BHP Billiton post 33pc jump in profits
BHP Billiton plc (LON:BLT) has announced a growth in underlying profit by 33 percent and a record final dividend.
On Tuesday, the miner posted an underlying profit of $8.93 billion for the year to June 30, which increased from $6.73 billion a year ago.
“We have announced a record final dividend for shareholders which reflects strong operating performance, solid prices and capital discipline,” said the chief executive Andrew Mackenzie.
“Across our dramatically simplified portfolio of tier-one assets, we see this year’s strong momentum carried into the medium term as our leadership, technology and culture drive further increases in productivity, value and returns,” he added.
“Our balance sheet is strong, with net debt now at the lower end of our target range, and our investment plans on track across iron ore, copper, coal and petroleum.”
BHP Billiton’s net profit dropped by 37 percent to $3.71 billion from $5.89 billion a year previous due to impairment charges of $5.2 billion related to US onshore oil-and-gas assets.
For 2019, BHP’s guidance for copper production is between a decline of four percent and a rise of one percent.
Iron ore output is forecasted to increase between one and five percent. Steelmaking coal is expected to grow between one and eight percent.
The miner said that threats to global economic growth have increased due to rising trade protectionism.
“Near-term prospects for the U.S. economy are sound, with cyclical fundamentals solid,” said BHP “However, we expect the increase in protectionism to weigh on consumer purchasing power and international competitiveness.”
Shares in the group are currently down 1.87 percent and trading at 32.55 (0903GMT).
Fashion brand Farfetch files for IPO
The London-based luxury website, Farfetch, is filing for an IPO and hoping to be listed on the New York Stock Exchange.
The company, which sells designer brands such as Gucci, has said how much it plans to value it says but according to sources, the number is as high as $5 billion.
“This industry is still in its infancy,” said founder Jose Neves said in the company’s regulatory filing.
In 2017, the company made a revenue of $385 million, which is a 59 percent increase from the year previous.
At the end of 2017, Farfetch said it had almost one million (935,772), active consumers on the site. This figure grew by 43.6 percent over the following year.
“Farfetch is the leading technology platform for the global luxury fashion industry,” said the group.
“We operate the only truly global luxury digital marketplace at scale, seamlessly connecting brands, retailers and consumers. We are redefining how fashion is bought and sold through technology, data and innovation. We were founded ten years ago, and through significant investments in technology, infrastructure, people and relationships, we have become a trusted partner to luxury brands and retailers alike,” it added.
The group was founded in London in 2008 by Jose Neves. It has offices in 11 cities, including London, Tokyo and Los Angeles.
It express ships to over 190 countries.
Farfetch has grown through several partnerships including with JD.com in Asia and the Chalhoub Group in the Middle East. In 2015, purchased London fashion boutique Browns to invest into “retail technology” including touch-screen-enhanced mirrors and connected clothing racks.
Proceeds from the IPO will be used for working capital, including possible acquisitions.
Pepsico to buy Sodastream in $3.2bn deal
PepsiCo has announced plans to buy Sodastream in a $3.2 billion (£2.5 billion) deal.
In a statement released on Monday, PepsiCo said they would buy the Israeli company for $144 a share in cash – 11 percent higher than Friday’s closing price.
The takeover has been approved by both boards, with the PepsiCo president Ramon Laguarta saying SodaStream was “highly complementary and incremental” to Pepsi’s business.
“PepsiCo is finding new ways to reach consumers beyond the bottle,” he said.
SodaStream’s stock has increased by 85 percent this year after rising by 78 percent in 2017.
Pepsico is hoping to transition into a market with healthier snacks and beverages.
Euromonitor International analyst Matthew Barry said: “With sugary carbonates and juices struggling and no turnaround in sight, mitigating the losses through newer and healthier products will be essential for PepsiCo.”
SodaStream has been the focus of controversy in the Middle East due to its previous company’s base in the West Bank.
Protesters claimed victory when the company closed the West Bank factory in 2014, which is part of Israel’s illegal occupation of the territory.
“It’s propaganda. It’s politics. It’s hate. It’s antisemitism. It’s all the bad stuff we don’t want to be part of,” said the chief executive of SodaStream, Daniel Birnbaum.
“SodaStream should have been encouraged in the West Bank if [the BDS movement] truly cared about the Palestinian people,” he added.
If the deal is approved by regulators, it is expected to be finalised by January 2019, depending on a vote by shareholders of the Israeli firm.
Shares in SodaStream (TLV: SODA) are currently trading up 8.94 percent at 52.250. Shares in PepsiCo (NASDAQ: PEP) are up 0.46 percent at 115,49 (1446GMT).
Greatland Gold identifies large gold target, shares rally
Greatland Gold (LON:GGP) has identified a large gold target at its Firetower Project, causing shares to rally on Monday.
The precious and base metals exploration company said it had identified the new targets following a 3D induced Polarisation Survey at its Firetower project in Tasmania, Australia.
Firetower is currently 100 percent owned by Greatland Gold, providing a potentially significant boost to profits for the company.
According to the statement, Greatland said of the discovery:
“Greatland intends to advance the Firetower project towards its exploration of one million ounces of gold by leveraging these excellent results and is currently planning a new drill programme which it expects to commence in the first quarter of 2019.”
Back in July, Chief Executive Gerviase Heddle confirmed the company had raised £2.65 million of additional ‘strategic’ funding, providing a similar boost to shares amid the announcement.
The firm said that the funds would permit the company to accelerate its exploration efforts at the Havieron and Black Hills prospects in Australia.
Following completion of securing the funding, The metal exploration company said it will be able to increase its cash balance to £6 million.
Greatland Gold was founded back in 2005, and has been listed on the junior AIM-market of the London Stock Exchange since 2006.
The company’s current assets include Paterson, Ernest Giles, Bromus, Warrentinna, Firetower and Panorama, with the company focusing primarily in Australia. Shares in Greenland Gold are currently trading +7.45 percent, as investors react to the announcement.Pathfinder Minerals announce new director, shares rise
Pathfinder Minerals (LON:PFP) announced a change in directorship on Monday, causing shares to rise.
The natural resources company announced the departure of director Nick Trew, effective from today.
His successor is Scott Richardson Brown, previously a non-executive director of the Company.
In the statement, the company thanked Mr Trew for his time at the company.
“The directors thank Nick for his unwavering commitment and persistence in preserving the Company’s prospects of achieving a resolution to Pathfinder’s dispute over mining licences in Mozambique.”
The statement added: “The directors remain steadfastly focused on delivering a positive outcome for all shareholders.”
The latest decision follows an onslaught of changes to the board in recent weeks, after just recently appointing Simon Farrell and Scott Richardson Brown as non-executive co-chairman and non-executive director.
Earlier this year, departing executive director Trew was the target of attempted coup, after an activist investor Richard Jennings accused bosses of presenting an overly optimistic outlook regarding the long-standing issue over the ownership of a prospect in Mozambique.
Pathfinder Minerals is a natural resources exploration company with interests focused in Mozambique.
It focuses on particular in mining mining minerals such as ilmenite, rutile and zircon in the region.
The firm is listed on the AIM-market of the London Stock Exchange.
Shares in Pathfinder Minerals are currently trading +14.47 percent as of 10.38AM (GMT).
Energy bills likely to rise, despite government cap
Industry experts have warned a rise in energy bills, despite the government price cap.
A new analysis by Cornwall Insight has found that there are cost pressures to increase bills by up to five percent by next April, despite the government promise to protect 11 million households on default tariffs with a cap by the end of this year.
“On the safeguard tariff forecasts, we believe there’s another £60 rise coming in April – mainly due to policy and wholesale cost increases. These rises will be felt by all suppliers regardless of whether tariffs are capped or not,” said Robert Buckley, a research director at Cornwall Insight – the energy consultancy firm.
The increase would take the average bill to £1,268 when consumers are already facing slowing wage growth and rising interest rates.
“There’s a good argument that the cap will make things worse because the formula it uses to set the wholesale cost element is very difficult to replicate in market hedging,” added Buckley.
British Gas (LON: CNA), EDF (EPA: EDF) and E.ON have raised prices twice already this year. Bulb, a challenger firm, told consumers earlier this year that it expects to raise prices for a third time this year due to the heatwave pushing up electricity prices.
SSE (LON: SSE) is the most likely of the big six energy companies to announce the second rise due to its cheap standard variable tariff.
Npower and ScottishPower are less likely to announce the second increase due to their already higher prices.
Mulberry shares dive on House of Fraser profit hit warning
Handbag maker Mulberry has warned that it will face a slump in profits after taking a hit from House of Fraser’s collapse into administration.
Shares in the group plunged 30 percent to 400p in early trading after the luxury handbag maker said it was setting aside £3 million to cover the cost of House of Fraser’s troubles.
House of Fraser fell into administration earlier this month and was shortly bought by Sports Direct (LON: SPD) boss, Mike Ashley in a £90 million deal.
The group also said that if current tough UK trading continued into the second half of the year, full-year profits could be “materially reduced”.
“Since the group reported in June 2018, the UK market has continued to remain challenging and sales in House of Fraser stores have been particularly affected,” said the group in a statement.
“If these sales trends in the UK continue into the key trading period of the second half of the financial year, the group’s profit for the whole year will be materially reduced.”
“Trading in the rest of the world continues to develop broadly in line with management’s expectations. The group is in a strong cash position and continues to follow its strategy to develop Mulberry into a global luxury brand.”
In the last financial year, Mulberry reported a pretax profit of £6.9 million. This dropped from £7.5 million the year previously following operating costs and startup charges.
Rebecca O’Keeffe, from Interactive Investor, said that shares in Mulberry have lost 50 percent of their value this year.
“There is no doubt that House of Fraser has compounded their problems, but the underlying UK issues are deep-rooted as they struggle against lower footfall and fewer tourists,” she said.
“The company is trying to shift its focus internationally and that is helping to mitigate falls in UK demand, but the sustained problems in the UK can’t be ignored,” she added.
Shares in the group (LON: MUL) are currently trading down 19.58 percent at 457.60 (0955GMT).
Countrywide axes bosses’ £20m pay plan following investor revolt
Following a shareholder revolt, Countrywide has scrapped a pay plan that could have handed top bosses up to £20 million.
The group, which operates under 50 different brand names, asked investors earlier this month for an emergency £140 million in funding to save it collapsing.
The group previously proposed to change its existing long-term incentive plan and replace it with an “Absolute Growth Plan” (AGP), in which the chairman, Peter Long, could have received shares worth £20 million.
“No compelling explanation has been provided as to why the proposed arrangement is essential to effectively implementing the group’s strategy and turnaround plan,” said the Institutional Shareholder Services, an influential investor advisory service.
The Institutional Shareholder Services said investors should not allow the new policy, labelling the scheme “excessive” and “unnecessarily convoluted”.
Countrywide said: “The consultation meetings on remuneration with the major shareholders have been both constructive and supportive.”
“There has been agreement that the proposals focus on rebuilding shareholder value as well as discussion as to whether that is sufficient to merit moving from the existing remuneration policy. Taking these factors into consideration, the board has decided that the directors’ remuneration policy should not be amended.”
Countrywide boss is also the chair of the Royal Mail (LON: RMG). In July, over 70 percent of investors at the Royal Mail investors rebelled against the company’s remuneration report, which was considered one of the biggest pay revolts in UK corporate history.
Countrywide has lost over 80 percent of its market value over the past year.
Shares in the group (LON: CWD) are currently trading up 0.68 percent at 14.70 (0933GMT).
Monzo set to reach ‘unicorn’ status
Monzo, a popular online bank, is set to reach “unicorn” status.
The three-year-old London-based bank is hoping to reach a valuation of over a billion dollars after lining up new finance.
The Financial Times reported the news that Monzo has lined up $150 million worth of funding from various investors, that will value the bank at $1.5 billion.
The online banking system launched in 2016 when it began crowdfunding and raised £1 million in just 96 seconds.
According to the founder and chief executive, Tom Blomfield, the bank’s main selling point is letting people organise money on their smartphone.
“It gives you real-time visibility and control. It’s one of those home-screen apps: you have five or six apps you use to live your life and Monzo is one of those things,” he told the Guardian.
It is the “challenger” to the big high street banks and has 900,000 customers.
The bank’s valuation and funding round will be announced at the end of 2018.
If the group is valued at $1.5 billion, it will reach the same status as other UK “unicorn” groups including Skyscanner and Deliveroo.
Global Ports Holding expect full-year profits at “upper end” of expectations
Global Ports Holding PLC has said it expects results to come in at “toward the upper end” of its expectations.
The cruise ports operator reported a strong performance for the first half of the year, with an underlying pre-tax profit of $12.4 million.
Half-year profits increased by 8.5 percent compared to the same period in 2017 and total revenues reached $56.6 million, increasing by 13.7 percent.
The group said their performance for the first half of the year beat records and it expects to deliver full-year results that will be “toward the upper end of our previously stated expectation of mid to high single-digit organic growth in constant currency Revenue and Consolidated EBITDA”.
Global Ports Holding’s chief executive, Emre Sayin, said the group expects a record number of passengers in 2018 and does not expect to be affected by the Turkish Lira crisis, the currency used where most of the group’s ports are located.
“We are a global business with over 95 percent of revenues in hard currency,” he said.
The lira has slightly recovered and rose to 5.8 against the dollar, helped by the $15 billion (£12 billion) investment by Qatar.
Earlier this week, the currency reached a record low of 7.23 against the dollar.
Shares in the group (LON: GPH) are currently up 2.37 percent at 501.60 (1305 GMT).