Imperial Brands predicted a rise in revenue and profit for the upcoming year, yet announced on Tuesday that the growth in the first half would be slower due to this year’s price increases and investments in alternatives to tobacco.

Imperial Brands shares are down 0.96% at the time of writing.

Imperial’s Finance Chief Lukas Paravicini explained to journalists that slower growth in the first half of a year was predicted due to the tough comparison with a robust previous year, during which Imperial implemented substantial price hikes.

The company posted a 3.9% increase in adjusted operating profit for the 12 months ending 30th September, excluding the effects of foreign exchange and Imperial’s withdrawal from Russia. This surpassed the average analyst estimates of 3.5%.

CEO Stefan Bomhard stated that Imperial’s strategy, focused on reclaiming market share in five crucial tobacco markets, is yielding positive outcomes.

Imperial Brands forecasts low single-digit revenue growth in 2024, with adjusted operating profit expected to fall within the middle of its mid-single-digit range.

According to investment director at AJ Bell, Russ Mould, “Parts of the market remain doubtful nonetheless. When you have headlines about governments in different countries clamping down on smoking and trying to stop young people from vaping, it’s no wonder that sentiment remains poor towards shares in the sector.”

He added, however, that “consumers are increasingly paying more attention to health and wellness, and owning shares in this sector may not sit well with their moral conscience. But there will be others who see the opportunity to buy growing companies at cheap valuations. At the moment, the balance seems to be in favour of the former.”

Vodafone shares dropped on Tuesday after the telecoms group reported a half-year revenue decline of 4.3% to €21.9 billion as several disposals and adverse currency swings hit sales.

Vodafone shares had slipped by 2.4% at the time of writing after rising 1.3% in early trading.

The group’s shares have declined 27% over the past year.

According to Aarin Chierkie, equity analyst at Hargreaves Lansdown, “revenue and operating profits are heading in the wrong direction for Vodafone, reflecting recent disposals and the structural challenges at hand.”

He states that a lot of Vodafone’s financial resources have been invested in expanding fibre networks and acquiring portions of the 5G spectrum, which is putting pressure on cash flows.

Germany – accounting for 31% of Vodadfone’s service revenue – was a bright spot, reporting quarterly revenue growth of 4.2%, although service revenue for the half year fell.

While Vodafone’s Chief Executive, Margherita Della Valle, stated that the company delivered improved quarterly results in nearly all of its markets, there was weakness in Italy and Spain.

Sales in Spain and Italy continue to fall behind, following Vodafone’s announcement last month of the sale of their Spanish business, Zegona.

Operating profit for the half-year period fell 44.2%.

The company maintained its dividend for the period at 4.5c. Vodafone’s current dividend yield stands at 10%.

However, Chierkie warned this yield may be under threat if the current mediocre performance continues.

“Typically, when companies in this industry have dividend yields above 7%, there is downward pressure on the dividend. Historically, exceptions to the rule have been few and far between, and Vodafone is unlikely to be one of them,” pointed out Aarin Chierkie.

Vodafone’s net debt stands at €36.2 billion, showing a rise of €2.9 billion compared to the first half.

Kodal Minerals shares made minor gains on Tuesday after the company announced a significant increase in the mineral resource at their flagship lithium project.

Kodal Minerals has announced a 40% increase in the mineral resource at its Bougouni lithium project in Mali, Africa. Kodal reported a new resource estimate of 31.9 million tonnes at 1.06% lithium oxide for Bougouni, making the project one of the largest in the world.

Investors may be disappointed with the subdued market reaction, given the revised size of the resources.

The upgrade comes after recent drilling programs expanded resources at the project’s Ngoualana and Boumou deposits, which Kodal aims to develop in two stages.

The company plans first production from Ngoualana through a dense media separation plant, with a later expansion to process ore from Boumou and Sogola-Baoule using a flotation method.

Kodal said the increased resource at Ngoualana has improved confidence in the deposit ahead of initial mine development, with optimisation and design work now underway.

More drilling is imminent to expand resources further and advance additional targets at Bougouni.

Kodal Minerals shares were up only 7% at the time of writing on Tuesday despite a substantial increase in the resource, which will feed through to better project economics.

Kodal recently announced the completion of the funding package with their Chinese partners to develop the project.

Horizonte Minerals shares sank on Tuesday after the nickel miner said it was reducing mine construction activities as funding uncertainty mounts.

Horizonte Minerals’ funding calculations for the Araguaia nickel project in Brazil have forced the company to scale back construction while it seeks new funding sources.

The London-based developer said Tuesday it is running out of working capital and will have to halt most construction activities at Araguaia by mid-December unless it can secure additional financing.

Horizonte has slowed work to critical areas only as it holds talks with cornerstone shareholders and lenders on a new financing plan to cover remaining construction costs. The company needs the fresh capital injection to meet the conditions for an existing $131 million debt facility.

The company has $38m cash to see them through to mid-December.

Shareholders and lenders visited Araguaia last week to conduct due diligence for the potential investment. But Horizonte does not expect funding deals to be finalised until late in the first quarter 2024, pointing to significant delays in the commencement of production at the project.

The financing crunch has cast uncertainty over the development timeline and commercial viability of Araguaia, Horizonte’s flagship nickel project.

“Discussions with the Company’s major shareholders and lenders on funding the Project to completion are progressing.  While work on the funding solution continues, we have elected to focus capital and human resources on the critical work packages,” said Horizonte Minerals CEO Jeremy Martin.

“This work is planned is to ensure that we are well-positioned to resume full construction activities post receipt of the funding to benefit stakeholders and our community alike. Notwithstanding the expected increase in capital, the Araguaia project remains a Tier 1 nickel project that will produce a high grade, low cost, low impurity FeNi product over a 28-year mine life.”

Horizonte Minerals shares were down 38% at the time of writing on Tuesday.

Saietta Group (LON: SED) says that its 49.5% owned Indian joint venture has secured an order for complete eDrives from its main client for a second of its light commercial vehicles. The initial order is worth £106,000 over three months and the first full year of production could generate £12.7m. This is the first significant order for the new radial flux technology. The share price is 15.2% ahead at 22.75p.

Shantonu Kumar Chundur has taken a 5.06% stake in Global Petroleum (LON: GBP). The share price rose by one-fifth to 0.105p.

RUA Life Sciences (LON: RUA) revealed at the end of last week that Mark Bradshaw has a 3.61% shareholding. The share price recovered 22.2% to 16.5p.

Mobile services provider Mobile Tornado (LON: MBT) says that InTechnology, where non-exec director Peter Wilkinson is the controlling shareholder, has transferred its 58.4% stake to Holf Investments, which is wholly owned by Peter Wilkinson. The transfer price was 2.43p/share. Holf Investments has also taken on £11.2m of preference shares and debt in Mobile Tornado, which still owes InTechnology £190,000 in debt and accrued interest.  The share price improved 18.4% to 1.125p.

Brave Bison (LON: BBSN) has won new contracts and secured renewals worth a total of £4m. Media practice Brave Bison Performance secured a renewal with an electricals retailer worth £2m over two years and a new contract with a Finland-based homeware retailer worth £1m up until the end of 2024. Digital commerce practice Brave Bison Commerce has gained a £1m contract with a Netherlands-based car parts retailer. The contracts underpin expectations for a 2023 pre-tax profit of £3.1m. This pushed up the share price 16.4% to 1.775p.

FALLERS

Uncertainty about whether AMTE Power (LON: AMTE) can raise more cash before its funds run out later this month has hit the share price, which is down 25.9% to 0.5p. Discussions concerning the £2.5m subscription by an investor continue but will not be concluded by the end of November.

88 Energy (LON: 88E) has signed a deal to earn up to 45% of petroleum licence 93, onshore Namibia. There will be a progressive increase in the stake as certain milestones are achieved. The licence is in the Owambo Basin, which has a proven petroleum system. The share price has slipped 7.14% to 0.325p.

Wentworth Resources (LON: WEN) says that it achieved record production levels of 105 mmscf/day in the first half. There was $44.6m in cash at the end of October 2023. However, revenues are lower because the way the production agreement is set up. The Tanzanian government is re-examining the historic cost pool audit for 2013-2015 and Wentworth’s maximum exposure is $14m. The bid by Etablissements Maurel & Prom is still awaiting regulatory approval because of complications over a potential first right of refusal for the acquisition of the main asset by another party. No dividend will be declared. The share price declined 6.67% to 24.5p.

Team Internet Group (LON: TIG) reported further growth in its business, but the weaker digital advertising market reduced the rate of growth for the online marketing division. It still grew 15% over nine months, while there was a strong performance by the domain names business. Group revenues were 16% ahead at $611.7m, while lower gross margin meant that EBITDA was 11% ahead at $68.8m. The share price has fallen 4.19% to 119p.