Barclays shares rise on record profit

Anshula Kumar
-
1
Barclays shares rise on record profit

Barclays shares were trading up 1.8% at 193.5p in early trade on Wednesday after profits jumped on strong investment banking activity and impairment reversals.

Barclays has reported revenue at £21.9b with a 1% increase from last year (£21.7b), as a result of Barclay’s diversified income stream.

The Group delivered a record annual profit before tax of £8.4b which is 174% higher than 2020 results (£3.06b). The CET1 ratio remains unchanged at 15.1% whilst the bank’s RoTE was 13.4%.

With the economy recovering, UK and US consumers exhibited positive trends in consumer spending. UK mortgage lending and deposits increased.

An improved macroeconomic outlook are set to have a positive impact on unsecured lending balances in the coming quarters and Barclays said they see impairment charges returning to below pre-covid levels. Barclays operating profit was helped higher by the net reversal of £653m provisions made during the pandemic.

Barclay’s Corporate and Investment Banking division was gain a strong performer seeing Net Profit for 2021 increase to £5.8bn.

“Barclays is the sixth largest global investment bank – a fact sometimes overlooked thanks to its position as a UK high street staple. This position means Barclays is far, far less reliant on traditional interest income, and instead generates most of its income from fees, commission and trading,” said Sophie Lund-Yates, Lead Equity Analyst at Hargreaves Lansdown.

“In the short term that means rising interest rates have less of an immediate benefit than for the likes of Lloyds, which has more traditional income streams. However, looking to the long-term and the expansion of public and private markets, this diversified business model is an area of interest.”

Having being forced to scrap dividend payout during the pandemic, Barclays has began to gradually increase shareholder payouts and is set to pay 6.0p in the 2021 full year, a sharp increase from the 1p paid in 2020.

With results like these, it is safe to say that C. S. Venkatakrishnan, Group Chief Executive, is pleased.

“Barclays demonstrated a clear and sustainable path to growth over the course of 2021, delivering double-digit RoTE across our operating businesses, and returning £2.5 billion of excess capital. Our strategic priorities will continue to develop the diversified business model that we have established, investing in advanced technology capabilities in our consumer businesses, delivering sustainable growth across our global Corporate and Investment Bank, and reinforcing our commitment to aiding the transition to a low-carbon economy,” stated C. S. Venkatakrishnan.

Going forward, the bank, plans to adapt and benefit from the changes coming in the financial services sector. Barclays plans to do so by improving customer service with advances in digital services.

Barclays foresees global growth in private and public capital markets, to which they believe they will be able to reap the benefits of by continuing to diversify their income streams and carry on innovating. Barlcays also plans on taking opportunities during the low-carbon trend, by helping the business and their consumers transition to a more sustainable position.

Rio Tinto rewards investors with record dividend as earnings soar

Natasha Doris
-
0
Rio Tinto rewards investors with record dividend as earnings soar

Rio Tinto has announced record financial results in its full-year financial report for 2021.

The Anglo-Australian mining company reported an 88% free cash flow increase to $17.7bn, following a 42% leap in revenues.

Rio Tinto rewarded investors with a record $16.8 billion in full-year dividends, equating to 1,040 US cents per share, alongside a special dividend of 247 US cents per share.

The dividends amounted to a 79% payout for shareholders in the company.

The company cited global economic recovery post-Covid-19 for its record financial results, consequently helping it retain approximately 80% of the benefit from rising prices.

Rio Tinto cited the Platts index strength with a 62% in iron fines, alongside the Higher London Metal Exchange (LME) prices for acting as a driving factor behind the strong price boost for its copper and aluminium profitability.

“These results are all about commodity prices and the cash flow that comes from low production costs,” said Steve Clayton, Fund Manager at HL Select.

“Iron Ore revenues drive the majority of Rio’s revenues and with ore prices strong and Rio’s operating costs amongst the lowest in the industry, cash generation was always going to be strong in 2021.”

Rio Tinto Portfolio

The metals producer further highlighted recent developments in its portfolio, including the opening of underground gold and copper mining operations in Mongolia after the Mongolian government approved the Oyu Tolgoi agreement.

The deal has allowed the company to start operations in the country, with first sightings of sustainable production estimated for the first half of 2023.

The company also confirmed its agreement to acquire the Rincon lithium project based in Argentina.

“Our people have continued to safely run our world-class assets and are working hard to improve our operational performance, despite challenging operating conditions from prolonged COVID-19 disruptions,” said Rio Tinto Chief Executive Jakob Stausholm.

“The recovery of the global economy, driven by industrial production, resulted in significant price strength for our major commodities, which we were able to capture, achieving record financial results with free cash flow of $17.7 billion and underlying earnings of $21.4 billion, after taxes and government royalties of $13.0 billion.”

Aston Martin posts “significant progress”

Safiya Bashir
-
1
Aston Martin posts “significant progress”

Aston Martin has posted an 82% increase in wholesales.

Revenues at the group increased to £1.1bn thanks to strong customer demand.

“The operating environment remained challenging throughout 2021,” said Tobias Moers, Aston Martin’s CEO.

“Despite this, we grew our core business to plan, with a demand-led delivery of our volume targets and enhanced core profitability. We achieved strong pricing and closed the year with dealer stock at optimum levels.”

” We also started delivery of the once-in-a-generation Aston Martin Valkyrie hypercars. This was achieved despite the technical ambition of the product, supply chain constraints and with no compromise on quality, resulting in fewer cars than originally planned shipping in 2021.”

“Beyond 2022 we are confident in the medium and long-term potential for the business with our exciting product plans and a defined path to electrification”, he added.

Ted Baker sales hit amid Omicron

Safiya Bashir
-
0
Ted Baker sales hit amid Omicron

Ted Baker sales plunged 42% in the three months to January 29 compared to the same period in 2019.

Sales did recover compared to 2020, where they increased 20%.

Despite the impact of the Omicron surge, the group is still making plans to expand and has plans for three new stores a year for the next three years.

CEO Rachel Osborne said: “We continue to make good progress with our transformation and despite the impact of Omicron on the quarter, were pleased to deliver group sales up 35 per cent compared with last year.”

“The strong improvement in trading margin is encouraging, along with the increase in full price sales mix, demonstrating the progress we’re making as Ted re-establishes its premium brand positioning.”

Director dealings: Altus boss backs mining royalties plan

Andrew Hore
-
1
Director dealings: Altus boss backs mining royalties plan

Altus Strategies (LON: ALS) chief executive Steven Poulton has acquired 75,795 shares in the mining investments company at an average price of 57.91p each. That is an investment of £43,889. The highest price paid was 60p a share.
This takes his total shareholding to 6.6 million shares, which is 5.63% of Altus Strategies.
The current share price of 57.5p is not far above the 12-month low and well below the level that was reached after Altus Strategies made its first mining royalties investment.
Business
Altus Strategies is quoted on AIM and the Toronto Venture Exchange, and it has a range of in...

Tip update: Transense Technologies on track but unappreciated

Andrew Hore
-
0
Tip update: Transense Technologies on track but unappreciated

Transense Technologies (LON: TRT) has moved into profit in the six months to December 2021 thanks to growing royalty income from iTrack tyre pressure monitoring system sales. This means that there is no longer cash flowing out of the business.
Interim revenues improved from £895,000 to £1.2m with a loss of £53,000 turned into a pre-tax profit of £82,000. That is before any tax credits.
The iTrack royalties increased from £374,000 to £660,000 and annualised recurring revenues are running at more than £1.5m, which is what broker Allenby expected to be the run-rate in June.
There was also an incr...

FTSE 100 helped higher by strong commodity companies

UK Investor Magazine
-
0
FTSE 100 helped higher by strong commodity companies

The FTSE 100 gained on Tuesday as strong commodity companies offset the impact of mixed corporate results.

The FTSE 100 was up 0.3% at 7,510 in afternoon trade on Tuesday, having staged a recovery from early selling as strong performances by Shell and other commodity companies helped the index recover. The FTSE 100 traded as low as 7,365 on Tuesday.

Shell shares were 1.6% higher at 1,975p and BP gained 1%.

Oil prices have risen to almost $100 per barrel amidst scarcity fears as tensions between Russia and Ukraine rise. 

The price of Brent Crude is currently trading at $97.47 per barrel and WTI Crude is trading at $93.71, marking the highest prices for the commodity since 2014. 

Although high oil prices have helped the FTSE 100 gain in the face of geopolitical tensions, analysts highlight how consumers are set to bear the brunt of rising energy prices.

“Consumers are belting up and bracing themselves for a fresh squeeze in the cost of living as a jump in the oil price is set to see forecourt prices ticking up again,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown

“The price of oil is rising up again back towards levels last seen consistently more than seven years ago with a barrel of Brent crude surging past $89.5 dollars, heading towards $90 a barrel.”

“The escalating situation surrounding Ukraine, with the standoff continuing between Russia and NATO members had already pushed up the price, but supply constraints with a drop in US inventories registered, has seen it edge up by another 1.5% today.” 

Hargreaves Lansdown

Hargreaves Lansdown was down nearly 15% in Tuesday afternoon trade and was the FTSE 100’s top faller. The broker revealed a slump in Net New Business to £2.32bn in H1 2021, down from £3.24bn in the same period a year prior as retail investors returned to the office meaning their retail trading business is taking the hit.

With a direct reduction in trading volumes, Hargreaves Lansdown’s profitability is being eaten at with a decrease in pre-tax profits falling from £188.4m to £151.2m in the 6 month period. The investment group said they would invest £175m to deliver future growth and enable operating efficiencies.

“In the first half of this financial year, we saw a gradual return to the office and calmer markets which led to more normalised share trading levels, albeit still higher than before the pandemic. Our assets under administration have reached record levels, and we now have a record 1.7 million customers,” said Chris Hill, Chief Executive Officer.

Hargreaves Lansdown is confident with their fiscal position and are committing to increasing their ordinary dividend by 3% from 11.9p to 12.26p per share.

Coca-Cola HBC was another faller after the drinks group posted full year earnings.

Coca-Cola HBC gave up 4% to trade at 2,218p after releasing earnings and a 16.9% revenue jump, and operating profits increasing 21%.

With emerging markets contributing to 27.1% of the revenues for Coca-Cola HBC and Russia being a large portion of that segment, the market chose to focus on the risk to future revenues. However, in an interview with Reuters, Coca-Cola HBC stated that contingency plans are in place to be prepared for upcoming commotions from Russia-Ukraine conflict. They are stockpiling ingredients in order to prevent any disruptions.

HSBC

Despite FTSE 100 gaining 0.3% on Tuesday, the HSBC share price missed out on the rally after a strong rebound in profits and the announcement of a share buy back programme. HSBC have reported a decrease of 2% in their revenues to $49.6bn. However, they managed to report an 87% increase in the profits before tax from $10.1bn to $18.9bn.

Their dividend has increased to $0.25 per share for 2021. 

“We have good momentum coming into 2022 and are confident that we can continue to execute against our strategy. We also remain cognisant of the potential impact that further Covid-19-related uncertainty and continued inflation might have on us and our clients,” said Noell Quinn, Group Chief Executive.

Smith & Nephew was the FTSE 100 top riser trading at 1245p on Tuesday afternoon, adding 5.6% on the day. 

Smith & Nephew reported revenue increased by 14.3% from $4.5m to $5.12m as some operations returned to pre-covid levels.

Oil prices approach $100 as Russia moves troops into Ukraine

UK Investor Magazine
-
0
Oil prices approach $100 as Russia moves troops into Ukraine

Oil prices spiked higher on Tuesday following news Russia had ordered troop into Ukraine, significantly increasing concerns of war in the region.

Brent Oil futures traded at $99.45 per barrel in early trade on Tuesday, before the rally faded into the afternoon session in London.

It is reported Russia moved troops into eastern regions of Ukraine in what Russia called a ‘peacekeeping’ mission. The move was met by a wave of sanctions from the West, with more promised in the coming days.

In a major development for energy markets, Germany halted the approval of the Nord Stream 2 pipeline. Germany gets around half of it’s gas from Russia.

“With Putin’s order to put boots on the ground in breakaway regions of Eastern Ukraine, fears that war will be increasingly impossible to avoid has jolted financial markets,” Susannah Streeter, senior investment and market analyst, Hargreaves Lansdown.

“The ominous turn of events has escalated the already highly tense situation, with chances of a diplomatic breakthrough fading away and the fresh sanctions set to hit Moscow. A barrel of Brent crude leapt 2.3% up above $97 dollars, its highest level since September 2014 amid nervousness of a constraint of supply from Russia, at a time of high global demand and lower inventories elsewhere.”

Brent Oil Price

Brent Oil prices rose to trade as high as $99.45 per barrel, the highest level in six years, as markets learnt of developments in Eastern Europe.

Traders sold into the rally as oil prices approached $100, but analysts felt there was a strong chance this level on Brent Oil could be breached.

“We have Brent Oil trading at 6yr highs right now and there’s every chance we could see prices above $100 soon depending on Russia’s response to economic sanctions,” said Walid Koudmani, chief market analyst at financial brokerage XTB.

4D Pharma: Breakthrough in Parkinson’s Treatment with FDA approval

Anshula Kumar
-
2
4D Pharma: Breakthrough in Parkinson’s Treatment with FDA approval

4D Pharma receives FDA approval on investigational new drug (IND) applications for two Live Biotherapeutics (LBPs), MRx0005 and MRx0029.

4D Pharma focuses on Live Biotherapeutic products (LBPs) which are derived from microbiomes. The LBPs are in development for the treatment of Parkinson’s disease.

With the approval from the FDA, 4D underway to begin first-in-human Phase 1 clinical trials in patients diagnosed with Parkinson’s disease by mid-2022.

More than 10 million people globally suffer from Parkinson’s disease.

“Current treatments focus on symptoms but do not address the underlying causes of neurodegeneration. Patients and clinicians are in need of new, more effective treatment options, and the gut-brain axis is an exciting area of innovation with the potential to change the way we approach Parkinson’s treatment. We believe that our LBPs MRx0005 and MRx0029, which each have different mechanisms of action worthy of investigation, provide a unique opportunity to address the high unmet needs of those living with Parkinson’s disease,” said Dr. Alex Stevenson, Chief Scientific Officer, 4D Pharma.

“Oral, gut-targeted treatments such as 4D pharma’s Live Biotherapeutics MRx0005 and MRx0029 offer an exciting new way for possibly slowing Parkinson’s disease progression. The development of these potential new therapies is really breaking new ground in the field,” said Professor Peter LeWitt, Sastry Foundation Endowed Chair in Neurology at Wayne State University School of Medicine, and Coordinating Investigator of the Phase I clinical trial.

4D Pharma enabled a microbiome profiling platform known as MicroDx which allows them to understand the correct treatment and diagnosis with their LBPs. Live Biotherapeutic products is disruptive medicine which understand the workings of the bacteria found in your gut interact with the rest of your body. With MicroRx, 4D Pharma can select the gut bacteria which would have a therapeutic effect on certain diseases.

With the use of MicroRx, 4D Pharma was able to cater to various therapeutic areas including immuno-oncology, GI, respiratory, autoimmune and CNS disease, using their development programs.

4D Pharma’s Parkinson’s treatment is one of a number of pipeline treatments that includes oncology and respiratory drugs.

A quick look at their pipeline:

Immuno-oncology

MRx0518 have all reached various phases of in-human trials. The MRx1299 is still in development.

CNS

In neurodegeneration, MRx0029 & MRx0005 are in development whereas, Psychiatric disorders to be treated by MRx0006 is still in the preclinical stage.

Respiratory

MRx4DP0004 used to treat asthma is nearing the end of Phase 1 trials.

Gastro-intestinal medicines are also progressing in-human trials beyond Phase 1. However, autoimmune treatments are still in development.

4D Pharma shares spiked high on the open and drifted to 2.92% at 31.39p mid day on Tuesday.

“We’re looking to push the boundaries of microbiome therapeutics further,” says Duncan Peyton, the co-founder and CEO of 4D Pharma, said in an interview with Genetic Engineering & Biotechnology News.

Agronomics leads €10m Onego Bio Seedrs round

Natasha Doris
-
0
Agronomics leads €10m Onego Bio Seedrs round

Agronomics has reportedly contributed €6.9 million to a fundraise by Finnish biotech company Onego Bio.

The investment comes as part of a larger €10 million Seedrs fundraising round by the company in a bid to develop an animal-free, sustainable egg protein.

The capital injection is set to provide the venture capital firm with an equity stake on a completely diluted basis of 19.94% and also entitles the company to a seat on the startup’s board.

The addition to Agronomic’s portfolio joins its collection of animal-free alternative companies, including plant-based startups Live Kindly and The EVERY Company.

The investment company also holds stakes in startups such as alongside cultivated leather company VitroLabs and cultivated seafood firm BlueNalu.

The Onego Bio was founded in 2021 and has not yet generated revenue, incurred reported significant costs or announced its net assets.

The company is a cellular agricultural startup from VTT Technical Research Centre of Finland Ltd, one of Europe’s most prominent research institutions.

It reportedly aims to capitalise on the growing demand for animal-free protein due to rising concerns of animal welfare and the sustainability of farming practices.

According to Onego Bio, it intends to roll out the product in the US first, where it will meet a lower regulatory barrier of product entry.

The company aims to market the product as a confectionary and bakery ingredient, alongside utilisation as a fitness supplement ingredient.

“We want to thank VTT and our investors for supporting a technology that is part of a bigger wave of changing people’s perspective on alternative ways of producing food,” said Onego Bio CEO Maija Itoknen.

“The time is right to spin out this technology and start manufacturing our product, as consumers are more open to try products that are not animal-derived.”

“VTT’s laboratories and technical teams have cutting-edge know-how to develop truly new innovations. We will continue working together with them on the scientific aspects, and together with our investors we simultaneously focus on commercializing the technology.”

Onego Bio reportedly utilises a cellular agriculture method to produce egg-white protein ovalbumin, harnessing the microflora Trichoderma reesei to produce protein with the assistance of water, sugar and alternative minerals.

It is set to join the growing interest in alternative meat and protein in the experimental agricultural market.

1...768769770...1,776Page 769 of 1,776