Ten Lifestyle Group shares rally amid ICBC contract win
Ten Lifestyle Group shares (LON:TENG) rallied on Thursday morning after the company announced it had secured a contract with ICBC Private Banking Department.
The company said the service is to commence in January next year as a small contract, however, it is expected to expand to a medium contract in due course.
According to the statement, Ten Lifestyle Group categorise ‘small’ contracts as anything below £250,000, with ‘medium’ anything between £250,000 and £2 million.
A spokesperson for ICBC Private Banking Department commented:
“After a competitive tender we were happy to appoint Ten Lifestyle Group plc as a premium travel and lifestyle concierge partner. We were impressed by the team we met, their digital platform and their global reach. We hope this is the start of a strong partnership in China.”
Andrew Long, CEO Asia Pacific, Ten Lifestyle Group plc, said;
“We are honoured to have been chosen by ICBC to support their most valuable clients in China and thrilled to be working with the world’s largest bank. We see this as a fantastic opportunity to grow our already sizeable operation in mainland China”
Ten Lifestyle Group is a luxury travel and lifestyle concierge service.
The firm was founded back in 1998. It has been listed on the AIM-market of the London Stock Exchange as of November 2017.
Alongside its head office in London, the company has 20 international offices.
Some of its current clients include Cartier, Barclays, Coutts and Citi.
Shares in Ten Lifestyle Group are currently +13.50% as of 11:01AM (GMT).
G4S considers separating cash & notes business, shares rise
The security company G4S said on Thursday that it is planning to separate its cash and notes business, sending shares up 10%.
Separating the security arm and the cash guarding arm would have “the clear potential to enhance the focus and success of both businesses and thus to unlock substantial shareholder value.”
The review of the separation options has started and is expected to be completed within 2019.
“The implementation of our new organisation structure in January this year enables us to consider this separation in order to enhance the strategic, commercial and operational focus of both Secure Solutions and Cash Solutions,” said the group’s chief executive Ashley Almanza in a statement.
“G4S Cash Solutions has a unique portfolio of market leading cash management businesses, serving customers in 45 countries across the globe. Our Retail Cash Solutions business is the clear market leader, providing cash payment software and services in some of the world’s largest markets. With innovative, industry leading products and services and substantial market shares, G4S Cash Solutions is transforming cash management services in its markets.”
“G4S Secure Solutions is the global leader in security and delivers both conventional and integrated, technology-enabled security solutions to our customers across six continents. This business is very well positioned to address the global growth in demand for security services with a growing capacity to deliver integrated security solutions, an unrivalled global footprint and a premier brand in security.”
“The review of our separation options offers an exciting opportunity to enhance our focus for the benefit of customers, shareholders and employees. Our aim is to establish two strong, independent businesses that are able to take advantage of their leading market positions and excellent service offerings to deliver sustainable, profitable growth,” he added.
The group’s full-year trading update will be shared in March 2019.
Shares in G4S are currently trading +9.52% at 200,80 (1021GMT).
Ocado shares up 3% on “consistent strong” growth
In the group’s latest trading update, Ocado has revealed a strong growth in revenue and sales.
In the three months to 2 December 2018, the online grocer it has seen a “consistent strong” growth, with a 12% rise in retail revenue.
The chief executive of Ocado, Tim Steiner, said in a statement: “Our unrelenting focus on delivering consistent high levels of service and value to our customers in the U.K. has produced another quarter of satisfying growth.”
“The new capacity that we have brought on stream in CFCs three and four in Andover and Erith has enabled us to again report double-digit growth in new customer acquisition. Both facilities are performing well and Erith continues to ramp up in line with our expectations.”
“Although in many respects 2018 has been a transformative year for Ocado, the story has only just begun. We look forward to the coming year and continuing to turn our substantial opportunities into sustainable value for all our stakeholders,” he added.
The number of average orders per week has increased in the 4th quarter by 13.1% from 283,000 in the same period last year to 320,000. The size of the average order, however, sank by 1% to £104.91.
For the full-year results, the online grocer expects 10 to 15% growth.
This year saw Ocado complete partnerships with tech groups including Kroger, causing shares to soar 126% over the year.
Richard Hunter, the head of markets from Interactive Investor, said: “The company’s start to life as a supermarket delivery company has long been eclipsed by what is under the bonnet. Ocado’s cutting-edge technology platform, which is being rolled out in the UK apace, has caught the eye of a number of global players keen to link into its order fulfilment capabilities.”
Shares in the group (LON: OCDO) are currently trading +3.28% (1004GMT).
Sports Direct underlying profit drops 26%
Sports Direct has revealed its interim results for the 26 weeks to 28 October on Thursday. The results show that underlying profit before tax has dropped by 26.8% over the period.
Group revenue increased by 4.5%. Excluding acquisitions and at a constant currency, revenue increased by 0.2%. Additionally, UK sports retail revenue dropped 0.2% on the back of store closures. The group’s Premium Lifestyle business was up 29.4% following new Flannels stores.
Earlier this year, Sports Direct acquired House of Fraser after it announced it was going into administration. Earlier in October, Sports Direct also purchased the Glasgow House of Fraser building in a £95 million deal. Since the acquisition, its revenue was £70.1 million.
The group’s underlying EBITDA dropped 4.7% to £148.8 million. Excluding acquisitions and on a currency neutral basis. EBITDA was up 14.6%.
Sports Direct’s underlying profit before tax dropped by over a quarter.
Net debt has increased to £505.5 million. This is up from the £397.1 million reported in April. Chief Executive of Sports Direct International plc, Mike Ashley, commented on the results: “During the reporting period we acquired the trade and assets of House of Fraser and I would like to welcome my new colleagues to the Sports Direct Group. I have made my views clear that I believe the previous House of Fraser senior management team traded the business whilst it was insolvent for a long time, this means we have significant challenges ahead in turning House of Fraser around. However, I genuinely believe we have acquired a fantastic opportunity and with the efforts of Sports Direct and House of Fraser teams, and the support of the brands, local councils and landlords, we can turn House of Fraser into the Harrods of the High Street.” “Outside of the House of Fraser acquisition the Sports Direct Group has had another successful period reporting a 15.5% growth in underlying EBITDA to £180.3m. This is impressive in the context of the current struggles in the High Street and shows our elevation strategy continues to go from strength to strength. Excluding House of Fraser we anticipate we will be within our previously communicated underlying EBITDA growth range of 5-15% by year end, including House of Fraser we expect to be behind last year’s result.” At 09:28 GMT today, shares in Sports Direct International plc (LON:SPD) were trading at -3.04%.Rics: Housing market will continue to slow amid Brexit concern
A report from the Royal Institution of Chartered Surveyors (Rics) has shown that the UK property is the weakest since 2012 and Brexit concerns will continue to hit the market into 2019.
According to the report, the number of houses being bought and sold will continue to fall over the next three years whilst the houses on sales are taking longer to sell.
House prices have been falling over the year across the UK, particularly in London and the South East.
“It is evident from the feedback to the latest RICS survey that the ongoing uncertainties surrounding how the Brexit process plays out is taking its toll on the housing market,” said Rics’ chief economist, Simon Rubinsohn.
“I can’t recall a previous survey when a single issue has been highlighted by quite so many contributors.”
“Caution is visible among both buyers and vendors and where deals are being done they are taking longer to get over the line. The forward-looking indicators reflect the suspicion that the political machinations are unlikely to be resolved anytime soon.”
“The bigger risk is that this now spills over into development plans making it even harder to secure the uplift in the building pipeline to address the housing crisis,” he added.
The Bank of England governor, Mark Carney, said earlier this month that in the event of a no-deal Brexit, house prices in the UK could plummet 30%.
Whilst house prices are falling and remaining flat in some parts of the UK, prices in Northern Ireland, Scotland, West Midlands, Wales and Yorkshire have been rising.
The number of new properties that have been listed fell for the fifth month.
Mark Duckworth, from Martin & Mortimer in Ely, said: “The Brexit effect is best described as a cold and wet blanket which is a depressing appetite for property.”
Bonmarche shares drop 36% following revised profit forecast
Bonmarche has altered its profit guidance on Thursday morning following its interim announcement in November. This is after the indication that sales during the Christmas shopping period could be less than anticipated. Shares in the group plummeted 36% this morning as a result of the announcement.
The group said that life-for-like sales have remained weak, and the start of the autumn to winter season had been slow.
This announcement is set against a backdrop of high street gloom. In fact, the group is not the only retailer suffering from the current high street crisis. John Lewis reported in September that its profits had dropped by a staggering 99%.
Additionally, Bonmarche has noted that Black Friday sales were “extremely poor”, particularly in retail stores. Indeed, it has become clear that customer’s Black Friday shopping trends do not match the patterns from previous years.
Moreover, the group has outlined that Brexit uncertainty has played a significant factor in affecting the demand for their products. As a result, it believes that sales may not strengthen until the current Brexit chaos ends. Given the uncertainty of when the Brexit chaos may end, their group has had to assume that sales will not significantly improve. Therefore, forecasts have been lowered accordingly.
Bonmarche now estimates that underlying profit before tax will be in the range of breakeven to a loss of £4.0 million.
Chief Executive of Bonmarche, Helen Connolly, commented on the announcement: “The current trading conditions are unprecedented in our experience and are significantly worse even than during the recession of 2008/9. I hope that in the fullness of time, our cut to the forecast may prove to have been overdone, but in the current market, this seems the appropriate stance to adopt.” “I believe that Bonmarche is well prepared to weather the storm, and that we can look forward to some recovery in FY20. Accordingly, the Board remains confident in the strategy, and in the Company’s long-term prospects.” At 09:02 GMT today, shares in Bonmarche Holdings plc (LON:BON) were trading at -36.02%.Sound Energy shares dip to one year low
AIM and London-based upstream gas firm Sound Energy Plc (LON:SOU) saw their share price dip to a 52-week low yesterday.
The news puts the company at the fore of many an avid investor’s agendas for the day, with online forum’s reeling at the news that the firm’s shares dipped as low as 11p during trading on Tuesday.
The gas company are largely based in Europe and Africa and have made efforts this year to commercialise Moroccan gas by signing an agreement with a consortium to build a 20-inch gas pipeline in the East of the country. The company said that the consortium, made up of Spain’s Enagas (BME:ENG), Elecnor (BME:ENO) and Fomento (BME:FCC), has been awarded the deal under a build-own-operate-transfer (BOOT) structure.
In a statement earlier in the year, the Sound Energy said:
“The Consortium will finalise plans to secure access to some $184 million of development capital that will be required to fund the project”.
The firm was pleased to announce the commencement of drilling at their TE-10 venture some five days ago – the second of three planned explorations at the Eastern Moroccan site – stating that preliminary estimates hedged a 26% chance of success, though the company said updates will be reported as and when appropriate. This well covers the North East Lakbir prospect in the Company’s Greater Tendrara permit and is located approximately 25 kilometres northeast of their Tendrara production concession.
Today the company’s share price has seen moderate recovery with the acquisition of Corporate Banking and Advisory firm Smith and Williamson. Following the acquisition, Sound Energy went on to appoint Cenkos Securities Plc (LON:CNKS) as their Nominated Adviser with immediate effect.
Sound Energy shares are currently trading up 8.08% or 0.94p at 12.59p per share 12/12/18 15:49 GMT. Analysts from RBC Capital Markets have reiterated their ‘Sector Perform’ stance on Sound Energy stock.
Channel 4 CMCO to step down & focus on own business
The marketing and communications officer of Channel 4 will be stepping down at the start of 2019.
Dan Brooke is leaving the broadcaster to focus on his own business that will focus on “helping companies be mission and purpose driven”.
Brooke has been at Channel 4 since 2010 and previous to that worked for seven years at Film4.
During his eight years at Channel 4, the marketing and communications officer was the board champion for diversity and inclusion. The channel won Best Diverse Company at the 2016 National Diversity Awards.
“I’m proud of the things my incredibly talented marketing and communications teams have achieved and that the most groundbreaking of this work has achieved such powerful results and consistent global recognition,” he said.
“I’m also proud to have been the board champion for diversity and inclusion, leading the drive that saw Channel 4 voted Britain’s Best Diverse Company.”
“With the ‘4 All The UK’ plan now successfully launched, it’s a good time to leave on a high and use these successes as a springboard for my burgeoning ambition to help other mission and purpose-driven companies grow.”
The group’s chief executive, Alex Mahon, said: “Dan has made a huge and far-reaching contribution to the life and success of Channel 4 over many years. I’d like to thank Dan personally for the support and advice he has offered me in my first year and, on behalf of the whole organisation, wish him the very best with his future plans.”
Channel 4 has not yet shared plans following Brooke’s departure.
Zara owner shares slump on trading update
Inditex, the owner of Zara, has become the latest retailer to reveal a knock to profits after the summer heatwave.
In the Spanish group’s latest trading update, Inditex revealed lower-than-expected sales and profits causing shares to dip 4%.
“The company decided not to participate in the promotional activity widely seen in the sector since September,” said the retailer.
Pablo Isla, the group’s chief executive, said the group had a “strong business model, which continues to deliver solid structural growth in all markets, along with our constant focus on developing the integrated store and online platform through continued enhancement of technology and systems”.
Inditex is not the only retailer feeling the effect from the warmer than usual summer. Superdry (LON: SDRY) posted a 49% fall in profits on Wednesday. The group posted underlying pre-tax profits of £12 million in the six months to the end of October and expects full-year profits of between £55 million and £70 million.
Shares in Inditex (BME: ITX) are trading -4.48% at 25,15 (1412GMT).
Angus Energy shares rally with low RSI
Shares in Angus Energy Plc (LON:ANGS) rallied on Wednesday as recent figures showed that its mid-day trading volume for shares stood at 137% of its average level.
Angus Energy owns the Brockham and Lidsey oil fields and deals in the distribution of hydrocarbons in the UK, to third parties. The London-based company’s shares are reeling as its SuperTrend indicator sits ahead of its share price.
The company’s Relative Strength Index score stands at 48.32 for the last fortnight, and down to 27.96 for the last three days. Scoring acts as measure for a stock’s true value and volatility, with a score exceeding 70 indicating a stock being oversold and in turn overvalued. A score of 30 or lower indicates a stock that is undersold and likely under-priced.
With current market uncertainty, traders are having to dip deeper into their archive of stocks to find the best returns. Angus appears to represent a promising opportunity for those keen enough to take advantage, before its increase to stabilise meet demand.
Angus Energy shares are currently trading up 0.8p or 6.82% at 12.5p 12/12/18 13:47 GMT.