MirriAd advertising shares dip despite Tencent Video contract

Jamie Gordon
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MirriAd advertising shares dip despite Tencent Video contract
Computer vision and AI-powered advertising company MiriAd Advertising plc (LON: MIRI) have seen their share price dip in morning trading, despite the Company securing a new contract and expecting bumper revenues. MirriAd have just penned a two year contract with one of China’s largest digital entertainment platforms, Tencent Video. The Company said the impact of this contract will be that their revenue for 2019 will stand at a minimum of £1.1 million, which exceeds 2017 and far exceeds the revenues of 2018. Further, the Company’s cash resources stood at £10.2 million at the end of May, and their cash consumption stood at £1 million a month. MirriAd also announced it had raised £14.18 million through its share placing, which is pending approval at a general meeting on 31 July 2019. Qualifying shareholders will also be offered the opportunity to subscribe for an aggregate of up to 26,278,920 of Ordinary Shares through an open offer to raise £3.94 million. “The proceeds of the placing will be used for general working capital purposes and to provide the Group with sufficient funds to demonstrate the efficacy of its new go-to-market strategy and revenue traction with partners in its key markets.” The Company said in its statement today.

MirriAd comments

In the Company’s trading update, CEO Stephen Beringer commented,

“There is now a real sense of momentum surrounding the new strategy we are implementing at Mirriad. The Tencent contract is a very important milestone and proof of the work we are undertaking to get our Academy Award-winning technology to transform the way advertisers can engage with their target audiences.”

“We are still relatively early on in our strategic reset, however, we look forward to delivering additional value for our shareholders by sustainably growing the business.”

In response to the Company’s share placement update, MirriAd’s CEO said,

“We were very excited by the tremendous support from our investors and the strong commitment from new backers in the fundraise announced this morning.”

“It shows the great confidence in our product and our new strategy, after the previously challenging period for the company.”

“We now look forward to putting our transformation strategy into action by further accelerating the development of the technology and platform and by growing our engagement with content producers and distributors in our key markets China, France, Germany, UK and US.”

“Mirriad’s new strategy has borne its first fruit in the shape of a two-year contract with Tencent, one of the largest and most influential technology and platform companies in the world. This new partnership will positively affect the Company’s 2019/20 revenues.”

Investor relations

The Company’s shares have dipped 10.58% or 2.01p to 16.99p a share 05/07/19 11:51 GMT. Elsewhere in the tech sector; Zoo Digital Group plc (LON: ZOO), Vela Technologies Plc (LON: VELA), Remote Monitored Systems PLC (LON: RMS), Tekmar Group Plc (LON: TGP), Redcentric PLC (LON: RDN) and Codemasters Group Holdings Limited (LON: CDM) provided trading updates.

Arc Minerals rallies after acquiring 5% interest in Zaco Ltd

Jamie Gordon
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1
Arc Minerals rallies after acquiring 5% interest in Zaco Ltd
After announcing the successful results from its Cheyeza East prospect and identifying West Lunga as a drilling target, copper, gold and cobalt mining company Arc Minerals (LON: ARC) continues its productive week by announcing a further 5% acquisition of Zaco Limited. This announcement means that the Company now holds a 47.5% interest in Zaco.

Arc Minerals statement

On the update, the Company’s statement read,

“Following the discovery of the large West Lunga target (as per the announcement dated 4 July 2019), Arc Minerals has purchased a further 5% interest in Zaco from Rémy Welschinger, a Non-Executive Director of Arc, for a total consideration of 1,414,000 New Ordinary Shares of no par value in the share capital of the Company (“New Ordinary Shares”).”

Executive Chairman of the Company, Nick von Schirnding, commented,

“Following the exciting news of the West Lunga discovery we are keen to consolidate our interest in Zaco and we are pleased to have increased our interest in Zaco on the same commercial terms as the initial transaction.”

On yesterday’s positive news, the Arc Minerals Executive Chairman stated,

“These maiden drill results have exceeded all our expectations both in terms of grade and thickness. While we are still at an early stage in the drilling programme, these results are highly encouraging and we have now deployed two rigs to Cheyeza East. Importantly our third hole 200 meters south also shows significant mineralization.”

Investor notes

The Company’s share price is up 7.05% or 0.26p to 3.99p a share since trading began 05/07/19 11:25 GMT. Elsewhere in the mining and minerals sector, recent updates have come from; Arc Minerals Ltd (LON: ARCM) Thor Mining PLC (LON: THR) Premier African Minerals (LON: PREM), Pathfinder Minerals (LON: PFP), AfriTin Mining Ltd (LON: ATM), Ferrexpo Plc (LON: FXPO) and Altus Strategies Plc (LON: ALS).

Ashley House profits postponed by legal processes

Jamie Gordon
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4
Ashley House profits postponed by legal processes
Housing and Health property partner Ashley House Plc (LON: ASH) have posted a second trading update within a short space of time, adding a caveat to some of the results and payment of profits displayed in the previous update. The Company stated that due to delayed legal processes, the profits of three Morgan Ashley extra care schemes would be delayed until the next year end June 30 2020. Ashley House added that the first of the three schemes’ legal processes had been finalised and the agreements would provide a strong start to the year.

Ashley House statement

The group’s statement read as follows,

“Further to the Trading Update of 25th June, the Company advises that due to delays in the final legal processes, the three Morgan Ashley extra care schemes mentioned in that update did not reach financial close prior to the end of the Company’s financial period to 30 June 2019. As a result the related profit from these schemes will fall into the year to 30 June 2020.”

“As reported this means that whilst the Company is likely to be profitable in the second part of the fourteen month period to 30 June 2019, it will show a loss for the full period. However, the Company is pleased to advise that the first of the three extra care schemes is all agreed, awaiting signature from the parties. In addition, for the further two schemes (one transaction) the complex legal documentation is almost agreed and the schemes are expected to reach financial close in the near future. Together, the Directors believe that these schemes will provide a strong start to the year to 30 June 2020.”

Investor notes

The Company’s shares are up 0.97% or 0.08p to 8.33p a share 05/07/19 08:15 GMT. Elsewhere in property development and estate agency news, there have been updates from; Persimmon plc (LON: PSN), McKay Securities plc (LON: MCKS), MJ Gleeson PLC (LON: GLE), Somero Enterprises Inc (LON: SOM), Bovis Homes Group plc (LON:BVS) and Telford Homes plc (LON: TEF).

John Menzies shares dip on profit warning

Jamie Gordon
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2
John Menzies shares dip on profit warning
Aviation services Company John Menzies plc (LON: MNZS) has seen its share price dip following its latest trade update, which enclosed that the Company were expecting reduced earning on-year. John Menzies said that the reduced earnings reflected what had been a challenging period for the aviation industry, with their business particularly hampered by weak cargo volumes and flight schedule reductions. The Company noted that they are in the process of undertaking mitigative action in the form of cost rationalisation, which they hope will save at least £10 million by 2020.

John Menzies comments

In its statement, the Company said the following,

“Overall the Board believes that the medium and long term fundamentals of, and prospects for, the business are sound and remain confident that the actions being taken in the current year underpin the Board’s expectations for 2020.”

Company Chief Executive Officer, Giles Wilson, then attached these comments to the update,

“The overall aviation market is having a difficult year. This inevitably is having an impact on our full year outturn. However, I firmly believe in the structural growth dynamics within our industry and all historical data points to recovery.”

“Accordingly, I believe we remain well placed to prosper. Since my appointment I have taken a number of actions to right size the business, we have also restructured our commercial teams to ensure we are ready to seize opportunities as they present themselves.”

“We have a great, motivated team and I look forward with confidence.”

Investor notes

The Company’s shares have fallen 14.15% or 64.8p to 393.2p a share during morning trading on Friday 05/07/19 10:18 GMT. Analysts from Shore Capital, Peel Hunt and Berenberg all reiterated their respective ‘Buy’ stances on John Menzies stock. Elsewhere in aviation, there have been updates from; Wizz Air (LON: WIZZ), Thomas Cook (LON:TCG) and Ryanair Holdings Plc (LON:RYA).

Acacia Mining sees jump in mineral resources on-year

Jamie Gordon
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1
Acacia Mining sees jump in mineral resources on-year
Tanzania-based gold mining company Acacia Mining PLC (LON: ACA) has posted a positive mineral resources update for its Gokona Mine venture at North Mara. As of May 2019, mineral reserves were up 13% compared to the year’s end 2018. Up from 1.117 million ounces of gold at 5.6g/t to 1.257 million ounces of gold at 5.5g/t. This was driven by drilling at the Company’s Gokona prospect in Q4 2018 and Q1 2019, though this was offest by mining depletion and a, “conservative change in assumptions for crown pillar stope recovery.” Further, measured and indicated resources increased by 63% on-year, from 75,000 at 3.3g/t to 122Koz at 3.6g/t. Likewise inferred mineral resources of gold increased 65% from 515Koz at 6.5g/t to 849Koz at 5.4g/t. These results and projections are despite the fact 76Koz of gold have been mined in the intervening period, but are absed on an increase in drill density and the Company’s confidence in the deeper parts of the deposit.

Acacia Minerals comments

Within the update, the Company enclosed the following details, “The Mineral Reserve and Resource upgrade follows the ongoing drilling programme which is taking place at the Gokona underground mine and has confirmed the predicted extensions of the orebody. In particular, an additional 95 drill holes totalling 32,463 metres have been incorporated into the updated Gokona Mineral Resource Model with the additional underground drilling information increasing the Gokona Mineral Reserves by 286Koz of gold; offset by mining depletion of 76Koz of gold and a conservative reduction in assumed crown pillar recovery of 71Koz of gold. New mining designs and a revised life of mine (LOM) plan have been created using this model which supports the update to the Mineral Reserve Statement.” “The Nyabirama Open Pit experienced some slope stability issues during Q1 2019 which led to a redesign of the open pit. The current work indicates that, aside from depletion, there will likely be a further 70Koz to 130Koz decrease in open pit Mineral Reserves. An updated open pit design is in the process of being produced and the statement will be updated as soon as the work is completed.” “Acacia plans to continue underground diamond drilling at Gokona and this is expected to further increase confidence in the continuity of the mineralisation of the deposit with the potential for further additions to inventory in the Lower West and Lower East, as well as in the Deep East in the year-end 2019 Mineral Reserve and Resource. Accordingly, Acacia expects to provide a further update to its Mineral Reserves and Mineral Resources as soon as finalised.”

Investor notes

Since markets opened, the Company’s rallied 0.98% or 1.7p in the first hour of trading on Friday, up to 175.4p a share. Analysts from Barclays Capital recently reiterated their ‘Overweight’ stance on Acacia Mining stock, while the last update from Peel Hunt saw them reiterate their ‘Buy’ rating. Elsewhere in the mining and minerals sector, recent updates have come from; Arc Minerals Ltd (LON: ARCM), Thor Mining PLC (LON: THR) Premier African Minerals (LON: PREM), Pathfinder Minerals (LON: PFP), AfriTin Mining Ltd (LON: ATM), Ferrexpo Plc (LON: FXPO) and Altus Strategies Plc (LON: ALS)

Persimmon suffers public backlash and H1 revenues down

Jamie Gordon
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2
Persimmon suffers public backlash and H1 revenues down
British housebuilding company Persimmon plc (LON: PSN) posted a trading update ahead of the release of the official release of its results for H1 in August. This round of results displayed consistent performance, with modest increases in average house prices within their portfolio, while their legal completion volume and overall revenues both dipped slightly. Persimmon have faced criticism from media outlets and angry members of the public on social media. This followed what the Company lauded as a campaign to increase customer satisfaction, which many have boiled down to the hijacking of online complaint forums and blanket censorship. https://platform.twitter.com/widgets.js The Company’s total revenues were down from £1.836 billion to £1.754 billion on-year, for the first half. Housing revenues were also down 5.6% for H1 2019, finishing at £1.645 billion, compared to £1.742 billion the year before. Further, new housing completion volumes were down by 488, from 8,072 to 7,584 and the value of total forward sales fell marginally from £1.680 billion to £1.622 billion. On a more optimistic note, the average selling price of properties in the Company’s portfolio rose from £215,813 to £216,950.

Persimmon comments

On the update, Company Chief Executive, Dave Jenkinson, said, “I am pleased that there are some clear early signs that our focus on increasing the quality and service delivered to our customers is beginning to bear fruit, with some encouraging improvements being made right across the business. Although we are still in the early days of our improvement plans our customer satisfaction rating, as measured by the HBF, has increased during the period.”

“Our progress on customer service shows that Persimmon is listening carefully to all stakeholders and making the changes needed to position the business for the future, while maintaining a robust trading performance. We enter the second half with our build programme well progressed, healthy rates of sale on site and an encouraging forward sales position. I look forward to giving further details of our progress at the interim results in August.”

Investor notes

The Company’s shares are down 0.81% or 16p to 1,971.5p a share 04/07/19 15:40 GMT. UBS and Liberum Capital analysts reiterated ‘Buy’ stances, while Shore Capital and Peel Hunt reiterated their ‘Hold’ ratings on Persimmon stock. Elsewhere in property development and estate agency news, there have been updates from; McKay Securities plc (LON: MCKS), MJ Gleeson PLC (LON: GLE), Somero Enterprises Inc (LON: SOM), Bovis Homes Group plc (LON:BVS) and Telford Homes plc (LON: TEF).

McKay Securities updates on contracts, refurbishments and tenancies

Jamie Gordon
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1
McKay Securities updates on contracts, refurbishments and tenancies
Real Estate Investment Trust company McKay Securities plc (LON: MCKS) have posted their annual results, listing a series of positive if not necessarily groundbreaking updates. Comments from Company CEO Simon Perkins make up the bulk of the update.

“Since the year end, we have made good progress with our active programme of portfolio refurbishment and development schemes, maintaining our focus on the office, industrial and logistics sectors of London and the South East. Completion of these schemes will enhance our ability to deliver further income growth from unlocking our significant 24.3% (£6.6 million pa) portfolio reversion,” the Company CEO stated.

He continues, “Having derisked the office development programme with lettings last year, the resulting valuation gains enabled us to increase our banking facilities by £55 million shortly after the year end. This has provided additional headroom for acquisitions and future portfolio projects, which will also contribute to future earnings growth.”

“Market conditions remain generally as reported in our year end statement issued on the 20th May 2019. Occupational demand in the South East office sector, which accounts for 54% of our portfolio (by value), has proved resilient despite the continuing political uncertainty. Once a Brexit conclusion is reached, stronger economic activity and limited supply, now at a 10 year low, should support rental value growth in this market sector.”

“The South East industrial and logistics sector (16% of the portfolio) has continued to benefit from rental growth, albeit at a slower pace, with limited supply also constraining occupier choice. These remain positive market conditions for the speculative development of our distribution warehouse at Theale Logistics Park, referred to below.”

“Investment volumes in our markets are down compared to this time last year, due primarily to the extended Brexit programme. Buyers are exercising caution in view of uncertainty over the outcome, and sales are generally on hold for the same reason.”

Other updates issued by McKay Securities include; progress on refurbishments of portfolio properties, contracts exchanged for the freehold disposal of Station Plaza for £8.23 million, four lettings with a combined rent of £0.15 million and strong tenant retention of 78%.

The Company’s shares are currently trading up 2.17% or 5p to 235p a share. Analysts from Peel Hunt reiterated their ‘Add’ stance on McKay Securities stock.

Elsewhere in property development and estate agency news, there have been updates from; MJ Gleeson PLC (LON: GLE), Somero Enterprises Inc (LON: SOM), Bovis Homes Group plc (LON:BVS) and Telford Homes plc (LON: TEF).

Gleeson rallies on record performance

Jamie Gordon
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3
Gleeson rallies on record performance
Urban regeneration and land development specialist MJ Gleeson PLC (LON: GLE) have posted strong sales, which they have attributed to high demand for homes for sale in Northern England and the Midlands. The Group did end the year with lower cash balances – £30.3 million versus £41.3 million on-year – but it said this was expected.

Gleeson Homes

The Company’s first subsidiary, Gleeson homes, announced its largest annual volume growth. It sold 1,539 homes during the financial year, which represents a 25% increase on the 1,225 sales for the year before.

Gleeson Homes is currently active on 69 sites and expects to grow to 80 sites in the coming year. It is also on track to achieve its goal of doubling its volumes to 2,000 new homes per year by 2022.

“Gleeson Homes remained active in purchasing sites in both existing and new areas during the year. The land pipeline of owned and conditionally purchased plots at 30 June 2019 increased by 5.6% compared to the prior year end, totaling 13,575 plots, of which 7,050 plots have been purchased subject to planning permission. In addition, there are a further 473 plots which are in the pipeline to be acquired”, the Company said in its statement

Gleeson Strategic Land

The Company’s second subsidiary, Gleeson Strategic Land, said it had sold nine land interests during the course of the year and had potential to deliver 1,775 other plots for development. Its portfolio contains 60 sites with potential to deliver 44 acres of commercial land and 21,730 plots. Its current financial year is also off to a strong start,

“Nine sites with planning permission, or resolution to grant, have the potential to deliver 2,929 plots for housing development. Three of these sites are in a process for sale. Planning decisions are expected on a further six sites.”

Gleeson comments

On the latest results, the group commented,

“As a result of the Group’s strong performance, the Board is confident that the results for the financial year will be comfortably in line with expectations.”

The Group’s Interim Chief Executive Officer, James Thomson, then added,

“Gleeson Homes’ unique model of acquiring land at low cost and building homes for sale to people predominantly on low incomes in the North of England and the Midlands continues to deliver sustainable growth as we progress towards our target of doubling volumes to 2,000 new homes per year by 2022.”

“Both Gleeson Homes and Gleeson Strategic Land have delivered a record performance with the Group’s positive outlook underpinned by continued strong demand.”

Investor notes

The Company’s shares rallied 5.42% during morning trading, up 40p to 778p a share. Liberum Capital analysts have reiterated their ‘Buy’ rating while Peel Hunt upgraded their stance from ‘Reduce’ to ‘Hold’ on Gleeson stock. Elsewhere in property development and estate agency news, there have been updates from; Somero Enterprises Inc (LON: SOM), Bovis Homes Group plc (LON:BVS) and Telford Homes plc (LON: TEF).

Mattioli Woods expect strong results and changes director

Jamie Gordon
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3
Mattioli Woods expect strong results and changes director
Wealth management firm Mattioli Woods (LON:MTW) have given notice of their next round of results and announced a series of personnel changes in the run-up to their AGM. The Company announced that the next round of results would be posted on the third of September. Their outlook is positive, based on lowered costs, assets under management of £2.6 billion, cash of over £23 million and recent acquisitions ‘integrating well’. The Company expects strong on-year growth in adjusted Ebitda. The Company’s CEO, Ian Mattioli, added,

“I am pleased to report another year of sustainable profit growth, despite the ongoing political and economic uncertainties and generally poor investor sentiment over the 12 months ended 31 May 2019.”

“Our integrated business model allows us to address more of the value chain across advice, administration, platform, investment management and product provision. We have used the resultant economies of scale and operational efficiencies to reduce clients’ costs, while delivering sustainable returns for our shareholders.”

The group also announced a change in personnel, with their Managing Director Murray Smith due to depart at their next AGM on the 21st of October 2019. His management responsibilities will be handed to the Company’s Deputy Group Managing Director, Michael Wright. Mr Smith will move on to a different position in the Company, as Founder Director.

Elsewhere, the Company has announced the appointment of other personnel,

“Following the completion of rigorous recruitment processes, I am delighted to announce the appointment of James Wilson as Chief Compliance and Risk Officer, and the appointment of Ravi Tara to the new role of Group Finance Director (a non-plc board position), reporting to the Chief Financial Officer. “

“James has over 30 years’ financial services experience, including roles at the Law Society of Scotland, the Financial Services Authority and senior positions at IFG Group, Royal Bank of Scotland Group, Standard Life, TD Wealth International, Speirs & Jeffrey and FNZ, and has a strong background in pensions, investments, property and financial planning. His appointment will help us to build upon the strong compliance culture we already have in place.”

Investor notes

The Company’s shares have dipped 2.33% or 18.5p in morning trading, down to 774p a share 04/07/19 09:02 GMT. Shore Capital analysts have reiterated their ‘Buy’ stance on Mattioli Woods stock. Elsewhere in asset management, Intermediate Capital Group plc (LON:ICP) and Babcock International Group PLC (LON:BAB) posted updates.

Associated British Foods revenues rise with Primark growth

Jamie Gordon
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3
Associated British Foods revenues rise with Primark growth
Multinational food processing and retail company Associated British Foods plc (LON: ABF) posted its trading update today, which revealed that the Company were expecting a full-year climb in revenues on the back of Primark profit growth. The Company’s sales are 3% ahead of last year’s on a constant currency basis and 2% ahead on actual exchange rates. Excluding sugar – which the expected to continue weighing down performance – the Company’s sales are up 4% on-year. While Primark saw a decline in like-for-like sale, the Company’s revenues were up 4% compared to the same period last year. This was due to an increase in selling space, up by over 800,000 square feet, from 14.7 to almost 15.6 million square feet across its 372 UK stores. For the full year, the Company are expecting good growth in Primark and growth on an underlying basis in its grocery arm.

Associated British Foods comments

In its update, the Company stated,

“For the full year we expect good profit growth in Primark and, on an underlying basis, in Grocery. We continue to expect that the full year profit decline in Sugar has been reflected in the first half. Our full year outlook for the group is unchanged, with adjusted earnings per share expected to be in line with last year.”

“Revenue in Grocery for the third quarter was 1% ahead of last year. Operating profit margin for the full year is expected to be ahead with good trading in Twinings Ovaltine, Acetum, AB World Foods, ACH in the US and George Weston Foods.”

“Revenue from continuing businesses at AB Sugar was in line with last year in the third quarter. This represented an improvement on the decline in sales in the first half and was driven by the expected later phasing and higher sales at Illovo.” “Revenue in the third quarter was 5% ahead of last year driven by both AB Mauri and ABF Ingredients.” “Revenue growth continued in the third quarter at AB Agri, driven by higher feed sales. Higher feed prices have reflected an increase in the cost of raw materials. However, margins remained under pressure with higher input and operating costs in UK feed and increased price competition in feed enzymes.” Regarding expanding its retail opportunities, ABF said, “Our business in the US continued to deliver encouraging like-for-like and strong total sales growth. We expect to open over the next twelve months the previously announced new stores at American Dream, New Jersey and Sawgrass Mills, Florida and we have now exchanged contracts on a store in State Street, Chicago.”

Investor notes

The Company’s shares rallied 0.61% or 15p to 2,459p a share in morning trading on Thursday. Analysts from UBS, Shore Capital and Liberum Capital all reiterate their ‘Buy’ rating, while Credit Suisse reiterated its ‘Outperform’ stance on Associated British Food stock. Elsewhere in retail and on the highstreet, there have been updates from H&M (STO: HM-B), Sports Direct International Plc (LON: SPD), and Superdry (LON: SDRY).    
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