Nissan admits to falsifying emissions tests, shares fall
Nissan (TYO: 7201) has admitted that it falsified data from car exhaust emissions tests from factories in Japan.
The group released a statement that said it had found evidence that the exhaust emissions and fuel economy tests were carried out in a way deviating from the set tests.
“This issue came to light during the course of voluntary checks conducted by Nissan,” said the firm in a statement on Monday.
“As a companywide exercise, Nissan will continue to carry out comprehensive checks of frameworks, organizations and processes related to regulatory compliance.”
“Strict adherence to compliance is a top priority for Nissan’s management, and if issues are discovered, appropriate measures will be taken. Nissan is committed to promoting and enforcing compliance and awareness thereof in all operational area.”
The group did not say how many cars were involved in the incident or whether the falsified tests were also carried out in cars manufactured outside of Japan.
Shares in the group fell over 4.5 percent on Monday following the news.
“Nissan understands and regrets the concern and inconvenience caused to stakeholders as a result of its kanken issues last year. Proactive initiatives to prevent recurrence of such issues have led to the discovery of this misconduct, for which the company is regretful,” said the car manufacturer.
“A full and comprehensive investigation of the facts outlined above, including the causes and background of the misconduct, is underway.”
This is not the first time Nissan has had to apologise from its factories in Japan. Last September, the group admitted to having unqualified workers carry out final inspections at the end of production lines.
Volkswagen faced a similar backlash in 2015 after the group was found fitting ‘defeat’ software designed to fool emissions tests on millions of its diesel cars during the infamous emissions scandal.
Miton’s assets under management up 35%
Miton Group plc (LON:MGR) boosted its assets under management by 35 percent in the first half, after tripling net inflows.
The investment management firm reported a jump in net inflows to £616 million for the first half, up from £195 the year before. At the end of June, closing assets under management were £4.53 billion, up from £3.35 billion on-year. Miton have enjoyed a similar fate to their counterpart Mattioli Woods, another asset management firm who saw their assets under management grow ahead of targets.
“The first half of the year saw continued strong organic growth and momentum within the business,” said chief executive David Barron.
“We have seen positive net inflows across a wide range of strategies and good long-term performance.”
Miton are up 14.6 percent since markets opened this morning, up 8.25p to 64.75p. Analysts from Peel Hunt have reiterated the ‘Buy’ stance they have maintained on Miton stock since the start of the year.
Rolls-Royce offloads Commercial Marine for £500m
Rolls-Royce plc (LON:RR) has sold Rolls-Royce Commercial Marine to Norwegian tech supply and services firm, Konsberg (OTCMKTS: NSKFF).
The move comes after a strategic review by Rolls-Royce in January, which concluded that the firm had plans to focus its resources on its other subsidiaries, such as maritime business, Bergen Engines and its naval businesses. The £500 million sale of Commerical Marine included rights to propulsion, deck machinery, automation, control, and ship design capability, as well as its service network spanning 34 countries.
Combined, Commercial Marine and Konsberg have equipment an deliveries associated to around 30,000 vessels worldwide, thus the combined networks of 34 countries and 25 countries respectively, bodes well for the firm having a leading market position.
Geir Håøy, CEO and President of Kongsberg said, “The acquisition strengthens our global presence and will give increased sales and service volumes. Kongsberg is a world leader within automation, navigation and control systems, whilst Rolls-Royce Commercial Marine is complementary with its deliveries of propellers, propulsion systems, handling systems and ship design. Both companies hold leading positions within digitization, ship intelligence and concepts for autonomy. By bringing together this we are positioning us as a significant strategic supplier of complete solutions for the future maritime industry.”
“This transaction builds on the actions we have taken over the last two years to simplify our business,” Rolls-Royce chief executive Warren East said.
“The sale of our commercial marine business will enable us to focus on our three core businesses and on meeting the vital power needs of our customers.”
Rolls-Royce’s share price currently stands at 984.2p, down by 0.14 percent since trading began this morning. Analysts from UBS have an unchanged ‘Buy’ stance on Rolls-Royce stock.
Tharisa shares up on record platinum production
Mining group Tharisa (LON:THS) shares edged up on Monday, after platinum production jumped over 3 percent in the third quarter.
The group produced a record 39,500 ounces of platinum group metals during the three months to June 2018, with production up by 3.4 percent.
Platinum group metal recoveries were at a record 85.6 percent, well ahead of the 80 percent target previously set by the company, while production of chrome concentration rose by 2.6 percent to a record of 376,300 tonnes.
“Tharisa has illustrated maturity and depth by delivering another record quarter while embarking on its growth strategy through development and exploration programmes,” chief executive Phoevos Pourouli said.
“We look forward to delivering on our production guidance for the full financial year and on our growth plans outlined in Vision 2020 in conjunction with the highly prospective projects in Zimbabwe.”
Shares in Tharisa (LON:THS) are currently trading up 0.49 percent at 103.00 (1006GMT).
David Davis makes shock exit from Brexit Secretary position
Brexit secretary David Davis has resigned from his Cabinet position on Sunday night, after saying he did not “believe” in Theresa May’s strategy.
After nearly two years in his role, Davis tendered his resignation on Sunday saying that “the current trend of policy and tactics” was making it “look less and less likely” that the UK would leave the customs union and single market.
In his letter, he added that he was “unpersuaded” that the government’s negotiating approach “will not just lead to further demands for concessions” from Brussels.
He concluded by saying that “that the national interest requires a Secretary of State in my Department that is an enthusiastic believer in your approach, and not merely a reluctant conscript.”
The resignation will come as a blow to Prime Minister Theresa May, possibly underscoring the lack of progress that has been made in negotiations since the vote in 2016.
One or two of Davis’ junior ministers are expected to resign as well.
Theresa May responded by thanking Davis for his service, but adding: “I do not agree with your characterisation of the policy we agreed at Cabinet on Friday.”
Cabinet agreed a policy for progressing forward with the negotiations, which Davis said may “just lead to further demands for concession”.
Centamin gold production drops by 25%
Shares in gold miner Centamin (LON:CEY) fell over 6 percent at market open on Monday, after reporting a significant drop in gold production.
The company said production had fallen by 25 percent in the second quarter, after reporting low grades at its mine in Egypt. It is undergoing a “transitional zone” at its Sukari mine but expects production to be “materially stronger” in the second half of the year.
Centamin maintained current guidance figures of between 505,000 to 515,000 ounces of gold, after slashing expectations in May.
“We have experienced several challenges this year, resulting in the revision of our full year guidance in May,” Andrew Pardey, chief executive, said.
“I am pleased to report progress throughout June in the open pit, where mining has begun to access improved grades as we are currently mining through the lower areas of the transitional zone and into the sulphide ore, which will be mined in the third quarter and onwards for the next four years.”
The miner was one of the biggest fallers of the miners on Monday. Sirius Minerals (LON:SXX) rose 0.6 percent after signing up to Redcar Bulk Terminal to provide port and ship loading services for up to 10m tonnes per annum of potash.
Shares in Centamin are currently trading down 6.46 percent at 110.15 (0922GMT).
Park Group shares up after deal with Topshop owner
Park Group shares shot up over 2 percent on Monday morning, after agreeing deals with several big high street chains.
The gift voucher supplier Park Group said it had signed contracts with retail businesses Arcadia Group, the owner of Topshop, Courtesy Shoes, Office Outlet, DJM Music and Fat Face.
Park’s ‘Love2shop’ vouchers will now be accepted in all the above stores, a big coup for the gift voucher group. Fat Face would gain accreditation for Park’s e-money prepaid flexecash card by the end of Summer 2018.
The new retail additions will mean that Park’s gift vouchers were now accepted by more than 175 national brands and over 20,000 high street stores across the UK, and almost 100 brands were now flexecash accredited, according to the company.
Shares in Park Group (LON:PKG) are currently trading up 2.05 percent at 73.98 (0902GMT).
K3’s restructuring programme produces results
Software group K3 reported a small loss than last year, calling the results “encouraging” after seeing the benefits of a restructuring programme.
Losses before tax fell to £1 million for the six months to the 31st May, down from £5.4 million the same period a year ago. Revenue rose 2.6 percent to £41.4 million, with £18.7 million recurring, and adjusted profits from operations swung to a £1.7 million profit compared with a loss of £3.1m the same period a year ago.
The group said the results were largely due to their recent restructuring programme, which has led to a more “streamlined and integrated” business and had refocused growth.
Gross profit rose 14.3 percent to £21.6 million, up from £18.9 million, with software licenses and streamlined operations contributing heavily. Their gross margin improved to 52.2 percent from 46.8 percent.
“The second half is our stronger earnings period, reflecting the volume of software licence and support renewals in the final quarter of the financial year.
“It has started very encouragingly, with a healthy pipeline in place, and this, together with expected high renewals, gives us confidence that the Group will make further progress over the remainder of the year,” said Adalsteinn Valdimarsson, Chief Executive Officer of K3.
Mothercare shares plunge as subsidiary Childrens World falls into administration
Mothercare (LON:MTC) announced the closure of more stores than previously expected on Monday, after the Childrens World company voluntary agreement (CVA) was rejected by creditors.
Childrens World, a Mothercare subsidiary, had been seeking support in the form of a CVA to allow it to continue trading. After the CVA rejection, the group was placed into administration, with 13 of its 22 stores transferred to other Mothercare group companies.
The extra stores will be closed, meaning the total store closures for the group will be higher than previously anticipated. The closures will put 900 jobs at risk, up from the 800 previously stated.
Mothercare also provided a market update on Monday, saying that current trading “continues to follow the patterns seen in the second half of the last financial year, with challenging conditions in the UK and some stability visible in our international operations”.
“When I joined the business just three months ago, Mothercare faced a bleak future with growing and pressing financial stresses upon the business,” interim executive chairman Clive Whiley said.
“We have worked tirelessly as a team to get to where we are today and this fully underwritten equity issue marks the end of this initial phase, returning the group to financial stability.”
The group also launched a £32.5 million equity issue as part of its re-financing plan announced in May, with new shares in the company being placed to existing shareholders at 19p a piece for each share already owned.
Mothercare shares are currently trading down 8.57 percent at 26.15 (0827GMT).
Carillion collapse due to government’s “fundamental flaws”
An official report into the collapse of Carillion has shown “fundamental flaws” in the government’s approach to contracting.
The report by the House of Commons public administration and constitutional affairs committee found that the government try to spend as little money as possible and force contractors to take high levels of financial risk.
“It is staggering that the government has attempted to push risks that it does not understand on to contractors and has so misunderstood its costs,” said Sir Bernard Jenkin, who chairs the committee.
“The Carillion crisis itself was well-managed, but it could happen again unless lessons are learned about risk and contract management and the strengths and weaknesses of the sector. Public trust requires that outsourcing better reflects public service values. The government must use this moment as an opportunity to learn how to effectively manage its contracts and relationship with the market,” he added.
The report was published on Monday and found that has had to renegotiate over £120 million of contracts since 2016 in order to ensure the continuation of public services.
Carillion collapsed in January under £1.5 billion worth of debt. The government refused to bail the construction company out.
The group’s collapse means major construction projects, including the £335 million scheme to construct a new Royal Liverpool hospital, have been badly affected.
The project has been put on hold until a new builder and funding can be allocated.
A separate report in January blamed the collapse on Carillion’s “recklessness, hubris and greed.”
A Cabinet Office spokesman has said that the government will respond to the most recent report.
“The government is committed to ensuring a healthy and diverse marketplace of companies bidding for government contracts and we have recently announced a wide package of new measures to further improve how we work with our vendors,” said the spokesman.