Daylui crowdfunding to revolutionise the sharing economy

Miranda Wadham
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Daylui crowdfunding to revolutionise the sharing economy
Rental platform Daylui is crowdfunding on Seedrs to disrupt the sharing economy, allowing users to rent day-to-day items and make money on anything from brand new devices to unwanted Christmas presents. As demonstrated by the rise of industry giants such as Uber and Airbnb, who all have ‘sharing’ as their main focus point, the sharing economy is a lucrative market. However, when it comes to renting day-to-day items, no available platform pops to mind; enter Daylui, the space to rent cameras, consoles, bikes or any items that you don’t use on a daily basis. Over the years people tend to accumulate objects that remain unused. Daylui is the opportunity to give them a new life while making some money on the side, recouping the cost of the item. Daylui’s peer-2-peer marketplace is based in the UK and was launched at the beginning of 2016. The platform has just announced a crowdfunding campaign with Seedrs to raise £115,000. Daylui is a web platform that allow people to lease and rent items. Right now its presence is in London, with a steadily growing base of users and items but with the Seedrs campaign Daylui aims to expand throughout the UK and, later, in Germany. With a successful crowdfunding campaign under its belt, Daylui hopes to increase its user-base and its reach, create dedicated iOS and Android apps and improve both user interface and security measures. For more information and to get involved in the campaign, visit their campaign page on Seedrs.  

Next Retail reports another dire set of results and warns on outlook

UK Investor Magazine
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Next Retail reports another dire set of results and warns on outlook
Next (LON:NXT) shares opened down 15% briefly trading down 15 per cent in early trade Wednesday after it warned that profits would be at the lower end of guidance and revised down forecasts for the future after “difficult” Christmas trading. Shares in Next are now down almost 50 per cent from the highs of £81,75 reached back in December 2015. The heavy selling was fueled by a continued decline in Q4 sales prompting the retailer to state “we expect the cyclical slow-down in spending on clothing and footwear to continue into next year” The report also highlighted two Brexit based factors which could further depress sales in the future; potential squeeze in general spending as inflation erodes real earnings growth, and the collapse in the value of the pound resulting in increased garment cost pricing moving forward. “In these circumstances, we are budgeting for NEXT Brand full price sales growth (at constant currency) in the year to January 2018 to be between -4.5% and +1.5%. The mid-point of this range is -1.5%, which is marginally worse than the current year’s performance”. The update also warned of several inflationary pressures regarding the cost base; the national living wage, business rates revaluations, Apprenticeship Levy and energy taxes are all due to further increase costs – the combination of falling sales and increasing costs prompted the warning that profit before tax for the FY to Jan 2018 will be between 14 per cent at the lower band and 2 per cent lower in a best case scenario. Helal Miah of the Share Centre said “With a 7% drop in Christmas sales, this is having on knock-on impact on the rest of the sector and for the coming weeks,” Given rising inflation and wage pressures, it’s going to be a “challenging” and “very tough” environment where margins will continue to be squeezed, he says as Brexit uncertainty will weigh. The full report can be reviewed by clicking here.

Here are the top three risks in 2017 for investors

Miranda Wadham
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Here are the top three risks in 2017 for investors
2017 looks set to bring positive news for investors, but key risks include Donald Trump’s policies, the French and German elections and the impact of lower oil prices. Nigel Green, founder and CEO of deVere Group, one of the world’s largest independent financial advisory organizations, warns that the Federal Reserve’s reaction to events in the US will be the biggest risk to investments in 2017. Green said: “It is likely that 2017 will bring good news for investors – but they mustn’t be complacent. They must remain alert. We’re now in a very different landscape to where we have been for the last six or seven years and this shift could impact investor returns. “As the world changes, investors will need to change with it to capitalize on the many opportunities that will be presented and mitigate any potential risks.” He continues: “The biggest threat to investors are the changing expectations for growth, inflation and interest rates in the U.S, which remains the world’s largest economy. “Even before he takes office, the data and anecdotal evidence suggests that the U.S. economy has been given an initial boost from the forthcoming Trump presidency. Considering the likelihood of a stimulus package when he takes office, and given the already near full employment rate, inflation could go higher than the Fed’s goal of 2 per cent. “Should this happen, the Fed could perceive the inflationary pressures as leading to an overheating of the economy and raise interest rates quicker than markets anticipate to cool it down.” He goes on to say: “The second major issue of which investors should be conscious are the forthcoming elections in France and Germany. Nationalist and far right are seeking to establish themselves in government in these countries. Should this happen there could be an existential crisis in the EU as borders could be re-established and trade flows impeded in the world’s biggest single trading bloc. “The third risk is that the decline of the oil price from the highs of a few years ago will continue to have a significant impact on the finances of oil exporters. Mr Green concludes: “The outlook for 2017 is strong, but investors should avoid complacency to make the most out of an evolving investment landscape and build wealth.”

Key 2017 Market Themes and 10 Investment Ideas

UK Investor Magazine
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Key 2017 Market Themes and 10 Investment Ideas

As we did in our 2016 Outlook, we begin the 2017 Outlook with a run-down of key themes and assets we pointed to last year and review how those predictions played out in this year’s tumultuous markets.

We then present our key market predictions and forecasts for 2017, outlining marco-economic trends and the individual shares we have allocated to benefits from these themes.

Request the 2017 Outlook to discover:

⇒Review of 2016 themes and investment ideas

⇒Macro-economic themes for 2017

⇒Geographical targeting of developed and emerging markets

⇒Individual shares to benefit from political and monetary policy

By submitting my details I consent for information to be sent to me via the above contact details by Charles Hanover Investments Ltd. Contact may be made by email, post or telephone call. Any information provided is not an offer to enter into any transaction and Charles Hanover Investments Ltd will accept no responsibility for any loss incurred by acting on this information. By ticking the box below I confirm I have read and agree to the Research Terms,Terms of Business and have read and understood the Disclaimer, Privacy and Order Execution Policy.

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UK house prices expected to rise 3 per cent in 2017 – RICS

UK Investor Magazine
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UK house prices expected to rise 3 per cent in 2017 – RICS

The Royal Institute of Chartered Surveyors has announced the most bullish forecast for the housing market in saying it expects house price growth to be 3 per cent in 2017 indicating a further cooling in the rate of growth however the legacy of insufficient building in years gone by ensures demand outstrips supply.

“Following on from the 2016 forecast, the supply pipeline or lack of it is at the forefront of the analysis and dominates the residential market,” it said. “While there is an improvement, the legacy of building on an insufficient scale has left the average inventory on estate agents’ books close to a historic low.”

The slowdown in activity in the housing market has been widely reported since the Brexit referendum in June of this year, with a reduction in the number of properties coming on to the market whilst buyers have continues to register interest.

RICS expects the highest growth rates to be in East Anglia, the north-west of England, and the West Midlands where they anticipate outperformance of the national average. The troublesome London market is predicted to stabilise and eek out a slim increase of 1 per cent partly as the collapse in the value of the pound entices international buyers back into the market.

“Although recent announcements by the government on housing are very welcome, the ongoing shortfall of stock across much of the sales and lettings markets is set to continue to underpin prices and rents,” said Simon Rubinsohn, chief economist of Rics.

“As a result, the affordability challenge will remain very much to the fore for many. Meanwhile the lack of existing inventory in the market is impacting the ability of households to move and will contribute toward transaction activity over the whole of 2017 being a little lower that in the year just ending.”

Lloyds bets big on credit cards buying MBNA for £1.9bn

UK Investor Magazine
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Lloyds bets big on credit cards buying MBNA for £1.9bn
In a week that is typically quite quiet in the markets as attentions turn to the festive period Lloyds (LON:LLOY) has announced it’s first acquisition since the 2008 financial crisis buying MBNA from Bank of America for £1.9bn. MBNA holds assets of £7bn would increase revenues by £650m a year Lloyds has confirmed, with profits of £166m last year. This will boost the bank’s share of the UK credit card market from 15% to 26% once the deal goes through. “The MBNA brand and portfolio are a good fit with our existing card business and we will focus on providing its customers with excellent service and value,” said Lloyds chief executive Antonio Horta-Osorio. Joseph Dickerson, banking analyst at Jeffereise has commented “We expect a 2016 ordinary dividend per share of 2.7p (a special distribution is now unlikely but the MBNA acquisition looks a better use of excess to us than a special).” Shares in Lloyds were trading higher by 10am up 1.45 per cent on the day at 63.46p a share.

BP inks paper on US$3.2bn of deals in 3 days

UK Investor Magazine
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BP inks paper on US$3.2bn of deals in 3 days
BP’s deal making sector has been busy putting pen to paper signing up new deals with an investment of almost US$1bn in a partnership with Kosmos Energy and a US$2.4bn agreement over the weekend confirming BP will take a 10 per cent stake in Abu Dhabi’s oilfields. The deals see BP moving on the front foot to build it’s asset base after years of belt tightening as the Deepwater Horizon disaster and low oil prices have taken their toll.

The Kosmos Deal

The Kosmos Energy deal sees BP expanding it’s presence in the Liquified Natural Gas (LNG) sector, taking a 62 per cent stake in the company’s exploration blocks of gas fields off Mauritania and a 33.5 per cent holding in those off Senegal. All in all, approximately 33,000 square kilometers are covered by the deal with talk of there being up to 50 trillion cubic feet (TCF) of gas, with more than a billion barrels of oil in deepwater reserves. To put this into perspective, at the upper end of these estimates the gas reserves would be enough to fuel the UK for two decades. Gas already accounts for about half of BP’s business, Chief Executive of BP Bob Dudley has said this will rise towards 60 per cent by the end of the decade as he bets on it playing a bigger role in the global energy mix.

The Abu Dhabi Deal

Over the weekend BP struck a deal with the Abu Dhabi government to cement access to some of the world’s largest oil reserves. Whilst BP will be taking a 10 per cent stake in one of the largest oil fields in the Middle East, it has handed over shares worth around £1.8bn to Abu Dhabi, or approximately 2 per cent of the business, putting the Abu Dhabi government down as one of the biggest shareholders in BP. The deal includes the Bab, Shah, and Bu Hasa fields containing estimated resources of 20 billion to 30 billion barrels of oil. BP currently produces around 95,000 barrels per day in Abu Dhabi, and expects the new deal to increase production levels to 260,000 barrels per day.

Goldmans View

“The position provides BP with additional resource and volume growth in a low-cost region that it knows well,” noted Goldman Sachs, which gave the deal a lukewarm reception. “The terms of the deal remain unclear from an economic perspective and, whilst volumes are large, the concession is likely to have relatively low unit profitability in our view.”

Cenkos Securities

Analysts at Cenkos Securities said the Kosmos and Abu Dhabi deals were “a good way for BP to materially beef up its production and resource base — and help the key reserve replacement ratio — and add near-term exploration upside”. The Abu Dhabi agreement would also improve the group’s cash flow, Cenkos said, because it involved an oilfield which is already producing and brought in the Abu Dhabi government as a stable long-term shareholder, with the all-paper deal accounting for about 2 per cent of BP’s stock. As of 13:55 BP shares were trading 0.67% higher in London at 493p a share.

Robo-advisor Moneyfarm offers simple, cost-efficient alternative to investing

Miranda Wadham
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Robo-advisor Moneyfarm offers simple, cost-efficient alternative to investing
Until recently, receiving real investment advice has seemed impossible for younger or lower net worth individuals – many Financial Advisors have minimum asset requirements of £500,000 or above, and charge 1-2 percent for their services. According to the FCA, the new wave of online robo-advisors offer “online automated advice models that have the ability to deliver advice in a more cost-efficient way”, widening access to financial advice to those that may previously have felt excluded. Robo-advisors offer online advice and guidance for investments and, depending on the platform, execute it as well. They typically charge less than half the fees of traditional brokerages and their low-cost, simple approach to investing has earned them a real name for themselves. One such robo-advisor is Moneyfarm, which launched in the UK in February after gaining traction in its home market of Italy. It was founded by Paolo Galvani and Giovanni Daprà in 2011 with a simple mission: to make low-cost, low-stress wealth management a reality for everyone. Moneyfarm allows customers to build an investment portfolio online after answering a simple questionnaire to find out goals and risk tolerance. The site has six portfolios made up of ETFs, which offer full transparency of the assets that make up a fund and have low management fees and low minimum investment levels. All products are fee and commission free for the first £10,000 invested and for savings over £1 million, making it a simpler and more cost efficient answer to investing than traditional investment managers.

Dixons Carphone profits rise 19%

Nicole Jeary
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Dixons Carphone profits rise 19%

Dixons Carphone (LON:DC) reported a 19 percent rise in profits across their phone and electrical homeware appliances.

In the six months to 29 October, pre-tax profits rose to £144 million with sales increasing by 4 percent to £4.9 billion.

With respect to the Brexit vote, the company said that they had yet to feel any impact upon consumer demand for their products, but stated that it was bracing itself for “more uncertain times” as negotiations continue.

Despite the promising figures, Dixons Carphone shares have lost a third of their value across the year, due to concerns of higher costs as Brexit negotiations begin.

After a series of closures of retail branches across the country, the company has looked to reduce cost output by continuing to streamline its business.

“In particular, we have been focusing on reducing our fixed cost base,” said group chief executive Seb James.

In addition, sales were buoyant across in core markets in both the UK and Ireland, where the company operates under the Currys, PC World and Carphone Warehouse brands.

That was partly driven by higher sales of mobiles and consumer electronics, as well as a plan to reduce store numbers.

Mr James welcomed the “strong start” to 2016, but did note that the company was bracing itself for “all eventualities” as the new year approaches.

“In particular, we have been focusing on… identifying areas of potential market share growth if the world becomes a tougher place for our competitors,” he said.

“We are also planning our offer so that potential currency impacts are minimized for the customer.”

The electronics retailer has announced its intention to close 134 outlets, as it develops larger stores to accommodate its recent merger.

Dixons Carphone originated from a merger worth £5 billion between Dixons and Carphone Warehouse in 2014. They currently employ 42,000 personnel in the UK and overseas.

Despite the reported growth in revenue, shares in the company fell 4.99 percent as of 10.24 AM (GMT).

Micro Focus shares lead FTSE100 higher up 4 percent

UK Investor Magazine
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Micro Focus shares lead FTSE100 higher up 4 percent
Micro Focus International (LON:MCRO) leads the FTSE100 higher this morning trading up over 4% north of £22 a share as it announced a 22 percent rise in first-half underlying earnings. Micro Focus is in the process of paying US$8.8bn for Hewlett Packard Enterprise’s software business and has said that while it had made a good start to the deal, it was maintaining full-year guidance for revenue growth of between minus 2 percent and zero. Numis is advising on the deal and has commented this morning “Micro Focus has outperformed on nearly all levels in the first half, giving a net 9% EPS beat and 3% full year upgrade. 1.0% underlying revenue growth is well ahead of our -2% forecast, although management reiterate full year guidance of -2% to 0%, and we note that timing of deal closures can impact individual periods, thus 1% growth should not be automatically extrapolated into the second half. However, it clearly provides strong support for the achievability of management’s “modest growth” goal.” Whilst Julian Yates of Investec was slightly more cautious “Full-year guidance was not raised, implying a softer second half, but we feel this is partly due to conservatism and also to reduce the reliance on [Linux specialist] SUSE having to sustain this growth level. We expect the stock to move up today, but continue to struggle to justify prices above 2400p given the extent of the HPE task and time horizon to deliver required synergies.” Chief Executive Kevin Loosemoore commented “The board is delighted with our progress. “Our focus on delivering to our customers by making detailed product by product decisions and investments has resulted in the business achieving modest like-for-like revenue growth. “Our investments have resulted in strong growth in SUSE and a reduced rate of decline in the Micro Focus portfolio. “Mergers and acquisitions continue to be a key component of our strategy. “The key strategic announcement in the period was the HPE Software transaction which is on target to complete in the third quarter of calendar year 2017. “The acquisition of Serena completed at the beginning of the period together with a number of small acquisitions across the business comprising GWAVA, openATTIC on 1 November and the OpenStack IaaS and Cloud Foundry Paas talent and technology assets from HPE which was announced on 30 November and is currently expected to close in the first quarter of calendar year 2017. “We are delighted to announce that our interim dividend is increasing to 29.73 cents from 16.94 cents in line with our twice covered dividend policy.”
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