Condor Gold shares tumble on widened £668,134 operating loss

Natasha Doris
-
0
Condor Gold shares tumble on widened £668,134 operating loss

Condor Gold shares tumbled 7.8% to 34.1p in late morning trading on Friday after the mining firm reported a widened operating loss of £668,134 compared to £512,518 year-on-year in its Q1 2022 results.

The company announced a pre-income tax loss of £667,879 from £512,518, alongside an EPS loss of 46p against 41p in Q1 2021.

Condor Gold confirmed its ongoing operations related to the La India open pit mine, including advances made on the technical studies required for the completion of a Definitive Feasibility Study (DFS) covering the project.

The mining group said it had purchased 99.6% of the core areas of land at the La India operation, alongside a site clearance of 14 hectares for the processing plant location, including space for offices, warehouses, a stockpile and a buffer zone.

The company reported that project finance discussions were currently ongoing with potential financers with access to the firm’s data room under the protection of confidentiality agreements.

“During the first quarter, we continued to make significant progress on advancing the Feasibility Study for the La India open pit and associated mine site infrastructure,” said Condor Gold CEO Mark Child.

“All technical studies undertaken at the Project level are complete. We are currently reviewing the metallurgical test work, geotechnical analysis and capital cost estimates.”

“The Feasibility Study on La India open pit is almost complete, the formal announcement will probably take us into Q3. It will put the Company in a position to pursue various project financing alternatives, some of which have already been initiated.”

Saudi Aramco dethrones Apple as most valuable company on the market

Natasha Doris
-
0
Saudi Aramco dethrones Apple as most valuable company on the market

Saudi energy giant Saudi Aramco officially overtook tech company Apple as the most valuable firm on the international market earlier this week.

Aramco reported a market valuation of slightly under $2.4 trillion on Wednesday, as Apple dropped more than 5% during Wednesday trading with a current worth of $2.3 trillion.

The Saudi oil and gas company has been benefiting from rising oil prices on the back of supply instability due to Russia’s invasion of Ukraine, which saw oil prices skyrocket past the $100 level to peak at almost $130 per barrel in mid-March.

The price of Brent crude currently stands at $109 per barrel at the time of writing.

Apple has seen a series of disruptions to its productivity in 2022, with Covid-19 lockdowns in tech hub Shanghai sending investors into a panicked frenzy of selling shares in the US-listed group.

Apple shares have so far taken a fall of almost 20% since its $182.9 high point on 4 January this year.

Meanwhile, Aramco have seen its stock climb 27% in the year-to-date, with its recent profits reported in March more than doubled as a result of surging oil prices.

KPMG to pay £14.4m fine after Carillion forgery charge

Natasha Doris
-
0
KPMG to pay £14.4m fine after Carillion forgery charge

KPMG was charged with a £14.4 million fine on Thursday, after the Big 4 accounting group was brought to tribunal over claims related to an investigation by the Financial Regulations Council (FRC) opened in 2018 over the company’s 2016 audit of defunct outsourcing firm Carillion.

Carillion collapsed in January 2018 with £7 billion in debt, crashing with 3,000 jobs lost and hundreds of projects thrown into disarray including hospitals, roads and football club Liverpool FC’s stadium, Anfield.

The fine was confirmed by the FRC at the tribunal in London after an accountant formerly linked to KPMG reportedly forged documents and deceived regulators.

KPMG self-reported matters linked to the review of the 2016 Carillion audit, with the investigation later expanded in July 2019 to include the review of the audit for data erasure management company Regenersis after KPMG also self-reported a series of matters linked to the audit.

The FRC said it had been misled by information provided by KPMG relating to audit quality reviews (AQR) undertaken by the government organisation to uphold the integrity of audits conducted for the two companies from 2014 to 2016.

The forged documents included falsified minutes for KPMG meetings, alongside doctored spreadsheets which were subsequently submitted to the FRC.

The £14.4 million fine was reportedly scaled down from the recommended £20 million amount, which would have been the largest fine on record ahead of Deloitte’s £15 million fine in 2020 as a result of its handling of software group Autonomy.

The final sum was apparently reduced on the basis of KPMG’s compliance and willingness to accept responsibility for the matter.

The tribunal, which kicked off in January, is scheduled to continue its processing of KPMG’s staff to decide appropriate penalties for employees including partner Peter Meehan, who is currently facing a potential ban from the accounting and auditing industry for 15 years with an estimated fine of at least £400,000.

“I am saddened that a small number of former employees acted in such an inappropriate way, and it is right that they – and KPMG – now face serious regulatory sanctions as a result,” said KPMG CEO Jon Holt.

“As a firm, we are committed to serving the public interest with honesty and integrity. We have worked hard, and with complete transparency to our regulator, to assure ourselves that this matter does not represent the wider culture or practice of our firm.”

KPMG employees Adam Bennett, Alistair Wright and Richard Kitchen are also facing a potential fine of £100,000 and a proposed ban of 12 years from the sector.

Former lower-level worker Pratik Paw is also being considered for a four-year ban from the business and a £50,000 fine.

The KPMG partner in charge of the Regnersis audit oversight reportedly reached a confidential settlement with the FRC earlier in January 2022.

The FRC is currently looking into KPMG and prior Carillion directors linked to the audit and preparation of Carillion’s accounts from 2016.

“The misconduct found in this case is extremely serious,” said FRC QC Mark Ellison.

“It cuts at the very heart of the protection of the public interest in the respondents’ regulator, the FRC.”

“It was misconduct deliberately aimed at deceiving AQR inspectors appointed by the FRC.”

ContourGlobal sees rise in adj EBITDA

Anshula Kumar
-
0
ContourGlobal sees rise in adj EBITDA

ContourGlobal announced the a rise in adjusted EBITDA despite the power generation company noting higher payouts to shareholders in its first-quarter trading update on Friday.

ContourGlobal recorded a 52.6% rise in revenue from $427m to $652m in the first quarter of 2022, however, the group noted a 10.1% decline in net profit from $9m to $8m and 68.2% in adjusted net profit from $15m to $5m.

The group’s adjusted EBITDA rose 15.3% to $208.3m, out of which $11m came from the acquisition of Western Group, $11m from Mexico CHP, $8m from Austria Wind and a negative FX variance of $8m.

The growth in adjusted EBITDA helped ContourGlobal’s cash flow generation with Funds from Operations which saw a 9% rise to $112m in the first quarter, however, is partially offset by payouts to shareholders amounting to $20m and lower interest paid of $12m.

The group’s cash conversion amounts to 54% versus 57% in 2021 due to higher payouts to shareholders.

ContourGlobal’s cash flow and operations along with 72% of adjusted EBITDA are protected from higher inflation, along with, 88% of total debt staying hedged from rising interest as it is secured by fixed interest rate. In retrospect, assets without impact of inflation have long-term fixed interest rate financings.

The group said the process of capitalizing its renewable energy segment in Brazil is moving forward and the previously announced sale of the Brazil hydro assets to Pátria Investments is on schedule to be completed, along with the sale of the Brazilian wind assets progressing as planned.

Technical operational performance fell short compared to the 97.4% in 2021, with an average availability factor of 96.1% throughout the thermal and renewable fleets which was mostly due to a brief involuntary outage at the natural gas-fired plant in Arrubal, as well as scheduled outages at its natural gas-fired plant in Trinidad & Tobago and the hydro plant in Vorotan, none of which had significant financial consequences.

ContourGlobal has a progressive dividend policy where the group pledged to enhance the dividend per share by 10% every year. The group said it will pay a quarterly dividend of $0.49 or $32.2m, on June 10, 2022.

In the first three months of 2022, improved health and safety performance with zero Lost Time Incident Rate said ContourGlobal.

ContourGlobal’s business model is extremely steady and predictable in terms of cash flow.

The current financial year is off to a good start, with general performance exceeding the Board’s expectations and reinforcing the Board’s confidence in continuing dividend increases for shareholders.

Joseph Brandt, Chief Executive Officer, ContourGlobal, said, “Our diversified business remains resilient and well positioned to perform well despite unprecedented turbulence in the global energy markets.”

“We performed ahead of the Board’s expectations during the quarter and I am pleased to confirm the first quarter dividend payment of USD 4.9115 cents per share, representing a 10% year-on-year growth in line with our dividend policy.”

“This is underpinned by strong operating cash flows and a 15% year-on-year growth in Adjusted EBITDA to $208 million. The outlook for the rest of the year is favorable.” 
   

ContourGlobal shares gained 0.7% to 191p in early morning trade on Friday.

Griffin Mining revenue spikes 61% to $121.6m on record ore processing volumes

Natasha Doris
-
1
Griffin Mining revenue spikes 61% to $121.6m on record ore processing volumes

Griffin Mining shares were up 12.5% to 103.5p in early morning trading on Friday, following a reported 61% spike in revenue to $121.6 million against $75.4 million in its FY 2021 results.

The mining group confirmed an operating profit surge of 143% to $36.5 million from $15.1 million year-on-year.

Griffin Mining announced a pre-tax profit increase of 152% to $36.5 million compared to $14.5 million in 2020, alongside a post-tax profit growth of 185% to $25.3 million against $8.9 million on the back of record levels of ore mined and processed.

The firm also attributed its rise in profits to improved zinc metal market prices and lower smelter treatment charges.

Griffin Mining confirmed that lead and precious metals in concentrate sales in 2021 rose $31.9 million, representing a 22.7% increase on 2020 levels of $25.9 million.

The results reflected an increase in gold metal in concentrate sold, along with increased lead and silver in concentrate prices received despite lower gold prices.

The company reported a basic EPS spike of 182% to 14.5c per share from 5.1c year-on-year.

Griffin Mining announced that it would suspend its dividend for 2021 in light of turbulent macroeconomic conditions, however the firm reported that it would reconsider a dividend policy later in 2022 which could be properly executed over the long term.

“What makes the above results truly exceptional is the continuing Covid-19 crisis in China and the quarantine procedures the various levels of government have put in place making the transport of materials, employees and contractors over Provincial borders at the least, extraordinarily difficult and, at the most, impossible,” said Griffin Mining chairman Mladen Ninkov.

“Furthermore, China has prevented the entrance of any foreign national into the country who does not have a pre-existing work permit and then, only with 28 days hotel quarantine. What this reinforces in simple terms is the dedication and loyalty of both our on-site staff and our ex-pat staff.”

“I would like to thank John Steel, our new Chief Operating Officer, Paul Benson, our Chief Geologist, and Wendy Zhang, our site Chief Financial Officer, for their Herculean efforts over the past 12 months. All these on-site and ex-pat individuals have displayed the extent of their loyalty and I am grateful on behalf of everyone involved with the Company.”

First Property inks leases in Poland

Anshula Kumar
-
0
First Property inks leases in Poland

First Property Group has negotiated leases for 2,691m2 of its office building in Gdynia, Poland, accounting for 20% of the net internal area (NIA) said the property fund manager in an announcement on Friday.

Due to lockdowns in the pandemic, the property was 98% vacant which impacted the write-down in March 2021 and resulted in the carrying value of this building being reduced to €16m.

Tenants are now responsible for around €500,000 in rent and service charges every year. This is around half of the building’s running costs.

When completely leased, the building is expected to generate €2.5m in rent and service charges per year.

The District Court in Gdynia is the main tenant, accounting for 15% of NIA and occupies the entire first floor.

The establishment of the court is expected to lure more legal consultants and practitioners to the building, according to First Property.

The building is located at 21 ul. Podolska is in prime central Gdynia, Poland’s second-largest seaport after Gdansk, and spans around 13,400 m2 of NIA.

The Port of Gdynia has had significant investment in recent years, and it is currently being expanded to accept Baltimax vessels, with associated investments in road and rail infrastructure.

First Property Group shares were trading up 1.5% to 33p in early morning trade on Friday as the group announced the inking of the leases.

Fulcrum Utility: UK energy market hurts group’s profits

Anshula Kumar
-
0
Fulcrum Utility: UK energy market hurts group’s profits

Fulcrum Utility Services announced in its trading update in which it noted the adverse market conditions of the UK energy market and reported a severe impact on its profits, leading to Fulcrum Utility shares to crater 27% to 6.75p on Friday.

Fulcrum Utility, the provider of essential utility services arranged a fundraise in December 2021 following which the UK energy market faced “turbulence” which impacted the group’s metre exchange operations, however, Fulcrum Utility’s core multi-utility contracting business remained unphased.

The group’s smart metre exchange and management contract with energy supplier E Gas and Electricity, in specific, was hindered in Q4 2021, due to the insolvency of several of the group’s other energy supplier customers and one of the group’s labour-only subcontractors.

As a result, Fulcrum was unable to service the contract in a way sustainable for the contract’s profitability for the group leading to the mutual agreement between the Board and E to terminate the contract.

Simultaneously, supply chain pressure and inflation added to the strain on Fulcrum Utility’s core multi-utility contracting business’ profitability, especially on projects which are longer-term in nature such as multi-utility and complex electrical infrastructure projects.

The impact of the wider market issues hurt the group’s financial position leading the group to anticipate a 21.8% YoY growth to £57.4m in report adjusted revenue for FY22 and expects adjusted EBITDA to be around £0.5m.

The group’s order book stands at £48m leading the Board to believe that Fulcrum Utility’s order book will “soften” as the energy market crisis continues.

Fulcrum Utility’s utility assets valued at £36m provide recurrent income leading to “attractive and predictable long-term returns”, along with providing a major growth opportunity for the firm according to the Board.

Despite current market conditions hampering the group’s profitability, the Board thinks acquiring assets at favourable prices is possible which led the Board to analyse certain asset acquisition opportunities. The group is in discussion whilst handling the due diligence over a number of opportunities.

Keeping in mind the market conditions in the UK energy market, the Board is aiming to manage the group’s operations by handling its core utility infrastructure and asset ownership growth strategies while trying to improve margins.

In January of this year, Antony Collins was named interim CEO and Stuart Crossman joined Fulcrum Utility as COO, followed by Jonathan Jager signing on as the group’s CFO in February.

Antony Collins, CEO of Fulcrum Utility, said, “Despite the challenges presented by both the UK’s energy crisis and wider difficult trading conditions, I believe that Fulcrum has the essential capabilities needed to be successful in what are exciting and growing markets.”

Fulcrum Utility’s activities are being actively reviewed by the new leadership team to guarantee peak results and discover potential to improve profitability and deliver “sustainable growth”.

The Board of Directors is satisfied that the company is ideally positioned to support the expansion of the UK’s energy infrastructure by delivering services that are critical as the country moves toward a net-zero future.

Sage Group operating profits rise to £204m, dividend increases on Business Cloud growth

Natasha Doris
-
1
Sage Group operating profits rise to £204m, dividend increases on Business Cloud growth

Sage Group shares gained 1.6% to 675.2p in early morning trading on Friday, after the company reported an operating profit rise to £204 million compared to £203 million year-on-year in its HY1 2022 results.

The operating profit included non-recurring net gains of £55 million, driven by a selection of disposals.

Sage Group confirmed a revenue decline to £934 million against £937 million, alongside an EBITDA of £226 million compared to £229 million in HY1 2021.

However, the software company’s organic recurring revenue grew 8% to £866 million from £800 million on the back of its Sage Business Cloud expansion of 21% to £572 million, alongside an organic total revenue increase of 5% to £924 million against £877 million.

Sage Group announced an EPS boost of 12% to 14.8p from 13.2p, and a dividend per share rise of 4% to 6.3p against 6p in the last year.

The firm highlighted an organic operating margin of 19.9% compared to 18.4% year-on-year.

“We achieved a strong first half performance, in line with expectations, demonstrating sustainable growth and building further momentum,” said Sage Group CEO Steve Hare.

“Our strategic investment in sales, marketing and innovation has continued to accelerate revenues across Sage Business Cloud, underpinned by increasing levels of new customer acquisition.”

“Cloud native solutions, which now account for around a quarter of Group ARR, have performed particularly well.”

The firm noted a strong balance sheet with £1.2 billion in cash and available liquidity, and a net debt to EBITDA of 1.5x.

The Sage Group commented that its outlook remained unchanged, with an anticipated organic recurring revenue growth coming in between 8%-9% in FY 2022 as a result of strong growth in the Sage Business Cloud, and especially in cloud native revenues.

The company added that it expected other revenues to continue to decline, reportedly in line with the firm’s strategy.

The group said its organic operating margin was projected to trend upwards in 2022 and beyond as Sage Group focused on scaling the business.

“While we are mindful of increased macroeconomic and geopolitical uncertainties, our customers remain confident and resilient,” said Hare.

“Our aim is to knock down barriers to their success, delivering solutions that make their lives easier, and we continue to make good progress against our strategic objectives.”

“I am confident that our ambition to become the trusted network for small and mid-sized businesses will drive the success of Sage, as we focus on growing both revenue and earnings in absolute terms.”

Mirriad Advertising Finals: It’s Jam tomorrow

Jon Levinson
-
0
Mirriad Advertising Finals: It’s Jam tomorrow

Mirriad Advertising (LSE: MIRI) 21.5p Mkt Cap £60m. The shares fell after reporting its  finals to December.  The operating loss widened to £12m from last years £9m as MIRI pursue the  development of a new form of instant and high response advertising.  It has developed computer vision technology and an AI platform that connects brands to viewers by providing in-content advertising. After years of  development costs, disappointingly there was a small decrease in Revenue to £2m, when more commercial traction had been  anticipated after  new cont...

Delayed benefits of new Concurrent Technologies strategy

Andrew Hore
-
0
Delayed benefits of new Concurrent Technologies strategy

Ruggedised plug-in cards developer Concurrent Technologies (LON: CNC) is set on a new strategy that will increase opportunities for the business, but do not expect to see the results of this in the current financial year. Longer-term, there should be an acceleration of growth as new product launches get designed-in to end products.
Component shortages held back revenues and they dipped from £21.1m to £20.5m in 2021. Even so, pre-tax profit improved from £3.7m to £4.1m thanks to lower operating expenses. The top ten clients account for 70% of revenues with the US the biggest regional market. De...

1...727728729...1,810Page 728 of 1,810