Plutus Powergen records H1 loss, sales stagnant
Flexible energy generation and provider company Plutus PowerGen (LON:PPG) have reported a first half loss amid a period of stagnant revenue, which was compounded by operating cost.
Kodal rallies with concessions extension
Lithium mining firm Kodal Minerals Plc (LON:KOD) has seen its share price rally today following confirmation of a new deal that gives it exclusive rights to expand its operations at a lithium mining opportunity in Mali
The agreement entails Kodal’s right to a 200km range in the South of the country, with lithium concessions in the Bougouni province. Kodal have said the new project would be close to the existing Bougouni Project and would be carried out using the same geological team and infrastructure.
Bougouni operations expansion
Under the agreed terms, Kodal have been given rights to acquire 80% of concessions via option payments coming to a total of £185,000 cash. Other payments will be made in the form of £195,000 in Kodal shares, to be delivered over three stages. The deal also featured an opportunity for the firm to apply for a mining licence for 100% ownership of all concessions in exchange for £500,000 in cash and a 2% royalty fee to Malian firm Bambara. As is stands, the project could result in the discovery of new areas of lithium mineralisation, with the comapny stating that it would “complement our existing project and further enhance our long-term position in this region.” “These new concessions are immediately adjacent to the Goulamina Project, owned by ASX listed explorer Birimian Limited, where a Mineral Resource of 103Mt at 1.34%Li2O has been defined. Kodal is focusing its initial review and targeting on interpreted extensions of the Goulamina structure and parallel positions in a similar geological setting,’ said Kodal CEO, Bernard Aylward.Kodal shares rally
Kodal have shared the success of other firms mining for metals used for battery cells, and have seen their share price rally 4.22% to 0.19p per share 30/01/19 13:52 GMT.Solid State shares rally on raised guidance
Solid State shares (LON:SOLI) ticked up on Wednesday after the company said its results for the year would “comfortably exceed” expectations.
The electronics manufacturer and distributor said that revenues for the full year to March-end were expected to be significantly above previous guidance.
The company said that gross margin improvements for the first half of the year were maintained into the second half.
This was attributed to ‘significant improvement ahead of management’s expectations’.
Gary Marsh, Chief Executive of Solid State commented on the upcoming results:
“We are delighted with the Group’s strategic progress, delivering significant organic revenue growth within the Value Added Distribution division and increasing the proportion of higher value added projects within the Manufacturing division, which together are driving the improvement in profitability.
“The integration of the Pacer acquisition is progressing well. In addition to current year trading, the order book now gives us confidence in an improved outlook for our financial year ending 31 March 2020.”
Solid State is listed on the AIM-market of the London Stock Exchange.
According to the company’s website, it specialises in ‘industrial and ruggedised computing, battery power solutions, communications including antennas and secure radio systems, electronic components and displays.’
Shares in the firm are currently up +12.33% as of 12:43PM (GMT) on the back of the announcement.
Elsewhere across the markets, Apple shares (NASDAQ:AAPL) fell on Wednesday morning after the tech giant revealed that revenues had fallen 5%
In the aviation industry, Wizz shares (LON:WIZZ) dipped after the company posted a fall in profits, blaming rising fuel and staff costs.
STM announce new COO – shares and profits dip
Financial services provider STM Group Plc (LON:STM) have seen their share price dip on the announcement of a fall in annual profit and the arrival of a new Chief Operating Officer.
Narrower margins
The shortfall for this financial year has been attributed to a £0.5 million technical reserve release from the company’s insurance unit. This has seen revenue for the year through December fall to £21.3 million for the firm, down from £21.5 million. As a result, pre-tax profit also fell from £4 million to £3.9 million on-year.New COO
Following the financial update, STM announced the appointment of Peter Marr as their new Chief Operating Officer, with Marr having served as COO of Mutual Society Police Mutual and Operations Director of Capita Insurance Services. “Whilst 2018 started off as a challenging year for STM, there is no doubt that our management team responded admirably and as a result of the Deloitte review we move into 2019 as a stronger and more robust business,” said incumbent Chief Executive, Alan Kentish. “Notwithstanding the challenges, we are pleased to have delivered a year of growth and been active in making two strategically significant acquisitions.”STM shares as they stand
Shares are currently trading down 5.26% or 3p at 54p per share. Analysts from finnCap have reiterated their ‘Corporate’ stance on STM stock.Wizz Air profit plummets amid rising costs
Wizz Air profits plummeted in the third quarter of 2018, as rising fuel and staff costs impacted earnings.
The Hungarian airline reported a pre-tax profit €1.8 million, compared to €14.6 million a year before.
Despite the fall in revenues, passenger numbers were up 15% to 8.1 million.
Across the period, Wizz Air flying hours fell 6.6% to 11.3 hours per day.
However, the company attributed rising costs to the slowdown in revenues. Cost per available seat kilometre increased by 9.3%, including fuel, whilst it climbed 4.3% without.
Alongside higher fuel prices, there was also a 22% rise in staff-related costs, with rises in pilot salaries during the quarter.
József Váradi, Wizz Air Chief Executive, commented:
“The Company maintains its net profit guidance range of between €270m and €300m for the full year, where we will be within this range will depend on the extent of March yield pressures which will be affected year-on-year given Easter falls after the financial year-end in April and external factors such as Brexit uncertainty.”
Wizz Air is not the only airline that has been struggling as of late.
On Tuesday, Norwegian Airlines announced a share rights issue as it looks to raise £270 million, after talks with IAG over a potential takeover fell through.
Earlier this month, EasyJet (LON:EZJ) revealed that the Gatwick drone chaos cost the low-cost airline £15 million.
Ryanair (LON:RYA) also issued a profit warning, blaming lower-than-expected air fares.
Shares in Wizz Air (LON:WIZZ) are currently down 2.69% as of 10:56AM (GMT).
Apple profits decline 5%, shares fall
Apple (NASDAQ:AAPL) reported its first decline in profit in over a decade, sending shares down on Tuesday.
The tech giant said iPhone sales, which account for the majority of profits, fell 15% in the first quarter to December end.
The company said that revenues fell 5% in the quarter to $84.3 billion (£64.5 billion).
Services revenue, which includes App Store sales, hit a record of almost $11 billion (£8.4 billion).
Earlier this month, Apple warned that profits would be lower than expected at around $84 billion.
The company blamed the economic slowdown in China as well as currency movements, with the stronger dollar making Apple products more expensive for consumers.
In comments to investors, Chief Executive Tim Cook said:
“While it was disappointing to miss our revenue guidance, we manage Apple for the long term, and this quarter’s results demonstrate that the underlying strength of our business runs deep and wide.
“Our active installed base of devices reached an all-time high of 1.4 billion in the first quarter, growing in each of our geographic segments.
“That’s a great testament to the satisfaction and loyalty of our customers, and it’s driving our Services business to new records thanks to our large and fast-growing ecosystem.”
Cook also attributed the fall to high prices, which had been deterring customers.
The company’s latest iPhone XR is on the market for £749, whilst the XS is retailing from £999.
However, customers are not responding to high prices for the newer models, instead opting to retain their old handsets.
As a result, earlier this month Apple announced it would be cutting iPhone production by 10% over the course of the next three months.
Shares in Apple are currently down -1.04% as of 10:29AM (GMT).
Nomura set to cut 50 jobs from global trading team
Nomura is set to cut as many as 50 jobs from its global trading team, as the company looks to streamline costs.
The Japanese bank is looking to shed underperforming employees, after a difficult year for the company, particularly across its European division.
Whilst redundancies are expected to take place across Asia and the US, it is expected that the majority of losses will be in Europe.
As of currently, Nomura has 3,000 staff across Europe. Back in 2008, Nomura acquired Lehman Brother’s European Equities and Investment Unit.
In 2009, the company moved its Investment Banking headquarters from Tokyo to London, as part of a move to shift its business focus towards Europe.
However, since acquiring Lehman Brother’s assets, Nomura has continually struggled to perform in the continent.
The Japanese bank has already planned to move its European lending division hub out of London to Paris, as result of Brexit negotiations.
Alongside the move to France, Nomura is also setting up a broker dealer in Frankfurt to deal with trading once the UK has completed its withdrawal from Europe.
Nomura is one of many big banks relocating out of the capital as a result of Brexit.
Barclays (LON:BARC), HSBC (LON:HSBA) and JP Morgan (NYSE:JPM) have all committed to shifting some operations to a European nation.
Shares in the bank (TYO: 8604) are currently down -2.26% as of 13:37 as the market reacts to the announcement.
TomCo Energy shares fall after field test announcement
TomCo Energy shares (LON:TOM) fell more than 20% on Tuesday, after the company announced a field test programme in 2019.
The shale exploration and development group said that it had commenced work to start its field test programme at the company’s Holliday Block in Utah, of which it owns a 80% interest.
Should the test prove successful, the Board expects that initial production will be between 5 to 10 barrels of oil, the statement added.
The company also announced the securing of a patent by its subsidiary, TurboShale, for its RF technology.
The patent request was initially filed back in 2015. The company said that the patent was assigned to TurboShale in 2017 as part of an agreement with JRT.
The statement said that ‘Further development of the process explained in the patent will be carried out as the Company expands its field operations.’
John Potter, Chief Executive of TomCo Energy, commented on the announcement:
“We have two key strands of work ongoing at present with our primary objective being to test the application of TurboShale’s RF technology on our Holliday Block to achieve first oil. TomCo will, subject to a successful test, then seek to scale operations into the pre-production phase. The enhanced technical team has done excellent work on seeking to identifying a suitable site for the test and we look forward to providing further updates in this regard.
I am also excited about the second string of our work currently on going, as we seek to develop the next phase of RF technology to deal with direct water contact. The Board believes this should be solved with adaption of current technologies and processes and is part of TomCo’s strategy to build value from having the technology and experience to deliver strategic, commercial oil production within the US.”
TomCo Energy operates under the subsidiaries of The Oil Mining Company, which it owns 100% of, as well as TurboShale Inc, of which it holds 80%.
The company’s operations are focused in Utah in the U.S.
Shares in the firm are currently -22.22% as of 12:42PM (GMT).
CVS Group shares plunge after profit warning
CVS Group (LON:CVSG) shares plummeted more than 20% on Tuesday, after the company warned on profits.
The veterinary services provider said it expects earnings for the full year to fall behind market expectations as a result of rising employment costs and lower margins.
CVS Group said that for the first half of 2019, total sales increased by 23.7% and like-for-like sales increased by 4% compared to the same period a year ago.
In addition, the company said gross group margins were down to 76.2%, compared to 79.5% in 2018.
Looking ahead, CVS Group said it was in the midst of enacting various cost saving initiatives to counteract falling revenues.
The statement said:
“A number of cost savings have been identified across the Group and these are expected to generate savings both in H2 2019 and in the remainder of calendar year 2019, with ongoing effect thereafter.
In conjunction with cost savings, additional procedures have been implemented over the employment of locums in practices and the Group expects to see a reduction in locum costs in the remainder of the financial year as a result.”
CVS Group owns over 500 veterinary surgeries in the UK, the Netherlands, and the Republic of Ireland. The firm was founded back in 1999 after opening its first veterinary surgery.
Shares in CVS Group are currently down -28.16% as of 12:13PM (GMT).
Hargreaves Lansdown assets fall 6%, shares slide
Hargreaves Lansdown (LON:HL) posted its half-year results on Tuesday, reporting both a fall in net new business and assets, sending shares down.
The financial services company said net new business dropped 24% year-on-year to £2.5 billion, down from £3.34 billion during the same period a year ago.
Meanwhile, assets under administration also fell by 6% to £85.9 billion during the six-month period, down from £91.6 billion a year before.
Hargreaves Lansdown attributed the subdued interim performance to market volatility as well as weaker investor confidence.
Chief Executive Chris Hill said: “The diversified nature of Hargreaves Lansdown has enabled us to continue growing despite a period of geopolitical uncertainty, market volatility and weak investor confidence.
“We have a significant long-term market opportunity and our recent investment in service and developing our proposition are bringing real benefits to the business and our clients, both in difficult times such as the present and as and when conditions improve.”
Hargreaves Lansdown raised its interim dividend to 10.3p per share, up 2% from the 10.1p the year before.
Hargeaves is based in Bristol in the UK. It is a constituent of FTSE 100 on the London Stock Exchange. It has been publicly listed since 2007. As of 2018, the firm had 1,185 employees.
Shares in the company are currently down -4.93% as of 11:29AM (GMT), on the back of its interim results.