Yu Group recovers following 2018 accounting issues, shares rise
Yu Group shares rallied on Wednesday after the company posted its annual results and said it had reviewed accounting issues discovered in 2018.
The energy supplier said that revenue increased by 77% in to £80.6 million in the year to December-end, compared to £45.6 million a year before.
The group swung to an adjusted EBITDA loss of £6.3 million after a series of accounting irregularities were discovered last year.
This meant that the company had invoiced for more money than energy it had actually supplied.
Yu Group said that it had implemented a new control, accounting and governance process, which was by also supported third-party review by PwC.
This resulted in the restatement of prior year accounts, with net assets reduced by £2.4 million.
Cash and cash equivalents totalled £14.6 million at the end of December, rising to £16.5 million at the end of April 2019.
Yu Group said it expects contracted revenue for the year of £88 million.
The company also said it raised £11.6 million from a share placing in March 2018.
Bobby Kalar, Group Chief Executive Officer, said:
“The accounting and system failings uncovered in the second half of 2018 have had a major impact on the Group and I would personally like to apologise to all our stakeholders for the mistakes made. We have made significant progress in implementing new systems and processes and the Board is confident that we have weathered the storm.
“The business rationale remains strong with an enormous potential market for a high-quality service provider of gas, electricity and water to the SME and corporate sector. I believe the Group is well placed to achieve long term profitable growth underpinned by the people and systems we have in place.”
Shares in the AIM-listed firm (LON:YU) are currently +65.14% as of 13:55PM (GMT), as investors react to the update.
Crest Nicholson maintains full-year guidance despite Brexit uncertainty
Crest Nicholson updated the market with a trading statement on Wednesday, maintaining its full-year guidance.
The house builder said sales per outlet week remained flat on the year before at 0.78 for the first-half of 2019.
Total sales value achieved to date and forward sold rose 4.2% year-on-year to £792 million.
Meanwhile, net debt and land creditors decreased by £40.9 million during the period.
As a result, Crest Nicholson said that earnings and dividend guidance for the year ahead remain unchanged.
Commenting on today’s statement, Chris Tinker, Interim Chief Executive said:
“The group has made good progress in implementing its strategy in the first half of the year. Improved forward sales in residential, commercial and land, and increased outlet breadth, provide a good platform as we enter into the second half of 2019.
We welcome the Government’s increased grant funding and focus on delivering a broader tenure mix. As a consequence, we will continue to grow our partnerships with Registered Providers who are playing an increasingly important role in the diversification of tenures. This strategy trades an element of margin for reduced risk and improved cash flows. Overall, we remain confident in our ability to deliver returns in line with Board expectations.
We maintain a strong balance sheet and operate a disciplined business model, generating good returns on our chosen investments. We have reduced debt in the half year and expect to be cash positive by the end of the year after paying ordinary dividends of 33 pence per share.”
Crest Nicholson announced the appointment of Peter Truscott as its new chief executive in March, amid the departure of Patrick Bergin. Mr Truscott is set to assume the role in September of this year.
Shares in the FTSE 250 Group (LON:CRST) are currently up +0.49% as of 12:46PM (GMT).
Kingfisher shares fall on mixed Q1 trading update
Kingfisher published a trading update on Wednesday, sending shares downwards on the back of a mixed set of figures.
Sales in the UK and Republic of Ireland rose 5% to £1.3 billion during the three months to 30 April, with like-for-like sales up 3.4%.
This was on the back of a strong performance at B&Q and its Screwfix stores.
However, investors were less impressed with performance in France, with total sales down 3.4%, and 3.7% on a like-for-like basis.
Sales at Castorama fell 2.4% during the period, down 2.4% on a like-for-like basis.
Kingfisher said that a positive start to the year was ultimately offset by
transformation-related activity in the region.
Similarly, sales at Brico Dépôt were down 4.5%, and a further 5.1% on a like-for-like basis, in large part due to low margins as a result of promotion activity.
Véronique Laury, Kingfisher’s Chief Executive Officer, commented on the quarter:
“The Group delivered positive sales growth in the first quarter, with sales of unified and unique ranges continuing to grow ahead of non-unified ranges. Screwfix, Poland and Romania delivered good sales growth while our performance in France was mixed within the quarter.
“This year we are focused on completing the building of our ‘engine’ and making our innovation more visible to customers. Our new outdoor range was rolled out to all markets in the quarter alongside a globally coordinated marketing campaign. We are also excited to be launching several new ranges this year which are unique to us and will further differentiate us from our competitors, including surfaces & décor and bathrooms across the Group, and kitchens in B&Q. In addition, we are piloting a new convenience store concept which we look forward to demonstrating at today’s Kingfisher Innovation Day.
“At this early stage of the year our expectations for the full year are unchanged, and we remain confident in our ability to deliver significant financial benefits over time.”
Shares in the FTSE 100 company (LON:KGF) are currently trading down -2.61% as of 11:59AM (GMT).
Ahead Of The Frame: An Interview with Art Entrepreneur Marine Tanguy
Whilst often labelled an alternative investment, the art world itself is still steeped in tradition and dominated by a few well-established names or elite insiders.
This often makes it seemingly inaccessible to the everyday investor or to a budding creative, striving to make their mark.
It can certainly prove a difficult market to crack, but Marine Tanguy, one of the art world’s youngest CEO’s, seems to have done just that.
At just 21, she managed her own art gallery in L.A.
Now 29, she is the founder of MTArt Agency, one of the world’s first talent agency for visual artists, and she has also been tipped as one of Forbes magazine’s 30 under 30.
She has also been recently featured, alongside one of her rising art stars, Adelaide Damoah, in a campaign for the French luxury fashion house Chloé, no less.
MTArt Agency is an art talent agency that aims to support, bolster and nurture the next up-and-coming artists by connecting them with investors, collectors, museums, cities and brands, as well as covering the costs of studio space.
Whilst investors will usually look towards the value of a particular piece of work, MTArt’s focus is the individual behind the art, in turn re-asserting the merit of prioritising people-power for the success of any business.
In an increasingly tech-oriented world, it is a refreshing return to prioritising human expertise and talent over the anonymity of algorithms.
The concept behind her business was very much inspired by her time in California, where she encountered the numerous celebrity-orientated talent agencies on offer stateside.
I sat down with Marine in Soho to find out more about her vision, and to discover why she is choosing to invest in the individual as opposed to simply the artwork.
When I ask Marine what first drew her to the industry, she emphasises the impact of the visual upon our world and our lives. For her, art truly is all around us.
“Everything is visual…from what you look at on your screen, inside your home, visually it is inspiring. Art adds enormous value to our society and influences so many different environments”, she explains.
This focus on the impact of the visual is something she has touched on at a TedX talk she gave back in 2018, where she focused upon the importance of Art on our wellbeing.
Immediately upon talking to her, it is clear that she truly believes in her business concept – and with a valuation of £2.5 million – clearly others do too.
This is an impressive feat given the art world’s reputation for being at times conservative, insular and still very much male-driven.
When I ask her if she has perhaps felt that some may have seen her age or gender as an obstacle, she doesn’t seem fazed or discouraged.
She does however admit there are indeed pros and cons to starting a business so young.
Still, Marine says her youth has actually played to her advantage; giving her the latitude to make mistakes, bounce back and most importantly – to be bold.
She answers, “success is not built on people-pleasing, it is built on people that go for things.”
“It certainly was very as a ambitious statement, I don’t know if I could go back and make the same statement”, she concedes.
Nevertheless, ambition is clearly an important asset to her. And it’s something she is clear to highlight as a standout trait she looks for when scouting out her next art protégé.
Despite taking a prominent role in her business, Marine doesn’t specifically decide whom the agency takes on the books.
That task is down to a dedicated selection committee who filter as many as 200 candidates a month to decide who has what it takes.
She does however highlight that in order to succeed as an artist, one must not be faint of heart.
“In loads of talent industries you will get knocked down plenty of times, it’s that resilience, it’s athletic in itself. That’s what we look for. We take very few people. They don’t take no for an answer. They have such a high amount of what they can take because they really want it”, she asserts.
So, what does it take to succeed in setting up your own business venture? For Marine, the key to building a business with real momentum is staying true to your moral compass.
“Get as much experience as possible,” she urges. “You will make mistakes, you will make them…it is difficult to avoid that”.
“Define a business around the values you hold. When you haven’t slept its easier to pitch for something you believe in than something you have compromised for. Don’t build a business for the sake of it.”
When I ask her what’s next for the future of MTArt, she is still aiming high. She emphasises her ambition of securing the highest valuation for an innovative non-tech company.
“I want to show you that having a people business can have a high-value. I am interested in sharing in the growth of a businesses that is not just number obsessed.”
MTArt is already expanding quickly, having recently opened its second location in Paris, alongside its original London operation.
The agency also has its sights on the Asian market with Hong Kong, alongside of course the city of talent – Los Angeles.
On a personal note, I ask her to narrow down some of her favourite art galleries, which is perhaps a challenging task for someone who clearly is so passionate about all aspects of the visual.
She does however settle on a few spots in London, such as the V&A, which she hails in particular for the diversity of its exhibitions.
Another favourite she lists is the Tate Modern, which was also recently named as the UK’s top visitor attraction, overtaking the British Museum.
William Hill results driven by US success
William Hill (LON:WMH) plc has confirmed its full year outlook in a trading update on Wednesday, driven by the success of its US operations following the legalisation of sports betting.
The bookmaker posted a trading update for the unaudited 17 weeks to 30 April, in which group net revenue for the period was up 2%. William Hill said that this reflects a year of transition in Retail and Online.
Online net revenue was up 8%, reflecting the contribution from Mr Green, and Retail Sportsbook net revenue increased 2% with a “strong” sports betting through the period.
US total net revenues increased 48% from operations in all seven US states that have currently legislated and regulated sports betting.
Last year, sports betting was legalised across the US following a supreme court ruling. Federal law previously barred gambling on football, basketball, baseball and other sports in most US states as a result of the Professional and Amateur Sports Protection Act established in 1992. Previously, only a few exceptions qualified under the law.
“Just one year on since PASPA was overturned William Hill has doubled the sports wagering it handles in the US, seen record performances at the Super Bowl and March Madness, is live in all seven states to have allowed sports betting and expects to enter further states soon, with Indiana and Iowa the most recent states to pass bills to legalise sports betting,” Chief Executive Officer Philip Bowcock commented on the results.
William Hill also highlighted the use of Anthony Joshua as a brand for its new advertising campaign in the UK.
“Our new advertising campaign featuring Anthony Joshua marks a step change for William Hill with the brand-led creative also integrating safer gambling messages,” Philip Bowcock continued.
As a result, William Hill said that its full-year outlook remains in line with expectations assuming normalised gross win margins for the remainder of the year.
At the start of the year, William Hill warned of lower annual profits for 2018.
Walmart International CEO: Asda could pursue stock market listing
Asda owner Walmart said that the UK supermarket could be set for a stock market listing.
The announcement comes following the supermarket’s blocked merger with Sainsbury’s (LON:SBRY) earlier last month.
“While we are not rushing into anything, I want you to know that we are seriously considering a path to an IPO – a public listing – to strengthen your long term success,” Walmart’s International CEO, Judith McKenna, said to Asda managers at an event in Leeds, according to Reuters.
“Walmart does not have a one size fits all approach to operating its international markets, but a consistent focus on strong local businesses powered by Walmart,” the company’s International CEO continued.
At the end of April, the proposed merger between two of the UK’s leading supermarkets was blocked by the Competition and Markets Authority (CMA) because it would have created a “poorer overall shopping experience.”
The Competition and Markets Authority (CMA) casted doubt over the merge since it released its preliminary results.
Both Sainsbury’s and Asda had pledged in a joint statement to implement price cuts and deliver £1 billion in savings annually by the third year of completion of the merger.
However, according to the Competitions and Markets Authority, consumers would not have benefited from the merger due to an expected increase in prices, reductions in the quality and range of products on offer and poorer shopping experience for consumers across the nation.
The watchdog also found that the merger would have lead to motorists paying higher prices at locations were Sainsbury’s and Asda petrol stations are in close proximity.
After the block of the £7.3 billion deal, Bloomberg News reported that Walmart was exploring other options for Asda, with and IPO as one of the alternative routes the supermarket could pursue.
At 19:58-4 GMT Tuesday, shares in Walmart Inc (NYSE:WMT) were trading at +0.4%.
Vodafone cuts dividend ahead of 5G launch
Vodafone opted to cut its dividend by 40%, as the cost of the sale of its Indian arm and the upcoming global 5G network roll-out weighed upon profits.
The telecommunications company reported a €7.6 billion (£6.6 billion) loss for the year to March-end.
Vodafone said this was primarily due to a loss on the disposal of Vodafone India following a deal with Idea Cellular.
The firm also said that increased competition in Spain and Italy as well as headwinds in South Africa dragged down profits.
Nick Read, Group Chief Executive, commented on the results:
“We are executing our strategy at pace and have achieved our guidance for the year, with good growth in most markets but also increased competition in Spain and Italy and headwinds in South Africa. These challenges weighed on our service revenue growth during the year, and together with high spectrum auction costs have reduced our financial headroom.
The Group is at a key point of transformation – deepening customer engagement, accelerating digital transformation, radically simplifying our operations, generating better returns from our infrastructure assets and continuing to optimise our portfolio. To support these goals and to rebuild headroom, the Board has made the decision to rebase the dividend, helping us to reduce debt and delever to the low end of our target range in the next few years.”
The company also confirmed July the 3rd for the launch of its 5G network in the UK.
Vodafone said it will rely upon equipment from Huawei to roll-out the service.
Notably, the chinese telecoms provider has been the subject of a government review amid security concerns.
Vodafone have said that seven UK cities will be part of the initial roll-out.
The cities that have been selected are Birmingham, Bristol, Cardiff, Glasgow, Manchester, Liverpool, London.
Shares in the FTSE 100 company (LON:VOD) are currently trading down -1.26% as of 12:54, on the back of the figures.
Greggs shares rally amid profit guidance upgrade
Greggs has raised its profit forecasts for the third time this year, on the back of the popularity of its vegan sausage roll.
In a trading update, Greggs said that total sales jumped 15.1% in the first 19 weeks of 2019, compared to a 4.7% rise during the same period the year before.
In addition, company-managed shop like-for-like sales jumped 11.1%, a huge rise on 2018’s 1% increase.
The bakery chain attributed the strong performance to the successful launch of its vegan sausage roll.
The firm has benefited from the marked rise in Veganism across the U.K, with many people turning to meat-free options over health concerns, or in a bid to reduce their carbon footprint.
Commenting on the success of the vegan product, the company said in the trading update:
“This built on a strong finish to 2018 and was further boosted by the publicity surrounding the launch of our vegan-friendly sausage roll. Sales since then have continued to grow very strongly, helped by the roll-out of vegan-friendly sausage rolls to all shops following limited availability in the early part of the year when demand outstripped supply.”
Greggs also said it opened 8 new shops across the period, as well as closing 22 locations.
Overall, the company said that on the back of strong sales figures, the board now expects annual underlying profits, before exceptional costs, to be ‘materially higher’ than previously anticipated.
Shares in Greggs (LON:GRG) are currently trading +13.85% as of 11:26AM (GMT).
UK unemployment falls to 3.8%, says ONS
The UK unemployment rate for the first three months of 2019 fell to 3.8%, marking the lowest level since 1974.
The Office for National Statistics (ONS) said that the unemployment level fell from 3.9% the previous month.
Meanwhile, the UK employment also rate rose to 76.1%.
The ONS also said that average weekly earnings in the UK rose by 3.3% during the period.
The government employment figure, Alok Sharma, welcomed the figures. He commented:
“Rising wages and booming higher-skilled employment means better prospects for thousands of families, and with youth unemployment halving since 2010, we are creating opportunities for all generations.”
“We now need to shift some of our focus to up-skilling people and supporting them into roles with real career progression to create a modern workforce fit for the challenges of the 21st Century.”
The unemployment figures are a welcoming sign that the UK economy is more resilient then expected given ongoing political and economic volatility.
The ONS is an independent non-ministerial department that supplies national statistics for the UK. It was formed back in April 1996.

