Trustpilot Group shares plummet despite 25% revenue climb

Natasha Doris
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Trustpilot Group shares plummet despite 25% revenue climb

Trustpilot Group shares plummeted 21.8% to 73.3p in late afternoon trading on Thursday despite a reported 25% total revenue climb at constant currency to $73 million in HY1 2022 against $62 million in HY1 2021 in its latest trading update.

The group confirmed an annual recurring revenue (ARR) rise of 23% to $149 million compared to $134 million.

Trustpilot further mentioned a 22% increase in total bookings to $87 million from $75 million over the financial term.

The company said its total bookings reflected continued strength in the UK, Europe and rest of the world, alongside an 8% constant currency revenue growth in North America, where Trustpilot commented it expected its new market strategy to start delivering an acceleration in bookings growth starting in HY2 2022.

Trustpilot added that despite the volatile macro-economic environment, it anticipated constant currency revenue rises in line with previous expectations, and reiterated its outlook for adjusted EBITDA and breakeven in FY 2024.

SSP Group revenues climb to 87% of 2019 levels as transport recovery continues

Natasha Doris
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0
SSP Group revenues climb to 87% of 2019 levels as transport recovery continues

SSP Group shares were down 2.5% to 230.9p in late afternoon trading on Thursday after the travel food firm announced a revenue climb to 87% of 2019 levels in its Q3 2022 trading update.

The group reported its revenue was driven by an ongoing recovery in passenger numbers and longer passenger presence times in markets.

SSP Group confirmed its recovery had been led by domestic and leisure travel in its air and rail segments, with a slower rate of rail commuter recovery.

The company added it had seen good recovery across all regions, with sales in continental Europe leading its revenues with 93% of 2019 levels.

The firm noted a 91% level of 2019 sales in North America, 82% in the UK and an average of 75% across the rest of the world, with strong performances in India, Australia and Thailand.

However, SSP Group mentioned lower levels of recovery in China and Hong Kong linked to ongoing travel restrictions across both sectors.

The SSP Group highlighted an average of 72% 2019 revenue levels for the nine months from 1 October 2021 to 30 June 2022.

The company said its outlook saw it well-positioned to navigate the macro-economic uncertainty in the coming year, notwithstanding the current challenges of airport disruptions, labour shortages and industrial action in certain air and rail markets.

SSP Group commented its medium-term expectations for profitability remained unchanged, with its pipeline of contracts expected to add approximately £500 million in revenues by 2025 against 2019 levels.

The company further mentioned it expected to deliver sales in the general estimate of £2.1 billion and an EBITDA margin at the upper end of SSP Group guidance at 6%.

Dr Martens trading in line with expectations as Covid recovery continues

Natasha Doris
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0
Dr Martens trading in line with expectations as Covid recovery continues

Dr Martens shares were up 0.1% to 240.8p in late afternoon trading after the footwear company reported its trading was in line with market expectations.

The firm announced in its Q1 2023 trading update that Ecommerce was in line with Q4 2022, with a continued recovery in retail.

Dr Martens mentioned an increase over 85% of the FY financial term in its wholesale order book.

The company also noted the implementation of its AW22 price rises from early July, alongside the opening of 10 new stores over the period.

Dr Martens confirmed its third-party factories were open and operating at 90% to 95% planned capacity, along with a reported steady improvement in shipping lead times.

AIM movers: Kibo Energy extends power purchasing agreement and EQTEC falls after cash call

Andrew Hore
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AIM movers: Kibo Energy extends power purchasing agreement and EQTEC falls after cash call

Kibo Energy (LON: KIBO) has extended a power purchasing agreement in Gauteng, South Africa from ten to 20 years. This is for a waste to energy plant held by the 65%-owned subsidiary Sustineri Energy. The internal rate of return for the project is increased from 11-14% to 15-18%. Construction will start in the first quarter of 2023, and it could take just over one year to complete.  The Kibo Energy share price has risen by one-quarter to 0.125p.

EQTEC (LON: EQT) shares have slumped following the £3.75m fundraising at 0.5p a share This was announced at the end of yesterday’s trading although the share price did fall from 0.725p to 0.65p. Today, it has fallen below the placing price and it is 26.9% lower at 0.475p. The cash is required to push ahead with clean energy generation projects.

Atalaya Mining (LON: ATYM) reported second quarter copper production below forecast at 13,400t. Guidance for the full year has been reduced by 4% to 52,000t-54,000t. Costs will be 5%-10% higher even though a Spanish energy price cap is in force. The share price slumped 12.9% to 247.5p.

Quieter trading conditions meant that first half figures from broking services provider Jarvis Investment Management (LON: JIM) were lower, although this is not a great surprise. Revenues fell 23% to £6.3m and pre-tax profit fell by one-third to £3.1m. Net cash has risen to £4.2m. WH Ireland has cut its 2022 pre-tax profit forecast from £7.3m to £7m. Jarvis Investment Management shares fell 16.7% to 161.5p. A second quarterly dividend of 3p a share had already been declared.

LifeSafe Holdings (LON: LIFS) joined AIM on 6 July and raised £3m in a placing at 75p. the share price went to a small premium, but it has fallen back, and it is down a further 13% to 60.5p today. All but one of today’s six trades are sells. The other is a deal that is worth less than £100 and classed as unknown. LifeSafe has developed fire safety products, using eco-friendly fluid.

TransGlobe Energy Corporation (LON: TGL) is merging with VAALCO Energy (LON: EGY) to create an Africa-focused exploration and production company. VAALCO is offering 0.6727 of one share for each TransGlobe share. TransGlobe shareholders will own 45.5% of the enlarged group. The transaction is valued at $307m. TransGlobe shares are 23.6% higher at 325p. VAALCO Energy shares have fallen by 4.32% to 498p.

Appreciate Group (LON: APP) chief executive Ian O’Doherty is leaving the board, which means that the redemption product provider does not have a permanent finance director or chief executive. The business has been reorganised since 2018 and the benefits are starting to show through. The share price has been relatively strong this year, but it fell 6.3% to 28.2p on the news.

Portmeirion Group (LON: PMP) remains cautious about the outcome for 2022, although analysts have maintained their full year forecasts. The share price indicates investor concerns and fell 10.4% to 367.5p. The first half trading statement of the homewares supplier states that interim revenues will be 5% higher at £45m. Shipping costs are reducing, although other costs have risen. Full year forecast revenues are 3110m and pre-tax profit is £10.1m, although this is dependent on fourth quarter trading.

Ex-dividends

Anpario (LON: ANP) is paying a 7p a share final dividend and the share price fell 5p to 525p.

Character Group (LON: CCT) is paying a 7p a share interim dividend and the share price is unchanged at 495p.

Caledonia Mining Corp (LON: CMCL) is paying a quarterly dividend of 14 cents a share and the share price fell 25p to 895p.

Crystal Amber Fund Ltd (LON: CRS) is paying a final dividend of 10p a share and the share price fell 4p to 112p.

D4T4 Solutions (LON: D4T4) is paying a final dividend of 2.07p a share and the share price fell 1p to 242.5p.

Elixirr International (LON: ELIX) is paying a final dividend of 4.1p a share and the share price fell is unchanged at 605p.

Oil and gas producer i3 Energy (LON: I3E) is paying a dividend of 0.1425p a share and the share price fell 0.275p to 23,875p.

Kitwave Group (LON: KITW) is paying an interim dividend of 2.5p a share and the share price fell 3.25p to 175.25p.

Marks Electrical (LON: MRK) is paying a final dividend of 0.67p a share and the share price fell 1p to 80.5p.

MS International (LON: MSI) is paying a final dividend of 7.5p a share and the share price fell 5p to 287p.

Sanderson Design (LON: SDG) is paying a final dividend of 2.75p and the share price fell 3p to 113.5p.

Shoe Zone (LON: SHOE) is paying an interim dividend of 2.5p a share and the share price fell 5p to 165p.

The Mission Group (LON: TMG) is paying a final dividend of 1.6p a share and the share price fell 0.5p to 56.5p.

FTSE 100 dips on lower commodities prices

Natasha Doris
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0
FTSE 100 dips on lower commodities prices

The FTSE 100 was down 0.7% to 7,099.8 in midday trading on Thursday after commodities prices fell and dragged mining groups down.

Anglo American shares declined 3.5% to 2,590p, Antofagasta dropped 1.2% to 1,029p, Endeavor slid 0.7% to 1,643.5p, Fresnillo fell 1.5% to 673.8p, Glencore decreased 1.9% to 410.3p and Rio Tinto sank 3.1% to 4,640.2p.

Meanwhile, the price of Brent Crude fell below the $100 per barrel mark which it had been so tenaciously remaining ahead of, dropping to $97 per barrel.

Shell shares fell 2.1% to 1,959.4p and BP shares dipped 1.8% to 370.3p on the sinking oil prices.

The bad news for commodities marked a slight relief for other companies on the index, as the lowering prices in materials represented a lower cost base for firms which have been struggling to keep their heads above water among surging cost inflation.

“As Morrissey woefully sang, ‘Stop me if you think you’ve heard this one before’. Investors are getting sick of hearing about inflation, interest rates and falling stock markets. While that tune is still playing loudly, some of the pains we’ve seen over the past year are starting to fade,” said AJ Bell financial analyst Danni Hewson.

“Commodity prices are easing back, implying input cost pressure will relax slightly. Shipping rates are also starting to fall, albeit due to softening demand.”

“Although it will take time for these factors to feed through into the system, the end of sky-high inflation could be in sight. It will hopefully soon be time to change the record, but for now, The Smiths’ song looks like it is stuck on repeat for just a bit longer.”

Barratt Developments

Barratt Developments shares were down 0.4% to 463.3p after the housing group announced an expected FY 2022 profit slightly ahead of market expectations between £1.05 to £1.06 billion.

The company further mentioned a return to pre-pandemic levels of completion with 17,908 completions compared to 17,243 the last year.

However, cost inflation took a toll on Barratt’s, with the group confirming a 6% rate of build cost inflation and levels currently at around 9% to 10%.

“Britain’s largest housebuilder, Barratt Development’s latest update is indicative of both the opportunities and challenges facing the sector right now,” said Hewson.”

“House prices may have risen rapidly enough to cover these higher costs so far but Barratt, like its peers, is running just to stand still in terms of profitability and there is a significant risk that raw material and labour costs continue to grow.”

“At least, unlike Persimmon, it is not being forced to downscale its volume targets just yet, suggesting its relationships with suppliers, procurement strategy, simplified build process and attractiveness as an employer are paying off.”

Severn Trent projects £50m in ODI outperformance payments for FY 2023

Natasha Doris
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0
Severn Trent projects £50m in ODI outperformance payments for FY 2023

Severn Trent shares were down 0.3% to 2,827p in late morning trading on Thursday following an announcement that the group expected at least £50 million in customer ODI outperformance payments in FY 2023 in its trading update.

The utilities company reported a rise in operating costs outlined in its technical guidance, in particular for its energy and chemical expenses.

Severn Trent said its environmental performance remained on track to match or exceed its target on 100% of its ODIs for the financial year.

The group also noted its was confident in retaining its four-star Environmental Performance Assessment Rating for 2021, and expected confirmation from the Environment Agency in the near term.

The firm mentioned it was benefiting from its decade of investment in renewable energy, with 145 GWh in green energy generated in Q1, equating to over 50% of its consumption and representing a 4% growth against Q1 2021.

Severn Trent commented it expected to release its updated Sustainable Financing Framework on its website in July, detailing its environmental, social and governance performance and targets, enabling the utilities company to raise financing for sustainable investment and expenditure.

Barratt Developments expects FY 2022 profits slightly ahead of market expectations on higher house prices

Natasha Doris
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Barratt Developments expects FY 2022 profits slightly ahead of market expectations on higher house prices

Barratt Developments shares were down 0.9% to 460.9p in late morning trading on Thursday, after the company announced an underlying pre-tax profit slightly ahead of market expectations between £1.05 billion and £1.06 billion in its FY 2022 trading update.

The housing developer reported a return to pre-pandemic completion levels, with 17,908 completions over the financial term against 17,243 the previous year.

The company noted total completions were impacted by the deferral into FY 2023 of a London apartment block comprised of 221 homes, reflecting resource delays in the construction process.

Barratt Developments highlighted an average selling price for private homes up to £341,000, rising to £375,400 for houses sold in the forward order book.

“Another housebuilder, another set of results pointing to resilient housing demand. Completions were slightly lower than expected but came in ahead of pre-pandemic levels,” said Hargreaves Lansdown equity analyst Matt Britzman.

“More crucially though, demand looks to be holding up in the forward order book despite rising house prices.”

“Testament to the ongoing resilience of the private house buyer, seemingly undeterred by a drop in real income as inflation and a cost-of-living crisis start to take their toll.”

The firm also mentioned build cost inflation of 6% across the period, although the level is currently at 9% to 10%.

“It almost feels inevitable that a broader easing of demand is on the cards given the wider conditions and news that build costs are running 9-10% higher at the minute is a little hard to stomach,” said Britzman.

“Nonetheless, Barratt’s doing all it can to make hay while the sun shines, with a significant increase in the value of land buying last year – propped up by a very healthy net cash position on the balance sheet.”

“Not for the first time, planning delays are being called out as a headwind – not something housebuilders want to battle with given everything else that’s going on.”

Barratt Developments commented it intended to declare an ordinary dividend based on FY 2022 dividend cover of 2.25 times its adjusted net income.

Experian Q1 revenues grow 7%, on track to meet FY revenue expectations

Natasha Doris
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0
Experian Q1 revenues grow 7%, on track to meet FY revenue expectations

Experian shares were up 1.5% in early morning trading on Thursday after the company reported a 7% revenue growth at actual exchange rates and a 9% rise in constant exchange rates in its Q1 2023 trading update.

“We grew strongly in Q1, in line with our expectations, underpinned by our portfolio diversity and growth initiatives,” said Experian CEO Brian Cassin.

“Total revenue growth was 7% at actual exchange rates and 9% at constant exchange rates. Organic revenue growth was 8%.”

Experian highlighted an 8% revenue climb in North America, 30% in Latin America, a 6% drop across the UK and Ireland, an 8% slide in Europe, the Middle-East, Africa and the Asia-Pacific, and a total global revenue growth of 7% at actual exchange rates.

The firm mentioned 65% of its revenue was linked to North America, with ongoing strength in bureau volumes, positive demand for analytics and software, expansion in health, targeting, automotive and verification services, alongside continued momentum from consumer services.

Experian noted 13% of its revenue came from Latin America and was driven by contributions from acquisitions in fraud and identity management, consumer services with an organic revenue of 42%, and from its new bureau in Chile.

It also reported strong performance in its Limpa Nome credit collection marketplace and credit comparison marketplace.

The company pointed out weakened macro-economic factors in its UK and Ireland business, yet drew attention to a 6% organic growth in its B2B operations reflecting new business traction and progress in consumer credit, business credit and fraud and identity management segments.

Meanwhile, Experian reported weak macro-economic conditions across the EMEA and Asia-Pacific regions, and commented it continued to focus on strategic markets where it could drive scale and enhance operating efficiency.

The information services group confirmed its expectations for FY 2022 remained unchanged, with an anticipated organic revenue increase of 7% to 9% and total revenue growth of 8% to 10% at constant exchange rates.

Anglo American launches steel decarbonisation partnership with Nippon Steel

Natasha Doris
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0
Anglo American launches steel decarbonisation partnership with Nippon Steel

Anglo American shares were down 1% to 2,657p in early morning trading on Thursday following its announced partnership with Nippon Steel to decarbonise the steelmaking process.

The two companies reportedly signed a Memorandum of Understanding (MoU) in a move to research methods to optimise premium lump ore produced by Anglo American’s mines to decrease emissions created using the traditional blast furnace steelmaking process.

Anglo American commented the partnership would study the use of its iron ore in a more carbon-efficient direct reduction iron (DRI) steelmaking method.

The mining firm claimed the DRI method was estimated to generate significantly lower emissions than the established way of blast furnaces and basic oxygen furnaces.

The partnership follows Anglo American’s October 2021 Climate Change Report, which included an aim to reduce Scope 3 emissions by 50% by 2040, building on previous commitments made earlier in the year.

The company said it recognised the steel value chain as key to hitting its goals due to the bulk of its Scope 3 emissions coming from the process.

Anglo American noted its report outlined a holistic approach to achieving its target, and involved working with customers to accelerate the decarbonisation programme across multiple layers to develop high quality products to lower rates of emissions.

“This agreement is an important component of Anglo American’s approach to collaborating with our customers and helping to shape a greener future for the backbone of global infrastructure – steel,” said Anglo American marketing business CEO Puter Whitcutt.

“By working together, we can drive towards system-level decarbonisation and pave the way for sustainable steelmaking, underpinning the steel industry’s full potential as an enabler of society’s wider economic prosperity and social development.”

“We look forward to collaborating on this important work with Nippon Steel, with whom we have a relationship that spans more than five decades, combining our expertise for more efficient and less carbon intensive production processes.” 

ValiRx plans to in-licence potential breast cancer treatment

Andrew Hore
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ValiRx plans to in-licence potential breast cancer treatment

Cancer treatments developer ValiRx (LON: VAL) says that it wants to in-licence a triple negative breast cancer project undertaken by King’s College London following a successful evaluation.

The share price jumped by 20.9% to 13p, although the share price is still 64.1% lower than at the start of the year. At the turn of the month, ValiRx raised £2.5m at 10p a share.

The evaluation confirmed the impact of a peptide drug candidate against triple negative breast cancer. This took nine months and “there is good evidence of biological activity. There are also signs that it could work for ovarian cancer cells.

Commercial terms have been pre-negotiated, and the project will be put into a new subsidiary. The evaluation cost around £75,000. Pre-clinical work on the project could cost around £500,000.

Cenkos expected ValiRx to have net cash of £817,000 at the end of 2022, but that was before an additional £1m was raised. That should be enough to fund the pre-clinical trial and to finance the rest of the business well into 2023. Although, it may depend on how other projects progress.

There are three potential treatments for cancer and sepsis that have partners or where one is being sought. A potential endometriosis treatment (VAL301) will be starting pre-clinical studies. This is a re-purposed version of the molecule used in the VAL201 potential prostate cancer treatment, where there is a letter of intent with TheoremRx.

There are two other potential assets. There is an agreement with the University of Barcelona concerning the investigation of drugs that can be used against Kirsten Rat Sarcoma Virus dependent cancers, such as uterine or pancreatic. There is around eight months to go on this programme and it will cost up to £100,000. There is also an agreement with Hokkaido University in Japan to evaluate a drug candidate for endometrial, pancreatic and bile duct cancers. There is another six months to go and it will also cost up to £100,000.

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