musicMagpie confident in future despite 5.1% decrease in revenue

Natasha Doris
-
0
musicMagpie confident in future despite 5.1% decrease in revenue

musicMagpie’s share price dropped by 29% on Wednesday morning as the company released disappointing financial results for 2021.

The online retailer’s revenue decreased 5.1% from £153.3 million to £145.5 million, alongside a profit decline of 1.1% from £44.8 million to £44.3 million.

musicMagpie also reported an EBITDA loss of 12.2%, which saw a decline from £13.9 million to £12.2 million.

However, the company added several key operational highlights during its first year as a listed company.

The group’s rental subscription service, which was launched in October 2020, branched out into new categories including tablets, games consoles, MacBooks and wearables.

musicMagpie also launched its SMARTDrop kiosks at almost 300 Asda stores, which has seen over 8,000 devices traded and have paid out more than £2.3m to consumers’ increasing inbound items.

“This has been a landmark year in the history of musicMagpie, and I am hugely proud of everything that the business has achieved,” said musicMagpie CEO Steve Oliver.

“We have delivered strong operational and strategic progress in our first year as a listed company, and have done so while staying true to our clear environmental and social focus and our long-standing ‘smart for you, smart for the planet’ ethos.”

“We are particularly pleased with the progress being made by our rental subscription service, which provides customers with a more affordable and flexible option than an outright purchase or a pay-monthly contract.”

“We are extremely excited about its future growth prospects, and scaling this area of the business further will be a major point of focus for us in the coming year.”

Polymetal shares rise on higher revenue

Anshula Kumar
-
2
Polymetal shares rise on higher revenue

Polymetal shares were trading up 8.5% to 280.9p on Wednesday morning following the update on their annual results.

Polymetal shares had dropped 72% in a week due to the ongoing Russia-Ukraine conflict.

Vitaly Nesis, Group Chief Executive Officer, Polymetal commented, “We are shocked and appalled by the events going on in Ukraine. The conflict in Ukraine and related economic and political developments are likely to require a lot of management efforts to maintain company performance. However, despite a wide range of uncertainties we will be working under in 2022, it is our current intention to operate as normally as possible.”

Revenue grew by 1% in 2021, to $2.89bn, up from $2.86bn in 2020.

The average realised gold and silver prices followed trade patterns, with gold being unchanged YoY and silver rising 19%. Production of gold equivalent  was 1,677 Koz, up 2% from the previous year. Due to the strong December output at Dukat, gold sales were unchanged YoY at 1,386 Koz, while silver sales were down 9% to 17.5 Moz and behind production by 2.9 Moz. The shortfall is expected to end in 1H 2022.

Adjusted EBITDA was down 12% to $1.4bn,  from 2020, owing primarily to raising costs due to relatively steady sales volumes and earnings.

The drop in operational profit was a consequence of the increased costs resulting in net profits of $904m in 2021. The basic EPS of $1.91 per share in 2021 also dropped from $2.25 per share in 2020.

Capital expenditure reflects maximum capital spending, which includes construction projects at POX-2 and Nezhda, momentum of the Kutyn and Veduga projects, the beginning of the feasibility report for the Pacific POX, and higher stripping at Nezhda, Veduga, and Kyzyl, as well as continuing macroeconomic demands and substantial substances and wage increases.

Net debt rose to $1.6bn in 2021 from $1.3bn in 2020. Dividend payments of $635m in 2021 combined with additional capital expenditures accounted for the majority of the increase in net debt.

Final dividends were announced to be $0.52 per share in 2021.

“We are reporting strong net earnings for the year amidst a variety of macroeconomic and pandemic-related challenges. Excellent financial results were supported by robust operating performance, successful launch and ramp-up of Nezhda, as well as advancement of our POX-2 project and Veduga investment decision. Crucially – for the second year in a row – we had no fatalities among Group employees. Polymetal also continues to generate significant free cash flows and pay substantial dividends,” said Vitaly Nesis.

Hardide (LSE:HDD): Increasing Production to Fire on all cylinders

Jon Levinson
-
0
Hardide (LSE:HDD): Increasing Production to Fire on all cylinders

Hardide (LSE: HDD) improved marginally to 31p and a Mkt Cap of  £17m,  after  producing the first ‘coatings’ used  to  extend the life of gas turbine blades and its  part of a larger order.
The client provides energy solutions and is a major European manufacturer of steam and gas turbines and as the coatings effectiveness becomes proven the order book is likely to grow. HDD develop and provide   advanced surface coatings and its patented technology uniquely combines materials to create a mix of toughness and resistance to abrasion, erosion and corrosion so improving the components life theref...

New AIM admission: Neometals dual quotation

Andrew Hore
-
1
New AIM admission: Neometals dual quotation

Battery metals producer Neometals already had an ASX listing prior to joining AIM, which management hopes will raise the company’s profile in UK and Europe. There are various assets that could be exploited by Neometals.
They are getting to the point where decisions will need to be made on their development. Partners have been secured for some projects, while other projects have potential partners that have yet to sign up.
The share price opened at 72.5p and closed the first day of trading at 72p before rising to 76.5p on the second day when there was more trading.  
Neometals will undoubt...

UK manufacturing sector expands faster than expected in February

UK Investor Magazine
-
0
UK manufacturing sector expands faster than expected in February

The UK manufacturing sector grew fastest than expected in February as demand increased and global supply chain issues eased.

The UK CIPS UK Manufacturing PMI for February came in at 58, beating economist estimates of 57.3.

PMI readings above 50 signal expansion.

Manufacturing activity was helped higher by the end of lockdowns but Brexit ‘obstacles’ were still hurting export growth.

“The growth rate of UK manufacturing production accelerated and managed to reach a seven-month high in February, thanks to an increase in domestic demand, fewer raw material shortages and easing of global supply chain pressures,” Walid Koudmani, chief market analyst at financial brokerage XTB.

“While inflation remains elevated and a key issue for the economy, it appears the situation is starting to ease and despite ongoing geopolitical tensions, we could be seeing a continuation of this trend moving forward which could further speed up the post pandemic recovery.”

Despite strong growth in the sector, there was still concerns about inflation and the future impact of higher prices one the sector.

“Elevated prices remained with inflationary costs still risingat both ends of the supply chain. Commodities such as food, raw materials and transportation were more expensive andmeant firms’ charges to customers rose again as they havein each month for almost six years,” said Rob Dobson, Director at IHS Markit.

Flutter records net loss of £288m over client acquisition

Anshula Kumar
-
0
Flutter records net loss of £288m over client acquisition

Flutter’s stock dropped after the gaming company released preliminary results for2021, which highlighted the cost of expanding in the United States.

Flutter shares were trading down 13.6% to 9,318p on Tuesday afternoon. 

After a £543m expense for non-cash amortisation from acquired intangibles, Flutter’s reported loss before tax was £288m. Adjusted EBITDA dropped 18% to £1bn. 

Following an expansion into more US states, results showed higher initial losses, as they gained more clients due to acquisition costs. However, results are encouraging as more people are adopting online sports gambles. 

Reported revenue increased by 37% as a result of the May 2020 merger with The Stars Group, but EBITDA decreased by 6% due to greater US investment and regulatory costs. 

Recreational clients are driving revenue growth, with 7.6 million average monthly players up 23%.

After the TSG merger, Flutter has significantly reduced their exposure to the Russian online market. In 2021, £41m yielded from Russia and £19m from Ukraine.

“Flutter does have exposure to Russia and Ukraine but this is relatively modest at tens of millions of pounds out of total revenue base of more than £6 billion,” said AJ Bell investment director Russ Mould.

“2021 was another strong year for the Group as we made good progress against our strategic objectives and grew our recreational customer base to over 7.6m customers. Yesterday we launched our new sustainability strategy, our ‘Positive Impact Plan’, which will see Flutter set a positive agenda for future change. Through this strategy we will build on the significant progress already made in areas such as safer gambling and measure our performance against defined goals to demonstrate how we are responsible leaders in our industry,” said Peter Jackson, Chief Executive Officer, Flutter.

“In the US, we delivered over $1.9bn in revenue, leveraging our differentiated product proposition to remain the number one sportsbook in the market with a 40% share. Despite our scale we retain a challenger mindset; this year we launched a number of new features to our market-leading same game parlay product, maintaining our competitive advantage in sports. I’m also pleased to see the progress on our path towards profitability; FanDuel sportsbook and gaming business delivered positive contribution in 2021 for the first time, a significant milestone for the brand.”

Gazprom sacks workers as Nordstream 2 pipeline impacted by Russia sanctions

Natasha Doris
-
0
Gazprom sacks workers as Nordstream 2 pipeline impacted by Russia sanctions

Russian energy company Gazprom laid off its entire company of workers on Tuesday after the Nordstream 2 pipeline was crippled by financial sanctions against the country.

The move follows Russia’s invasion of Ukraine, which has seen the the international community introduce extreme measures against Russian businesses.

Shell is also scheduled to exit approximately £2.25 billion worth of joint-ventures with Gazprom.

The UK oil producer announced that it will be severing its 27.5% stake in the Sakhalin-II liquefied natural gas facility, alongside its 50% stake in the Salym Petroleum Development and the Gydan energy venture.

“Our decision to exit is one we take with conviction,” said Shell CEO Ben van Beurden.

“We cannot – and we will not – stand by. Our immediate focus is the safety of our people in Ukraine and supporting our people in Russia.”

“In discussion with governments around the world, we will also work through the detailed business implications, including the importance of secure energy supplies to Europe and other markets, in compliance with relevant sanctions.”

The news follows BP’s exit from its 19.75% stake in Russian-owned Rosneft after pressure from the government to drop its financial links to the country.

“The Rosneft holding is no longer aligned with BP’s business and strategy and it is now the board’s decision to exit BP’s shareholding in Rosneft,” said BP chair Helge Lund

“The BP board believes these decisions are in the best long-term interests of all our shareholders.” 

FTSE 100 falls as Russian troops approach Kyiv

UK Investor Magazine
-
1
FTSE 100 falls as Russian troops approach Kyiv

The FTSE 100 fell on Tuesday as a large convoy of Russia troops approached the Ukrainian capital and the fallout of sanctions rippled through markets.

On a day the human tragedy of Ukraines invasion becomes ever more real, the impact of sanctions, and moves by western companies to disassociate with Russia, caused further volatility.

“Investors, like almost everyone else, have little insight into what happens next in Ukraine or how Russia might respond to what it perceives as provocations by the West,” said AJ Bell investment director Russ Mould.

Russians have been flocking to remove their cash from banks as sanctions froze Russian assets around then world. As savers rushed to withdraw their funds, the European arm of Russia’s largest bank Sberbank was on the verge of failing.

Economists have predicted that Russia’s GDP will fall by 5%.

With their Russian ties, Evraz and Polymetal are still facing the brunt of the investor selling and now face demotion from FTSE 100.

“After Russia invaded Ukraine and then stringent sanctions were imposed on Moscow, the fortunes of the Russia focused miners Evraz and Polymetal International have reversed dramatically. Shares in Evraz are down by 55% over the last five days, which translates into heavy losses for Roman Abramovich who owns a 30% stake in the company. Gold miner Polymetal has experienced an even more brutal swing downwards, falling by 75% since conflict broke out,” said Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown. 

Abrdn

Abrdn shares dipped – overshadowed by wider market weakness – after the asset manager reported its first profit since the merger between Aberdeen Asset Manager and Standard Life.

Abrdn’s fee-based revenue is up 6% to £1.5bn and adjusted operating profit is up 47% to £323m. Pre-tax profit rose 33% to £1.1bn in 2021. Dividends remain the same as 2020 in 2021 at 14.6p.

Flutter

Flutter shares also suffered after the gaming company posted 2021 preliminary results that revealed the cost of US expansion.

Reported revenue increased by 37% as a result of the May 2020 merger with The Stars Group, but EBITDA decreased by 6% due to greater US investment and regulatory consequences.

Recreational clients are driving revenue growth, with 7.6 million average monthly players up 23%.

FTSE 100 risers

Rio Tinto saw a share price increase of 2.07% to 5,909.5p on Tuesday as it continued to ride the wave of positive news from its financial results for 2021.

The recently posted record dividends of $16.8 billion, which brought it to the second-highest FTSE 100 payout behind Vodafone’s $18 billion payout in 2014.

BAE Systems shares saw a 1.92% increase to 733.4p as Russia’s invasion of Ukraine resulted in a continued demand for arms contractor’s stock.

Shell

Shell shares were 1.2% weaker after the oil major said it would be ceasing its agreements with Russia oil and gas group Gazprom.

Gazprom fired its entire company of workers on the Nordsteam 2 pipeline following crippling sanctions against the country.

Consider Premier Miton Global Sustainable Optimum Income Fund for safety from geopolitical risks

UK Investor Magazine
-
0
Consider Premier Miton Global Sustainable Optimum Income Fund for safety from geopolitical risks

The invasion of Ukraine by Russia first and foremost has a terrible human cost on the people of Ukraine and thoughts will of course be with them.

Sanctions imposed by the West will also hit ordinary Russia people who are facing economic consequences for the actions of their leader. These economic consequences are also playing out in global markets and leading to significants levels of volatility.

With the heightened uncertainty caused the introduction of geopolitical risks, investors may be inclined to shift their portfolios to income producing assets to provide compensation if they are to wait for the recovery in share prices.

We see the Premier Miton Global Sustainable Optimum Income Fund as an ideal destination for the capital of investors seeking a diversified approach to income.

The fund has provided investors with a substantial return over three years whilst paying one of the highest dividend yields of peers.

There is a focus on ESG which is reflected in their holdings that includes a number healthcare companies.

Premier Miton Global Sustainable Optimum Income Fund

The Premier Miton Global Sustainable Optimum Income Fund has a target yield of 6% through the selection of global equities. There is a emphasis on larger companies, but the fund will invest in companies of all sizes and geographies.

There is a level of attraction not only to the target yield, but the current yield which stands at 6.56%. The fund distributes income to investors on quarterly basis.

Over the past three years, the fund has returned investors 32% and 6.1% over the past year.

Portfolio

There funds portfolio is currently highly weighted the North American market with 63% of the portfolio allocated to the geography.

Europe excluding the UK accounts for 13.8%, and the UK 6.8%.

The portfolio is broadly diversified with 19% allocated to information and technology, industrials 17.6% and healthcare 16.7%.

The fund includes US income heavy weights Abbvie and Deere, highlighting the diverse nature of the fund which is likely to whether prolonged volatility better than most.

MasterCard accounts for 2.7% of the fund providing welcome stability while producing a lower than average 0.54% yield. MasterCard share are up 222% over the last 5 years.

Another reliable component of the fund is Pharma company Stryker which has a yield 1% and recently reported a 24.7% jump in full year earnings.

Ericsson shares hit by allegations of ISIS bribes

Natasha Doris
-
1
Ericsson shares hit by allegations of ISIS bribes

Ericsson shares continued their declines this week after leaked documents alleged that the Swedish company had used its funds to bribe ISIS as a means to continue its sales in territory occupied by the terrorist group.

The news of corruption first broke on February 15 2022 and saw Ericsson shares take a dive of over 12%.

A report from Ericsson stated that an internal investigation by the company had discovered “serious breaches of compliance rules and the Code of Business Ethics” alongside “evidence of corruption-related misconduct.”

The report also revealed “payments to intermediaries and the use of alternate transport routes in connection with circumventing Iraqi Customs, at a time when terrorist organizations, including ISIS, controlled some transport routes.”

The company further claimed that its investigators were unable to uncover the eventual recipients of those payments.

Kidnapping and Extortion

However, the latest reports indicate that Ericsson also allowed its contractors in the region to be kidnapped by ISIS and subsequently abandoned them after demands for ransom were submitted to the company.

“He abandoned me, he turned off the phone and disappeared,” Ericsson contractor Affan told German public broadcaster NDR.

Affan was later released after a month of house arrest, with the Ericsson report claiming a company partner made unspecified arrangements to have him released.

The leaked documents were accessed by the International Consortium of Investigative Journalists and revealed allegations from 2019 against the telecommunications firm of bribery in ten countries.

ISIS Territory

Ericsson’s transport contractor reportedly used a faster “Speedway” through ISIS territory to avoid government checkpoints and smuggle products into areas held by the terrorist organisation.

According to the ICIJ, bribery payments were probably made along the route as a means of conducting Ericsson business in the region.

“Ericsson knew well what was going on. There is not a sane person who would deal directly with IS, they all do it through the subcontractors,” an anonymous senior telecoms official told an ICIJ partner.

“Militants would take a percentage from every cent paid in Mosul on any project or work. This is how they accumulated millions.”

Ericsson has not yet released an official statement on the latest release of allegations.

1...762763764...1,776Page 763 of 1,776