Apple to cut iPhone production by 10%

Safiya Bashir
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Apple to cut iPhone production by 10%
Following a cut to its revenue forecast, Apple (NASDAQ: AAPL) is reportedly slashing iPhone production by 10% over the next three months. The tech giant will reportedly produce between 40 million and 43 million iPhones over the next three months, down from previous plans to produce between 47 million and 48 million devices. Reports from the Nikkei come after Apple issued a shock warning earlier this month, revealing revenues for the final three months of 2019 will come in at about $84 billion, despite the previous guidance of between $89 billion to $93 billion. This was Apple’s first profit warning in 16 years. “People are looking for a January rally effect as they place bets for the new year. Apple puts a bit of a sour tone on that,” Daniel Morgan, senior portfolio manager of Synovus Trust said. “It raises concerns about whether current estimates for the quarter are too high,” he added. The group has blamed China’s economic slowdown for the warning. When announcing the cut in revenue forecast, Tim Cook said: “We did not foresee the magnitude of the economic deceleration, particularly in greater China.” “We believe the economic environment in China has been further impacted by rising trade tensions with the United States,” he added. In other Apple-related news, it was reported that Cook made $136 million as the group’s chief executive last year after receiving a record-bonus.    

Taylor Wimpey ends 2018 with completions and price boost

Jamie Gordon
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Taylor Wimpey ends 2018 with completions and price boost
House builder Taylor Wimpey plc (LON:TW) have shared the prosperity of their successful counterparts with a high rate of home completions and a boost to their average sale price and on-year revenues, as December drew to a close. In addition to the number of completions rising 3% to 14,947 and average selling prices up 2% to £301,000, Taylor Wimpey’s yearly order book was up from £1.63 to £1.78 billion on-year. The company’s positive results come on the back of a net private reservation of 0.80 per outlet, up from 0.77 on-year, and the fact that their 14% cancellation rate is still classed as ‘low’. Taylor Wimpey Chief Executive, Pete Redfern, said, “Despite wider macroeconomic uncertainty, the housing market remained stable during 2018 and we had a good trading performance” “We are continuing to deliver against our strategy and ended the year in a positive position, underpinned by our strong order book and balance sheet.” “As we enter 2019, we maintain our guidance for stable volumes although are mindful of market sensitivity.” “We are confident that our focused strategy of managing the business through the cycle and driving further operational improvements will enable us to continue to deliver a high-quality product and service to our customers, long term value for shareholders and growth into 2020.” UK property is wholly uncertain at the moment. While many have forecastedoom and gloom amid uncertainty – and the burst of the London bubble – nothing is set in stone. A prudent investor would proceed with caution and enjoy moments of resurgence as they occur, while overstating their significance. Taylor Wimpey shares are currently trading up 5.98% or 8.4p at 148.8p per share 09/01/19 13:48 GMT. Shore Capital analysts have reiterated their ‘Buy’ stance on Taylor Wimpey stock, while Peel Hunt analysts have reiterated their ‘Hold’ stance.  

Anglo African O&G to raise £6m for expansion

Jamie Gordon
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2
Anglo African O&G to raise £6m for expansion

Anglo African Oil and Gas plc (LON:AAOG) have announced they are to raise £6 million for expansion of their pre-existing operations and drilling into new geological features.

The independent oil and gas firm base their operations in the Democratic Republic of Congo. They are planning to increase the output of existing wells in their Tilapia Field – including the completion of their TLP-103C well – and drill deeper into Mengo and Djeno Sands features , which are shared by surrounding oil fields. Thus far, results have been positive, with the TLP-101 being brought back into production and now recording an output of 55 bopd during a two-week test period. A notion has been tabled to use TLP-102 as a water injector for TLP-101, which could lift output to 400 bopd.

David Sefton, Executive Chairman for AAOG, said, “The money raised in this Placing enables us to complete the TLP-103C well, the results from which so far have hopefully repaid shareholders’ confidence in the Company. We are therefore very grateful for the continued support of our long-term shareholders who have made this Placing possible. We are particularly grateful that they have moved so quickly to finance the Company against the backdrop of such market turbulence.”

“We remain extremely excited about the potential for TLP-103C. The confirmation of oil in multiple reservoirs, and with greater aggregate oil columns than expected, should with positive results from further testing, enable the Company quickly to effect a material increase in production and cashflows. However, we are currently drilling towards the Djeno and a success there could prove even more significant than the excellent results achieved so far in the R2 and the Mengo. We hope to be in a position to announce initial results on the Djeno before the end of this month.”

The AIM-listed firm have said the £6 million will be raised via a placement of 60 million new ordinary shares at a price of 10p a share. The company will pay regular dividends to these shareholders once sustainable production of 1000 bopd is achieved, provided that oil prices remain over 30 USD pb.

“We should also make clear that this Placing replaces the capital that was available to the Company under the Sandabel Capital L.P. (“Sandabel”) facility that has now been cancelled. There are no outstanding loan notes due to Sandabel, or any other lender, and the loan notes that were issued to Sandabel were all converted into Ordinary Shares last year.”

“This Placing therefore marks a line in the sand for the funding of the TLP-103C well and we look forward to providing further updates on its progress in due course.”

Anglo African shares are currently trading down at 10.25p a share, a dip of 8.48% or 0.95p since trading began this morning. Analysts from finnCap have retained their ‘Corporate’ stance on Anglo African stock.

China car sales slump 6%

Safiya Bashir
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1
China car sales slump 6%
Car sales in China have fallen for the first time in 20 years. The country, which is the world’s biggest car market, reported a 6% fall on Wednesday to 22.7 million units over the last year. Cui Dongshu, the secretary general of the China Passenger Car Association, said on Wednesday: “Pressure on automakers is mounting.” “Declining car sales may speed up the process of squeezing out the incompetent players and we may see some of them exit the market next year,” he said. The country’s economy has been slowing, having a knock-on effect on car manufacturers around the world. Ford (NYSE: F), Volkswagen (ETR: VOW3), Jaguar Land Rover and General Motors (NYSE: GM) are among the car manufacturers that have reported a fall in sale over the past few months in China. Ford’s vehicle sales fell 38% in June 2018, the group’s worst-ever first half. The news comes following warnings from Apple (NASDAQ: AAPL) over sales would be hit by slowing iPhone demand in the country.    

Greggs raises profit guidance, shares rise 7%

Nicole Jeary
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1
Greggs raises profit guidance, shares rise 7%
Greggs has raised its profit guidance for the second time in two months, sending shares up as much as 7% on Wednesday. The bakery chain said it enjoyed strong sales in the run up Christmas, with mince pies and hot drinks performing particularly well. Greggs said it now expects pre-tax profits of at least £88 million for the year, having already upped its guidance back in November. Greggs has proved resilient in recent months, despite a difficult trading environment for many UK retailers. Overall, total sales increased 7.2% in the year to 29 December, and like-for-like sales also increased by 2.9%. The update comes amid the launch of its Vegan sausage, which coincided with the the start of so-called ‘Veganuary’. Veganuary is the trend of going Vegan for January, and it has been gaining momentum among many consumers. As Veganism grows in popularity across the UK, food retailers are steadily increasing their Vegan options. Roger Whiteside, the firm’s chief executive, said: “We delivered a very strong finish to 2018 despite the well-publicised challenges in the consumer sector. This performance was broad-based, reflecting the strength of our range of freshly prepared food and drinks, and the strategic changes that we have made in recent years to focus more effectively on the food-on-the-go market. “In the year ahead, we will continue to innovate with products designed to reflect changing consumer tastes, and by opening in new locations that make Greggs even more accessible to customers.” Shares in Greggs (LON:GRG) are currently + 7.53% as the market reacts to the update.

Grand Vision Media shares rise over 100% on Dadi announcement

UK Investor Magazine
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0
Grand Vision Media shares rise over 100% on Dadi announcement

Grand Vision Media (LON:GVMH) shares rose over 100% in early trade on Wednesday following the announcement of a deal with the Dadi Cinema Group in China.

Dadi operates over 470 cinemas across China and the initial agreement includes the installation of Grand Vision Media’s advertising screens in 22 locations and the rights to cover another 400+ locations.

Shares in the group rose over 25p to hit 40p before falling back.

Grand Vision Media Holdings CEO Jonathan Lo commented:

“We are delighted to have come to this agreement with Dadi as it provides us with the opportunity to take our advertising clients into Dadi’s popular cinemas in key locations across China.”

“The agreement also allows us to expand our advertising products to mega video walls and across a broader geographic coverage, thus offering our customers more options to best meet their marketing goals.”

[vc_video link=”https://youtu.be/OPlO-DEFA7c&rel=0″]

Grand Vision Media Holdings operates predominantly in China and targets the growing middle classes with a range of advertising channels, in particular 3D screens in cinema foyers.

Today’s announcement signals further expansion of their screen network and lays the foundations for higher revenue in the future.

In addition to the 3D screens in Cinemas, Grand Vision Media acts as a media agency for domestic Chinese and overseas companies seeking to target Chinese consumers through digital channels.

The group provides agency services that can translate and prepare campaigns ready for distribution on Chinese platforms such as Weibo.

In the six months to 30th June 2018 Grand Vision Media revealed a 97% increase in revenue to HK$ 7.4m up from HK$ 3.8m in the same period a year prior.

With their full year ending 31st December 2018 investors will be awaiting full year results eagerly for any signs of increasing revenue growth.

Grand Vision Media entered the London Stock Exchange main market in 2018 and is pursuing a strategy of significant growth in mainland China.

Mothercare sales continue to tumble

Nicole Jeary
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1
Mothercare sales continue to tumble
Mothercare (LON:MTC) sales continued to tumble across the traditionally lucrative Christmas period, as the retailer continues to struggle. Mothercare said third-quarter sales fell 11.4%, with online sales dipping a further 16.3% during the 13 weeks to January 5. Chief executive Mark Newton-Jones said: “Whilst the UK continues to be challenging, in part as a result of our planned restructuring, we are still on course to deliver the necessary transformation.” “Our UK store closure programme continues apace and is ahead of schedule, with 36 stores currently transitioning for closure, meaning we will have a total UK estate of 79 stores by the end of March 2019.” Last year, the group entered a company voluntary arrangement deal (CVA), in a bid to restructure the business and reverse its ailing financial fortunes. The CVA allowed the company to close 60 stores across the UK, as well as reduce rents at various locations. Mothercare has also raised £30 million from shareholders as part of as a share issue. Back in August, the retailer revealed the extent of its financial woes, posting a £6.2 million loss in its interim results. The group blamed a challenging retail climate in the UK, however, the firm remained optimistic amid its restructuring efforts and return to growth in international markets such as Russia, China and Indonesia. The company was founded back in 1961 and has been publicly listed on the London Stock Exchange as of 1971. Shares in the group are currently + 2.71% as of 10:57AM (GMT).

Sainsbury’s Christmas sales disappoint

Nicole Jeary
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1
Sainsbury’s Christmas sales disappoint
Sainsbury’s (LON:SBRY) sales fell in the run-up to Christmas, amid fierce competition among supermarkets. The UK’s second-largest supermarket blamed ‘cautious customers’ for the 1.1% fall in like-for-like sales during the 15 weeks to 5 January. Meanwhile, Sainsbury’s said that grocery sales fare slightly better, reporting a growth of 0.4% during the third quarter. Mike Coupe, chief executive of Sainsbury’s, commented: “Sales declined in the quarter due to cautious customer spending and our decision to reduce promotional activity across Black Friday. Clothing performed well, with strong full price sales growth in a tough market. “Retail markets are highly competitive and very promotional and the consumer outlook continues to be uncertain.” Some of the nation’s most well-known supermarkets are continuing to struggle amid greater competition from low-cost competitors such as Lidl and Aldi. Just this week, Morrisons revealed its figures for the run-up to Christmas, revealing a sharp slowdown in performance. Meanwhile, sales at Waitrose didn’t fare much better, falling 1.7% in the 12 weeks to December 30. According to the latest figures, both grocery retailers enjoyed strong sales over the festive period, continuing to gain market share. In the 12 weeks to 30 December, Aldi and Lidl performed strongly, with its market share growing by 10.4% and 9.4% respectively. The UK’s leading supermarket, Tesco (LON:TSCO), is set to report on Thursday. Shares in Sainsbury’s are currently down -0.79% as of 08:54AM (GMT).  

Shefa Yamim’s Mount Carmel gemstone officially registered as a new mineral

UK Investor Magazine
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2
Shefa Yamim’s Mount Carmel gemstone officially registered as a new mineral
Shefa Yamim (LON:SEFA) have confirmed the International Mineralogical Association (IMA) have officially recognised a mineral found in Shefa’s Carmel Sapphire™ as a new mineral. The mineral is so far unique to Shefa Yamim with a chemical composition that includes Titanium, Aluminium and Zirconium. Avi Taub, CEO of Shefa Yamim, commented on the developments: “We are delighted that our Carmel Sapphire™ has been recognised as a host to many rare minerals. In today’s world where the prices of gems are determined predominantly by their rarity, the Carmel Sapphire™ is a unique discovery because it has not been found anywhere else in the world and was discovered by Shefa Yamim in the soil of the Holy Land.” “We believe this substantially increases the potential value of our “Gem Box” of precious stones. The studies of Carmel Sapphire™ and its new minerals mark another milestone in the Company’s journey as we continue our progress towards trial mining in Zone 1 in 2019.” The IMA announcement has followed a positive update in November that revealed Shefa’s Kishon Mid-Reach project’s estimated tonnage of mineral had increased to 1.1 Mt, tripling previous estimates of 350,000 t. SEFA is set to commence trial mining of the prospect in early 2019. Having raised £4.15m in the 2017 limiting and recently conducting a £250,000 placing the company has cash on and to pursue its mine-to-market strategy in a number of zones. The company operates in Northern Israel and have so far recovered gemstone stones such as a 1.7ct Ruby, 5.72ct Sapphire, 2.83ct Hibonite and the 33.3ct Carmel Sapphire™. Shefa Yamin have a total of three permits that cover 60,000 hectares in the area. “News on the cost of production and the price per caret will help show how this is a unique opportunity and make the current price look undervalued,” said analysts at Daniel Stewart in a note.

Aldi & Lidl outperform major supermarkets

Safiya Bashir
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1
Aldi & Lidl outperform major supermarkets
Aldi and Lidl have both reported strong sales figures over the Christmas, both gaining supermarket share. The discounters were visited by two-thirds of households in the festive season as shoppers are becoming increasingly aware of purse strings. In the 12 weeks to 30 December, the major supermarkets lost market share whilst sales at Aldi and Lidl continued to perform strongly, growing by 10.4% and 9.4% respectively. Fraser McKevitt, who is the head of retail and consumer insight at Kantar, said: “The discounters have continued to make their mark over Christmas: two-thirds of all households shopped at either Aldi or Lidl over the 12-week period culminating in a highest-ever combined Christmas market share of 12.8%” Giles Hurley, the Aldi UK chief executive, said on the strong sales: “Our Christmas range was the largest and most innovative yet and caught the imagination of our customers, who visited our stores in record numbers.” “Although we saw strong growth across all key categories, the standout performance was in our Specially Selected brand where shoppers treated themselves to premium products for a fraction of the price they would have paid elsewhere for similar quality products.” In other supermarket news, Morrisons reported Christmas sales to be up by 4%. Despite the rise in sales, shares in the company fell in early trading. “Morrisons performed well, sustaining a strong offer and trading the business hard for customers. We were again more competitive, with the price of our basket of key Christmas items the same as last year,” said the company. Shares in Morrisons (LON: MRW) are currently trading down -3.42% at 212,14 (1122GMT).
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