Fusion Antibodies announced its unaudited trading update on Friday where the specialists in pre-clinical antibody exploration noted a 14% increase in revenue and a decline in its cash position.
With unaudited sales of £4.8m, indicating a 14% increase over FY2021’s £4.2m, revenue growth was supported in both H1 and H2 of FY2022 as opposed to the same periods in the previous financial year.
Revenues have increased in all geographic regions, and Transient Expression has outperformed all of its service areas.
The company continued to address the challenges posed by the COVID-19 epidemic, which spanned the entire financial period, as well as to trade during periods of national government limitations.
The amount of customer inquiries for all of the firm’s services is still high, and the company reinforced its commercial team in H2 of FY2022 to ensure future success.
The Board of Directors also believes that the aforementioned achievements create a solid foundation for sustained financial performance growth.
Simon Douglas, Chairman of Fusion, said, “We are pleased to have achieved revenue growth in line with expectations in what has been another challenging year globally due to the pandemic. I am delighted that the value of our client work is being demonstrated by the successes of our clients in reaching development milestones.”
“All our staff members have worked diligently throughout the year and I would like to thank them all for their valuable contribution. The ongoing recruitment of a new CEO is progressing as planned, and we look forward to a year with more opportunities to visit clients and attend conferences as the restrictions relax. I am confident we will have a good year ahead.”
The US added 428,000 jobs in April, ahead of economist estimates of 391,000 according to the latest non-farm payroll report from the US government.
The announcement confirmed that unemployment remained at 3.6%, with a recorded 5.9 million people unemployed, matching expert estimates.
The unemployment rate represented a slight uptick from 3.5% at pre-Covid-19 pandemic levels, with the number of unemployed workers at 5.7 million before lockdown.
The report added that average hourly earnings increased 0.3% month-on-month, marking a 0.1% fall compared to the market expectation of 0.4%.
Apax Global Alpha is an investment firm which announced on Friday that it will receive an increase to its multi-currency revolving credit facility (RCF) from Credit Suisse.
Apax Global Alpha is a closed-end investment company that invests in a portfolio of private equity funds advised by Apax Partners LLP, a private equity firm.
Apax Global Alpha stated its adjusted net asset value was largely unchanged in the first quarter of 2022 and that Credit Suisse, where the group’s lending facility is from, will raise the RCF from €140m to €250m.
Credit Suisse is amending Apax’s lending facility based on increased NAV and the greater proportion of its investment portfolio in private equity since the margins are staying unchanged at 230 basis points over the risk-free rate for the currency drawn.
AGA’s strategy of investing in Apax-managed funds continues in the quarter ended March 31, with a new $60m investment to the Apax Global Impact fund.
On March 31, adjusted NAV was unchanged at €1.4bn, including the €37.4m dividend payment made during the quarter. The adjusted NAV per share was €2.90 on December 31, down from €3.03 the previous day.
Ralf Gruss, Chief Operating Officer of Apax Partners said, “Against a backdrop of volatile markets and macro conditions impacted by inflationary pressures and geopolitical risks, the established Apax Funds strategy of creating alpha through business improvement, of investing in coveted sub-sectors of prior expertise, and of buying selectively is well suited to the period ahead.”
“As a result, AGA’s portfolio remains well positioned for continued strong performance and to generate further value for shareholders.”
Tekcapital shares were down 2.1% to 34.2p in late morning trading on Friday following a reported net assets rise of 108% to $68.1 million from $32.7 million year-on-year in the group’s final results for 2021.
The investment firm announced a NAV per share increase of 37% to 48c compared to 35c in 2020, alongside a portfolio valuation growth of 105% to $62.5 million against $30.4 million year-on-year.
Tekcapital confirmed a total income of $29.2 million compared to $9.9 million, with revenue from services falling to $800,000 from $900,000 and a net increase of $28.1 million in the fair value of portfolio companies against $8.7 million in 2020.
The company also reported a post-tax profit of $26.4 million compared to $7.7 million, along with share placings totalling $9.4 million completed during the year, up from $2.6 million.
“We are glad to report very strong full-year performance for the Group, with net assets increasing by 108% to US$68.0m, a record level,” said Tekcapital executive chairman Dr. Clifford Gross.
“Our key portfolio companies are progressing well and should reach significant additional milestones by the end of 2022.”
The company announced a series of portfolio firm highlights which it credited to its growth over the year, such as the IPO of respiratory medical device company Belluscura and the potential IPO of optometrist smart device subsidiary Innovative Eyewear.
“We are also pleased to highlight Belluscura’s successful IPO during the period, Lucyd’s subsidiary Innovative Eyewear, Inc.’s filing of its registration statement for a potential IPO with a listing on the NASDAQ, the roll-out of MicroSalt’s SaltMe! Crisps in Kroger supermarkets throughout the U.S., and Guident’s demonstration of their remote monitoring and control center with industry leading, low glass-to-glass latency.”
“We are excited about what our portfolio companies have achieved in 2021 and their prospects for 2022.”
Steel manufacturer Evraz was caught up in the latest wave of sanctions issued by the UK government this week, as a result of its “strategic significance” to Russia’s administration.
The company’s shares were suspended from trading on March after Russian billionaire Roman Abramovich, who owns a 29% stake in Evraz, was added to the UK administation’s selection of sanctioned individuals.
The steel manufacturer currently produces 28% of Russia’s railway wheels and 97% of the country’s rail-tracks.
The UK government reported that Evraz’s key importance to the Russian military’s supply logistics was as a result of the country’s use of railway lines to transport troops and munitions to the frontline in Ukraine.
The sanctions froze Evraz assets, preventing any UK citizen or company from doing business with them.
The government said it aimed to chip away at Putin’s financial resources and siege economy, with the sanctions impacting over 70,000 Russian workers as Evraz is a major employer across the country.
The move comes as the most recent addition to the UK’s list of 1,000 individuals and 100 businesses sanctioned as the country works to stop Russia’s war against Ukraine.
The UK administration confirmed the intent of the sanctions to further deter companies operating in strategic sectors in Russia.
Spirent Communications confirmed its 2022 outlook on Friday, citing robust order growth in the first quarter in its first-quarter trading update.
Spirent reported “good” revenue growth and an expanding order book, with a book-to-bill ratio of 112 for the quarter, up from 104 in 2021 due to progress made by the group in attempts to improve sustainable long term growth.
Orders for testing, analytics, and security for telecommunications networks climbed 18% in the first quarter, according to the Spirent.
The company obtained a substantial order for 5G standalone core network assurance for a Tier 1 North American customer using VisionWorks, our live network assurance solution.
Spirent won a critical 5G core testing contract as part of a major UK government 5G effort, with more stages to come.
According to the report, services rose by double digits as Spirent focussed on supporting their customers with 5G cloud network expansions and automation.
With the debut of its 800G high-speed Ethernet test platform, as well as the industry’s greatest port density 400G solution, Spirent continues to exhibit leadership in high-speed Ethernet and security solutions.
During this time, the company boosted its market share by winning several key new logos.
The financial position is solid with a strong balance sheet for Spirent and cash closed at $215m, up from $175m in December 2021.
The previously announced final dividend of 3.3p, summing to $26m, will be paid on May 10th, pending shareholder approval at the Annual General Meeting on May 6th.
Spirent says its full-year outlook is unchanged as it strives to reduce inflationary pressures and an uncertain supply chain environment.
Eric Updyke, Chief Executive Officer, Spirent Communication said, “We are delighted to continue the momentum seen in 2021, starting the year so strongly and further expanding our orderbook, providing greater future visibility.”
“We continue to significantly broaden and deepen our customer base with our leading-edge solutions and the demand for our assurance solutions is robust, as market drivers for reliable communications, including 5G, remain a key global priority.
“We have developed a portfolio of offerings that have demonstrated strong mitigation of technical cyclicity as we focus on supporting our customers in the ever-growing area of network assurance, focusing on software solutions.
Halifax’s Housing Price Index (HPI), released today, confirmed record house prices, with monthly prices up 1.1% in April, marking it the 10th consecutive monthly rise in the longest run since 2016.
The index found that the average house price hit a new high of £286,079 with a 1.1% rise in April, however, Halifax mentioned that rising interest rates and tight household budgets will temper the market over the coming year.
Northern Ireland has surpassed the south-west of England as the UK’s best performer in terms of house price increases, with an increase of 14.9% to £182,565. The average price of a home in the south-west increased by 14.8% to £301,632.
Wales grew 14.2% to an all-time high of £214,396, while Scotland grew at a slower rate of 8.3% to a new high of £196,471.
At 6.2%, Greater London continues to grow at the weakest pace. It does, however, have the most expensive residences in the UK, with an average price of £537,896.
The housing boom caused by the pandemic sent purchasers in a “race for space” as city dwellers sought for more rural properties when flexible and remote working became popular, and this will continue for the time being, according to Halifax.
Russell Galley, Managing Director of Halifax, said, “For now, at least, despite the current economic uncertainty, the strong increases we’ve seen in house prices show little sign of abating.”
“Housing transactions and mortgage approvals remain above pre-pandemic levels, and the continued growth in new buyer inquiries suggests activity will remain heightened in the short-term.”
“The imbalance between supply and demand persists, with an insufficient number of new properties coming on to the market to meet the needs of prospective buyers and strong competition to secure properties driving up prices.”
According to Halifax’s monthly housing index, the rate of growth is slowing, with April falling short of the 1.4% gain in March and the 11.1% annual rate in the same month.
Halifax assumes that the rising cost of living for UK consumers will impact the housing market leading to a slow down in growth.
Walid Koudmani, Chief Market Analyst at financial brokerage XTB commented, “The latest Halifax HPI pointed to another sharp increase in UK house prices with the tenth consecutive monthly rise, the longest run since 2016.”
“However, while this is a concerning situation, the rate of house price growth is expected to slow later this year as incomes fail to keep up in a climate of record inflation and general cost increases. Until that point, we could be seeing a continuation of this trend which has led house prices to reach historic levels.”
International Consolidated Airlines Group (IAG) shares were down 7.8% to 132p in early morning trading on Friday after the company reported an operating loss of €731 against a €1 billion loss year-on-year in its Q1 2022 trading update.
The airlines group highlighted a post-tax loss after exceptional items of €787 compared to €1 billion in Q1 2021, and a post-tax loss before exceptional items of €810 million against €1.1 billion the last year.
IAG highlighted that easing government restrictions boosted passenger capacity to 65% of 2019 bookings, representing an increase from 58% in Q4 2021 alongside strong demand for premium leisure bookings.
The group noted the short-term negative impact of Omicron over January and February on the operating result, passenger bookings and cancellations, however IAG reported no impact from the conflict in Ukraine on its business.
The travel company reported cash at €8.1 billion, increased from €241 million in Q1 2021, which the firm attributed to bookings for the rest of FY2022.
IAG noted that committed and undrawn general and aircraft financing facilities grew to €4.1 billion from €4 billion year-on-year, including an additional €200 million loan facility for Aer Lingus from the Ireland Strategic Investment Fund (ISIF), with an overall liquidity of €12.3 million compared to €11.9 billion in Q1 2021.
The group said it aimed to reach 80% of 2019 passenger capacity for Q2 2022, with 85% in Q3 and North Atlantic close to full capacity, and 90% in Q4, which would amount to a full-year capacity of 80% against 2019 levels.
“As a result of the increasing demand, forward bookings remain encouraging. We expect to achieve 80% of 2019 capacity in the second quarter and 85% in the third quarter. North Atlantic capacity will be close to fully restored in the third quarter,” said IAG CEO Luis Gallego.
“Globally the travel industry is facing challenges as a result of the biggest scaling up in operations in history and British Airways is no exception. The welcome removal of UK’s stringent travel restrictions, combined with strong pent-up demand, have contributed to a steep ramp up in capacity.”
“The airline’s focus at the moment is on improving operations and customer experience and enhancing operational resilience.”
Analysts commented that though there was cause for optimism, the looming cost of living crisis threatened to eat into IAG’s recovering operating margins.
“IAG will take longer to recover than its short-haul focussed friends, but that doesn’t mean it should be discounted,” said Hargreaves Lansdown lead equity analyst Sophie Lund-Yates.
“There’s an argument to say that now the world is largely re-opening, customers could be inclined to splurge on a long-haul trip having been stuck at home for years.”
“The other side of that story though is of course the cost-of-living crisis. Those that often travel first class are likely not going to see much of a change in spending habits, but the situation may well act as a drag on BA’s shorter duration routes.”
4imprint shares lept 11% to 2,710p after reporting an encouraging performance as a result of excellent demand in its Q1 trading update for 2022 earlier today. The group also added that the outlook for 2022 is exceeding analyst expectations.
4imprint said its total order counts in the major North American business were 11% higher from January to April 2022 than in 2019, which is the most recent ‘normal’ year, according to the group.
Overall demand revenue was 27% higher than in 2019, with average order values seeing a rise of 14% for 4imprint.
The rate of new client acquisition has been positive and retention numbers accurately reflect the rising customer base.
Due to our increasing trading momentum, the group is currently on schedule to meet its long-term revenue goal of $1bn in the fiscal year 2022 said 4imprint.
The revenue volume gains mentioned above, the productivity of the reworked marketing portfolio, the fairly stable gross margins, and the operational gearing pertaining to semi-variable and fixed costs in the business have all pushed management’s operating profit expectation for full-year 2022 above the highest analyst forecast in the market.
The Board recognises that only four months have passed and that current geopolitical and broad economic circumstances may have a significant impact on the group’s performance in the remaining months of the year.
The group is especially aware of potential concerns relating to additional COVID variations, supply chain instability, inventory availability, rising product costs, availability and labour costs, the impact of inflation on its customers’ budgets, and the general risk of economic recession.
The financial projections stated above are based on our present understanding of these variables and the Board of Directors is more confident in the 4imprint’s strategy, business model, and competitive position after the first four months of 2022.
InterContinental Hotels announced a 61% rise in group revenue per available room (RevPAR) in the first quarter, however, noted tighter trading in the Greater China region due to Covid-19 restrictions, in the group’s trading update on Friday.
Revenue per available room, a key metric in the hotel business, increased by 61% in the first quarter, compared to the same period in 2021 for IHG which means the group’s RevPAR has reached 82% of 2019’s level.
The average daily rate for the first quarter, which reflects the average rental revenue collected for an occupied room per day, was up 27% YoY and in line with 2019 said IHG.
The group’s gross system size growth was greater than 4.9% YoY and more than 0.7% YTD.
However, InterContinental’s net system size growth was higher than 3.4% YoY after adjustments for the disposals of Holiday Inn and Crowne Plaza were taken into consideration and more than 0.5% YTD.
The group also signed 16,600 rooms in 120 hotels, which was 15% better than in 2021 and 2020, leading IHG’s global pipeline to grow to 278,000 rooms in the first quarter.
InterContinental signed a new $1.35bn syndicated bank RCF in April and the prior syndicated facility of $1.27bn and the $75m bilateral facility have both been discontinued. The new five-year RCF matures in April 2027.
IHG Regional performance
After a difficult January, IHG reported the Americas and EMEAA areas had sequentially improved trading in February and March.
In comparison to 2021, the Q1 RevPAR increased by 58% in the Americas and occupancy was close to 60%, down 6% from 2019, while the rate was up 1% said IHG.
The spring break holiday period boosted demand, resulting in leisure room income being 10% higher than in 2019 which, when combined with an increase in corporate reservations and the return of more group events, should support future increases in both occupancy and rate.
With 2,200 rooms and 23 hotels opened in the quarter, the gross system size increased by 2.7% YoY and 7,800 rooms were added to the pipeline from 73 hotels, demonstrating a gradual improvement in the agreements pace and exceeding the Q1 signings in 2019 for InterContinental in the Americas.
In comparison to 2021, Q1 RevPAR increased by 122% and occupancy was reaching 50% but the rate was down only 4% for EMEAA.
Previous restrictions, particularly on international travel, were generally lifted over the quarter in all markets leading to a wide range of performance within EMEAA as Q1 RevPAR was down just 7% compared to 2019 in the Middle East and 15% in the UK, followed by 38% lower in Australia, 45% lower in Continental Europe, 58% lower in South East Asia and Korea, and 64% lower in Japan.
With 3,500 rooms from 17 hotels opened in the quarter, gross system size increased by 5.7% YoY and on an adjusted basis, net system size increased by 4.2% in EMEAA. The group also said 2,300 rooms were added to the pipeline from 15 hotels.
However, the tightening of localised travel restrictions following a spike in Covid-19 cases impacted commerce in Greater China in March.
First-quarter RevPAR in Greater China was down 7% compared to 2021 and down 42% from Q1 in 2019.
Occupancy was 36% and the rate was down 17%, however, the Winter Olympics increased Beijing’s performance.
In March, travel restrictions imposed in response to a surge in Covid-19 cases resulted in a 53% drop in RevPAR compared to 2019, with over a third of the estate either shuttered or repurposed said IHG.
Greater China noted a gross system size growth of 11.3% YoY and added 6,600 rooms from 32 hotels to the pipeline.
Keith Barr, CEO of IHG, said, “We’ve seen very positive trading conditions in the first quarter with travel demand continuing to increase in almost all of our key markets around the world.”
“The high level of demand we have seen for leisure travel continues to drive increased rates and occupancy. We also continue to see a return of business and group travel, further supporting RevPAR improvements in many of our key urban markets.”
“As occupancy levels rise and due to the strength of our brands, our hotels are seeing increased pricing power; in March, our hotels in the US achieved leisure rates up by more than 10% on 2019 levels and rate across the whole of the US business was 4% ahead.”
“Trading in Greater China continues to be impacted by restrictions put in place to control rising Covid cases. Our strategic focus on strengthening and expanding our brand portfolio continues to drive growth.”
InterContinental Hotels Group shares have fallen 1% to 4,930p after the group noted growth in all regions but explained a slow down in China due to lockdowns.
