Moonpig shares fall on 17.3% revenue slide, company remains positive for FY 2023

Natasha Doris
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Moonpig shares fall on 17.3% revenue slide, company remains positive for FY 2023

Moonpig shares were down 7.1% in late morning trading on Wednesday after the bespoke greetings cards group announced a 17.3% fall in revenue to £304.3 million in FY 2022 against £368.2 million in FY 2021.

The company suffered from the double-blow of Covid-19 restrictions lowering and the cost of living crisis driving consumers to cut back on the less essential purchases in life, with gift cards falling in demand as customers tightened their belts.

The company reported an adjusted EBITDA slide of 18.7% to £74.9 million compared to £92.1 million, alongside an adjusted EBITDA margin fall of 0.4% to 24.6% from 25% the last year.

Moonpig mentioned a pre-tax profit rise of 21.6% to £40 million from £32.9 million year-on-year, and an adjusted pre-tax profit drop of 30.9% to £51.5 million against £74.6 million.

The gifting products firm noted a 52.5% EPS surge to 9.3p compared to 6.1p.

The group further highlighted a net debt reduction of 27.2% to £83.8 from £115.1 million the year before.

Moonpig drew attention to its acquisition of Buyagift, which is set to deliver a step-change in its gifting proposition for a cash consideration of £124 million compared to a FY 2022 EBITDA of £14 million, and is expected to drive over 20% accretion to annualised adjusted EPS from acquisition.

The company is scheduled to close the transaction by the end of July 2022.

Moonpig commented it was confident in its FY 2023 outlook, and confirmed a strong start to the financial period with an expected revenue of £350 million for the coming year.

The firm mentioned an estimated medium-term mid-teens percentage in underlying revenue growth, with margin trends remaining resilient for the near-to-medium term.

Moonpig also raised its medium-term adjusted EBITDA margin rate to between 25% and 26%.

“Our first full year as a listed company has been another transformational period for Moonpig Group – financially, operationally and strategically. We have significantly outperformed the targets set out at IPO, and recently announced the proposed acquisition of Buyagift, which will accelerate our journey to becoming the ultimate gifting companion,” said Moonpig CEO Nickyl Raithatha.

“We remain confident in the outlook for the current year, with our loyal customers continuing to rely on Moonpig to connect with loved ones at moments that matter. The long-term opportunity remains vast and we have never been in a better position to capture it.”

Moonpig did not declare a dividend for FY 2022 due to its decision to reinvest its earnings in the company’s growth instead.

Capita on track to deliver 1% revenue growth in FY 2022

Natasha Doris
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Capita on track to deliver 1% revenue growth in FY 2022

Capita shares were down 4.6% to 26.9p in early morning trading on Wednesday following a reported 1% revenue growth estimation in HY1 2022.

The company attributed its expected rise to a 2% climb in its public service division, alongside a 3% fall in its experience division revenues and a 5% growth in its portfolio division as businesses recovered from Covid.

Capita announced several significant contract wins in HY1, including the renewal of its BBC TV licensing contract valued at £456 million, an extension of its PSCE contract for £94 million and additional work for the Northern Ireland Education Authority for £51 million.

The firm also reported a new contract with ScottishPower worth £63 million over five years.

The group mentioned strong total contract value performance for its education sector throughout the period, with its pipeline remaining strong heading into the coming financial term.

Capita noted it had delivered on all its key milestones to date for its Royal Navy contracts, and highlighted the commencement of its Royal Navy Maritime Composite Training System, along with the launch of its Aviation Fire Programme at the Fire Service College.

The business commented it would continue to target cost savings, including a reduction in its property expenses assisted by its ‘virtual first’ approach to office work systems.

The company said it would further continue to reduce its debt via the disposal of non-core businesses, and drew attention to its three additional processes launched since the start of 2022, with the remaining portfolio businesses scheduled for disposal by the end of the year.

Capita confirmed the disposal of Secure Solutions and Services, AMT Sybex, Speciality Insurance and Trustmarque so far in 2022, resulting in over £750 million from previously announced disposals, in excess of its £700 million target and six months ahead of schedule.

The group commented it expected its profits for FY 2022 to be significantly weighted in HY2, with a reduced EBITDA margin reflecting the FY impact of previous contract losses, structural decline and its closed book Life and Pensions business, alongside operational changes in its Army Recruitment Contract.

Capita mentioned it remained on track to deliver positive free cash flow in 2022, with a continued material reduction in net debt expected by the end of the year.

“I am pleased with the progress we have made across Capita since the start of the year. Our operational performance remains strong, with impressive levels of delivery across our client base; and we have secured important contract renewals and new work,” said Capita CEO Jon Lewis.

“Our financial performance has remained in line with our expectations, as we have maintained revenue growth in 2022, while continuing to reduce debt and strengthen the balance sheet.”

“We continue to expect further strong progress in the second half of the year in revenue, profit and cash flow generation.”

B&M on track to hit FY 2023 guidance, revenues slide in Q1

Natasha Doris
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B&M on track to hit FY 2023 guidance, revenues slide in Q1

B&M shares were up 0.8% to 382.9p in early morning trading on Wednesday after the company announced it was on track to hit its FY 2023 EBITDA of £550 million to £600 million in the firm’s Q1 trading update.

B&M announced a 2.2% fall in group revenue on a constant currency basis across the term of £1.16 billion from £1.18 billion, however it pointed out an improving trend over the quarter.

The company reported core B&M UK fascia one-year like-for-like revenue decreased 9.1% for the period.

However, due to exceptionally high sales in April 2021, the firm broke its trading into two separate blocks, with the five week trading period of April 2022 recording a like-for-like revenue slide of 19.1% and the eight week trading throughout May and June noting a like-for-like revenue decline of 1.6%.

B&M said its Herron Foods business performed well across the term, exceeding management expectations with a year-on-year revenue of £113 million against £102 million.

The discounter confirmed its French sector produced strong like-for-like revenue growth with particularly promising returns from its gardening and leisure sectors. The French branch announced a Q1 2023 revenue of £91 million compared to £68 million in Q1 2022.

B&M also launched its online trial in the UK with 1,000 SKUs available for home delivery to customers.

The company announced 1,125 stores across the business against 1,097 the last year, with B&M UK climbing to 705 from 684, France growing to 109 outlets from 105 and Heron Foods rising to 311 compared to 308.

Appreciate Group (App) Finals: A platform to grow

Jon Levinson
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Appreciate Group (App) Finals: A platform to grow

Appreciate Group (App) have improved 4% to 29p which is a Mkt Cap: £54m after reporting finals to March ’22. Both Division’s reported that profitability had recovered strongly for a combined profit of £8.4m from £2.3m.  Revenue increased 15.4% to £123.3m with the corporate division particularly strong. Appreciate is a leading multi-retailer redemption provider for  gifting, pre-payment, and customer loyalty engagement company. It owns a range of marketing brands, designed to connect customers to its products and services at a ‘special price’ for Consumers and Corporate.&nbs...

Mediazest revenue grows to £1.4m as projects recommence post-Covid

Natasha Doris
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Mediazest revenue grows to £1.4m as projects recommence post-Covid

Mediazest shares fell 7.1% to 0.07p in late afternoon trading on Tuesday following a 66% growth in revenue to £1.4 million compared to £846,000 in HY1 2022 as a result of easing Covid-19 restrictions and client projects recommencing.

The firm reported a gross profit increase of 84% to £756,000 compared to £410,000, along with a gross margin rise of 54% against 48% the last year.

Mediazest mentioned a climb in administrative expenses of 35% to £618,000 from £459,000 the year before linked to the furlough scheme ending and staff returning to the office as hybrid working kicked off.

The company announced a EBITDA of £138,000 against a loss of £49,000 year-on-year, alongside a net post-tax profit of £40,000 compared to a loss of £160,000 in the previous year.

The group noted cash and cash equivalents of £46,000 from £16,000 as of 31 March 2022.

Mediazest highlighted a strong outlook for FY 2022, with its long-term clients expanding the range and number of deployments with the firm and new opportunities emerging in Europe, with the board currently in the process of establishing an office in mainland Europe to better capitalise on new opportunities and facilitate project delivery post-Brexit.

The company confirmed strong recurring revenue streams, alongside the addition of new clients as it eyes potential acquisitions in a bid to unlock shareholder value.

Mediazest commented it remained aware of macroeconomic headwinds, however it reported strong demand across its sectors and estimated growth in FY 2022.

IG Design Group profits fall on cost inflation, eyes growth in FY 2023

Natasha Doris
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IG Design Group profits fall on cost inflation, eyes growth in FY 2023

IG Design Group shares soared 20% to 81.6p in late afternoon trading on Tuesday following a growth in revenue to $965.1 million in FY 2022 against $873.2 million in FY 2021.

IG Design Group attributed its revenue climb to strong demand for its products and focus on delivering customer commitments.

The company announced an adjusted pre-tax loss of $1.3 million compared to an adjusted pre-tax profit of $32.8 million, along with a reported pre-tax profit of $2.2 million from a reported pre-tax profit of $14.7 million in the previous year.

The firm highlighted supply chain and cost inflation issues as the main factor behind its drop in profits, alongside a lack of freight availability throughout the financial year.

IG Design Group mentioned a net cash at year end fall to $30.2 million from $76.5 million as a result of increased costs and working capital requirements.

The company noted that a recent banking covenant amendment to March 2023 and a facility extension to March 2024 had secured access to financing to support its working capital requirements.

The design company confirmed a strong order book for FY 2023, which is currently at 71% of budgeted revenues, indicating continued demand and positive customer relationships.

The firm added that it was passing on cost inflation to customers where possible, resulting in a minor operating margin improvement estimated for FY 2023.

The company also commented that higher financing costs were expected linked to revised banking facilities and a maintained higher working capital as the group looked to manage its higher cost environment heading into the next term.

“The extent of the impact of the inflation and supply chain challenges in FY2022 have given us cause to re-examine our business, and we are therefore laying out today a foundation for a strategy with a clear focus on restoring profitable and sustainable growth,” said IG Design Group interim executive chair Stewart Gilliland.

“While it will no doubt evolve further over the coming months, the Board and wider management team are fully aligned, focused on mitigating cost pressures and creating a more resilient business.”

“This will provide a stronger base on which we can build in the future.”

IG Design Group reported a dividend of 1.7c per share from 11.8c per share in FY 2022.

OptiBiotix revenues rise to £2.2m on Probiotics & Prebiotics success

Natasha Doris
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0
OptiBiotix revenues rise to £2.2m on Probiotics & Prebiotics success

OptiBiotix shares were up 0.8% to 20.6p in late afternoon trading on Tuesday following a reported 45.3% rise in revenue to £2.2 million against £1.5 million in FY 2021.

The firm announced a 27.7% increase in gross profit to £1.1 million from £879,000, alongside a climb in its Probiotic business sales of 34% to £1.1 million compared to £800,000 with a 92.6% spike in underlying profit sales year-on-year.

OptiBiotix confirmed its Prebiotics business sales grew 59.3% to £1.1 million against £600,000 the year before, with underlying sales rising by 122%.

The company mentioned both its Prebiotics and Probiotics sectors experienced profitable trading with EBITDAs of £13,000 and £179,000, respectively.

The group further noted a significant increase in the value of its holding in SkinBio therapeutics from £8.9 million to £13.7 million, resulting in a group net profit of £6.3 million compared to £5.8 million in the previous year.

OptiBiotix reported a total cash on balance sheet at the close of 2021 rise of 122% to £2 million from £900,000 year-on-year.

“With our products winning awards in several jurisdictions and an increasing number of large companies like The Hut Group, Holland and Barrett, AlfaSigma, Apollo Hospitals, and Nahdi Medical using our products, we are in strong position for further growth” said OptiBiotix CEO Stephen O’Hara.

“With no debt, a healthy balance sheet, a growing reputation within the industry, second-generation products close to commercialisation, and growing consumer interest in the microbiome and gut health, the Company is in a strong position for continued growth in this exciting area of healthcare.”

Coro Energy shares fall on $7.5m loss

Natasha Doris
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0
Coro Energy shares fall on $7.5m loss

Coro Energy shares were down 8.7% to 0.2p in early afternoon trading on Tuesday after the group announced a total loss of $7.5 million in FY 2021 against $11 million in FY 2020.

Coro Energy highlighted a pre-tax loss from continuing operations of $6.5 million from $8 million the year before, and an overall pre-tax loss of $1.6 million against $1.1 million.

The company reported a loss from discontinued operations of $1.5 million compared to $2.1 million last year, alongside a loss from operating activities of $3.5 million from $3 million year-on-year.

The energy firm noted a selection of highlights across the year, including its acquisition of an early stage South East Asian renewable energy portfolio with an initial focus on the Philippines as part of the group’s efforts to develop its green energy assets.

It also announced a new partnership in Vietnam with Vihn Phuc Energy to develop rooftop solar projects and initiated a 3 MW pilot including signing a 25-year Power Purchase Agreement for the pilot.

The company further raised net proceeds of approximately $5.5 million through a placing and open offer to fund the firm’s low carbon energy investments.

Coro Energy mentioned the relaunching of its producing Italian gas portfolio against the backdrop of recent structural changes in European gas prices, and highlighted its continued progress towards commercialising the Mako gas field in which it holds a 15% interest.

“Underpinned by its strong Italian production and four institutional lenders, Coro’s shareholders are exposed to a leveraged play on the oil price,” said Coro Energy chairman James Parsons.

“Our strategy remains to monetise the Duyung PSC, use the Italian cash flows, which more than covers the Company’s G&A costs, and invest selectively in South East Asian renewables and high graded Italian production enhancement opportunities.”

“Recent volatility in energy markets have presented huge opportunity to Coro with the re-birth of the Italian portfolio alongside a significant uplift in the core NAV of its position in the Duyung PSC. It is in this context that we are delighted to present our annual report and accounts to shareholders.”

Coro Energy did not declare a dividend for FY 2021, following its decision not to issue a dividend in FY 2020.

FTSE 100 rises 1% as miners soar on $600bn G7 fund

Natasha Doris
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0
FTSE 100 rises 1% as miners soar on $600bn G7 fund

The FTSE 100 was up over 1% in early afternoon trading on Tuesday as markets were pulled up by mining companies on hopes of growing future demand for raw materials.

The G7 $600 billion plan to fund infrastructure in developing countries over the next five years served to send commodities groups surging as investors leapt to the sector.

“Periods when the FTSE 100 rises in the region of 1% in a day should be celebrated given how this year has been so gloomy for investors. Today, the fireworks are most definitely lighting up the sky and the UK market is regaining its mojo,” said AJ Bell investment director Russ Mould.

“Miners revved their engines yesterday following the G7 $600 billion infrastructure plan and were striking more gold today as investors continue to flock to the sector.”

Anglo American shares gained 1.8% to 3,191.7p, Antofagasta rose 0.3% to 1,227.2p, Croda saw an uptick of 0.4% to 6,409p, Endeavor increased 1.4% to 1,770.5p, Glencore soared 2.7% to 465.1p and Rio Tinto climbed 3% to 5,202.5p.

The price of oil increased to $117 per barrel for benchmark Brent Crude, sending Shell and BP shares up 3.2% to 2,181p and 3% to 403.3p, respectively.

China eases Covid-19 restrictions

Meanwhile, China-focused stocks saw an uptick as the Chinese government eased Covid-19 quarantines to ten days rather than three weeks for visitors entering the country.

Asia-focused insurance company Prudential gained 3.4% to 1,044.2p and the Hang Seng increased 0.8% to 22,418.9.

The prospect of fewer disruptions to global production also served to boost US markets, with NASDAQ pre-market trading up 0.5% to 12,099.7 and the Dow Jones up 0.5% to 31,604.

“Perhaps helping the cause was news that China would reduce the Covid quarantine period for visitors from overseas, perhaps a sign that the Asian superpower’s extra tough pandemic measures might be relaxed going forward,” said Mould.

“That would help to alleviate fears that commodities demand would be weaker from China if it shut up shop every time a new Covid wave came.”

Utilities fall

Utilities dropped as JP Morgan downgraded Severn Trent, with the group’s shares falling 4.9% to 2,711.5p. The move triggered a dip in United Utilities shares, which dipped 1.2% to 1,021.7p.

“Utilities were out of fashion following a broker downgrade on Severn Trent,” said Mould.

“JPMorgan moved to an ‘underweight’ position on the stock, triggering a 4.2% decline in the share price. United Utilities fell in sympathy.”

The pathway to production and beyond with Alien Metals

UK Investor Magazine
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The pathway to production and beyond with Alien Metals

The UK Investor Magazine team was delighted to welcome Bill Brodie Good, CEO at Alien Metals, to the Podcast ahead of our Summer Investor Evening this week. Register for your spot here.

The Alien Metals CEO provides a comprehensive overview of the company and their key projects.

Bill starts by detailing their Mexican and Australian jurisdictions and what attracts him to operations in the countries.

We progress to Alien Metals’ individual projects. Alien Metals has a diverse portfolio of assets focused on PGMs, gold, silver, and iron ore. The Hancock iron ore has the potential to begin production next year which would provide significant cashflow to further grow Alien’s portfolio.

Bill outlines Alien’s strategy and business model, and how they are navigating the challenges created by today’s markets.

Bill Brodie Good will present at the UK Investor Magazine Summer Investor Evening. Register for your spot here.

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