Redcentric posts loss following dip in sales
IT service management company Redcentric PLC (LON: RDN) have announced a consecutive and deeper annual loss on-year.
The Company attributed the loss to a decline in sales, the result of which was a 6.7% fall in revenue, to £93.3 million. In turn, pre-tax losses came to £1.4 million for the full-year through March, widening from £0.5 million on-year.
This news follows contention surrounding a case of misconduct during an audit of the Company by PricewaterhouseCoopers.
In a statement, PwC spokesperson said,
“We are sorry that our work fell below the professional standards expected of us. Since the work in question was completed, we have taken numerous steps to strengthen processes. In addition, this month we announced an additional £30m investment annually as part of a new wide-ranging action plan to provide greater focus on the quality and public interest responsibilities of PwC’s statutory audit services.”
Elsewhere in the tech sector, Codemasters Group Holdings Limited (LON: CDM), Amino Technologies Plc (LON: AMO) and MTI Wireless Edge Limited (LON:MWE) provided trading updates.
Tekmar rallies on profit and new contract announcements
Subsea cable protection firm Tekmar Group Plc (LON: TGP) have announced that they booked a profit for the full year.
The latest update revealed that revenue had grown to £28.1 million, up 28% on-year. In turn, pre-tax profit came to £2 million for the year through March, up from a £0.4 million loss on-year.
The Company attributed the success to its ability to win new contracts in the offshore wind sector.
Elsewhere in the energy sector, there have been updates from; Pressure Technologies (LON: PRES), Petrofac (LON: PFC) and Redt Energy (LON: RED) today, with operations updates from Eco Oil and Gas (LON: EGO) and Mayan Energy (LON: MYN) last week.
Tekmar Group comments
“The market outlook for offshore wind and oil and gas are both strong, with offshore wind CAGR forecasts above 20% between 2018-2028 and demand for products for the oil and gas market at a three-year high,” said Chairman Alasdair MacDonald. “The group remains focused on its strategy as stated at IPO to deliver long-term growth through the expansion of new products, organic growth and by selective and complementary acquisitions.” “On behalf of all the directors, I am pleased to report that the new financial year has started well and, with current order visibility levels, believe that the group is making good progress to deliver results in line with market expectations in the 2020 financial year.”Share price update
Following the trading update, the Company’s shares rallied 11.54% or 15p during Tuesday morning trading, up to 145p a share 25/06/19 10:56 GMT.New Look reveals deeper annual loss
Fashion retailer New Look posted a deeper annual loss on Tuesday in its full year results.
Statutory loss before tax amounted to £522.2 million, deeper than the £190.2 million loss made the previous year.
New Look said that the deeper loss was primarily driven by a £423.3 million goodwill and brand impairment charge related to its restructuring.
The company, owned by Brait, revealed its restructuring plans in January, aiming to cut debt by £1 billion.
Revenue amounted to £1,239.0 million, down 3.8%, but remains in line with expectations given the focus on driving more profitable sales and fewer stores.
New Look said that it maintained its number two position for overall Womenswear market share in the 18 to 44 age range. It also outperformed the UK market for core women’s clothing in stores.
“Whilst New Look enters the new financial year in a fundamentally healthier and stronger position, in many respects today marks the starting line. We have more work to do to enhance trading and deliver further operational improvements as we continue our turnaround plans,” Executive Chairman Alistair McGeorge commented on the results.
“We expect the retail environment to remain as challenging as ever in the year ahead, with continued Brexit uncertainty and unseasonable weather impacting current trading,” the Chief Executive continued.
Indeed, Brexit is not the only factor to impact the performance of UK retailers, with several noting that the unseasonable weather patterns has impacted the sales of summer lines of clothing.
“We will continue to focus on what is in our control by further enhancing profitability through our fantastic product, building brand equity and grasping new market opportunities.”
New Look, along with several other UK fashion retailers, has been subject to difficult sector-wide trading conditions.
It recently announced the closure of 60 of its UK stores, endangering 1,000 jobs.
Almost 2,500 high street shops closed last year, according to PwC research complied by the Local Data Company. Banks and financial services lead the way with 291 net closures, closely followed by fashion retailers with 269 closures.
Redt shares dive on loss announcement
Jersey-based energy storage group Redt Energy PLC (LON: RED) announced that losses had widened on-year and as such, the Company booked a deepened annual loss.
The losses have been attributed to a swell in expenses, which more than offset its rise in revenue.
It described its strategic review process as progressing well since March, with ongoing discussions taking place with a number of potential collaborators.
“redT energy plc (AIM:RED), the energy storage solutions company announces today that it is commencing a Strategic Review to explore the options available to fund the business going forward. The Board has appointed VSA Capital as financial adviser to assist with the Strategic Review.” The Company said in a statement in March 2019.
“In order to fund the business during the Strategic Review the Company has conditionally raised £940,000 (before expenses) by way of a placing by VSA Capital of 47,000,000 new Ordinary Shares at a price of 2 pence per Ordinary Share to existing investors.”
Today’s update revealed that revenue for the full year rose to £4.2 million, up 87% on-year. Despite this, pre-tax losses for the year through December came to £12.4 million, deepening from £7.5 million on-year. Elsewhere in the energy sector, there have been updates from; Pressure Technologies (LON: PRES), Petrofac (LON: PFC), and Eco Oil and Gas (LON: EGO) and Mayan Energy (LON: MYN) providing operations updates.Redt Chairman Comments Today
At the end of the Company’s release to investors and press today, Redt Executive Chairman Neil O’Brien stated, “I have been impressed by the significant step forward we have made in the design and manufacturing processes of the latest Gen 3 units and remain optimistic about the Company and its people’s ability to succeed in a market that is forecast to drive fundamental, positive change in our energy system in the years to come.”
“Right now, our immediate focus continues to be the satisfactory conclusion of the Strategic Review process, which is essential to provide the funding and support the Company requires in the near-term to succeed in this space. Progress to date with the Strategic Review has been encouraging and we look forward to updating shareholders further as soon as it is practical to do so.”
“Alongside the Strategic Review, which is being led by the Board, the executive team remain focussed on the manufacture, delivery and operation of our existing projects and securing further business from our sales opportunity pipeline. This work will support the widespread roll-out of our 3rd Generation product, which is the foundation for the Company to become cash generative in the future.”
“In closing, I would like to thank our highly dedicated staff who have faced and overcome the significant challenges of the last 12 months, and my Board colleagues for their continuing support and contribution to the ongoing activities of the Strategic Review process. I would like to extend my thanks also to our shareholders for their continuing support in the face of challenging circumstances, and to our customers for trusting in us to deliver high-quality energy storage infrastructure solutions for their projects.”
Share price update
Redt Energy’s share price dipped sharply in early morning trading on Tuesday, and after a slight recovery, they are now down 16.8% or 0.21p on market opening price, at 1.04p per share 25/06/19 11:45 GMT.UK rental markets: where is the most affordable place to rent?
Latest research for the lettings platform Howsy reveals that 34% of income is spent on rent across the UK.
The data looks at where in the UK is home to the most affordable rental markets by the amount of income dedicated to rent, with Wales as the most reasonably priced region at just 30% of income.
The figures double for London making it the UK’s most unaffordable region, as expected, with 65% of the average salary spent on renting.
The data reveals that Hackney is the least tenant friendly with 83% of the average salary in the borough spent on renting. Brent is second at 77%, Newham third at 75%, followed by Southwark at 70%, Haringey at 67%, Barking and Dagenham at 65%, Enfield at 64% and Barnet at 63%.
As for the most affordable locations to live in London, Bromley and Bexley are the best options with the average rental cost amounting to 46% of the average salary. These locations are, however, still above the average price across the UK.
Average rental costs by country leave England at the top, with 42% of the average salary spent on rent. Scotland comes in second at 39%, Northern Ireland at 35% and Wales at 30%.
“We tend to put a lot of focus on the negatives of the UK lettings market but while top-line affordability may be an issue for many, there are plenty of areas where renting isn’t such a financial burden,” Calum Brannan, Founder and CEO of Howsy, commented on the data.
“Maximising your disposable income in any part of the UK is the key to living a happy life in the rental sector and it pays to do your research before making a move to ensure you can not only cover the cost of renting, but you aren’t left high and dry once you have,” Calum Brannan continued.
At the beginning of June, data by Halifax revealed that UK house prices rose 5.2% during the three months to May 2019.
Pressure Technologies share price falls despite H1 profit
Specialist engineering and industrial valve manufacturing company Pressure Technologies (LON: PRES) booked a modest first half profit with improving oil and gas sector conditions helping to drive sales.
The company’s revenue jumped 59% to £14.5 million while pre-tax profit for the six months through March came to £0.1 million, up from a £1.5 million loss the year before.
This news follows updates from elsewhere in the energy sector, with Petrofac (LON: PFC) providing guidance updates this morning, and Eco Oil and Gas (LON: EGO) and Mayan Energy (LON: MYN) providing operations updates.
Company comments
“I am pleased with the progress we have made over the past six months in what has proved a very busy period, one that signals a return to profitability for the group,” said chief executive Chris Walters. “The sale of our alternative energy division, which completed in June 2019, was a key milestone.” “We now have a clear strategic focus and are making good progress with the management, operational and cultural changes that will help accelerate organic growth and performance improvements in target markets.” “Our results for the first half of the year reflect the delivery of major defence contracts and improving conditions in the oil and gas sector.” “We are pleased with the growth in our order book and the increasing diversity of our customers and products.” “I have confidence in the outlook for the group as we approach the next phase of our strategy.”Pressure Technologies trading update
The Company did not declare an interim dividend alongside this latest update. Further – following today’s update – the company’s shares have dipped sharply so far during trading on Tuesday morning, down 8.27% or 11p to 122p per share 25/06/19 09:45 GMT.Petrofac shares dip with reserved guidance expectations
Oilfield services provider Petrofac Limited (LON: PFC) has said it expects its annual margins to be at the lower end of its guidance range for its engineering and construction businesses.
Falls in on-year production
The Company’s integrated energy division stated that it expected a fall in net production on-year, from 3.1 million barrels of oil equivalent to 2.1 million boe; this being in line with expectations and reflecting divestments during the second half of 2018. The separate engineering and production services division was performing in line with expectations for the first half, with lower activity from operations being offset by growth in projects. Engineering and construction revenue was expected to be around $4.5 billion for the full year, while overall new order intake for the year to-date stands at $1.7 billion, the company stated.Petrofac comments
“We are trading in line with our prior guidance reflecting solid operational performance across the business,” said chief executive Ayman Asfari. “We continue to maintain excellent client relationships in all of our markets, although new order intake in the year to date reflects our recent challenges in Saudi Arabia and Iraq.” “Looking forward, the group has a busy tendering pipeline in other markets with around US$15bn of bid opportunities due for award in the second half of the year.” “We are making good progress delivering our strategic objectives.” “We continue to target best-in-class delivery for our clients and are improving our competitiveness by reducing costs, driving digitalisation, increasing local content and investing in talent.” “Furthermore, we are well positioned in the second half with good revenue visibility, a strong balance sheet and high levels of tendering activity.”Trading notes
The Company’s shares are currently trading down 4.89% or 21.22p at 412.28p per share. Analysts were not in consensus with their ratings, with Credit Suisse reiterating their ‘neutral’ stance and Numis reiterating their ‘Buy’ stance on Petrofac stock.Supermarket sales rise modestly as poor weather kick-starts summer
Supermarket sales grew by 1.4% over the 12 weeks to mid-June, new data published by Kantar reveals, as the weather across the UK fails to match last year’s heatwave.
During the 12 weeks to 16 June, supermarket sales rose by 1.4% year on year as a result of the wet weather to kick-start the summer period.
Last year’s summer heatwave and the lead up to the men’s FIFA World Cup made 2018 a difficult year to outperform.
According to Kantar, the poor weather to hit the UK is reflected in sales of typical summer categories such as ice cream, beer and burgers.
In the last four weeks, ice cream sales were £15 million lower than this time last year, beer was down £17 million and burgers £6 million.
Despite a decline in sales of typical summer products, shoppers seem to have spent more on comfort foods as fresh and tinned soup sales rose.
As for specific supermarkets, Aldi attracted an additional 883,000 shoppers across the 12-week period, growing its market share to 7.9%.
Lidl, which recently announced plans for a flagship store on central London’s Tottenham Court Road, rose its market share to 5.7%.
Tesco (LON:TSCO), whose market share fell over the period, still remains the nation’s largest retailer.
Sainsbury’s (LON:SBRY) came in second, whilst Asda’s (NYSE:WMT) overall market share declined to 14.9%. The two supermarkets recently had their potential merger blocked by the Competition and Markets Authority (CMA), claiming that consumers would not benefit from the merger. The CMA said that this was due to an expected increase in prices, reductions in the quality and range of products on offer and a poorer overall shopping experience for consumers across Britain.
Shares in Tesco plc (LON:TSCO) were down 2.41% on Tuesday as of 10:06 BST. J Sainsbury plc (LON:SBRY) were also down at -0.69% (10:07 BST) and shares in Walmart Inc (NYSE:WMT), owner of Asda, were up 0.099% as of 19:56 GMT-4.
Carpetright posts narrower loss in full year results
Carpetright (LON:CPR) posted a narrower loss in its full year results on Tuesday, returning to like-for-like sales growth in its new financial year.
Shares in the business were up 9.35% following the announcement.
The carpet retailer said that it made a statutory loss before tax of £24.8 million, which is less than the £69.8 million figure from the previous year.
Group revenue amounted to £386.4 million, 13.4% lower than last year’s £446.3 million.
Carpetright experienced a challenging first half in the UK, with like-for-like revenues down 12.7% as the business implemented the CVA restructuring plan.
Last year, its shareholders supported a Company Voluntary Arrangement (CVA) restructuring plan which closed 80 underperforming stores.
Its UK performance in the second half saw a significant improvement with its like-for-like sales decline reduced to 5.4%, reducing even further in the fourth-quarter to 2.3%.
2018-2019 has been a “transitional” year for the business, Chief Executive Wilf Walsh said.
“We took tough but necessary action to address our legacy property issues and restructure the UK store estate. This difficult task was carried out against the backdrop of a challenging trading environment but was essential to put the business back on the path to sustainable profitability,” the Chief Executive continued.
Indeed, several retailers across the UK have struggled for survival amid the challenging trading environment to hit the retail sector.
Last April, the retailer issued its fourth profit warning in five months.
“From a trading standpoint it was, as expected, a year of two halves, with the first six months reflecting the impact of the CVA implementation, followed by a significant improvement in the second half and, in particular, during Q4.”
The company added that the business has returned to like-for-like sales growth in the first eight weeks of the period, with UK like-for-like sales ahead by 8.5%.
Shares in Carpetright plc (LON:CPR) were trading at +9.35% as of 09:22 BST Tuesday.
