Totally revenues increase to £127.4m on higher demand

Natasha Doris
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Totally revenues increase to £127.4m on higher demand

Totally shares fell 3.5% to 43.9p in late afternoon trading on Tuesday following a reported 12% growth in revenue to £127.4 million in FY 2022 compared to £113.7 million in FY 2021.

The company announced a 24% climb in underlying EBITDA to £6.2 million against £5 million, alongside a rise in pre-tax profit to £1.3 million from £100,000 in the previous year as a result of higher demand for its services.

Totally confirmed an 18% gross margin from an 18.3% gross margin year-on-year, and cash of £15.3 million at 31 March 2022 against £14.8 million.

The firm highlighted an Urgent Care revenue increase of 3.6% to £109.2 million, a Planned Care revenue climb of 43.7% to 7.5 million and an Insourcing Revenue growth to £10.3 million across the financial term.

Totally mentioned a slate of operational high points, including services delivered to 2.5 million patients, £59 million in new contracts including a three-year deal with King’s College NHS Foundation Trust for a new urgent treatment centre, and £72 million in contract extensions.

“During the year, we continued to help manage increasing demand whilst progressing our buy and build strategy to ensure we are positioned strongly to support the NHS and other healthcare providers over the next five to ten years,” said Totally chairman Bob Holt OBE.

“We significantly grew our insourcing capability in response to growing demand, mobilised new services within urgent care, and contributed to strategic projects to improve the delivery of existing service models, such as NHS 111, to ensure that every patient can access the support they need.”

“Everything we do is made possible by the experience and commitment of our teams, whether they are leading the integration of our new businesses or supporting patients on the front line. We thank all of those who work for us, and those we work with, for their continued engagement and commitment to patient care.”

Totally announced an EPS of 0.5p compared to 1p the last year, alongside a total dividend of 1p per share against 0.5p per share for FY 2022.

Sosandar narrows loss as revenue spikes 148% on order growth

Natasha Doris
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0
Sosandar narrows loss as revenue spikes 148% on order growth

Sosandar shares were up 4% to 19.2p in late afternoon trading on Tuesday after the firm’s FY 2022 results exceeded market expectations, including a revenue spike of 142% to £29.5 million against £12.2 million the last year.

The fashion group mentioned an EBITDA improvement to a loss of £200,000 compared to a loss of £2.9 million in FY 2021, with every month in HY2 2022 recording profitability.

Sosandar highlighted an increase in gross margin to 56% from 48% year-on-year, reflecting a return to normal trading conditions after the impact of Covid-19.

The company confirmed net cash of £7 million on 31 March 2022 against £3.9 million the year before, on the back of its equity fundraise in May 2021, investment in stock and the fashion brand’s profits in HY2 2022.

Sosandar noted a total order rise of 84% to 508,000, along with a climb in active customers of 65% to 223,000 and a 10% uptick in average order frequency to 2.2 times per year.

The group reported a strong start to business in FY 2023 and highlighted momentum from demand for spring and summer fashion as a driver for its sales in Q1 this year.

“We are incredibly proud to be reporting another period of sustained growth for Sosandar. It is thanks to our well-planned approach, together with our entrepreneurial, agile culture that we have delivered a significant increase in revenue, as well as moving into month-on-month profitability,” said Sosandar co-CEOs Ali Hall and Julie Lavington.

“This is an important milestone for us, and having achieved it we are now better positioned than ever for further success. Notwithstanding the current macro-economic environment, trading in the new financial year has started very well, with a record quarter for sales and three further consecutive months of profitability.”

“With the arrival of spring and summer, we have seen our customers seek out a wide variety of product, in particular smart clothes for work, bright colours for holidays and investment pieces such as leather.”

AdEPT Technology Group loss widens to £3m on restructuring costs

Natasha Doris
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AdEPT Technology Group loss widens to £3m on restructuring costs

AdEPT Technology Group shares were up 2.6% to 148.8p in late afternoon trading on Tuesday after the company announced a revenue increase of 18% to £68.1 million in FY 2022 against £57.9 million in FY 2021.

However, Adept Technology Group highlighted a pre-tax loss of £3 million from £500,000 in the previous year linked to restructuring costs, consisting of redundancy, settlement and salary expenses.

The company said the restructuring was set out to create a lower rate of operating costs which would benefit the group in future years.

The firm reported an underlying EBITDA rise of 21% to £11.9 million compared to £9.8 million the last year, alongside an adjusted fully-diluted EPS climb of 23% to 27.5p from 22.3p.

AdEPT Technology Group confirmed a gross profit increase of 17% to £32.4 million against £27.6 million year-on-year and an underlying EBITDA margin of 17%, which remained flat compared to the year before.

The company mentioned a series of operational highlights, including its acquisition of Datrix in April 2021, and the completion of Project Fusion creation of ONE AdEPT, providing a single set of financial and operational systems along with a scalable platform for growth.

The group also noted over 100 new customer wins, such as Multi-Academy Trust, the Co-op and TUC.

“The acquisition of Datrix, in April 2021, significantly extended the Group’s capabilities and enabled AdEPT to increase its potential ‘wallet share’ in the ever-expanding ICT space,” said AdEPT CEO Phil Race.

“The introduction of new partnerships and services that allow AdEPT to tap into the fast-growing markets of Software Defined Wide Area Networking (SD-WAN) and Secure Access Service Edge (SASE) is leading to significant sales successes.” 

Heading into FY 2023, AdEPT Technology Group reported continued momentum from Q4 2022 with strong recurring order intake, alongside an expected growth in demand as a result of client long-term ICT requirements.

The firm added its board was optimistic for the future of the technology market and for the prospects of its AdEPT project.

“The Board is pleased with the progress achieved during the year under review and the Group’s performance in the face of the many, well-documented macro challenges. Given our focus on this aspect of our business the pro-forma organic growth in Cloud Centric Strategic Services is a particular highlight of the period,” said Race.

“During the Period this team secured significant projects with organisations, including Nottinghamshire County Council, the Royal Surrey County Hospital, Public Health England and Trident IP.”

“Our newly developed ONE AdEPT platform enabled the rapid integration of the Datrix business, ahead of plan, and has created a efficient business with a strong infrastructure for growth.”

AdEPT Technology Group reinstated its dividend with 1p per share for FY 2022.

FTSE 100 subdued on falling retail sales and inflation fears

Natasha Doris
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0
FTSE 100 subdued on falling retail sales and inflation fears

The FTSE 100 dipped on Tuesday after a slate of poor trading in the US and Asia rippled across the UK markets as a result of recession fears, inflationary concerns and the knock-on effect of Chinese lockdowns on the global economy.

The market was also subdued by recent retail sales figures, which reported falling sales at a level not seen since the peak of the Covid-19 pandemic.

Rising inflation has put a dampener on consumer spending as 9.1% CPI remains on track to spike as high as 11% in October this year, crippling families and slamming the brakes on non-essential retail purchases.

“The FTSE 100 dipped at the open after weak trading in the US and Asia as investors continue to weigh the risks associated with war in Ukraine, stubborn inflationary pressures and Chinese lockdowns,” said AJ Bell investment director Russ Mould.

“This cocktail of worries is preventing the markets from making any tangible progress. Dire retail sales data for June raises the spectre of recession in the UK as cost of living pressures continue to bear down on household finances.”

Commodities Fall

Meanwhile, the lowered price of copper continued to drag down miners after the metal hit a 20-month low on Monday on recession fears, sinking to $3.41 per pound on the New York Comex market.

Anglo American shares slid 1.7% to 2,676.2p, Antofagasta fell 1.4% to 1,052p, Croda dropped 0.3% to 6,781p, Endeavor dipped 0.8% to 1,641.5p, Glencore sank 1.8% to 418.3p, Fresnillo declined 0.3% to 661.7p and Rio Tinto decreased 1.6% to 4,730.5p.

US Inflation Figures

Investors are set to lock their sights across the Atlantic in advance of the US inflation figures release on Wednesday, which is expected to see inflation reach a new 40-year record above its current high of 8.6% as a result of higher food and energy prices.

The NASDAQ was flat in pre-open trading at 11,878.7, with the Dow Jones down 0.7% to 30,922 and the S&P 500 down 0.4% to 3,839.7.

AIM movers: Great Western Mining JV and eve Sleep recovers

Andrew Hore
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AIM movers: Great Western Mining JV and eve Sleep recovers

Great Western Mining (LON: GWMO) is planning to set up a joint venture with an experienced Nevada mining contractor to process gold and silver from mining waste material. This will come from the company’s Mineral Jackpot and Olympic Gold properties, plus some sourced from the partner and third parties. An operating agreement is being negotiated. A site has been found for the proposed mill and there is an initial design. There has been $100,000 set aside for planning and obtaining permits. The share price has rise 15.7% to 0.1475p.

Mattress retailer eve Sleep (LON: EVE) has jumped 24.1% to 0.9p, although there is no news about the strategic review and formal sale process. The share price 0.65p at the end of June and it is still well below the 1.65p when the strategic review was announced. A lack of cash is hampering growth and eve Sleep needs more funding.  

There were no new disappointments from legal services provider Knights Group Holdings (LON: KGH) in its full year results. The share price had been hit by a profit warning earlier in the year, but organic growth was still 2%. Revenues were 22% higher at £125.6m, thanks to acquisitions, and although profit increased, earnings per share fell nearly 6% to 17.23p due to more shares being in issue. The share price recovered 16.3% to 110.5p.

Kefi Gold and Copper (LON: KEFI) has been awarded two additional exploration licences in Saudi Arabia for a five-year term. They are Jibal Hillit and Qunnah, which have historically yielded grades of 15.3g/t and 46g/t respectively. The licences are 30km apart. The share price is 15% higher at 0.629p.

Market research services provider System1 (LON: SYS1) released full year results and a trading statement for the first quarter to June 2022. The latter reported a one-fifth decline in revenues. This reflects inflationary pressure and tighter marketing budgets. Management is cautious about the rest of the year. System1 is still planning to return £1.5m to shareholders through share buy backs and a tender offer. The shares have fallen 13.6% to 268p.

Investors have had more time to react to the second quarter production update from BlueRock Diamonds (LON: BRD) released yesterday afternoon. The share price fell 2.9% to 8.25p. Lower grades meant that there was a one-third decline in diamond production to 3,570 carats compared to the second quarter of 2021. Bad weather is blamed for the lower grade material being processed. Fewer carats were sold, but this was partly offset by a 35% increase in the average price obtained.

United Utilities to sell renewable energy business for £100m

Natasha Doris
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0
United Utilities to sell renewable energy business for £100m

United Utilities shares were up 1.2% to 1,046.5p in late morning trading on Tuesday following the group’s reported agreement to sell its non-appointed United Utilities Renewable Energy Limited business.

The business will be sold to SDCL Energy Efficient Income Trust for approximately £100 million at enterprise value.

United Utilities confirmed its portfolio consisted of solar, wind and hydro renewable assets, which have been developed since 2014 and comprises 69 MW of renewable green energy generation across 70 sites.

The energy company mentioned the assets would continue to provide long-term green energy to its regulated United Utilities Water and Wastewater business following its portfolio divestment.

United Utilities commented the sale would allow it to recycle its capital employed in the green energy portfolio into the next phase of its net zero progression while continuing to source green energy from its collection of assets.

The transaction is scheduled to close in the coming months, with the Royal Bank of Canada Capital Markets acting as financial advisor to United Utilities and Norton Rose Fulbright acting as legal advisor.

“We are committed to our ambitious carbon pledges and target of achieving net zero carbon emissions by 2030,” said United Utilities CEO Steve Mogford.

“A key part of setting the foundations for that goal has been our renewable energy portfolio that, in recent years, we have built across our UU sites. With the portfolio now fully built-out and operating well, we are excited about the opportunity to recycle our investment in these assets to support the next steps in our plans to achieve net zero.”

“We are confident that SEEIT will be an excellent long-term partner for the UU group, as the UURE asset portfolio moves into the next phase of its life cycle.”

Serica Energy rejects Kistos bid approach

Andrew Hore
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Serica Energy rejects Kistos bid approach

AIM-quoted oil and gas producer Kistos (LON: KIST) has made a bid approach to the much bigger AIM rival Serica Energy (LON: SQZ) in order to create large North Sea-focused oil and gas company worth around £1.8bn that could become a consolidator. The plan would be to move to the Main Market and join the FTSE 250 index.

The proposal is described as a possible offer. Kistos is offering 0.2932 of one of its shares and 246p in cash – 67p distributed by Serica Energy from its cash pile and 179p paid by Kistos. This offer was 90p a share in cash plus 1.29 Serica Energy shares.

Kistos has announced its offer to put pressure on Serica Energy to negotiate. The first approach was in May and later in the month the proposed terms were outlined. Serica Energy says that it has previously rejected the Kistos offer and it made an offer for Kistos which was also rejected.

Serica Energy said in June that average net production in the year to date is in excess of 26,000 barrels of oil equivalent per day. Serica Energy’s production is more than 85% gas, which is equivalent to more than 5% of the UK’s gas production. Serica Energy says that the new energy levy does not cover profit made prior to 26 May. Capital investment will offset a significant amount of the levy cost.

Kistos floated on AIM on 25 November 2020 as a shell at a placing price of 100p a share and in May 2021 bought a Netherlands-focused oil and gas business. The share price has subsequently jumped to 486.5p, including a 5.1% rise today. That values the offer at nearly 470p a share.

Serica Energy shares have risen 12.3% to 342.5p. That is well below the possible offer. Serica Energy is expected to have net cash of around £640m by the end of 2022.

Euro tumbles to 20-year low against the Dollar

Natasha Doris
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0
Euro tumbles to 20-year low against the Dollar

The Euro tumbled to a 20-year low against the Dollar this week, reaching almost parity with the US currency after Russia renewed its threat to turn off the gas supply to Europe.

The resurgence of Russia’s threat has sparked fresh fears of a European recession, with a single Euro equating to $1.0003 in morning trading.

The Euro has fallen 12% against the Dollar in the year-to-date, with the currency also falling on expectations of higher rate hikes by the US Federal Reserve this week, raising the strength of the Dollar.

“Russia’s renewed threat to turn off the gas to Europe has sent the euro tumbling to a 20-year low against the dollar, near parity with its US counterpart, and will only increase the importance of European producers,” said AJ Bell financial analyst Danni Hewson.

The market has voiced concerns that the suspension of the Nord Stream 1 pipeline, which was designed to transport natural gas from Russia to Europe, might become permanent and shut down the supply of vital gas to the continent.

The Pound Sterling also fell against the Dollar to £1 against $1.185, the lowest level since March 2020, after the upheaval left in Boris Johnson’s resignation saw the market struggle under the weight of political uncertainty.

Grafton Group revenue climbs in HY1 on acquisitions pipeline

Natasha Doris
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0
Grafton Group revenue climbs in HY1 on acquisitions pipeline

Grafton Group shares were down 3.9% to 733.9p in early morning trading on Tuesday after the company announced a 13.9% climb in total revenue at constant currency in HY1 2022.

Grafton Group confirmed a reported 12.1% rise in revenue to £1.1 billion in the term against £1 billion year-on-year, excluding the traditional merchanting business in Great Britain that was divested on 31 December 2021.

The firm reported an average daily like-for-like revenue increase of 3.4%, which was complemented by a significant contribution from its acquisitions in Finland, the UK, Ireland and the Netherlands.

Grafton Group highlighted the strong performance of its distribution business in Ireland and the Netherlands, with a more subdued performance in the UK against strong comparators in 2021.

The company pointed out the unwinding of higher margin revenue from retail customers across the UK and Ireland in HY1 2021 that was driven by high demand for home and outdoor space improvements.

The group reported normalised revenue in its retail business in Ireland as its exceptional gains across the Covid-19 lockdown reversed in line with expectations. Meanwhile, the company’s UK manufacturing business demonstrated a strong performance.

Grafton Group further mentioned its share buyback schedule of up to £100 million, which launched in May and is set to conclude by the end of this year.

The company had repurchased £42.8 million in shares at 30 June 2022.

Grafton Group commented it would not be adjusting its FY 2022 operating profit expectations despite the macro-economic volatility weakening its outlook.

The firm added it was currently in the process of finding a suitable replacement for departing CEO and board director Gavin Slark, who is set to continue in the position until 31 December 2022.

“The Group’s overall trading performance was good against a very strong comparator in the first half of last year and our operating profit expectations for the full year are unchanged,” said Slark.

“Notwithstanding current macro-economic risks, our portfolio of resilient high performing businesses has the flexibility to adapt to changing circumstances and is well positioned to outperform.”

“Grafton is in a very strong financial position and, with a pipeline of acquisition opportunities, the Group is well positioned to make continued progress on the delivery of its strategy.”

Plus500 expects revenue and EBITDA to exceed market projections

Natasha Doris
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0
Plus500 expects revenue and EBITDA to exceed market projections

Plus500 shares rose 2% to 1,594p in early morning trading on Tuesday after the firm reported its revenue and EBITDA for FY 2022 were projected to exceed market expectations.  

Plus500 mentioned a revenue growth of 48% to $511.4 million in HY1 2022 from $346.2 million the year before, with an EBITDA rise of 63% to $305.3 million compared to $187.6 million and an EBITDA margin increase of 11% to 60% against 54% year-on-year. 

The company announced a series of highlights over the HY1 period, including the launch of new US operations supported by its positive momentum in recent years, alongside the success of its proprietary technology in accessing market opportunities.  

Its US developments are set to launch a new trading platform for the US retail futures market in HY2 2022 in a move to capitalise on widened market accessibility to the applicable retail audience.   

The group confirmed a customer income level of $339.8 million over the term compared to $379.2 in HY1 2021. 

The fintech company also noted its higher group revenue reflected customer trading performance of $171.6 million from $33 million the last year.  

Plus500 pointed out 57,275 new customers taken on across HY1 against 136,980 in the previous year, with an active customer base of 216,928 compared to 333,940.  

The firm said its global advertising campaign launched over the term served to drive brand awareness and attract a higher level of customers over the medium to long term.  

Plus500 added it was debt free and held cash balances in excess of $950 million on 30 June 2022, with consistently high levels of cash generation.  

As a result, the company confirmed a share buyback scheduled totally approximately $105 million since the start of FY 2022, with 2.6 million shares repurchased at an average price of £14.98 for a total consideration of $51.7 million. 

The company is set to expand into new territories in the coming months through organic investments and planned acquisitions, including entry into the Japanese retail market.  

Plus500 confirmed it was in a positive position for growth after its strong HY1 over the medium to long term as a multi-asset fintech firm.  

“Plus500 continued to outperform in the first half of 2022, supported by positive momentum achieved in recent years and by the power of our market-leading proprietary technology. We made significant progress in delivering against our strategic priorities, in particular the major growth opportunities in the U.S., where we continue to make substantial investment,” said Plus500 CEO David Zruia.

“In addition, the Group continued to deliver outstanding levels of returns to shareholders during the period, through both recent $60.0m dividend payments and our most recent $105.0m aggregate share buyback programmes, which emphasise the Board’s view of the current value of the Company’s shares.”

“Our continued strategic, operational and financial momentum will ensure Plus500 delivers sustainable growth in the medium to long term, enabling the Group to deliver further shareholder value in the future.” 

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