Intermediate Capital shares rise on £568.8m pre-tax profits

Natasha Doris
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Intermediate Capital shares rise on £568.8m pre-tax profits

Intermediate Capital Group shares were up 7.7% to 1,571p in early morning trading on Thursday, following a reported 12% rise in Group pre-tax profit to £568.8 million in FY 2022 compared to £507.7 million in FY 2021.

Intermediate Capital confirmed a 23% increase in its client base, and a significant surge in its fee income and fund management profits.

The firm announced a 41% increase in Fund Management Company pre-tax profit to £286.2 million in FY 2022 compared to £202.3 million in FY 2021, alongside a 7% decline in Investment Company pre-tax profit to £282.6 million against £305.4 million the previous year.

The company highlighted its balance sheet investment portfolio rise of 10% to £2.8 billion compared to £2.5 billion, with a NAV per share uptick of 23% to 696p against 566p.

“This has been a defining year for ICG both in our market standing and in our growth trajectory,” said Intermediate Capital CEO Benoît Durteste.

“Our scale, diversification, brand and investment performance have combined to generate a record year on many levels.”

The group said it had accelerated its fundraising guidance by a year as a result of increased confidence in its outlook, with $22.5 billion raised across 2021-2022 and at least $40 billion fundraising in aggregate between 1 April 2021 and 31 March 2024.

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Meanwhile, the company added that its FY 2023 started in a strong position, with substantial capital and a positive balance sheet.

“I am confident in our future prospects. Structural tailwinds remain supportive of the industry and ICG is well positioned to take advantage of the opportunities that invariably arise in more volatile market conditions,” said Durteste.

“This confidence is reflected in the acceleration of our fundraising guidance as we look to continued growth and success in the coming years.”

Intermediate Capital mentioned a Group EPS rise of 16% to 187.6p from 162.3p year-on-year, and a 36% growth in dividends to 76p against 56p per share in the last year.

United Utilities pre-tax profit falls to £302m, stakeholder investment rises £400m

Natasha Doris
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United Utilities pre-tax profit falls to £302m, stakeholder investment rises £400m

United Utilities shares were down 5% to 1,056p in early morning trading on Thursday, after the company announced an underlying pre-tax profit fall to £302 million in its FY 2022 compared to £460 million in FY2021.

The pre-tax profit drop reflected an £8 million rise in underlying profit and an £8 million drop in joint-venture losses, which was offset by a £174 million growth in underlying net finance expense on the back of higher inflation on its index-linked debt.

United Utilities reported a revenue uptick to £1.86 billion from £1.80 billion the year before, alongside a reported and underlying operating profit increase to £610 million against £602 million year-on-year.

The company highlighted a reported and underlying profit rise to £610 million from £602 million in 2021.

The group commented that inflation had increased its operating costs and net finance expense throughout the year, however, the company also said it led to an increased level of financing outperformance, leading to a higher level of regulatory capital value growth across 2020-2025.

Stakeholder Investment

United Utilities said it would build on its £600 million investment in its customer and stakeholders across 2010-2020 with a further investment of £400 million between 2020-2025, representing £765 million in excess of its final determination allowance in a move to advance environmental and customer incomes.

The firm noted its £280 million affordability scheme to support over 200,000 households over asset management period seven (AMP7), along with its £250 million investment into the environment, which included accelerating elements required under the Environment Act and funding its “Better Rivers: North West” plan in collaboration with The Rivers Trust.

“We take our role in the North West very seriously, and firmly believe that responsibly sharing our successes is the right thing to do for all our stakeholders,” said United Utilities CEO Steve Mogford.

“Our improving performance together with an environment of higher inflation is yielding a greater level of outperformance, and so we will be investing an additional £400 million to improve the service we provide to customers and to accelerate the delivery of environmental outcomes.”

Outlook for 2022-2023

The energy distributor mentioned an underlying EPS decline to 53.8p compared to 56.2p the last year and a reported loss per share of 8.3p against 66.5p the year before, however the firm announced a total dividend per ordinary share of 43.5p from 43.2p.

United Utilities announced an expected 1% increase in revenue for the coming year, and underlying operating costs approximately £100 million higher year-on-year, half of which is set to reflect labour, chemicals and additional costs, with the other half reflecting the cost impact of its £765 million stakeholder investment across last year.

The group confirmed it intends to raise its dividend in line with CPIH inflation to 2025, marking a growth of 4.6% based on November 2021 CPIH inflation rates.

Angle gains FDA approval for Parsortix

Andrew Hore
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Angle gains FDA approval for Parsortix

It seems to have taken ages, but the FDA has finally given approval for the Parsortix liquid biopsy test developed by ANGLE (LON: AGL). The share price jumped 58% in the afternoon to 156p, which is the highest it has been since 2005, when it was a different business with a portfolio of investee companies.
The approval covers use with metastatic breast cancer patients. Parsortix is the first system that harvests circulating cancer cells from a blood sample for analysis that has been approved.
This enables biopsies to be done with blood rather than through invasive operations. It is also useful ...

Anexo VW emissions boost

Andrew Hore
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Anexo VW emissions boost

Anexo Group (LON:ANX) is set for a cash inflow following VW settling out of court with owners of VW cars affected by what is known as the dieselgate scandal. This augurs well for Anexo’s claimants.
The Anexo share price, which had previously declined, rose 13.5p to 133.5p on the day.
The settlement concerns car manufacturer VW’s manipulation of air pollution tests that measure NOx emissions. This was because illegal software was fitted to cars with four-cylinder turbodiesel engines, which was able to reduce emissions under test conditions. VW does not admit liability. It does set a precedent, ...

Norman Broadbent revenue declines to £6.5m

Natasha Doris
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0
Norman Broadbent revenue declines to £6.5m

Norman Broadbent shares increased 4.1% to 6.7p in late afternoon trading, following a revenue decline to £6.5 million in its FY 2021 against £7.8 million year-on-year.

The professional services company announced a net fee income slide to £5.8 million compared to £6.2 million the last year, alongside an EBITDA before restructuring costs of £5,000 against £69,000.

Norman Broadbent highlighted an EBITDA post-restructuring costs loss of £308,000, which reflected the exit of former executive and leadership consulting team members.

The company had consolidated net assets of £836,000 against £1.1 million in 2020, with a net current liabilities loss of £505,000 compared to £504,000 the year before.

Otherwise, net cash outflow from operations was £446,000 from an inflow of £515,000 the last year, with net cash inflow from financing activities amounting to £607,000 against £492,000, including £372,000 linked to a successful subscription equity raise supported by the firm’s existing shareholders.

Norman Broadbent also confirmed £952,000 in 2021 compared to £577,000 in 2020 in funds drawn down against the revolving invoice discounting facility against UK trade receivables of £1.7 million from £1.4 million the previous year.

“While 2021 was a challenging year for Norman Broadbent, the appointment of a new Chair in July, my appointment as CEO in September and Sean Buchan as Group Managing Director in November has put the business on a very different and a much more positive trajectory,” said Norman Broadbent CEO Kevin Davidson.

“The new management team has implemented a new strategic plan, focussed on accelerated, sustainable and profitable growth through acquisition and development of quality fee earning talent in the UK and internationally, combined with greater concentration on high margin Board and Executive Search business and a continually expanding Interim contractor book.”

“The Board and I would like to thank the entire team for their dedication, our shareholders for their continuing support, and our clients for placing their trust in us. We look forward to the future together.”

Synairgen shares plummet on Covid-19 drug stumble

Natasha Doris
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Synairgen shares plummet on Covid-19 drug stumble

Synairgen shares plummeted 23.6% to 26.6p in late afternoon trading on Wednesday, after the company reported a research and development tax credit uptick to £9.2 million from £3.8 million, leading to a post-tax loss of £48.7 million in FY 2021 compared to £13.9 million in FY 2020.

The pharmaceutical group announced a £57.9 million loss from operations, against a loss of £17.7 million the year before, with research and development expenditure growing to £52.9 million from £15.5 million linked to its SPRINTER Phase 3 trial manufacturing activities.

Synairgen highlighted a cash balance of £33.8 million compared to £75 million in FY 2020.

The results of the company’s SPRINTER Stage 3 trial for its inhalable drug SNG001 failed to meet its required endpoints, however, Synairgen confirmed that it had potential for future development, and that the treatment had proven safe for patient use.

The firm said it intended to explore the effects of the drug and conduct additional research and analysis in FY 2022.

“Since the completion and reporting of the Phase 3 SPRINTER data and subsequent analyses of different high-risk patient groups within the trial, we remain encouraged that SNG001 has the potential to show clinically important benefits in preventing disease progression and death in patients with severe viral lung infections,” said Synairgen CEO Richard Marsden.

“We are now working in haste on discussions with platform trial organisers and investigators, as well as regulatory authorities, the pharmaceutical and biotech industry and government bodies to identify and establish the optimal method of conducting further trials to confirm these findings and move forward, not just for COVID-19, but also as a potential treatment for patients hospitalised due to a range of viruses including influenza, RSV, adenovirus, para-influenza and rhinoviruses.”

The Synairgen share price doesn’t look set to recover in the immediate future, however the pharmaceutical company remained hopeful that its research and investment would yield progress in the coming year ahead.

ImmuPharama shares fall on widened £8.2m loss

Natasha Doris
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0
ImmuPharama shares fall on widened £8.2m loss

ImmuPharma shares were down 6.4% to 5.5p in early afternoon trading on Wednesday, after the group reported a widened loss to £8.2 million in its FY 2021 results, from a £6.9 million loss in FY 2020.

The lupus-focused group confirmed research and development expenses of £3.7 million against £2.4 million the last year, along with exceptional items of £1.4 million as a result of corporate reorganisation costs.

ImmuPharama commented that it expected cost savings on the back of corporate reorganisation from 2022 of £1.1 million per year in committed overheads cost, representing a decline of approximately 50% including a reduction in costs relating to its board and connected parties of £500,000 per year.

ImmuPharma also mentioned lowered administrative expenses of £1 million from £1.8 million year-on-year.

However, the pharmaceutical company’s cash balance decreased to £1.6 million compared to £5.9 million the previous year.

ImmuPharma also noted a successful subscription and placing, which raised £3.5 million in total.

“We were delighted to secure the successful fundraising in late 2021, as it demonstrated that our corporate repositioning efforts, since the Board changes, were recognised by our existing shareholders and partner, Avion (Alora Pharmaceuticals),” said ImmuPharma CEO Tim McCarthy.

Lupzor and P140

ImmuPharma reported the successful completion of its P140 Pharmokinetic study, with key endpoints met. The P140 was safe and well-tolerated in all doses across all subjects, with discussions currently ongoing with potential partners for Lupzor outside of US key territories.

“With now a fully reviewed and assessed R&D development pipeline, we remain focused on bringing our two late-stage clinical assets, Lupuzor™ and P140 for CIDP closer to the market,” said McCarthy.

“Specifically, on Lupuzor™, our partner Avion, is committed to moving this program into Phase 3 as soon as possible, following final discussions with the FDA and based on the positive readout of the recent PK study.”   

“We are also focused on ensuring earlier stage assets, specifically within anti-infectives, progress, with a key strategy on securing partnering opportunities over the medium term.”

FTSE 100 rises on utilities, telecoms and mining stocks

Natasha Doris
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0
FTSE 100 rises on utilities, telecoms and mining stocks

The FTSE 100 was up 0.4% to 7,518.2 in early afternoon trading on Wednesday, following jumps in mining, utilities and telecoms, with analysts pointing out the high dividend payments coaxing investors out of the woodwork.

“The FTSE 100 advanced…led by utilities, telecoms and mining stocks – all generous dividend payers, suggesting that people are continuing to rediscover their love of income investments,” said AJ Bell investment director Russ Mould.

Airtel Africa shares increased 2.7% to 156.8p, with Vodafone shares climbing 1.9% to 131.3p and commodities firms Rio Tinto and Anglo American rising 1.5% to 5,624p and 1.4% to 3,675p, respectively.

Meanwhile, tech stocks battered the US markets, as Snapchat shares fell 43% by close of trading on Tuesday, with the NYSE down 0.3% to 15,290.3 and the NASDAQ sliding 2.3% to 11,264.4.

SSE shares gained 5% to 1,855p after the utilities company reported a 42% climb in revenue to £16.9 billion in its FY 2022 results compared to £11.8 billion in FY 2021, with a 15% increase in operating profit to £1.5 billion.

The firm announced a dividend payout growth of 5.8% to 85.7p against 81p the last year.

https://twitter.com/SSE/status/1529347362111512579

Glencore shares rose 0.2% to 520.4p following a remarkable $1.5 billion fine levelled against the mining company for corruption and bribery charges related to its oil operations across several African countries.

The group indicated that it would plead guilty to all charges, and is set to pay $700 million for US bribery investigations, $485 million for market manipulation investigations and $39.5 million to the Brazilian Federal Prosecutor’s Office, with an additional amount to be paid to the UK.

“We acknowledge the misconduct identified in these investigations and have cooperated with the authorities,” said Glencore CEO Gary Nagle.

“This type of behaviour has no place in Glencore, and the Board, management team and I are very clear about the culture that we want and our commitment to be a responsible and ethical operator wherever we work.”

Prudential shares declined 2.1% to 986.6p on the reported hire of Manulife Financial executive Anil Wadhwani as its new CEO, who is set to take up the position in following the retirement of Mike Wells earlier this year.

Ocado shares tumbled 5.3% to 723.9p, after the retailer halved its growth guidance in light of the UK cost of living crisis, with management expecting “low single digit” annual sales growth.

The struggling company was already failing to keep up with a post-Covid-19 rate of online consumer shopping, and the stock had been circling the drain for some time as lockdown restrictions lifted. Ocado shares have fallen 56.7% year-to-date.

Glencore fined $1.5bn on bribery and market abuse charges

Natasha Doris
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0
Glencore fined $1.5bn on bribery and market abuse charges

Glencore was charged with seven counts of bribery linked to its oil operations by the Serious Fraud Office (SFO) this week, in a revelation which saw the mining giant fined an eye-watering $1.5 billion.

The FTSE 100 company is set to pay $700 million for US bribery investigations, alongside $485 million contributed to market manipulation investigations, with a certain level of reductions pending settlements in other countries.

Glencore confirmed it had further agreed to pay a future amount to the UK, and $39.5 million under a resolution signed with the Brazilian Federal Prosecutor’s Office linked to its investigation into the mining firm.

The charges followed an operation opened by the SFO into the company in June 2019, codenamed Operation Azoth, which investigated the group for allegations of corruption.

The SFO pursued the claims with the assistance of the US, alongside Dutch and Swiss prosecutors.

Glencore reportedly indicated that it would plead guilty to all charges at a hearing at Westminster Magistrates’ Court on Tuesday.

The organisation alleged that agents and employees working for the FTSE 100 miner paid over $25 million in bribes for advanced access to oil, with the knowledge and approval of the group.

The SFO uncovered corruption throughout Glencore’s oil operations in the Ivory Coast, Nigeria, Equatorial Guinea, South Sudan and Cameroon.

“We acknowledge the misconduct identified in these investigations and have cooperated with the authorities,” said Glencore CEO Gary Nagle.

“This type of behaviour has no place in Glencore, and the Board, management team and I are very clear about the culture that we want and our commitment to be a responsible and ethical operator wherever we work.”

Glencore chair Kalidas Madhavpeddi added: “Glencore today is not the company it was when the unacceptable practices behind this misconduct occurred.”

Glencore is scheduled to be sentenced at Southwark Crown Court on Tuesday 21 June.

“This significant investigation, which the Serious Fraud Office has brought to court in less than three years, is the result of our expertise, our tenacity and the strength of our partnership with the US and other jurisdictions,” said SFO director Lisa Osofsky.

“We won’t stop fighting serious fraud, bribery and corruption, and we look forward to the next steps in this major prosecution.”

Pets at Home enjoys record £1.3bn sales, CEO Lyssa McGowan steps up

Natasha Doris
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0
Pets at Home enjoys record £1.3bn sales, CEO Lyssa McGowan steps up

Pets at Home shares gained 8.8% to 305.6p in late morning trading on Wednesday, following record sales of £1.3 billion and a like-for-like rise of 15.8%.

The company confirmed an increase in group customer revenue of 16.5% to £1.6 billion, reflecting market share gains spread throughout all business sectors.

The pet specialist firm reported an underlying pre-tax profit growth of 65.3% to £144.7 million compared to the previous year, ahead of market expectations.

The group reported a free cash flow of £95 million, marking a 40.9% rise year-on-year, including positive cash generation across its First Opinion veterinary practices.

Business Development

Pets at Home confirmed a record VIP number of 7.3 million members, representing an increase from FY 2021 of 18% to 1.1 million.

The firm reported approximately 23,000 weekly registrations per year, marking a 16,000 member rise compared to FY 2019.

The company noted that 27% of VIPs bought items across more than one channel over the year, bringing the proportion up 22% since the last year, boosting the group’s lifetime value interest.

The firm also saw an increase in new client registrations to its First Opinion practices to 1.7 million, with an average of 9,000 new client registrations per week.

Pets at Home noted a 23% uptick in pet care plan subscriptions to 1.5 million, generating approximately £120 million in annualised recurring customer revenue.

“The UK pet market’s grown 4% per year on a compound basis over the past 5 years and continues to look strong as the pandemic fuelled surge in pet ownership doesn’t look to be going anywhere,” said Hargreaves Lansdown equity analyst Matt Britzman.

“Revenue’s outpaced that, growing around 10% over the same period which is testament to the work done at Pets at Home to push the omnichannel experience and sign customers up to the pet care ecosystem with subscription services now generating over £120m in recurring revenue.”

CEO Lyssa McGowan

The company reported a soaring slate of positive results, right in time for new CEO Lyssa McGowan to step up to the plate and steer Pets at Home into its next stage of growth.

“We are well placed to accelerate our growth in market share. The robust backdrop of the UK pet care market, coupled with our clear strategic priorities, proven omnichannel model and strong Executive Team, mean that I hand over leadership of this great business to Lyssa McGowan with the utmost confidence that Pets at Home will continue to create value for all stakeholders in both the near and longer-term,” said Pets at Home CEO Peter Pritchard.

Analysts commented that McGowan had her challenges cut out for her as inflationary pressures rose, however it appeared unlikely that customer demand for the firm’s services and products would be disappearing en mass anytime soon.

“Lyssa McGowan has big shoes to fill. With yet another record year in the books for Pets at Home, the incoming CEO has her work cut out for her,” said Freetrade analyst Gemma Boothroyd.

“Red hot inflation and the growing cost of living mean the UK could continue to feel the heat. [However], Pets at Home has proven it’s not a one hit wonder. The lockdown winner has maintained sustainable revenue growth as we emerge from the pandemic too.”

“Pets at Home’s already proven its services segments are critical for its revenue growth. They’re also how the retailer can prove the value behind its brick and mortar locations, which provide the benefit of up-sell opportunities as well. Services will also protect the firm from international behemoths like Amazon from gobbling up more of the UK retailer’s market share.”

Inflation

Pets at Home assured investors that inflation across its supply chain was being managed proactively, with a projected underlying pre-tax profit of £146 million to £157 million, according to analyst expectations.

Dividend and Share Buyback

The firm mentioned a strong balance sheet, with net cash of £66 million, excluding lease liabilities, and announced a final dividend uptick of 36% to 7.5p, bringing its total dividend to 11.8p per share for FY 2022.

Pets at Home also confirmed the launch of a 12-month share buyback scheme of up to £50 million in the coming year.

“Record new VIP customers mean cash is flowing through Pets at Home … The strong performance and balance sheet with net cash mean investors are being rewarded with a £50m buyback as pet ownership shows little sign of slowing down,” said Britzman.

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