Osirium’s Privileged Access Management security software was picked by the new customer, a worldwide investment bank located in New York and listed on the New York Stock Exchange.
By controlling internal and third-party accessibility to vital servers, apps, and networking equipment, Osirium’s services will protect the client’s IT system from potential attacks such as ransomware attacks.
This deal was offered through reseller HIC Global in collaboration with software firm Prianto, which has a strong cybersecurity footprint with mid-market clients in the UK, Europe, and North America.
Prianto has received different contracts with Osirium for its Privileged Access Management and Privileged Endpoint Management services after recently partnering with the company.
While the deal is not intended to have a large influence on the group’s profits in the current financial year, the company’s directors believe it is strategically essential in indicating potential demand for the group’s products in the United States.
David Guyatt, Chief Executive Officer, Osirium Technologies, said, “We are delighted to announce this first win in the USA, which represents further evidence of the opportunity to grow outside of the group’s core UK market.”
“This contract is strategically important and shows good referenceability as we continue to expand our footprint in this important region while working with our network of partners like Prianto to make it easy for customers to do business.”
“This network forms a core element of the group’s strategy, both domestically and internationally, and extends the Group’s reach across the five continents in which it operates.”
“In line with the maturation of the privileged security market alongside the broadening of the group’s network, Osirium expects to see a continued healthy pipeline of greenfield opportunities, both in the UK and overseas.”
Imperial Brands announced higher interim dividends in its half-year results, however, the group noted a fall in operating profit owing to the charges from the exiting Russia on Tuesday morning sending Imperial Brands shares to gain 6.5% to 1,824p.
Imperial Brands recorded a fall of 1.3% in reported net revenue from £15.6bn to £15.4bn in H1 2022 due to lower excise duty in Europe. However, next-generation products (NGP) net revenue grew 8.7% to £101m with support from progress in Europe.
The group’s overall volumes saw a decrease of 0.7% due to reductions noted in Europe which were offset by strong volume performance in the USA, Middle East and Australia.
However, in 2021, the group had sold its cigar business which generated £281m contributing to the total of £1.64bn then.
The tobacco company’s group adjusted operating profit grew 2.9% on a constant currency basis due to reduced losses in NGP reflecting the prior year’s market exits.
Imperial Brands noted a drop of £0.8bn in pretax profit from £2.06bn to £1.26bn in H1 2022.
The group’s reported EPS declined by 45% to 105.2p from 191.2p due to lower reported operating profit and lower finance income as Imperial attempted to limit its impact from unhedged currency exposures on financial instruments.
However, on a constant currency basis, adjusted EPS for Imperial Brands rose 7.7% to 113p from 107p as a result of growth in adjusted operating profit and a reduction in the tax rate to 21.9% owing to favourable results in many tax authority audits.
The group’s cash conversion was strong at over 102% which helped the deleverage momentum and Imperial’s net debt declined by £1.2bn due to free cash flow, on a 12-month basis.
The tobacco makers also noted an improvement in adjusted net debt to EBITDA to 2.4x due to “usual seasonality” which was in line with expectations according to Imperial Brands.
Imperial Brands raised its interim dividend by 1% to 42.54p from 42.12p issued in H1 2021, following the group’s progressive dividend policy.
Imperial Brands Performance
Europe Region
Imperial Brands noted a change in consumer behaviour as Covid restrictions eased and travel increased.
The group said sales are starting to return to conventional markets and channels, however, there was a 3.6% drop in volume for the region, which is offset by the group’s worldwide duty-free business and travel retail sales in “Southern European holiday locations”.
As the COVID-19-related swings in markets and channel buying patterns began to unwind, tobacco net sales fell 3.8% at constant currency, with a negative price mix of 0.2% reflecting price phasing and an adverse geographic mix.
Imperial’s NGP portfolio has done well, with net revenue growing 44.7% at constant currency, indicating great success in all three categories, hot tobacco, modern oral, and vapour.
At constant currency, adjusted operating profit fell 7.3% due to reduced tobacco net revenue as a result of price phasing, an unfavourable geographic mix and additional investment in the group’s new strategy.
Strong market share gain for Imperial in the UK was aided by investment in its strategic projects such as the local jewel brand, Embassy.
With investment attempts to revitalise JPS and West, and sales performance, the group’s market position in Germany is under attack. Imperial raised prices early in the period in Spain, but this harmed its market share.
The group launched a pilot program for a new vape, ‘blu’ in France to determine market reaction prior to rolling the product out.
Regarding Ukraine, the company is monitoring closely developments in the region while focusing on the safety and well-being of its 600 colleagues and their families.
The group’s heated tobacco system, Pulze fared well in its trials in Greece and Czech Republic, resulting in the plans to roll out Pulze to other European markets later this year.
Americas Region
The US contributed 34% of Imperial Brands’ group net revenue due to “strong combustible tobacco performance” said the group.
The volume of tobacco increased by 3.9% compared to the decline in industry volume of 6.8%. Imperial’s growth in volume came from improvements in the US cigarette market share to 9.8% which the group took from KT&G’s exit from the US market and its increased investments in sales execution.
Tobacco net sales climbed by 3.2 % in constant currency, boosted by cigarette pricing but offset by an unfavourable product mix, with substantial growth in the deep discount cigarette market. During the half-year, the company saw two price rises.
Market share advances, the advantage of trade inventory phasing, and decreased NGP costs all contributed to a 6.0% rise in adjusted operating profit at constant currency.
On a constant currency basis, Imperial Brands’ NGP revenues decreased 28.1%, reflecting the category’s continuing competitive environment and increased discounting.
The updated marketing plan for blu has successfully completed in Charlotte, and they now want to expand to other US territories.
The group was disappointed by the FDA’s decision in early April to issue Marketing Denial Orders for some of its myblu products, and they are actively pursuing an administrative appeal to overturn the decision during which the products will stay on the market.
In the premium segment, Winston’s trials of a new pack design and marketing strategy in Texas were successful, and they have now been pushed out nationally. The mass market cigar portfolio gained market share thanks to Backwoods and Dutch Leaf’s great performances.
Africa, Asia, and Australasia Region
Imperial’s Africa, Asia, and Australasia area fared well, with tobacco volumes increasing and total net revenue and adjusted operating profit increasing in constant currency.
Imperial Brand’s tobacco volumes increased by 2.6%, owing to a robust volume performance in the Middle East, which had recovered from a COVID-19-related disruption in the previous month.
The group’s tobacco net revenue increased by 4.1% in constant currency, owing to stronger volumes and a 1.5% price mix.
Following its decision to abandon the vapour market in Japan and Russia, as well as the hot tobacco business in Japan, NGP net revenue fell to zero.
When compared to 2021, adjusted operating profit increased by 25.8% at constant currency, owing to excellent financial performance in Africa and the Middle East, as well as lower NGP investment in the region.
Imperial improved its market share in Australia by focusing on sales execution and marketing in accordance with its strategy. Lambert & Butler was launched in the fifth price tier, allowing the company to ensure that it had a distinct brand offering at each of the important pricing points.
The group’s African portfolio of markets did exceptionally well, with increased market share and revenue and profit growth which has been driven by portfolio concentration on international brands such as Gauloises.
As pandemic-related travel bans in the region were relaxed and consumer behaviours normalised resulting in the Middle East business performing strongly.
The group had a solid financial performance in Asia, led by Taiwan, where it increased market share with Davidoff Absolute and West 25s.
Imperial Brands’ choice to cease operations and eventually quit the Russian market had an impact on overall results as Russia accounted for roughly 1.5% of net revenues and 0.2% of adjusted operating profit in FY21.
Imperial’s operations in Russia have now been completed with the sale of its Russian business as a going concern to Russian investors.
Ross Hindle, Analyst at Third Bridge said, “Imperial Brands saw revenue drop 1.3% to £15,362m, with management suggesting the group remains on track to hit its full-year guidance.”
“The structural decline of combustibles continues to push tobacco companies towards alternative business models, with all focusing on developing a strong portfolio of next-generation products (NGPs).”
“The Group’s NGP division still operates at a loss. Our experts say that Imperial probably went too widely across geographies with Myblu. The company will learn from their experience of heat-not-burn and try to get Myblu back on track, mainly in US and UK, where the brand has a good heritage.”
“The cost-of-living crisis should benefit Imperial Brands, given how their portfolio is more focused towards the lower end of the pricing scale.”
Velocys shares gained 1.7% to 5.7p in early morning trading on Tuesday, after the firm reported a revenue surge to £8.3 million in its 2021 results compared to £200,000 year-on-year.
The sustainable fuels technology company highlighted administrative expenses of £13.3 million against £9.2 million the previous year, alongside an operating loss of £9 million from £8.8 million.
Velocys confirmed a net assets growth to £29.7 million at 31 December 2021 compared to £13.1 million, and a net cash level of £25.5 million against £13.1 million.
The group successfully raised £26.2 million, before expenses, through a Placing and Open Offer in December 2021.
Fuel Projects
The company noted a commercial offtake agreement with Southwest Airlines and a Memorandum of Understanding (MoU) with IAG for all the Sustainable Aviation Fuel and linked credits for the Bayou Fuels project, alongside a collaboration with TOYO, which is set to see Velocys’ Fischer Tropsch technology used for an e-fuels project commissioned by the Japanese government.
The company noted a high level of pride in its alternative fuels projects, with the group spurring on future low-carbon developments in aviation technologies.
“Our commercially demonstrated patented technology enables an alternative to fossil jet fuel with an ultra-low carbon intensity,” said Velocys CEO Henrik Wareborn.
“In addition, our production pathway generates fuels with much lower sulphur oxide and particulate matter emissions.”
“Synthetic drop-in fuel is the here and now solution, which requires no modification to aircraft or airport infrastructure.”
Additional highpoints for Velocys in 2021 included a grant awarded by the UK government to Velocys and British Airways for up to £2.4 million from the administration’s Green Fuels Green Skies grant scheme, and the appointment of Koch Project Solutions to supply pre-FEED/FEED support, along with a potential EPC contract for the Bayou Fuels project.
Velocys added that it had a growing pipeline of customer opportunities, leading to an expanded selection of technology licensing opportunities across three continents.
“Velocys offers a decarbonisation solution to the aviation industry and is now firmly in the technology delivery and commercialisation phase of our growth strategy,” said Wareborn.
“We have a growing pipeline of new customer opportunities spanning multiple continents, which have developed in response to client specific net zero targets in countries that are ahead of the game on mandates and policy incentives.”
The UK employment rate increased by 0.1% to 75.7% over Q1 2022, however the great resignation is still very much in action, with an estimated total of 994,000 workers resigning from their positions for new jobs over the period, according to the Office of National Statistics (ONS).
“There’s been a record number of people moving job over the last quarter as the cost the living squeeze really begins to grab hold of the country suggesting workers are chasing higher pay in an increasingly tight labour market,” said AJ Bell financial analyst Danni Hewson.
Labour Hours Grow
The latest labour market overview, released today by the ONS, reported an uptick in payrolled employees for April 2022 of 121,000 to 29.5 million, with a rise in total actual weekly hours worked of 14.8 million to 1.04 billion in Q1 compared to the last quarter.
However, the survey added that the hours came in 10.7 million below pre-Covid-19 levels.
Average actual weekly hours remained at similar rates to pre-pandemic records, with part-time worker hours at an all-time high of 16.8 hours per week, suggesting that workers were finding shifts overtime to keep up with the surging cost of living on the back of skyrocketing 7% inflation.
“People are working more hours, part time numbers have jumped up suggesting that calls from some quarters that people need to take on extra jobs to make ends meet is something that’s already happening,” said Hewson.
Unemployment Falls
Meanwhile, unemployment levels fell 0.3% to 3.7%, representing the lowest level since 1974 and marking the first time since records began that there were fewer unemployed people than job vacancies.
Job vacancies also grew to a record number of 1,295,000, however the rate of vacancy growth continued to slow over the term.
“For the first time since records began there are more vacancies than people out of work, a situation that’s forcing employers to adopt whatever methods they can to tempt workers to jump ship,” said Hewson.
“People power the motor, without them businesses can’t function properly, but businesses are also struggling with rising costs and looking at where those vacancies are still sprouting up it’s the larger companies, those that have deeper pockets which are still hiring whilst the smallest employers are cutting back.”
The ONS further commented that economic inactivity increased by 0.1% to 21.4%, driven by people in the 50-64 year age bracket.
Private Sector Drives Pay Growth
The report confirmed a 7% increase in total pay, with a 4.2% rise in regular pay, excluding bonuses, and a total pay growth of 1.4% while regular pay fell year-on-year by negative 1.2%.
After taking inflation into account, average pay including bonuses rose 1.4% in the year to January to March 2022, while excluding bonuses it fell 1.2%.
— Office for National Statistics (ONS) (@ONS) May 17, 2022
Meanwhile, private sector pay rose at its fastest level since records began in 2001, with a spike of 11.7% year-on-year.
Real total pay rises were reportedly kept afloat by strong bonus payments across the workforce, with bonuses accounting for 9% of private sector pay, marking a growth from 7% over the past year.
“There’s some good news in today’s figures, with record pay growth in the private sector just about keeping wages ahead of inflation, and unemployment continuing to fall to its lowest since 1974,” said IES Director Tony Wilson.
“However this is masking now the tightest labour market that we have seen in at least half a century, with more vacancies than there are unemployed people for the first time ever, and well over a million fewer people in the labour force than on pre-pandemic trends.”
Wilson added that the higher private sector pay was serving to drive the hike in interest rates, in a bid to stamp out surging inflation, which is currently barrelling towards a high of 10% in Q4 2022.
“However rather than trying to dampen demand, we need to be doing far more to boost labour supply, which would support economic growth, raise household incomes and help contain inflation.”
“This needs to be focused on better support for older people, disabled people and those with health conditions. Employers will need to do more too, and make sure that jobs are advertised and designed in ways that are accessible and inclusive for those further from work.”
A trading warning from fully listed online furnishings and homewares retailer Made.com (LON:MADE) has led to a sharp downgrading of expectations. Trading has deteriorated since March and Easter was disappointing. The focus on high price items has not helped.
Patrick Lewis will become finance director on 27 June. He was previously with the John Lewis Partnership and has been a non-executive director of Ocado.
Online furniture sales are weaker than those in stores. Made.com revenues were 10% lower in the first quarter of 2022, and it is getting worse. They are currently around one-third lower in...
There was a bounce back in trading on the Aquis Stock Exchange even though the month included Easter. There were £18.4m worth of shares traded and 2,985 individual trades. There were 2,976 trades valued at £13.4m during March.
The value of trades is the highest it has been since January when the total was £20.4m, but the number of trades is less than two-thirds of the January figure.
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TOP 5
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Valereum (LON: VLRM)
Value of trades: £3.6m
% of market value: 13.1
Number of trades: 748
Average value of trades: £4,816
For the first time this year Valereum is the most traded company on Aquis...
McDonald’s announced on Monday that the American fast-food chain has decided to exit the Russian market and has begun the course of action to sell off its Russian business after halting operations in March after Russia attacked Ukraine.
McDonald’s has concluded that ongoing ownership of the firm in Russia is no longer feasible, and is inconsistent with McDonald’s values, due to the humanitarian situation produced by the war in Ukraine and the resulting unstable operating environment.
The fast-food chain is to begin the practice of “de-Arching” those businesses, which means no longer utilising the McDonald’s name, logo, branding, or menu, though the company’s trademarks in Russia will be retained.
The group’s goals include ensuring that McDonald’s Russia employees are paid until the transaction is completed and that they have future employment.
Chris Kempczinski, McDonald’s Chief Executive Officer, said, “We have a long history of establishing deep, local roots wherever the Arches shine.”
“We’re exceptionally proud of the 62,000 employees who work in our restaurants, along with the hundreds of Russian suppliers who support our business, and our local franchisees. Their dedication and loyalty to McDonald’s make today’s announcement extremely difficult.”
“However, we have a commitment to our global community and must remain steadfast in our values. And our commitment to our values means that we can no longer keep the Arches shining there.”
Throughout the Ukraine crisis, McDonald’s has continued to pay their employees and provide support through food donations, housing and employment.
The company intends to record a charge of about $1.2-1.4bn to write off its net investment in the market and recognise large foreign currency translation losses previously recorded in shareholders’ equity as a result of its exit from Russia.
McDonald’s Outlook
McDonald’s reassures investors on its 2022 outlook and said that it forecasts the charge for Russia will impact operating margin leading it to be in the 40% range.
Ignoring the impact of closing its restaurants in Russia, the group expects over 1,300 net restaurant additions in 2022 which will contribute about 1.5% to 2022 Systemwide sales growth in constant currencies.
The group said it predicts capital expenditure to be roughly $2.1-2.3bn.
Stagflation has become a rising tide on the UK economic front in recent weeks, with the word batted back and forth across the news forums in a swell of recession warnings and spiking inflation. However, what does the term mean for the UK economy, and what does it mean for the average British consumer?
Stagflation is defined as a period of time when the economy is marked by a state of economic stagnation and high rates of inflation (hence, stagflation), typically accompanied by high rates of unemployment.
Rising Inflation
The UK economy actually shrank by 0.1% in March 2022, following no growth over February, according to the Office of National Statistics (ONS).
Meanwhile, the Bank of England recently hiked interest rates 0.25% to 1% in a bid to stamp out 7% inflation, which is estimated to hit 10% in October this year as the energy price cap rises again and the cost of living sends UK households into a predicted debt spiral.
The Bank is supposed to keep inflation below 2%, and while surging inflation sometimes heralds a booming level of demand in the economy, the UK’s present situation is actually sounding the alarm of a crushing deficit in supply.
Oil prices have seen a resurgence to long forgotten levels over $100, with the price of Brent crude peaking to almost $130 per barrel in mid-March.
The oil prices have been gaining ground due to the Russian invasion of Ukraine consequently choking off the supply of Russian energy reserves to the EU bloc as Putin threatened to turn off the tap on the country’s 7.8 million barrels of oil per day in exports.
However, companies including UK energy giants Shell and BP have divested from Russia and its state-owned gas firm Gazprom, exacerbating the oil crisis while the UK scrambled for alternative fuel sources.
Russia and Ukraine also account for almost 30% of the global wheat supply, with the region earning the title “the breadbasket of Europe”, sending the price of wheat on the increase, while cooking oils produced by the countries have also seen an uptick in price on the back of shortages due to the war.
Covid-19 had already put the brakes on the UK economy due to lockdowns and a decline of the high street as stores closed up their doors in droves. However, the market barely had time to recover on the re-emergence of people into society before skyrocketing inflation clamped down on excessive spending and millions of households faced the unpleasant choice between heating and eating as the energy price cap rose 54%, tacking on an additional £700 to the bills of many consumers who were already living on razor-thin margins on their pay cheques.
Retail stocks are retreating and credit card debt is predicted to hit fresh highs as families struggle to make ends meet. Chancellor Rishi Sunak has been criticised for the meagre offerings of his Spring Statement mini-budget, and many are calling for his Summer Statement to bring a more tangible level of relief to impacted households.
Meanwhile, the Bank of England is projected to increase interest rates to 1.25% in its next meeting in June, which is almost definitely going to put a freeze on consumer spending, just as the post-Covid-19 economy was stumbling back to its feet.
“The move by the Bank’s rate-setters to increase rates lumps even more pain on households struggling with the cost of living crisis,” said AJ Bell head of personal finance Laura Suter in response to the rise to 1% in early May.
“The global nature of the drivers of inflation means that this increase to 1% is very unlikely to beat inflation into a hasty retreat, but what it is certain to do is pile more misery on people already having to rely on debt just to pay their bills.”
As the crunch of rising prices from lack of supply and surging costs of living from energy and goods inflation continue to clamp their jaws around consumer wallets, experts are warning that the UK is barrelling towards stagflation. Unfortunately, it seems the experts are probably correct.
Vast Resources soared as much as 54% on Monday after the group announced the the successful repayment to Atlas Special Opportunities through asset backed debt facility from A&T Investments Sarl amounting to $4m.
Vast Resources shares have had a choppy time over the past two weeks as the London-based miner disclosed optimistic results, withdrew from the Ghahoo Diamond mine partnership and today, announcing a refinancing package.
On Friday, Vast Resources stated it had undertaken a debt reduction of $1m to Mercuria Energy Trading and mentioned it had outstanding bonds of $4.2m.
Vast secured an asset backed debt facility from A&T Investments Sarl which was arranged by Alpha Credit for $4m. In addition, the group raised £3.2m through placing 463.3m new ordinary shares at 0.7p.
Atlas’ conversion bond facility led Vast Resources to issue 153.3m new ordinary shares at 0.27p each on Friday as Atlas decided to convert bonds with a nominal value of $500,000, which represented 20% of the total shares issued. The move by Atlas was despite a ‘non legally binding verbal assurance’ Atlas would make no further conversions.
Vast Resources said, “In the light of the full repayment being made by the company to Atlas today as separately announced, the company is considering its position as to its response to this notice and is currently communicating with Atlas.”
🚨🚨 RNS Alert🚨🚨#VAST has successfully repaid in full the outstanding bonds owed to Atlas Special Opportunities LLC with the result that Atlas no longer has any conversion or any right to call for the issue of Vast ordinary shares – read more here: https://t.co/Ih8z8eBny9
Once the group secured the asset backed debt facility, the group revealed that it repaid Atlas’ convertible bond which will prevent Atlas from additional conversions and share dilution.
Later on Friday, Vast announced the convertible bonds had been delisted from the International Stock Exchange.
The Synairgen share price was up 27.1% to 33.9p in late afternoon trading on Monday, after the biotech group presented the results of its Phase 3 SPRINTER trial for its SNG001 treatment at the American Thoracic Society (ATS) on Monday.
The company reported that its SPRINTER trial failed to meet the primary endpoints of discharge from hospital and recovery, however there was an encouraging sign of reduction in the relative risk of progression to severe disease or death within 35 days.
“The improvement in standard of care for COVID-19 means that most patients are currently discharged fairly rapidly from hospital; however, this further analysis shows that some patients struggle in their battle with the virus and show signs of respiratory compromise, with faster breathing rates and lower oxygen saturations, despite being on oxygen,” said SPRINTER trial chief investigator Tom Wilkinson.
“For these higher-risk patients, there remains an urgent need for new treatment options, and this analysis suggests that SNG001 could be a potentially efficacious treatment option for them.”
Synriagen performed post hoc analysis on a selection of patients including participants over the age of 65, those with co-morbidities linked with worse Covid-19 aftermaths and patients who had clinical signs of compromised respiratory function.
According to the biotech firm, its high-risk patient sub-groups, which made up approximately a third of its participants, responded most positively to its SNG001 inhalable respiratory drug, with the strongest results recorded in those with a compromised respiratory function and SNG001 reportedly reducing the risk of progression to severe disease and death by 70% in the per protocol population.
“The post hoc analyses presented at the ATS conference today suggest that SNG001 may be having a beneficial effect with respect to prevention of severe disease or death,” said Synairgen chief scientific officer Philip Monk.
“These results provide a strong clinical rationale to continue to investigate SNG001 in a trial evaluating progression and/or mortality in hospitalised patients with COVID-19 and more widely in patients with severe viral lung infections.”
However, some analysts commented that the per protocol population was a less reliable metric than the intent-to-treat basis, alongside an “underwhelming” nominal p value of 0.046.
The Synairgen share price is currently trading a far drop below its 177p level from late February 2022, however it has made up some of its lost ground on the back of its results presented today.
The SNG001 drug may not be the golden egg Synairgen was hoping to lay, but perhaps it’s not time to kill the golden goose just yet.
