of the year and beyond with cautious optimism.”

Investor notes

The Company’s shares have rallied 5.35% or 17.00p, to 335.00p per share 23/09/19 09:21 BST. The Group’s p/e ratio is 9.46, their dividend yield stands at 3.82%. Elsewhere in construction and development news, there have been updates from; Epwin Group PLC (LON: EPWIN), Ashtead Group plc (LON: AHT), SIG plc (LON: SHI), Alumasc Group plc (LON: ALU), Somero Enterprises Inc (LON: SOM), Barratt Developments Plc (LON: BDEV) and Wincanton plc (LON: WIN).

Deltex Medical shares dip as revenues narrow

Jamie Gordon
-
1
Deltex Medical shares dip as revenues narrow
Global leader in oesophageal Doppler monitoring Deltex Medical Group plc (LON: DEMG) booked an improved margin and improved cost-effectiveness on a year-on-year comparison of the first half, but its narrowed revenues weighed on its share price as trading began on Monday morning. The Company’s revenues narrowed from £2.3 million to £2.0 million on-year for the first half. The Group maintained a loss of £0.3 million, though this narrowed from £1.2 million. Largely though, the Company showed consistent progress across its fundamentals. Alongside a gross margin widening by 12% to 76%, Deltex Medical reduced its sales and distribution expenses by 55% and overhead costs by 35%. Further, the Group swung to a £0.2 million profit, from a loss of £1.0 million on-year. The Company also noted that it increased the average sale price of its TrueVue Doppler products in the US and terminated a third-party distribution contract in the UK. The Group was also awarded a contract with Vizient and four product development grants by Innovate UK.

Deltex Medical Group comments

Speaking on the results, Company Chairman Nigel Keen said, “The significantly improved underlying financial performance of the Group can clearly be seen with positive adjusted EBITDA in the first half.” “We are delighted with the number of new technology grants that Deltex Medical has been awarded so far in 2019. As well as providing non-dilutive capital for our development programmes, these grant awards provide independent validation of the potential for the Group’s technology with the increasing focus on patient safety.” “Deltex Medical is well placed to provide clinicians around the world with advanced haemodynamic monitoring which is becoming increasingly recognised as an important factor associated with improved patient safety as well as the reduction of avoidable complications during and after surgery.”

Investor notes

The Company’s shares dipped 1.89% or 0.025p to 1.30p per share 23/09/19 08:05 BST. Neither a dividend yield nor a p/e ratio are available for the Group, their market cap is £6.97 million. Elsewhere in health and medical news, there have been updates from; Curetis NC (AMS: CURE), Integumen PLC (LON: SKIN), Medica Group PLC (LON: MGP), EMIS Group (LON: EMIS), OptiBiotix Health PLC (LON: OPTI) NMC Health (LON: NMC) and Astrazeneca plc (LON: AZN).

Hotel Chocolat looks overseas

Andrew Hore
-
0
Hotel Chocolat looks overseas

Chocolate maker and retailer Hotel Chocolat (LON:HOTC) continues to make impressive progress. This will be shown when the figures for the year to June 2019 are published on 24 September.
Online sales are growing but there is a lot more to go for. Stores continue to be opened in in the UK, with 14 opened last year and more to come.
Hotel Chocolat is finding out more about its customers and how to market to them because of its VIP Me card.
Peel Hunt expects growth in revenues from £116.3m to £132.4m, but pre-tax profit is likely to be flat at £12.8m. There is likely to be a small net debt or ...

Moss Bros switches focus to retail

Andrew Hore
-
0
Moss Bros switches focus to retail

Clothing hire and retailer Moss Bros (LON: MOSB) is expected to make a small interim loss before the effects of any recent changes in accounting regulations.
The strategy is to increase retail sales as hire revenues dip. Online revenues are expected to grow strongly, and online penetration could rise above 15% for the first time. There should also be like-for-like growth in store sales.
Tailor Me is a growth area and in the first 15 weeks of this year its sales were one-third higher. A standalone website for Tailor Me will be launched, where customers can chose their suit and then go to a sho...

eve Sleep ends merger talks

Andrew Hore
-
0
eve Sleep ends merger talks

Talks between rival mattress suppliers eve Sleep (LON: EVE) and the unquoted Simba have been called off as trading gets tougher for eve Sleep.
Trading in the shares of eve Sleep was restored on Friday and the share price slumped to 3.3p. That price decline would have made it more difficult to fund a merger with Simba which would require a large share issue either to the vendors of Simba and/or to investors for cash.
AIM-quoted eve Sleep says trading has been worse than expected in recent months. The general market for home goods is weak and there is increasing promotional activity in the matt...

1...1,3791,3801,381...1,860Page 1,380 of 1,860