Rolls-Royce confirms higher profit guidance

Nicole Jeary
-
0
Rolls-Royce confirms higher profit guidance
Rolls-Royce has confirmed that it expects profits to be towards the upper end of its guidance on Wednesday, sending shares up. According to the statement, the engineering company expect to produce around 500 large engines to customers in 2018, slightly lower than its March projection of around 550. The statement added:

“This reflects supply chain challenges that are affecting the whole civil aero engine sector and also early stage production ramp-up challenges on our new Trent 7000 engine. As we move into 2019 we are confident that Trent 7000 production and delivery volumes will increase significantly to meet our customer commitments.

“We have continued to make progress reducing large engine OE unit losses and will provide more details on this with our full-year results in February 2019.”

Alongside its civil aerospace division, Rolls-Royce also noted that its power systems operations witnessed “strong growth” during the first half of the year. In addition, defence remained on track to meet its full-year guidance, with “stable” revenues. Earlier this year, Rolls-Royce announced a restructuring plan in a bid to streamline costs. This is set to involve a 4,600 headcount reduction at the firm, which it expects to complete by the end of 2018. Moreover, the statement also touched on uncertainties in the UK relating to Brexit negotiations. Acknowledging the decision of the government to delay the vote on its Brexit proposal, the firm said the following:

“We will continue to implement our contingency plans until we are certain that a deal and transition period has been agreed.

“Specifically, we are working with EASA to transfer design approval for large aero engines to Germany, where we already carry out this process for business jets. This is a precautionary and reversible technical action which we do not anticipate will lead to the transfer of any jobs.

“We have begun to build inventory as a contingency measure, in line with the timetable that we gave in the summer.”

Rolls-Royce said they will update investors once there is greater certainty on Brexit developments. Shares in Rolls-Royce (LON:RR) are currently trading +4.71% as of 13:52PM (GMT).

British American Tobacco sticks by full-year guidance

Safiya Bashir
-
0
British American Tobacco sticks by full-year guidance
Full-year guidance at British American Tobacco remains on track, revealed the group in a trading update. British American Tobacco released a trading update on Wednesday, confirming expectations to exceed the target for high single-digit growth in adjusted earnings per share for the year. “We remain on track for a strong performance in 2018 – driven by both our combustible and potentially reduced risk products businesses,” said Nicandro Durante, the chief executive. “In the US, we are performing well, with positive pricing and continued value share growth. Our deleveraging remains on track and we remain committed to a dividend payout ratio of at least 65%”. “We expect to exceed our high single-figure adjusted diluted earnings per share growth at constant rates of exchange.” The group, which owns brands including Dunhill and Lucky Strike, has also stood by expectations that cigarette alternatives will reach £900 million of revenue this year. “I am delighted with the progress we are making with our Potentially Reduced Risk Products business and we have a great pipeline of new product launches over the coming months which will build on this success,” said Durante earlier this year. Shares in British American Tobacco have fallen almost 47% this year, amid the uncertainty around menthol cigarettes menthol in the US.
In other news from the group, Lionel Nowell will retire from the board with effect from 12 December 2018.
Shares in the group (LON: BATS) are trading +1.96% (1351GMT).

Thomas Cook shares edge up on CEO’s confidence for 2019

Safiya Bashir
-
1
Thomas Cook shares edge up on CEO’s confidence for 2019
Thomas Cook shares have taken a strong turn on Wednesday after the group’s chief executive expressed confidence about the coming year. The travel company has issued three profit warnings this year after the unusually hot summer hit holiday bookings. Today saw shares increase by over 15% after a turbulent year where the share price has tumbled from 117p this time last year to a low of 22p earlier this month. The Thomas Cook chief executive Phil Gardner has said that bookings are looking more promising for 2019. “We have a strategy we believe in, we just haven’t been quick enough at executing it,” he said. “The latest market hit us this year. We need to be stronger in managing our commitments and have already made changes in that area. We also need to be faster at executing our strategy around our own-branded product. We’ve had a good start for bookings next year, and have confidence in 2019, but need to focus on margin and profit.” “The best possible margins are on our unique product. It’s also where we give our best customer service and receive our best NPS [net promoter scores]. We didn’t focus enough on it this summer, so we will next year. I need to do that with trade partners and online,” he added. Shares in the group (LON: TCG) are currently trading +12.57 (1325GMT).

PMQs, point-scoring and political flip-flop

Jamie Gordon
-
0
PMQs, point-scoring and political flip-flop
Amid the standard back-and-forth of PMQ exchanges, Theresa May manages to goad the Leader of the Opposition into a heated remark and ultimately a failed opportunity to use his questions effectively. While one would think the Brexit debacle would act as a sort of barn door target – with the pound and shares of city firms tumbling, and incriminating legal advice – most remarks fell flat when compared to the orchestrated character attack on Jeremy Corbyn by Tory MPs. Starting on the back foot after postponing the ‘meaningful vote‘, the prime minister sat defending her position against the SNP and the Labour backbenches. While compelling cases were made about the quality of life, consumer confidence and the suitability of the proposed Withdrawal Agreement, the prime minister will take some solace in successfully calling to question the intentions and stability of the alternative. Whether directly involved in the conversation or not, PMQs saw May tactfully refer to her opposition counterpart at every possible opportunity. While such a tactic would seem both predictable and overplayed, its timing is salient. On the morning of another call for a vote of no confidence, the prime minister has already rallied support within her own party, with 121 Conservative MPs pledging their support on Twitter. Jacob Rees-Mogg has allegedly thrown his hat into the leadership ring once again, and as the meaningful vote campaign has urged the Leader of the Opposition to back a vote of no confidence, May’s rebuttals of Corbyn in the House’s most high profile debate could serve to lengthen her tenure in office. The prime minister’s remarks were bolstered by ‘helpful’ questions from her party lines, with rebels remaining quiet, and those toeing the party line doing well to question the opposition’s intentions for Brexit and leadership acumen during PMQs. After reminding viewers and members of the House of Corbyn’s Brexit ‘flip-flop’ and desire to ignore the 2016 referendum result, her party members went on to prognosticate ‘far left wing’ Armageddon, should Corybn’s party be allowed to take office. May has said she will fight the no-confidence motion with “everything [she’s] got”, with opponents in the remain and Labour camps perhaps rightly disappointed at Corbyn’s apparent lack of a proactive response to-date. Some have said that his media controversies have somewhat steered him clear of what many would have looked to the Labour party to provide – a proactive response to Brexit and alternative to the compromising Tory line – however, his recent moves look more akin to pandering party politics. Boris Johnson and Rees-Mogg amongst others will be keen onlookers of developments in coming days, with the prime minister somewhat conceding on her lack of success to-date. Corbyn’s calls for MPs to have a say on the form of a final deal will have received a mixed reception, and the SNP’s pointed comments will lose the ear of some listeners by following every criticism with a reference to ‘Scottish interests’. The fate of May’s government will only be decided after 5 pm today, but she will hope to retain support by playing the role of ‘the devil you know’, and the idea that nobody else offers a better alternative.

Frontera Resources shares rise amid financing update

Nicole Jeary
-
1
Frontera Resources shares rise amid financing update
Frontera Resources shares (LON:FRR) ticked up on Wednesday after the company issued an update on financing. The oil and gas exploration company announced it had secured a loan of up to $60,000,000 with a New York based fund. Frontera Resources said the capital would be used to fund the development of its Block 12 license area in Georgia next year. According to the statement, the loan would be for a term of 5 years with interest rate ranging between 8% and 11%. Zaza Mamulaishvili, President and CEO, commented: “We are pleased to have signed this term sheet that sets basis for the new capital inflow in 2019. These funds would be used to accelerate our work programs in the Taribani field as well as throughout Block 12, and would be instrumental in reaching our goal to achieve commercial development of Block 12 in Georgia. We look forward to continuing working with the financiers to finalize the necessary due diligence and definitive agreements, and being able to start utilizing this funding for operations.” Frontera Resources is listed on the London Stock Exchange. Its operations are located in Eastern Europe in Georgia and Moldova. The company is headquartered in Texas, USA. Frontera Resources shares are currently up +4.79% as of 11:38AM (GMT) as investors react to the announcement.

Filtronic shares plunge 56% as group expects annual loss

Safiya Bashir
-
0
Filtronic shares plunge 56% as group expects annual loss
Shares in Filtronic plunged 56% on Wednesday after forecast sales Massive MIMO antennas are set to be much lower than previously thought. Sales in the six months to the end of October at the Antennas and telecoms filters maker were down from £12.8 million last year to £10.4 million. The group expects to make a loss for the current financial year. The group said in a statement: “Our predominant OEM customer, with whom we had closely collaborated in the development of this product range, has now significantly lowered its forecast demand below that which it had previously provided, having itself been advised that its lead client is now looking to deploy different frequencies to those it had originally indicated.” “As a consequence of this lower demand and the uncertainty it brings, the Board has decided to impair fully the net book value of the capitalised development costs of £0.5 million relating to the development of mMIMO in its half year results.” “The Company has made considerable efforts to diversify its customer base in recent years and despite this obvious set back to our mMIMO antennas business, we are pleased to advise that we were recently approved as a supplier of a niche antenna product to a Tier 1 Mobile Network Operator in South Africa. However, given the importance of mMIMO to our future plans in the antenna business, the Board has commenced a review of its options for this component of the Group.” Shares in Filtronic (LON: FTC) are trading down 56.06% at 7,91p (1127GMT).

Superdry posts 49% fall in profits, shares tumble 32%

Safiya Bashir
-
3
Superdry posts 49% fall in profits, shares tumble 32%
Superdry shares collapsed more than 30% on Wednesday following a 49% fall in half-year profits. The retailer 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. Analyst expectations were previously around £84 million. Superdry blamed the unseasonably warm weather for the dent in profits. The retailer is known best for its coats and hoodies. The chief executive, Euan Sutherland said: “Superdry had a difficult first half, impacted by unseasonably warm weather across our major markets, a consumer economy that is increasingly discount-driven and the issues we are addressing in product mix and range. “Superdry is a strong brand and has strong operational capabilities. We are focused on an intensified transformation programme to reset the business and address the legacy issues we face, particularly in product mix and range.” Tuesday saw the group’s former boss and co-founder Julian Dunkerton criticise the group in a note to Liberum. He said: “The interaction between stores and the internet is going to be so fundamental to the future of retail.” “Consumers have adopted the internet and by doing so have moved away from the limitations of the high street and towards a world of unlimited choice – the premise here is if one does not participate in this world you will get left behind.” Superdry is expanding dresses, skirts and women’s tops to end reliance on warm outerwear. The group also plans to invest more in digitisation to “adapt stores for a digital world”. Superdry hopes to save £50 million by 2022 and is considering closing stores to achieve this goal. Shares in the group (LON: SDRY) are currently trading down 32.38% (1104GMT).    

Dixons Carphone shares tumble on £440m loss

Safiya Bashir
-
2
Dixons Carphone shares tumble on £440m loss
Dixons Carphone has posted a £440 million loss for the six months to 27 October, sending shares down 14%. The loss compares to a £50 million pre-tax profit in the same period a year earlier. Whilst underlying sales improved, the group paid out a £490 million for the restructuring of Carphone Warehouse. The new boss, Alex Baldock, said: “We believe that Dixons Carphone is now on the path to sustainable success. We have set a clear long-term direction that will deliver more engaged colleagues, more satisfied customers and a more valuable business for shareholders.” “We have powerful strengths, as a growing market leader with amazing people and capabilities no competitor can match. Our plan builds on those strengths. We’re focusing on our core, and on four things that matter most: two big profitable growth opportunities in online and credit; revitalising our mobile business; and giving customers an easy experience. We’ll deliver these through capable and committed colleagues, working in one joined-up business, with strong infrastructure.” “We’re underway and investing in all of these, including giving our colleagues at least £1,000 of shares, making every colleague a shareholder. We strongly believe aligning and energising the business behind our strategy in this way will benefit customers and shareholders.” “There are headwinds and uncertainty facing any business serving the UK consumer, we’ve had our own challenges, and our plan will take time. But, with this plan, we can now see the way to unleashing the true potential of this business. We believe in our plan, are underway making early progress and determined to make it a lasting success,” he added. The struggling retailer announced plans earlier this year to close 92 out of 700 stores. Baldock confirmed there are no plans to close more. The share price has fallen by 25% this year following various profit warnings from the group. Richard Hunter, head of markets at Interactive Investor, said: “Unfortunately, this statement has laid bare the fact that Dixons Carphone has many plates to spin at a time when competition in the sector is intensifying.” “The strategy to consolidate its competitiveness, which starts from a position of strength given its scale, will take some time to come through, even if successful.” Shares in Dixons Carphone (LON: DC) are currently trading -8.11% (1045GMT).    

Sterling hits 2-year low as May faces vote of confidence

UK Investor Magazine
-
4
Sterling hits 2-year low as May faces vote of confidence
A vote of no confidence in Theresa May has been triggered sending the pound to the lowest levels since 2017 against the dollar before rebounding. Sir Graham Brady released a statement saying he had received in excess of 48 letters representing 15% of the parliamentary party, the threshold to trigger a vote confidence. Rumours of the threshold had been met started circulating last night with leading pundits tweeting they received word from senior sources the 1922 committee had received enough letters to a vote of confidence . The sheer volume of rumours last night was enough to send the pound into a downward spiral with sterling falling as low as 1.2476 against the dollar, the lowest level since April 2017. On the official announcement this morning GBP/USD stabilised slightly and traded tentatively above 1.2500. At the time of writing book makers and betting exchanges have Boris Johnson as the favourite for the next leader of the Conservative party. That would assume Theresa May loses the vote this evening. The vote has plunged the Brexit negotiations into total chaos with very little in the way of indication of a potential timeline for the meaningful vote or whether the next leader would seek to tear up May’s proposal. Major European leaders have so far said May’s deal was the only deal on the table. The big fear among economists and analysts is the UK leaves with no deal, plunging the UK into economic uncertainty. The immediate path of Brexit is highly dependant on whether Theresa May wins this evenings voye and the course of action the next leader decides on taking. The leadership contest is unlikely to happen for a number of weeks and parliament could take control of the Brexit process and revoke Article 50. Boris Johnson and Sajid Jarvid are considered front runners after embarking on personal PR missions in recent days. Boris Johnson led the Leave campaign and while Jarvid voted Remain, he has been seen to shift towards a harder type of Brexit than proposed by his peers. Having hit two year lows GBP/USD higher through Wednesday morning in tandem with the FTSE 100 which was up as much as 1% in early trade.

RWS Holdings reports 17% rise in annual profit

Dina Caruso
-
0
RWS Holdings reports 17% rise in annual profit
RWS Holdings has released its financial results for the year ended 30 September on Tuesday. The intellectual property support services provider reported a 17% rise in annual profit. Shares edged up by almost 5% following the results.

RWS is a market leader in life sciences translations and linguistic validation.

The 17% rise in annual profit was driven by the acquisition of language services group Moravia. The acquisition was completed in November 2017. It also enhanced earnings and contributed to a 22% increase in adjusted earnings per share to 17.4p. This figure compares to 14.3p from the previous year. The final dividend was up 15% from 2017 at 6.0p per share. Chairman of RWS Holdings, Andrew Brode, commented on the results: “This has been a remarkable year in which we celebrated our 60th year in business and delivered our 15th year of unbroken growth in revenues, profits and dividends since flotation in November 2003.” “We were delighted to complete the transformational acquisition of Moravia and receive “Transaction of the Year” at the recent AIM Awards. The Moravia team delivered a very strong second half and we look forward to further growth from this business.” “The Group is now one of the world’s leading providers of language services, with a strong platform for taking advantage of the multiple opportunities afforded by our enhanced service offering, extended global presence and the growing markets for our intellectual property, life sciences and localization businesses. Backed by a strong balance sheet, we are also well positioned to take advantage of further acquisition opportunities as they arise.” “We have made a very good start to the new financial year and we look forward to 2019 with confidence.” At 16:42 GMT today, shares in RWS Holdings plc (LON:RWS) were trading at +4.92%. Tuesday’s market news also includes 888’s acquisition of All American Poker Network. Elsewhere, Superdry shares dropped ahead of a trading update and MySale shares dropped 50% amid a profit alert.
1...1,4061,4071,408...1,761Page 1,407 of 1,761