Amino Technologies shares fall after disappointing 2018
Amino Technologies shares (LON:AMO) plunged on Tuesday after the company posted its annual results for the year, disappointing investors.
The global media entertainment and technologies provider said revenue dropped by 7% to $88.9 million, down from $96.1 million reported in 2017.
In addition, pre-tax fell considerably to $8.2 million for 2018, compared to $13.3 million the year before.
Amino Technologies blamed ‘unprecedented macro-economic headwinds’ for its its disappointing annual performance.
Keith Todd CBE, Non-Executive Chairman, commented:
“The Board remains confident in the strength and strategic direction of the Company and has committed to continue its dividend policy for this financial year and maintain this dividend level for at least two years thereafter. The diversity and depth of change in our industry this year has created difficult trading conditions in the short term, however the Company remains well positioned to take advantage of the all IP future, and remains profitable and cash generative.
He also added:
“To support a higher quality of earnings and de-risk the business, we are accelerating our strategy to improve growth in recurring revenues from software and services, reinforce our focus on value-add hardware, and remove our exposure to low margin hardware activities. This will increase the quality of our earnings and our resilience going forward.”
The company suggested a dividend per share of 7.32p, compared to 6.66 in 2017.
Back in October, the firm warned on profits after trade war concerns hit emerging markets and had worried its customers.
Shares in Amino Technologies are currently down -14.34% as of 14:07PM (GMT).
Numis shares plunge as Brexit uncertainty hits profits
Numis (LON:NUM) warned on the impact of Brexit uncertainty on its performance in a trading update issued on Tuesday.
The City broker said uncertainty domestically had continued to affect trading during the financial year.
The statement said:
“UK equity indices have suffered material declines and the domestic political situation has significantly impacted investor sentiment in the UK. As a result the market backdrop has been particularly challenging for our corporate and institutional clients, which has ultimately impacted our trading performance in the first four months of the year.”
Numis said that whilst corporate broking and advisory as well as average fees remain in line with the year before, ultimately, transaction volumes proved significantly lower.
As a result, the AIM-listed broker said it completed approximately 25% fewer deals compared to the first four months during the year before.
Similarly, Equities were also suffering, with Institutional income approximately 25% lower than the same period a year previously.
Alongside domestic political uncertainty, Numis also noted the impact of MiFID II upon its business. However, the financial services company said that they ‘were not materially impacted by the first year of implementation, despite the decrease in institutional budgets since the introduction of the regulation.’
Numis shares are currently down -8.49% as of 13:34PM (GMT).
Tuesday Market News Update
Elsewhere across the markets, shares in Danish jewellery retailer Pandora (CPH:PNDORA) ticked up after the company unveiled a cost-saving initiative for the years ahead.
In the mining sector, BlackRock Diamonds shares (LON:BRD) ticked up after the company announced an “exceptional” diamond recovery.
Pandora shares rise amid cost-saving plan
Pandora shares rose on Tuesday after the jewellery retailer unveiled plans to save 1.2 billion Danish crowns (£141.1 million) by 2022.
The Danish brand announced its ‘Programme Now’ plan with aims to cut costs following a disappointing 2018.
As part of the programme, Pandora said it would cut back on promotions, buy back slow selling stock and improve consumer experience by further investment in retail locations.
This follows a disappointing set of annual results for the retailer. In its annual results, the retailer said like-for like sales dipped 4% for the year, dropping a further 7% in q4.
In a letter to shareholders, Chairman Peder Tubourgh said that 2018 had been a difficult year for Pandora. He wrote:
“2018 was a tough year for Pandora. This is evident in our financial results. 3% revenue growth in local currency, an EBITDA margin of 32.5%, and negative total like-for-like are not satisfactory”
Chief Operating Officer said of the cost-saving plan: “Through Programme Now, we are taking immediate and forceful action to address the disappointing aspects of our financial performance in 2018,”
He continued: “We are confident that this company-wide business transformation will reignite Pandora, restore sustainable growth and support our industry-leading margins.”
Pandora was founded back in 1982, having started as a family run shop in Copenhagen, Denmark.
As of 2017, the jewellery retailer had 7,800 locations globally. The Danish brand is most well-known for its customisable charm bracelets which retail for £55.
Pandora shares (CPH: PNDORA) ticked up on the back of the announcement. Shares are currently trading +15.42% as of 12:51PM (GMT).
Greatland Gold announces “excellent results” from Havieron drill campaign
Greatland Gold (LON:GGP) revealed the results from its Havieron drill campaign on Tuesday.
According to the update, the results indicate that Havieron has the potential ‘to become a large, multi-commodity, bulk tonnage, underground mining operation’.
Greatland Gold said they believe that the results reveal that the company can “significantly extend” the known mineralisation intersected in the first drilling campaign.
As well as this, the company believe the results indicate that it can also establish new peak grades for copper and cobalt, including 12.38% copper (previously 8.45%) and 4,104ppm cobalt (0.4% cobalt).
Gervaise Heddle, Chief Executive Officer, commented:
“We are very pleased by these excellent results which further demonstrate the potential for Havieron to become a multi-commodity, bulk tonnage, underground mining operation of truly significant scale. These excellent gold and copper assay results flesh out the world-class intersection recorded at HAD005 and reveal a new peak copper grade for the system of 12.4% (HAD006). We are also very excited to see significant widths of elevated cobalt (in excess of 500ppm) in three of the reported drill holes (HAD006, HAD008 and HAD009).”
“We expect to re-commence drilling at Havieron in March 2019 and currently two rigs are booked with provision for additional capacity, if required, during the year. We look forward to providing further updates to shareholders regarding our plans for 2019 in the coming weeks.”
Greatland Gold is a precious metal exploration company. Alongside Havieron, its projects include Ernest Giles, Paterson, Panaroma and Firetower.
The firm is primarily focused in metal exploration in Australia. Greatland Gold is listed on the AIM market of the London Stock Exchange.
Greatland Gold shares are down -17.08% as of 11:18AM (GMT).
BlueRock Diamonds shares rise after “exceptional” diamond recovery
BlueRock Diamonds shares (LON:BRD) rose on Tuesday after the company updated the market on its continued recovery of “exceptional” diamonds.
The diamond company announced the recovery of an exceptional 8.97 carat diamond on Friday the 1st of February at its Kareevlei mine.
The Kareevlei licence area covers 3,000 hectares, of which the company have recovered several high-value diamonds.
According to the company, this will be the third stone independently valued in excess of $50,000 from the mine.
The other two record value stones were a 7.76 carat stone mined back in 2017, which was later sold for $10,070 per carat, as well as a 10.58 carat stone recovered the following year and sold for $7,047 per carat.
Adam Waugh, Chief Executive of BlueRock Diamonds commented on the discovery:
“The 8.97 carat stone recovered on Friday 1st February, along with two other high-quality 6.36 carat and 3.64 carat diamonds, reinforces the exceptional quality being produced at Kareevlei.”
Last month the company released a report on the inferred mineral resource for the Kareevlei kimberlite cluster at its South African mine. Shares rose on the back of the update in January.
BlueRock Diamonds was founded in October 2012. The company focuses its efforts in South Africa and sub Saharan Africa.
The firm was admitted onto the AIM market of the London Stock Exchange back in 2013.
Shares in BlueRock Diamonds are currently +5.38% as of 10:26AM (GMT).
HMV rescued by Canadian entrepreneur Doug Putman
HMV has been sold to the Canadian music entrepreneur Doug Putman. The deal will see 100 stores saved, but will result in 27 closing. Additionally, 1,500 jobs have been saved by the deal.
At the end of December, HMV slipped into administration for the second time. Following tough trading over the Christmas period, KPMG were appointed as the group’s administrators. Over 2,000 jobs were put at risk.
Will Wright, partner at KPMG and joint administrator, told Sky News:
“We are pleased to confirm this sale which, after a complex process, secures the continued trading of the majority of the business.”
“Our immediate concern is now to support those employees that have unfortunately been made redundant.”
However, Doug Putman, owner of the Canadian retailer Sunrise Records, purchased the film and music retailer. He emerged as the leading contender over the weekend, ahead of Sports Direct boss, Mike Ashley.
The deal will see 27 of HMV’s stores immediately close, along with the loss of 455 jobs.
Moreover, an additional 122 warehouse jobs will be lost over the next few weeks. Doug Putman commented on the acquisition of HMV, Sky News reports: “We are delighted to acquire the most iconic music and entertainment business in the UK and add nearly 1,500 employees to our growing team.” “By catering to music and entertainment lovers, we are incredibly excited about the opportunity to engage customers with a diverse range of physical format content, and replicate our success in Canada. “We know the physical media business is here to stay and we greatly appreciate all the support from the suppliers, landlords, employees and most importantly our customers.” According to the Guardian, Doug Putman has said that the 27 stores will close as a result of high rent: “Unfortunately, as rents continue to go up it’s not feasible to keep those stores.” “You can only lose so much money on those stores before you need to make a change. Unfortunately rents are just very high at this time.”Chamberlin reports operating loss amid “toughened” trading conditions
Chamberlin plc (LON:CMH) released a trading update on Tuesday for the financial year to 31 March 2019, outlining a first-half operating loss. The specialist castings and engineering group has implemented various cost reduction measures as a result of the changing trading conditions and Brexit uncertainty. Shares in the company dropped by over 9% during early trading on Tuesday morning.
Underlying operating loss (before exceptional items and legacy pension costs) of the continuing operations during the year to 31 March was £0.3 million. The company’s operating loss for the first-half of the year (the six months to 30 September 2018) was also reported as £0.3 million.
However, the company has said the sale of Exidor for £10 million has strengthened its balance sheet. It has also underlined that the sale has significantly reduced its pension liability. Following a one-off contribution of £2.5 million from the cash proceeds from the sale of Exidor, Chamberlin’s adjusted reported pension liability was £1.5 million as of 30 September 2018.
Chamberlin has warned of the “toughened” trading conditions.
Despite its strengthened financial position, trading conditions have toughened. “Customer schedules for the European turbocharger market have suffered significant reductions, partly related to the disturbance to production schedules resulting from the new WLTP (Worldwide Harmonised Light Vehicle Test Procedure) emissions testing regime,” the company said. Moreover, the uncertainties surrounding Brexit have exacerbated the uncertain trading climate, with the petrol business experiencing a slowdown. As a result of the changing trading conditions, the company has said that the board has implemented various cost reduction measures. Additionally, the board has completed a reassessment of the likely outcomes during the second half of Chamberlin’s current financial year. It expects the loss in the second-half will be similar to the figure during the first-half. In order to see the benefits of the company’s cost reduction measures, it will have to wait until the next financial year to 31 March 2020. Elsewhere on the stock market Tuesday morning, Carpetright performance has followed expectations amid “volatile” trading patterns. Additionally, Ocado’s full-year losses widened to £44.9 million and BP’s full-year profits more than double. At 08:43 GMT today, shares in Chamberlin plc (LON:CMH) were trading at -9.26%.Carpetright performance aligns with expectations amid “volatile” trading patterns
Carpetright plc (LON:CPR) released a trading update and a directorate change announcement on Tuesday. The group’s overall performance aligns with its expectations amid volatile trading patterns and uncertain trading conditions. Shares in the company dropped slightly during early trading on Tuesday morning.
The specialist carpet and floor coverings retailer has said that its overall performance remains in line with expectations. Moreover, UK like-for-like sales remained negative during the period, which continues to stick to its anticipated expectations.
Carpetright has said that trading patterns remain “volatile” week to week.
These are set against a backdrop of “uncertainty and weak consumer confidence”, the company announced. In December, shares in Carpetright rose despite reports of its widening losses. The company swung into loss in June as the retailer continued to struggle throughout the “very difficult year”. Its trading in its European markets remain consistently ahead of results from the same period a year earlier. This has been particularly driven by a strong performance in the Netherlands. The company has affirmed that it remains on track to achieve the £19 million of annualised cash savings announced in May last year as part of the group’s recapitalisation plan. Additionally, Carpetright has announced that its Chief Financial Officer, Neil Page, is set to retire from his full-time role. Neil Page is set to step down from the board on 25 February later this month. Neil Page will be succeeded by Jeremy Simpson. Chief Executive of Carpetright, Wilf Walsh, commented on the announcement: “As CFO, Neil has made an outstanding contribution to Carpetright over many years and the Board wishes to express its gratitude for his unstinting commitment to the business, particularly through the recent challenging period of restructuring. We are delighted that Jeremy is joining us as CFO – he has a strong plc track record and will be able to integrate swiftly into the executive team”. At 09:18 GMT, shares in Carpetright plc (LON:CPR) were trading at -3.76%.Ocado full-year losses widen to £44.9 million
Ocado Group plc (LON:OCDO) announced its full-year 2018 financial results on Tuesday for the 52 weeks to 2 December 2018. The online grocery retailer revealed a £44.9 million annual loss as its continued investment in its technology platform has more than outweighed a sales increase. Shares had begun to decrease Tuesday morning during early trading.
The £44.9 million pre-tax full-year loss compares to a £9.8 million loss posted the year prior.
Group revenue was 12.3% higher compared to 2017 at £1.6 billion.
Ocado’s retail revenue increased 12% to £1.48 billion.
As for its 2019 outlook, Ocado has said it remains confident in achieving revenue growth of 10-15% in its retail business as it increases its fulfilment capacity and grows its UK market share. It has warned, however, that this depends on stable economic conditions. In July, Ocado reported a loss for the first-half of the financial year. This was due to a heavy reinvestment that outweighed a rise in revenue over the period. During the first-half of the financial year, the company faced a £1.5 million hit to its profits as a result of the ‘Best from the East’ storm. Reports of a profit plunge date as early as February of the 2018 financial year. Ocado’s Chief Executive Officer, Tim Steiner, commented on the results: “Our performance last year was the result of many years of focus, dedication and perseverance: what we have called our “18-year overnight success”. Our growth story, however, is only just beginning. We now have in place a platform for significant and sustainable long-term value creation as the leading pure-play digital grocer in the UK, a world-leading provider of end-to-end ecommerce grocery solutions, and as an innovative and creative technology company applying our proprietary knowledge to a range of challenges.” “Our transformation journey is well under way with increased cash fees earned and greater investment as we execute on behalf of our partners. Creating future value now will involve us continuing to scale the business, enhancing our platform, enabling our UK retail business to take advantage of all its opportunities for growth, and innovating for the future. We look forward to fulfilling these opportunities with excitement and determination”. At 08:55 GMT today, shares in Ocado Group plc (LON:OCDO) were trading at -0.36%.BP full-year profits more than double
BP Group (LON:BP) announced its fourth quarter and full year 2018 results on Tuesday. Profit almost doubled for the year, exceeding the company’s expectations.
Underlying replacement cost profit for the full financial year reached $12.7 billion. This figure is more than double of that reported for 2017. The figure for the fourth quarter alone is $3.5 billion. The company has said its surge in profits was down to the strong operating performance across all its business segments.