Nature Group shares plummet amid disappointing update
Shares in Nature Group (LON:NGR) plummeted on Wednesday morning after the company issued a disappointing trading update.
The port reception facility and waste treatment solutions provider updated the market on the financial progress for 2017, after a challenging first six months to the year.
The group provides these services for oil, marine and process industries. Specifically with regards to its Oil & Gas division, the company noted that it has four units currently deployed with eight operators, which continue to encounter “difficult trading conditions”.
In response to the difficult year, the company said it intends to prioritise its Maritime division, following its business-wide strategic review conducted by the Board last year.
The group is looking to address the group’s immediate cash flow issues, to facilitate the moving ahead in discussions regarding a proposed sale.
Accordingly, Nature Group announced that the Board had secured a verbal waiver from lender, DNB, permitting the deferral of the repayment of lease and debt financing facilities totalling £1 million. The deferral is conditional upon the proposed sale.
Berend van Straten, Chairman of Nature Group, commented:
“2017 was another difficult year for Nature Group and we continue to face significant headwinds, particularly in our Oil & Gas division.
However, we are encouraged that steps taken by the Board during the period to identify the operational and structural issues problems and to define and begin to implement a new strategy are beginning to yield positive results.
There is much more work to do to ensure Nature Group has a viable future, and the proposed sale of the Oil & Gas division is a vital step in achieving that and to addressing the Group’s urgent, short-term cash requirements.”
Shares in Nature Group are currently trading down as much as 49.65 percent as of 10.35AM (GMT).
Esure shares tick up as profits soar in 2017
Insurance company Esure (LON:ESUR) reported soaring profits over the course of 2017, causing its shares to edge up in early morning trading.
Pre-tax profits rose 5.6 percent to £98.6 million in the year to the end of December, driven by a 25.2 percent rise in written premiums and a 9.2 percent rise in in-force premiums.
Profit after tax from continuing operations increased 35.1 percent to £80.4 million, with the combined operating ratio improving by 2.1 percentage points to 96.7 percent compared with 98.8 percent the year before.
Interim chief executive Darren Ogden commented: “2017 has been a year of significant delivery and I look forward to 2018 with great confidence”
“In 2018, we are targeting a similar combined operating ratio to 2017, assuming normal weather, as we look to deliver a positive contribution and grow the business.
“We continue to deliver profitable growth and remain on track for our three million in-force policy target by 2020.”
Esure’s chief executive, Stuart Vann, left the company in January, meaning the hunt continues for a new CEO to fill his position. Group chairman Peter Wood said that Esure will be seeking a replacement with digital experience.
Esure shares are currently trading up 1.52 percent at 227.80 (1029GMT).
Paddy Power Betfair shares drop despite better-than-expected earnings
Shares in gambling company Paddy Power Betfair (LON:PPB) sunk nearly 5 percent in early trading, despite posting a better-than-expected rise in annual earnings for the 2017 financial year.
The group’s earning were boosted by favourable sporting results and further investment in its online platforms. Underlying Ebtida rose 18 percent to £473 million, well above the company’s previous guidance of between £450 million and £465 million.
Underlying operating profit increased by 19 percent to £392 million, with revenue up 13 percent to £1.75 billion. The company declared a final dividend of 135p per share.
Chief executive Peter Jackson said: “The new financial year has started as 2017 ended, with sporting results favouring bookmakers.”
“This sustained period of bookmaker friendly results has, however, significantly affected customer activity, including reduced re-cycling of customer winnings.
“We are focused on building a business that can sustainably generate profits over the long-term.
“The group’s strong balance sheet allows us to make substantial investment in the customer proposition and marketing, whilst maintaining flexibility for strategic investments and delivering increasing returns for shareholders.”
The figures come just one day after chief financial officer Alex Gersh announced his decision to leave the company. Gersh joined in 2012 and has been a significant part of the group’s transformation. His announcement comes just a month after the high-profile resignation of CEO Breon Corcoran, was replaced by Peter Jackson.
Shares in Paddy Power Betfair are currently trading down 4.14 percent on the news at 7,880.00 (0854GMT).
Rolls Royce shares surge 11% on expectation-beating figures
Rolls Royce (LON:RR) shares rocketed 11 percent at market open on Wednesday morning, after posting a 25 percent profit rise well ahead of their own expectations.
Pre-tax profit rose to £1.07 billion, a huge jump from the £813 million posted in 2016, with revenue increasing by 6 percent to £15.09 billion.
The company held its dividend steady however, declaring a figure 11.7p per share for the full year.
Chief executive Warren East said Rolls Royce had made “good progress” in 2017, saying that it had “achieved a number of important operational and technological milestones, but were impacted by the increasing cost and challenge of managing significant in-service engine issues.”
The group are expecting operating profit in 2018 to grow to £400 million, give or take a £100 million, well up from £321 million in 2017.
“2018 will be one of significant operational progress,” East continued.
“In Civil Aerospace we will continue to grow our installed widebody fleet and further reduce cash deficits on engine sales.
“At the same time over the next few years we will be continuing to implement solutions for our airline customers to address the in-service engine issues we are currently experiencing, the estimated costs of which are significant but are included in our cash flow, revenue and earnings guidance for 2018 and beyond.
“While Defence faces some challenges due to timing changes on export activity and in contract mix, we continue to have attractive longer term export opportunities.”
The figures are likely to be taken as evidence that the company has got itself back on right track, after issuing a series of profit warnings in the course of 2015.
Legal & General boosted by 32pc profit rise in 2017
Shares in asset manager Legal & General (LON:LGEN) edged up on Wednesday, after reported profit before tax rose 32 percent over the course of 2017.
Profit rose to £2.1 billion in 2017, up from £1.6 billion the year before, after a “strong performance” across the board led to a boost to the group’s retirement institutional and retail divisions.
The company pleased investors with a full year dividend of 15.35 pence per share, an increase of 7 percent on the previous 12 months, with the group setting out a goal to keep the same level of performance achieved between 2011 and 2015, where there was EPS growth of 10 percent per annum, until 2020.
Nigel Wilson, Legal & General’s Chief Executive, said:
“Legal & General’s strategic focus, alignment to global growth drivers and excellent execution, allowed us to deliver a record £2.1 billion operating profit in 2017.
“Our shareholders are enjoying terrific EPS and RoE growth, while our ‘inclusive capitalism’ model ensures customers and society also benefit.
“We remain confident that our unique business model, strong management team, collaborative culture, and strategic focus can deliver further growth in 2018 and beyond.”
Shares in Legal & General (LON:LGEN) are currently up 0.84 percent at 259.98 (0822GMT).
Grocery market sees growth for 12th month in a row
Total grocery sales increased by 3.2 percent compared to the same time last year, according to the latest figures from Kantar Worldpanel, marking 12th consecutive period in a row that total market sales have exceeded 3 percent.
Ready meal sales were a strong driver of the results, with February festivities including Valentine’s Day and Chinese New Year lending themselves to the ready meal market. Sales of chilled ready meals jumped 26 percent over the month, with consumers taking advantage of retailers’ dinner-time set menu options.
Tesco (LON:TSCO) and Morrisons (LON:MRW) were “neck-and-neck” as the two fastest growing supermarkets of the big four, both reporting sales growth of 2.7 percent over the period. Morrisons hung onto its market share of 10.6 percent and entered its 16th consecutive period of growth, boosted by its premium own-label line The Best.
Overall sales growth at Sainsbury’s now stands at 1.1 percent, with Asda attracting an additional 309,000 shoppers to push sales growth to its highest since June 2014, 2.3 percent.
Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said:
“Co-op returned to growth for the first time since July 2017 with sales up 0.4 percent, after a period of decline following the retailer’s sale of nearly 300 stores to McColl’s. Iceland held share steady at 2.2 percent compared to this time last year, increasing sales by 1.3 percent”.
“Aldi and Lidl once again battled to be crowned the UK’s fastest-growing supermarket. Aldi pipped Lidl to the post this month as sales grew by 13.9 percent and 13.3 percent respectively. With both discounters working hard to expand their store portfolio, Aldi and Lidl also benefited from increased shopper numbers as well as growth in basket size.
Grocery inflation now stands at +2.9 percent for the 12 week period ending 25 February 2018, adding to the solid 12 weeks of price increases that have followed a period of grocery price deflation between September 2014 to December 2016.
McCarthy & Stone report H1 revenue rise, but shares sink
Retirement home builder McCarthy & Stone (LON:MCS) shares tumbled nearly 4 percent at market open on Tuesday, after saying it expects a small rise in first-half revenue.
Despite lower completion rates and an expected drop in first-half margins and operating profit, higher selling prices lent a boost to figures. The group confirmed half-year revenue expectations of around £240 million, around £2 million higher than a year earlier, supported by a 14 percent increase in average selling price to £296,000.
Forward sales, including legal completions, are around 16 percent ahead of the previous year at £487 million, supported by 50 new sales releases during the period.
The company said that trading had remained “resilient” during 2018 so far, and that new sales releases have performed well.
Shares in McCarthy & Stone are trading down 3.99 percent at 132.50 (0838GMT).
Ashtead shares slip despite positive third quarter
Shares in equipment rental company Ashtead (LON:AHT) fell over 2 percent at market open, despite reporting increases in both profits and revenues for the third quarter.
Underlying pre-tax profits rose 26 percent over the three month period to £205.1 million, with rental revenues increasing 24 percent to hit £845.5 million. EBITDA rose 20 percent to £408.8 million.
The group said its end markets remain strong going into the fourth quarter of the year, adding that a wide range of metrics have shown “consistent improvement”. Ashtead invested £859 million in the form of capital expenditure and £315 million on bolt-on acquisitions in the period.
Ashtead’s chief executive, Geoff Drabble, confirmed that full year results were likely to be in line with prior expectations.
All our divisions continue to perform well in supportive end markets. While currency continues to be a headwind, we expect this to be mitigated by the strong underlying performance in North America”, he said.
Shares in Ashtead are currently trading down 2.09 percent at 1,986.50 (0827GMT).
Just Eat shares plunge 14pc despite 26pc order boost
Online takeaway service Just Eat (LON:JE) reported a 26 percent boost in orders for the 2017 year, hitting a record 10 million orders in December alone.
Total orders for the full year were at 172 million, up from 136.4 million in 2016, with revenue rising 45 percent to £546 million.
Business was boosted by its Canadian acquisition of SkipTheDishes, which pushed total international growth up by 75 percent. Underlying earnings before income tax, depreciation and amortisation (EBITDA) rose 42 percent to £164 million.
Peter Plumb, Chief Executive Officer, called 2017 a “record year” for Just Eat.
“We helped 21.5 million customers order 172 million takeaways around the world. More Restaurant Partners joined our platform, increasing the breadth of choice for our customers and strengthening the Group’s geographical coverage to over 82,000 restaurants.”
“As the new CEO, I will be increasing our investment in brand, Developing Markets and delivery services that will be engineered to complement our thriving marketplace business by bringing more choice to our takeaway-loving Customers.'”
The group did post a loss for the period, but excluding exceptional items relating to its Australia and New Zealand businesses, it would have reported a profit before tax of £104.4 million.
Shares are currently trading down 14.4 percent on the news at 728.80 (0811GMT).
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