Saga saw shares fall 3.5% to 245p in early morning trading on Wednesday after the company released a devastating £6.7 million loss due to an increase in motor insurance claims.

The loss represented a 139% fall in profits against Saga’s £17.1 million profit in 2020.

The ‘over-50s’ products and services firm reported higher marketing costs and a rise in motor insurance claims as to the driving factors behind its loss.

Saga noted a £31.2 million decrease in net debt from £760.2 million to £729 million over 2021.

The group also reported an increased retention rate of 2.3% to 82.8%.

Saga suspended its dividend for 2021 and warned shareholders not to expect a payout until 2024 at the earliest.

“Over the last year, Saga has delivered a resilient performance, whilst laying the foundations for future growth,” said Saga CEO Euan Sutherland.

“The Insurance business delivered a robust performance with the second year of policy growth after several years in decline, whilst in travel, we resumed operations, secured positive cruise bookings for 2022/23 and began the restructure of our tour operations business.”

“Looking to the future, I am both confident and excited about the opportunities ahead of us as we emerge stronger from the pandemic than we went in, whilst remaining mindful of the current challenging external environment.”

Analysts focused on the mixed returns of Saga’s financial results and commented on the impact of its marketing strategy.

“Saga has rounded off the year with an underlying loss, which has disappointed the market alongside a lack of forward guidance,” said Hargreaves Lansdown equity analyst Sophie Lund-Yates.

“The money the group’s throwing at a brand refresh seems to be bearing some fruit, with customer retention levels moving in the right direction.”

“But before Saga can focus on the future too much, it needs to concentrate efforts on navigating through the current waters of uncertainty.’’

Plus500 saw its share price increase 0.4% to 1,473p in early morning trading on Monday, despite a reported 18% decline in revenue to $718.7 million against $872.5 million in 2020 and a 25% fall in EBITDA from $515.9 million to $387.1 million in 2021.

The company also saw a 33% loss in new customers with 196,336 new clients in 2021 compared to 294,728 in 2020.

Plus500’s active customers fell 6% to 407,374 against 434,296 in 2020.

However, the FinTech group hit the milestone of 22 million registered customers in 2021, alongside a series of new acquisitions, including futures commission merchant Cunningham Commodities and technology trading platform provider Cunningham Trading Systems.

The company further announced the acquisition of Japanese firm EZ Invest Securities on 21 March in its slate of news this week, which sets Plus500 up for entry into the Japanese financial instruments market.

The firm announced a $120 million dividend, representing a total dividend of $1.1 scheduled for distribution on 22 July 2022.

Plus500 noted the launch of proprietary share dealing platform ‘Plus500 Invest’ among its operational highlights, reporting a further roll-out for the project in 2022.

Plus500 said it currently expects sustainable medium to long term growth driven by the continued momentum of its underlying customer income.

“Plus500 delivered another excellent operational and financial performance in 2021 and we made significant progress with our strategic roadmap to develop our position as a leading global multi-asset fintech group,” said Plus500 CEO David Zruia.

“Our future growth will be delivered through continued development of our technology, particularly in relation to driving customer retention, successfully obtaining new operating licenses and launching new products.”

“These growth opportunities will be achieved by continued organic investments in our business and through additional acquisitions.”

Ultra Electronics, the defence and security company, saw its order book jump 22% to £1.3bn in 2021 as a result of their One Ultra strategy to provide ‘interoperable solutions’ with an array of products including Sonobuoy and ORION radio.

Existing clients continued strong momentum in orders with the US Marines, US Army and US Navy committing $140m for ORION radio and $118m orders for US Sonobuoy under the ERAPSCO 5-year IDIQ contract.

The company also saw orders for the UK Ministry of Defence (MoD), which placed a £31m order for Sonobuoy and received an award of $23m for the MK54 lightweight torpedo array kits.

Amongst their awards, Ultra Electronics won a cyber award worth £65m for the UK MoD and a production award of $30m for the Next Generation Surface Search Radar programme.

Among their new clientele, the company received a £60m order for Integrated Anti-Submarine Warfare Defence Systems by the Indian Navy, a $14m contract with Tunisia and Romania to provide Integrated Command and Control systems and a $24m contract for Forensic Technology with Brazil.

Revenues increased by 4.2% to £850.7m on an organic revenue basis, with strong revenue growth of 6.3% and 5.5% in the Maritime segment and Intelligence & Communications segment.

Profit before tax plummeted 20.3% from £103.7m in 2020 to £82.7m as the sterling strengthened against the US dollar.

Offer from Advent Cobham Acquistions

In 2021, Ultra received an unexpected offer from Cobham Ultra Acquisitions Limited.

The acquisition was accepted by 99.86% of Ultra’s voting shareholders in October 2021. Except for HM Government’s, all the clearances have now been obtained.

Ultra and Cobham have been collaborating with the HM Government, including the Ministry of Defence, to guarantee that the UK’s national interests are taken into consideration as part of the proposed arrangement.

The acquisition will no longer be finalized in Q1 2022, as per the Board. Ultra’s Board is focused on working with Advent and Cobham and other parties involved to ensure that the acquisition is successful.

Ultra Electronics decreased dividends by 71.5% to 16.2p as opposed to 56.9p in 2020 due to agreements made with the Advent Cobham acquisition.

Simon Pryce, Chief Executive Officer, Ultra Electronics said, “2021 was another year of strategic, operational and financial progress for Ultra and was our fourth year of robust organic revenue growth.” 

“This was achieved despite pandemic driven operational and supply challenges and significant translational currency headwinds.”

“Effective execution of our ONE Ultra strategy is creating new opportunities, and we enter 2022 with another record £1.3bn order book. Our continuous improvement focus is uncovering additional improvement opportunities. “

“The Board remains committed to working with Advent/Cobham and HM Government to deliver a successful closing of the acquisition.”

The FTSE 250 rose on Tuesday tracking gains in the FTSE 100 towards pre-conflict highs while the AIM dipped as several big fallers dragged the index, despite a number of promising updates from companies in the small cap index.

National Express were among the top risers as shares rose 3.8% to 232p as a potential bidding war continued drive their shares higher as the board considers the future of the group that looks set to join forces with Stagecoach.

Softcat shares increased 6.2% to 1,825p with a 33% in revenues from £577m to £770.9m due to improvements in hardware, software and services, despite supply chain issues caused by the pandemic.

AIM Risers

Sovereign Metals shares flew 9.9% to 30.5p following the announcement of a drastic decrease in the carbon footprint when producing titanium through natural rutile, a mineral they found in abundance in their Kasiya project.

4D Pharma shares rose 9.6% to 44p after the drug manufacturer received FDA approval for the treatment of Parkinson’s Disease through the application of two live biotherapeutics, MRx0005 and MRx0029.

Alliance Pharma shares were trading up 0.63% to 112p following the announcement of a 39% increase in pre-tax profits due to increased e-commerce activity.

The Pebble Group, a tech product provider, saw shares jump 22% to 110p as revenues increased from £82.4m to £115.1m in 2021 as a result of increased client acquisition. The Brand Addition segment saw a rise of 41% in revenues to £102m in 2021 making it the largest contributor to the group’s income.

Beowulf Mining shares soared 23% to 14.5p following the company’s announcement of increasing ownership in Vardar from 49.4% to 51.4% through an additional investment of £200,000.

AIM Fallers

MusicMagpie took a dive of 16% to 52.5p as its downwards spiral continued. Shares are now trading down 68.4% year to date after its released mildly disappointing results due to increased competition and a slowdown in expected growth.

“In theory MusicMagpie should do well from a tougher consumer environment as people look to realise cash from the unwanted tech sitting in drawers and shoppers are more prepared to buy second hand as a belt tightening exercise,” said AJ Bell investments director Russ Mould shortly after they reported earlier this year.

Knights Group Holdings plummeted 47.5% to 191.5p after its trading statement on Tuesday which reported a slowdown in business and return to the office as a result of Omicron, alongside a “softening in business confidence” across the firm.

The Diurnal Group fell 43.2% to 43.2p after its drug Efmody was met with rejection for automatic reimbursement from NHS Scotland, and reports that the drug will not meet near-term sales goals and require further funding from the company’s resources to progress the drug into resubmission for the Scottish Medicines Consortium (SMC).

The FTSE 100 continued its rally to pre-Ukraine conflict levels as the index remained steady at a 0.5% increase to 7,484 in late morning trading on Tuesday.

Analysts noted that the FTSE 100 was now only slightly down on the year and cited the impact of rising commodities and the FTSE 100’s average yield as an attractive factor in an inflationary environment.

“The FTSE 100 extended its recent strong run and is now not too far off the levels it reached before the Russian invasion of Ukraine and only marginally lower year-to-date,” said AJ Bell Investment Director Russ Mould.

“It has substantial commodities exposure, a decent yield which appeals in an inflationary environment and more discounted valuations than seen in other global markets.”

JD Sports

JD Sports’ shares jumped 3.5% to 154p after the positive response to Nike’s third quarter results. The sports fashion company who supplies Nike apparel have been heavily hit this year with concerns around their sales due to pressure on household spending.

“Shares in Nike found some air in afterhours trading overnight after a solid set of third quarter numbers,” said Mould.

“Impressively the sportswear giant managed to boost margins despite the supply chain issues it continues to face.”

Financials

Financial shares rose on Tuesday on the expectations the Federals Reserve would again raise rates to help fight inflation.

Susannah Streeter, Senior Investment and Markets Analyst, Hargreaves Lansdown said, “caught between a rock and a hard place, the Federal Reserve sees little option but to try and chip away inflation with even bigger interest rate hikes this year, if price pressures keep mounting.”

Prudential and HSBC shares were trading up 3.3%, follwed by Natwest, Standard Charter and Lloyd’s shares gaining 3.1%, 2.9% and 2.2% respectively.

Kingfisher

The top fallers were led by Kingfisher with a decrease of 5.1% to 276.4p on Tuesday following the release of its annual results and concerns the company’s profits could decline as consumers leave their homes for the outside world once again.

“Kingfisher benefited from people looking to do up their homes during the pandemic, however the world has since moved on and, despite management reporting a strong start to the current year, there has to be a risk that the company’s moment in the sun has passed,” said AJ Bell investment director Russ Mould.

Kingfisher generated revenue of £13.1bn, an increase of 6% from 2020 results. However, the company noted a net cash outflow of £237m as opposed to a cash inflow of £881m in 2020.

Auto Trader Group fell 3.4% to 652.8p as it announced the £200 million acquisition of Autorama.

Kape Technologies reported an 89% increase in revenue to $230.7 million compared to $122.2 million in 2020, representing a 20.7% increase on a proforma basis.

The company announced an operating profit of $38.1 million compared to $10.7 million in 2020.

Kape Technologies noted a proforma EBITDA of $78 million against $39 million in 2020.

However, the company reported a decline in post-tax profit at $23.3 million against $28.8 million.

Kape Technologies announced its acquisition of ExpressVPN for $925.8 million among its operational highlights, which has been the company’s largest acquisition to date.

The company also acquired digital platform Webselenese for $155.1 million in 2021, which provided Kape with a large market for consumer digital privacy and security, with a reported 100 million readers.

Kape Technologies noted a 161% increase in subscriber base to 6.5 million against 2.5 million in 2020, with a retention rate of 81%.

The company declared no dividend for 2021 and 2020 for shareholders.

Kape Technologies has a PE ratio of 41.9 and a forward PE ratio of 22.5, indicating analyst expectations of a rise in revenue in 2022.

The technology firm’s outlook for 2022 is projected at revenues between $610-624 million alongside an adjusted EBITDA between $166-172 million.

The group’s focus over 2022 will reportedly centre on ExpressVPN’s integration into the company.

“We are immensely proud of our progress in 2021, having delivered both a record financial performance and completed the most ambitious acquisition programme in our history,” said Kape Technologies CEO Ido Erlichman.

“In 2021, we achieved record customer growth, providing further evidence that our products remain both compelling and highly innovative, and, more importantly, our customers continue to utilise our services for many years.”

“Pleasingly, we have carried this positive momentum into 2022 and remain extremely positive about Kape’s prospects.”

Kape Technologies saw its share price dip 4.3% in early morning trading on Tuesday.

Goldman Sachs has conducted its first-ever over-the-counter (OTC) crypto options trade with Galaxy Digital, a digital asset finance company.

On Monday, CNBC reported on the press release issued by Galaxy Digital announcing the deal.

The transaction was represented as a Bitcoin non-deliverable option, which is a type of cash-settled cryptocurrency options trade, according to the statement.

The initiative is considered as a significant step forward in the development of crypto markets.

Max Minton, Asia Pacific head of digital assets, Goldman Sachs said, “we are pleased to have executed our first cash-settled crypto currency options trade with Galaxy.”

“This is an important development in our digital assets capabilities and for the broader evolution of the asset class.”

Goldman Sachs’ recent collaboration with Galaxy Digital is also an extension of the bank’s ongoing partnership with Galaxy to develop its crypto capabilities.

Galaxy provided liquidity support for the release of Goldman Sachs’ Bitcoin futures trading product to the Chicago Mercantile Exchange (CME), a derivatives market place in June 2021.

“We are pleased to continue to strengthen our relationship with Goldman and expect the transaction to open the door for other banks considering OTC as a conduit for trading digital assets,” said Damien Vanderwilt, Co-President and Head of Global Markets, Galaxy Digital.

Goldman Sachs’ Crypto Trading Timeline

CoinDesk revealed in March 2021 that Goldman Sachs relaunched its crypto trading desk after a three-year break due to increased demand from institutional clients.

In June, Galaxy announced that it would provide liquidity to Goldman Sachs for Bitcoin futures block trading on the Chicago Mercantile Exchange.

The SEC announced earlier this month that Goldman Sachs will be providing interested clients exposure to a Galaxy Ethereum fund.

Alliance Pharma reported pre-tax profits increased by 39% from £13m to £18.2m in 2021 due to increased e-commerce activity.

The pharmaceutical company generated revenues of £169.6m, a 26% increase from revenues in 2020, as a result of growth in revenues from the consumer healthcare segment and prescription medicine.

Consumer healthcare saw a rise of 31% in revenues from £93m to £121.8m in 2021 with Kelo-Cote contributing £48.8m.

Amberen has fully integrated with Alliance since its acquisition and has generated £19.2m in revenues adding to consumer healthcare’s income.

Nizoral revenues dropped 2% from £21m to £20.6m due to manufacturing problems and reduced demand as a consequence of Covid-19.

Prescription medicine revenue grew 8% from £44.5m to £47.8m in 2021 as consumers return to their routines earlier disrupted by the pandemic.

Main contributors to the revenue generated under prescription medicine include Forceval, Hydromol, Flammazine and Opus range of stoma care products.

The group saw net debt reduce from £109.4m to £87m in 2021 with a free cash inflow of £30.2m.

The group engaged in a new ERP system which helped rebalance the balance sheet items and improved the ‘visibility across the business’.

Peter Butterfield, Chief Executive Officer, Alliance said, “I’m delighted with the strong operational and financial performance of the Group in 2021.”

“Our Consumer Healthcare business continued to perform well, with Kelo-cote enjoying another excellent year as we capitalised on the opportunities identified for the brand.”

“Group double-digit organic revenue growth was complemented by the acquisition of Amberen which, coupled with solid cost control, resulted in strong cash generation allowing us to reduce both net debt and leverage. “

Future growth is foreseen for the group with increased operating capabilities in the US.

The group will support organic growth in the consumer healthcare segment through innovation and development including a strategic brand plan for Nizoral.

In terms of ESG, Alliance Pharma has committed to being carbon-neutral in scope 1 and 2 emissions from 2021.

“2022 has got off to an encouraging start. We remain confident in our ability to further capitalise on identified organic growth opportunities within the business and to deliver financial performance in line with market expectations.”

“In addition, we continue to evaluate opportunities to selectively add complementary acquisitions to our Consumer Healthcare platform, taking advantage of our strong cash flow and reduced leverage,” commented Butterfield.

Alliance Pharma increased dividends by 5% to 1.69p in 2021.

Alliance Pharma shares gained 3.7% to 115.6p in Tuesday morning trade following the announcement of strong growth in revenue.