Hargreaves Services (LON: HSP) reported interim figures last week and this sparked forecast upgrades of around 20%. The performance of the German joint venture HRMS is the main reason for this.
In the six months to November 2021, revenues fell from £92m to £76.1m predominantly due to the past sale of the coal stocks to HRMS, although operating profit improved from £868,000 to £1.06m. Pre-tax profit was £10.4m, up from £1.08m, which includes a share of HRMS profit of £9.27m, up from £944,000.
Net debt is £3m after an increase in inventories and lending £15m to HRMS, which is repayable in the se...
ACP Energy is a standard listed cash shell seeking oil and gas acquisitions. A significantly sized purchase is being targeted. Management has oil and financial experience and appears keen to keep costs down, with the chairman the only director taking a small salary.
The flotation is a start to the plan to create a broad investor base and access institutional investors. These will then help to finance the acquisitions. The amount of cash raised will not be enough to pay for the type of asset that the management is seeking. A minimum market capitalisation of £30m after the first acquisition is...
Premium fashion brand Joules (LON: JOUL) is set to publish interim figures on Tuesday 1 February. Joules was hit by the restrictions prior to Christmas, but trading was already slightly down on expectations due to problems with supply. Investors will be seeking reassurance that these supply problems are easing.
A trading statement in December has already said that interim pre-tax profit to the end of November 2021 will be between £2m and £2.5m. That compares to previous expectations of around £3m. Higher costs relating to supply problems have held back the profit.
The warehouse handling delive...
Toyota sales jumped 10% in 2021, making it the world’s largest carmaker for the second consecutive year.
The Japanese carmaker reported the figures today, where sales in 2021 reached 10.5 million. Next in line was Volkswagen, which sold 8.9 million cars.
The group fared better than many rivals as Japan was less affected over the past year by disruptions around Covid.
However, despite the promising sales, Toyota has said that it will not reach targets of delivering 9 million vehicle production target in the year to 31 March due to Covid disruptions.
Apple beat analyst expectations and posted record sales over Christmas.
Revenues jumped 11% compared to the same period last year to a record of $123.9bn. This is higher than the expectations of $118.7bn.
“Despite the uncertainty of the world, there is one thing of which I am certain: Apple will continue to improve every day and in every way to deliver on the promise of technology at its best,” said CEO Tim Cook.
Record profits were put down to the huge sales of iPhones in late 2021 and the new products launched in Autumn.
Luca Maestri, Apple’s CFO, said: “The very strong customer response to our recent launch of new products and services drove double-digit growth in revenue and earnings, and helped set an all-time high for our installed base of active devices.”
H&M has posted strong profits for September to November.
The retail group surpassed expectations and posted profits of £478.6m. Compared to the same period in 2019, profits jumped 43%.
The group said: “The strong result for the quarter is mainly a result of well-received collections with more full-price sales, lower mark-downs and good cost control.”
CEO Helena Helmersson commented: “We ended the year strongly, with sales back at the same level as before the pandemic and with profitability better than it has been for several years.”
“Now that we are back to a more normalised situation with a strong financial position and good profitability, we can fully focus on growth again.”
The FTSE 100 gained on Thursday and outperformed European indices such as the Germans DAX and French CAC following the release of the latest Federal Reserve meeting.
The FTSE 100 was 0.4% stronger at 7,499 whilst the German Dax declined 0.44% and the CAC eased by 0.2%.
The key driver for the FTSE 100’s outperformance was declines in GBP/USD which saw the return of the inverse relationship between the pound and FTSE 100. GBP/USD was trading down 80 points at 1.3381.
It was not so much weakness in the pound, however, more strength in the dollar as traders bought into greenbacks on the prospect of a series of aggressive US interest rate hikes this year.
“Federal Reserve chair Jay Powell failed to stop the market rout with the central bank’s latest policy update, with US stocks falling further after the announcement and the equity sell-off extending to most of Asia and Europe on Thursday,” said Russ Mould, investment director at AJ Bell.
“It’s what he didn’t say that troubled investors. The key concerns are how aggressive the Fed will be with raising rates – will they go up at every meeting this year, and will they go up by more than 0.25 percentage points each time?
“Powell said the central bank would be guided by the data and so growing investor fears that the Fed might be quite aggressive in its efforts to curb inflation remain intact as there was no clarity on exactly what would happen and when.”
UK banking shares dominated the FTSE 100 top risers on the prospect of higher rates globally. Dollar-earners Standard Chartered and HSBC led the FTSE 100 up 4.2% and 3.5% respectively.
Barclays, Natwest and Lloyds were all 2% stronger at the time of writing.
Fresnillo was again at the bottom of the FTSE 100 as precious metals sank on the prospect of interest rates bringing inflation under control.
Trident Royalties have secured the acquisition of a new royalty over the Sonora Lithium project located in Mexico owned by Bacanora Lithium. Trident says they now have ‘exceptional lithium exposure’ through their portfolio of royalties.
The royalty will provide Trident Royalties with a 1.5% gross royalty of the mine which is the advanced development stages and in stage 1 of production will be worth US$14.4 million per annum in royalty revenue to Trident, if Lithium remained at current spot prices of $55,000 per tonne.
Stage 2 is expected to provide Trident with US$28.9 million per annum in revenue.
Studies of the Sonora mine found an open pit Mineral Reserve of 4.5Mt LCE and interestingly, the Feasibility Study published by Bacanora in 2018 forecasts an initial mine life of 19 years but utilises only around 770kt of the LCE reserve, meaning there is scope for production well past 19 years.
Trident Royalties also owns a royalty over the Thacker Pass Lithium project in North America.
“Like Thacker Pass – over which Trident holds an existing Gross Revenue Royalty – Sonora is a globally significant lithium asset which is anticipated to be the next meaningful North American lithium mine, with early construction works already underway and first production anticipated for the second half of 2023. With the potential to have both the Sonora and Thacker Pass royalties in the Trident portfolio, shareholders in Trident would have exceptional lithium exposure covering Tier 1 assets, both targeting very near-term production, and therefore cash flows to Trident, in 2023 (assuming completion occurs) and 2024 respectively,” said Adam Davidson, Chief Executive Officer and Executive Director of Trident.
“I want to highlight that this transaction showcases Trident’s creative energy and ability to work collaboratively with counterparties. Working jointly with the Estate’s advisors, Trident has structured a transaction that secures the right to acquire a Tier 1 royalty while avoiding exposure to any associated litigation risk. By the time Trident’s full acquisition consideration is paid, construction at Sonora should be well advanced and cash flow imminent, with revenue visibility long into the future.”
Trident Royalties shares rose 2.5% to trade at 40.5p and near the stock’s all time highs.
Foxtons profits are at the upper end of expectations for the end of 2021.
Full-year revenues were up 42% on the year previously and reached £133m. Adjusted operating profit for the year is expected to hit £7m.
“Looking at the year ahead, the group expects a further improvement in adjusted operating profit… increasing rental levels in the London residential market and the implementation of improved digital marketing capabilities,” said Foxtons in a statement.
Shares were up 0.20 pence, or 0.5%, at 40.55 pence this morning at 0829 GMT.
