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.

The FTSE 100 jumped on Monday as European stocks grabbed the tailcoats of a US rally later on Friday in which the NASDAQ and S&P 500 closed over 1.5% higher.

The FTSE 100 added 0.6% to trade at 7,404 shortly after midday in London.

UK equities are trading almost exclusively on improved sentiment inspired by a rally in US stocks at the end of last week, although a strong showing Phoenix Group helped matters.

Markets chose to discount concerns about the Federal Reserve hiking rates again in the near term, instead pricing risk assets for interest rates to stay on hold until they are eventually cut in the middle of next year.

Any economic news or commentary to the contrary could cause sharp swings in stocks.

“The FTSE 100 made strong progress on Monday morning, following on from gains on Wall Street on Friday,” said AJ Bell investment director Russ Mould.

“An easing in government bond yields supported the biggest one-day gain in the Nasdaq Composite index since May as investors remained confident in the idea of interest rates having peaked despite an attempt by Federal Reserve chair Jerome Powell to counter this narrative last week.

“US inflation numbers out tomorrow will tell their own story and a higher-than-expected reading could well prompt renewed jitters among investors.

“Also helping the positive mood were strong updates from UK property investor British Land, which also boosted its peer Land Securities, and insurance outfit Phoenix surged higher after lifting its cash generation target.”

Phoenix Group was the FTSE 100’s top riser with a gain of 5% after the wealth and insurance group upgraded their 2023-2025 cash generation target to £4.5 billion, up from £4.1 billion previously.

“The completion of the funds merger of the Standard Life and Phoenix Life businesses into Phoenix Life Limited, bringing together 8 million policies, is one of the largest UK insurance Part VII transfers ever completed,” said Phoenix Group CEO, Andy Briggs.

“This reaffirms Phoenix Group’s position as the UK’s leader at delivering cost and capital synergies and generating value for customers and shareholders. This funds merger enables us to materially upgrade our cash generation targets and creates further balance sheet optionality for the Group.”

BAE Systems carved out minor gains after reaffirming its guidance for the full year after strong order levels throughout the year, including £10bn since the beginning of the half year. BAE Systems were 0.6% higher at the time of writing.

BAE Systems upbeat release seemingly did more for peer Rolls Royce shares, which added 2.2%.

Diageo was again among the losers as investors continued to react to last week’s disappointing trading statement.