Revolut CEO favours US over UK for IPO

UK Investor Magazine
-
0
Revolut CEO favours US over UK for IPO

Nikolay Storonsky, the CEO of Revolut, one of the UK’s most successful FinTech firms, said he will choose the US over the UK for its IPO.

Speaking on the 20VC Podcast, Storonsky said that unless London dramatically changed its offering to companies seeking to raise capital on public markets, he would list Revolut in the US.

“I just don’t understand how the product which is being provided by the UK can compete with the product provided by the US,” Storonsky said in the podcast interview.

Storonsky highlighted the UK’s 0.5% Stamp Duty as one of the main reasons behind his preference for New York over London, but in reality, there is a multitude of well-documented factors making the US more attractive than the UK when planning a large-scale IPO.

Labour’s Rachel Reeves has had the chance to scrap the much-criticised stamp duty on UK shares but has chosen not to act. The result is that global innovators and leading growth companies such as Revolut are shunning the UK for the US.

Losing out on the Revolut IPO to New York will be another major blow for London after Revolut started life in the UK, raising two early crowdfunding rounds on Crowdcube and Seedrs platforms.

Following a recent secondary share sale, investors who backed the FinTech company in its early private rounds on crowdfunding platforms saw a valuation uplift of around 40,000% on their initial investment. Investments of just a few thousand pounds are now worth over a million.

The latest share sale values Revolut at $45bn, more than the current NatWest and Lloyds market caps and roughly the same as Barclays.

Revolut has raised over $2.14bn and is not having trouble attracting new investors. The latest share sale was met with strong demand from institutions, which bodes well for an IPO.

It’s no surprise that Revolut CEO Nikolay Storonsky is choosing New York over London for its IPO. The UK hasn’t managed an IPO of any meaningful size for well over a year, and the UK public equity market is being picked apart by overseas firms swooping in on undervalued companies.

Why would the FinTech company battle to justify its valuation in London when US investors would likely welcome the company with open arms and give it the valuation it deserves?

Although Revolut started life in the UK, it has expanded aggressively and operations in 39 countries with ambitions to increase this to 50 over the next three years. Of the 39 countries the company is currently operating in, Revolut is number one in 19 of them. The company hasn’t yet won in the US market as in other markets, but Storonsky has the world’s largest economy firmly in his sights for the next chapter of growth.

Revolut reported revenues of $2.2bn in 2023, generating a record $545m profit before tax.

When asked where he would base the business if he were hypothetically given a chance to start Revolut again, he answered he would have set the company up in the US.

Share Tip: Foxtons Group – Valued at £179m, making £23.6m profits in 2025 and still on the acquisition trail – shares now 59p, while analysts have valuations up to 134p! 

Mark Watson-Mitchell
-
0
Share Tip: Foxtons Group – Valued at £179m, making £23.6m profits in 2025 and still on the acquisition trail – shares now 59p, while analysts have valuations up to 134p! 

It may be too early for some readers, but I have a number of companies within my Smaller Quoted Companies sector that I really fancy for a good run in 2025. 
One of the list is London’s leading estate agency the Foxtons Group (LON:FOXT). 
And following another read-through of the group’s recently announced Q3 Trading Update, I am convinced that its shares at the current 59p are totally undervalued. 
The Business 
Foxtons, which was established in 1981, is London’s leading estate agency and largest lettings agency brand and has a portfolio of over 28,000 tenancies.   
I...

Cadence Minerals shares jump on improved Brazilian iron ore mine economics

UK Investor Magazine
-
0
Cadence Minerals shares jump on improved Brazilian iron ore mine economics

Cadence Minerals shares soared on Tuesday after the company announced positive results from an updated Pre-Feasibility Study for its Amapá Iron Ore Project in northern Brazil, where it holds a 34.6% equity stake.

The study, incorporating a Direct Reduction grade flow sheet, reveals a substantial increase in the project’s post-tax Net Present Value (NPV10%) to US$1.97 billion, with an internal rate of return of 56%.

Cadence Minerals shares jumped over 20% in early trade on Tuesday as investors cheered the improved outlook for the company’s flagship asset.

The project is estimated to generate average annual free cash flow estimated at US$342 million from start-up through to closure.

Over its 15-year mine life, the Amapá Project is expected to deliver US$9 billion in gross revenues, US$4.9 billion in net operating profit, and US$4.6 billion in free cash flow.

The processing plant has been redesigned to produce high-grade iron ore concentrate at 67.5% Fe, with an average production rate of 5.5 million metric tonnes per annum.

The project demonstrates strong cost efficiency, with Free on Board C1 Cash Costs of US$33.7 per dry metric tonne at the port of Santana, and Cost and Freight C1 Cash Costs of US$61.9 per dry metric tonne in China.

The pre-production capital requirement is set at US$377 million, with an attractive payback period of just three years, shortened by the increased free cash flows.

“This significant update to the Amapá Prefeasibility Study, which includes the DR-grade concentrate flow sheet, reinforces our firm belief that the project can add substantial value to Cadence. The increased net present value of $1.97 billion and improved post-tax internal rate of return reflect significant advancements in the project’s robust economics,” said Cadence CEO Kiran Morzaria.

“The Amapá Project represents a well-developed and largely de-risked opportunity, featuring established mineral reserves, advanced environmental permitting, and complete control of integrated rail and port infrastructure. This ownership and control of the infrastructure contribute to the project’s low-cost base and will enable the pursuit of regional expansion opportunities, with substantial resources located within 30 kilometres of the existing rail line. In addition to the DR-grade flow sheet, the project will use 100% renewable energy sources. We anticipate this will help us achieve one of the lowest carbon footprints in the region while still delivering a robust and highly profitable project.”

AIM movers: K3 Business sells main subsidiary and Capital Metals reduces capex

Andrew Hore
-
0
AIM movers: K3 Business sells main subsidiary and Capital Metals reduces capex

K3 Business Technology (LON: KBT) is selling its UK SYSPRO business NexSys to SYSPRO owner Advent for £36m. This business generated 109% of group EBITDA and 28% of group revenues. K3 Business Technology intends to return cash to shareholders. The company’s remaining operations are K3 Fashion and Pebblestone, the IKEA software business and other retail software. The share price is two-fifths higher at 87.5p.

Capital Metals (LON: CMET) has reduced the stage one capex for the Eastern Minerals project in Sri Lanka by one-third of $20.9m. Initial production of heavy mineral concentrate is 125,000tpa. Funding and offtake discussions are continuing. Drilling is restarting, so that the resource can be increased. The share price jumped 31.3% to 2.1p.

Condor Gold (LON: CNR), which is developing the La India gold project in Nicaragua, says that Metals Exploration (LON: MTL) and have made bid approaches and negotiations are at an advanced stage with Metals Exploration. Calibre Mining Corp says it will not make an offer. Metals Exploration has entered into a £5.5m bridging loan facility with Drachs Investments No. 3, which has a 18.4% shareholding. This is repayable at the end of January or when talks end. Galloway is lending £475,000 to Condor Gold. Metals Exploration owns the Runruno gold project in the northern Philippines. Condor Gold shares increased 22.9% to 29.5p. Metals Exploration shares have fallen 6.14% to 5.35p.

Energy optimisation service provider Inspired (LON: INSE) has won three large optimisation contracts with two starting in 2025. These contracts came later than expected and Panmure Liberum has knocked £5m off its pre-tax profit expectations and reduced earnings by 29% to 9.2p/share. Net debt is forecast at £58m at the end of 2024. Covenants have been changed and this should ensure there is no breach following the decline in expected profit. The share price recovered 20.3% to 41.5p.

FALLERS

Goldstone Resources (LON: GRL) is in talks with Blue Gold International concerning an extension for the repayment of the £2.7m owed through convertible loan notes. It was due to be repaid at the end of November and Goldstone Resources has five business days to negotiate the extension or it will be obliged to repay the loan notes. The share price dived 27% to 1.15p.

Bigblu Broadband (LON: BBB) is selling Australian broadband business to SKM Telecommunications for up to £25.7m, which values the business at more than double the total cost of investment. The initial cash payment is £15.4m and £6.8m in shares in SKM, with a further £3.5m in cash due in one year. This requires shareholder approval at a general meeting on 20 December. The company will still have operations in New Zealand and a subsidiary involved in the distribution of Starlink, plus a 2.8% stake in Quickline. Revenues are forecast to be £1m in 2024-25. The share price lost some of its recent gains and is 14.6% lower at 35p.

Braveheart Investment (LON: BRH) chief executive Trevor Brown bought 425,000 shares at 4.0388p each, taking his stake to 25.5%. The share price declined 5.56% to 4.25p.

Africa-focused Shuka Minerals (LON: SKA) is being loaned £500,000 by its second largest shareholder Gathoni Muchai Investments. The initial advance is £150,000. Shuka Minerals is planning to appoint new directors. The share price slipped 3.33% to 7.25p.

FTSE 100: mining strength overcomes weakness in housebuilders

UK Investor Magazine
-
0
FTSE 100: mining strength overcomes weakness in housebuilders

An encouraging insight into China’s manufacturing sector helped lift the FTSE 100 on Monday, overcoming weakness in housebuilding shares after several downgrades in the sector.

London’s leading index was 0.3% higher at 8,315 at the time of writing as it broke through the 8,300 level convincingly for the first time since late October. Should 8,300 hold as support, traders may eye the next major resistance level around 8,400.

“Beijing’s economic stimulus effort seems to be having a positive effect, judging by better-than-expected manufacturing data from China,” says Dan Coatsworth, investment analyst at AJ Bell.

“The Caixin Manufacturing PMI data hit 51.5 in November against a forecast of 50.7%. The data sent Chinese shares flying, including a 1.1% rise in the Shanghai SEE Composite index. The big unknown is whether the stimulus efforts will have a long-lasting effect or just a short-term boost.

“The Chinese manufacturing data also needs to be viewed in the context of what’s happening in the US. The threat of punishing tariffs on Chinese goods imported into the US from January 2025 once Donald Trump returns to power is likely to have spurred factories to boost output ahead of the event. The theory being that some US customers might stockpile goods while they can buy cheaply before the threatened tariffs come into power.”

A positive session for mining names such as Rio Tinto and Anglo American – both up around 1% – was dampened by softness in the domestic-facing housebuilding sector after a string of broker downgrades hit Vistry, Persimmon and Taylor Wimpey despite Nationwide’s very encouraging house price data for November.

Average UK house prices rose 1.2% in November as first-time buyers scrambled to beat the changes to stamp duty due to be implemented in April 2025. House prices rose 3.7% in the year to November, the fastest annual growth rate in over two years.

However, the promising house price data was not enough to offset the impact of several broker downgrades, including RBC’s slashing of Persimmon’s price target to 1,275p. Vistry looks set to exit the FTSE 100 after RBC’s downgrade, which sent shares down by 4% and put the social housing-focused builder firmly in demotion territory. 

UK house prices surge at fastest rate in two years

UK Investor Magazine
-
1
UK house prices surge at fastest rate in two years

UK house prices rose at the fastest rate in two years in November, according to new data from Nationwide, as buyers raced to beat the changes in stamp duty set for 2025.

House prices rose 1.2% in the month to November and were 3.7% higher over the year.

“The Budget blip was a wrinkle rather than a rift. The housing market has shaken it off, bouncing back to its fastest annual growth since November 2022,” said Sarah Coles, head of personal finance, Hargreaves Lansdown.

“We’ve seen a pick-up in activity from landlords, who put sales in train before the Budget. They may not have had the capital gains tax blow they were expecting in the speech, but given that the Treasury is still more likely to hike taxes for landlords than to cut them in the next few years, there’s a decent chance many of them have decided to get out anyway, while they know where they stand.”

“More properties for sale will have spurred more buyers into action, especially in areas where a lack of choice had been holding them back. We had an indication this could be the case from the Bank of England, as mortgage approvals for new purchases had risen in October – to the highest point since August 2022. We’re getting back into solid pre-pandemic territory, with 68,300 approvals.”

Whether the increase in house prices holds through the change of stamp duty laws next year will depend heavily on interest rates and resulting mortgage rates. Mortgage rates have steadily increased in recent weeks after the Bank of England signal rates may not fall as quickly as previously thought.

The prevailing interest and mortgage rates when the dust settles following the rush to beat stamp duty next year will drive prices through 2025, with affordability still stretched for many first-time buyers.

Share Tip: SRT Marine Systems – £93m world-leading group has pipeline of £1.2bn sales potential, with £320m contracts booked 

Mark Watson-Mitchell
-
0
Share Tip: SRT Marine Systems – £93m world-leading group has pipeline of £1.2bn sales potential, with £320m contracts booked 

Do not worry about the delays Simon, just keep on winning and bringing in the new orders. 
It must be an incredibly difficult and tortuous task negotiating with and contract preparing with overseas government bodies. 
But that is what SRT Marine Systems (LON:SRT) has been patiently handling over the last few years, as it has been creating new international markets for its world-leading maritime surveillance, monitoring and management systems. 
During the intervening times, from design to selling to implementing, the group has run down its cash reserves as it strained its way to ...

Director deals: Bango boss shows confidence following disappointments

Andrew Hore
-
0
Director deals: Bango boss shows confidence following disappointments

Payment services provider Bango (LON: BGO) has suffered a poor 2024 and the share price is bouncing around the low for the year. To show his confidence in the business, chief executive Paul Larbey and another family acquired 46,096 shares at 97.45p each. In October, they bought a total of 36,437 shares at 104.24p each. Paul Larbey and family owns 150,857 shares in Bango.
West Elk Capital recently acquired a 5.16% shareholding. Liontrust had previously cut its stake to 5.05%.
Business
Bango offers a SaaS platform that enables online merchants to handle payments more efficiently. Bango has devel...

One Media IP disposal unmasks cash generation

Andrew Hore
-
0
One Media IP disposal unmasks cash generation

One Media IP (LON: OMIP) is selling TCAT, which monitors unauthorised exploitation of music, to digital agency Round Group in return for a 5% stake in the purchaser. This will improve group profitability, while having some exposure to the potential upside from the technology.
Digital agency Round Group and it uses technology for marketing campaigns. It has three existing shareholders: Aaron Sayer, Jacob Sayer and Vishal Ramakrishnan. Round Group had net assets of £220,000, including cash of £282,000, at the end of April 2023.
One Media IP developed the Technical Copyright Analysis Tool (TCAT) ...

Aquis weekly movers: Product launch delays for Incanthera due to patent dispute

Andrew Hore
-
0
Aquis weekly movers: Product launch delays for Incanthera due to patent dispute

KR1 (LON: KR1) had net assets of 57.79p/share at the end of October 2024, down from 62.15p/share at the end of the previous month. There was nearly £600,000 of income generated from digital assets during the month. The share price jumped 24.8% to 85.5p.

WeCap (LON: WCAP) has converted £7.75m of loan notes in WeShop Holdings in return for 3.21 million shares, which is 1.33 million shares at 300p each and 1.875 million shares at 200p each. This increases the shareholding to 16.2%, including shares owned by 235%-owned Community Social Investments. WeCap says that the value of the shareholding is £24.6m, based on the last fundraising share price of 476p. WeCao has extended the discounted capital bond issued to Hawk Holdings for 18 months. The total owed is £6.18m. The WeCap share price increased 7.69% to 1.05p, which capitalises the company at £4.3m.

Wishbone Gold (LON: WSBN) has appointed Tony Moore as chairman and Jack Sun as finance director. The share price improved 6.67% to 0.32p.

SulNOx Group (LON: SNOX) has appointed Fuelonomics Hydrocarbons Innovations as distributor of SulNOxEco fuel conditioners in Nigeria. The share price rose 4.81% to 54.5p.

Vinanz Ltd (LON: BTC) has received the initial order of Bitcoin miners and they are up and running in Nebraska. The share price moved up 0.885% to 14.25p.

Arbuthnot Banking Group (LON: ARBB) chairman and chief executive Sir Henry Angest has bought 116,000 shares at 900p each. He owns 58% of the voting shares. The share price edged up 0.822% to 920p.

FALLERS

Incanthera (LON: INC) has been accused of potential patent infringement in the formulation of its Skin + Cell skincare range. Even though Incanthera believes that there is no merit to the accusation, but the launch of the Skin + Cell range of products has been delayed. There is cash in the bank following a £2.6m subscription at 15p/share. The share price recovered from an all-time low earlier in the week, but it still slumped 57.4% to 5.75p.

Electric vehicle technology developer Equipmake (LON: EQIP) increased full year revenues by three-fifths to £8.1m. Bus repowering revenues grew fastest, but this is labour intensive at low volumes. The loss increased from £5m to £9.1m. The cash outflow from operations declined from £9m to £6.29m. Costs are being reduced. There was £2.5m in the bank at the end of May 2024. A potential licensing agreement could provide cash flow over the next two years. The share price declined by one-fifth to 2p.

Barry Hersh has reduced his stake in Global Connectivity (LON: GCON) from 6.97% to 5.96%. The share price fell 3.45% to 0.7p.

Invinity Energy Systems (LON: IES) has hired Adam Howard as finance director. He was previously at the National Walth Fund. The share price dipped 2.04% to 12p.

1...215216217...1,795Page 216 of 1,795