ITV shares sink on launch of new streaming service

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ITV reported a 28% increase in revenue of £1.76 billion against a 2020 figure of £1.37 billion as it released a wave of strong financial results.

The entertainment company saw an adjusted EBITA of £813 million against a £573 million result in 2020.

ITV further reported an operating profit of £519 million compared to £356 million in 2020.

“ITV Studios has enjoyed both ratings and critical success and currently has around 500 programmes in production in the UK and internationally,” said ITV CEO Carolyn McCall.

“Media and Entertainment kept viewers and advertisers alike happy with a compelling slate of entertainment shows and dramas and must watch sport across ITV’s channels and streaming.”

The company also highlighted its 2022 target launch of its new ITVX, the first integrated AVOD/SVOD streaming platform across the UK.

“With the success of ITV Hub, ITV Hub+, Planet V and BritBox we see an exciting opportunity to at least double our digital revenues to £750m by 2026,” said McCall.

“At its heart will be ITVX – the first integrated AVOD/SVOD streaming platform in the UK.  It will be a seamless viewer experience with a digital first content and windowing strategy and significant content investment providing weekly premieres and over 15,000 hours of content at launch.”

“This will enable ITV to double streaming viewing, double monthly active users, double subscribers and deliver valuable addressable advertising inventory at scale.”

ITV said that the launch of its ITVX service in 2022 is estimated to help double the company’s digital revenues to £750 million by 2026.

However, analysts pointed to the costs associated with the new service and lack of innovation as reason for investor concerns on Thursday.

“ITVX is not as revolutionary as the company might like you to believe. It is effectively offering viewers a chance to see some of its programmes before they are broadcast on linear TV as well as its back catalogue of shows,” said AJ Bell investment director Russ Mould.

ITV’s share price dropped 13.7% to 95.4p on Thursday morning trading despite the strong financial results.

Mondi delivers 28% increase in profit before tax

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Mondi’s profit before tax grew 28% to €983m in 2021 as growth accelerated for their sustainable packaging offering.

The group’s revenue saw a rise of 16% from €6.6bn in 2020 to €7.7bn in 2021. Underlying EBITDA increased to €1.5bn from €1.3bn YoY.

The groups financial performance was a reflection of higher sales volumes due to growth in demand for corrugated packing and flexible packing. Selling prices of the products were also increased to compete with inflationary cost burdens. The highest result in new selling prices came from corrugated packaging.

To encourage the growth trend in the packaging markets, a significant lineup for capital investments have been set up, including €1 billion in expansionary projects that have been authorised or are being evaluated.

Strong financials of the group lead the board to recommend an increase in full year dividends grew 8% from €0.60 to €0.65 YoY.

ESG

ESG measures launched Mondi Action Plan 2030, which is a sustainability roadmap. The company will continue to focus on climate resilience, zero deforestation in its wood supply, procuring wood sustainably from healthy and resilient forests, and protecting biodiversity and water resources in its activities and beyond as part of the MAP2030 strategy.

The group has committed to working towards the 1.5°C event with the goal of Net-Zero by 2050.

Sale of Business

Divestment of their business, personal care components (PCC), created an enterprise value of €615m. Due to Mondi’s strategic approach on packaging and PCC’s low overlap with the rest of the company, they felt that the next phase of PCC’s development will be best carried out from outside the Group.

The group has major activities in Russia, which will account for roughly 12% of Mondi’s sales in 2021. They also have a plant in Syktyvkar, which is a high-margin, cost-competitive integrated pulp, packaging paper, and uncoated fine paper mill. Russia accounts for 20% of group EBITDA.

“Mondi delivered strongly in 2021 and we see good opportunity to accelerate growth in sustainable packaging. Underlying EBITDA of €1,503 million was up 11% and ROCE up at 16.9%. We grew our packaging businesses and saw a recovery in uncoated fine paper markets. Our vertical integration, the agility of our operations and collaboration with our customers ensured we met surging demand at a time when supply chains were under pressure around the world. We implemented price increases across all our businesses and, against a backdrop of rising commodity input costs, we exhibited good cost control. Our focus on safety and protecting the wellbeing of our people remains our priority,” commented Andrew King, Chief Executive Officer, Mondi Group.

Mondi shares are trading down 1.9% at 1491p post the open on Thursday morning.

Tyman plc announce record 12.9p per share dividend

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Tyman plc saw its share price rise 3.4% to 365p after it reported strong financial results on Thursday morning.

The company enjoyed a 17% increase in revenue to £635.7 million against a figure of £572.8 million in 2020.

Tyman reported an adjusted operating profit of £90 million against an £80.3 million result in 2020, alongside a pre-tax profit of £64 million compared to its £47.6 million figure in 2020.

The home products company said an increase in market share and strengthen demand helped boost revenue.

Investors also saw a record dividend per share of 12.9p against a payment of 4p in 2020.

Tyman commented that it had achieved its performance goals despite industry-wide challenges to its supply chain, alongside labour restrictions and input cost inflation.

“The Group’s performance was robust, with strong market momentum and share gains delivering growth in spite of well-publicised supply chain challenges, labour constraints and input cost inflation,” said Tyman CEO Jo Hallas.

“We expect underlying demand in 2022 to remain strong, driven by favourable housing market fundamentals, albeit set against rising macroeconomic and geopolitical pressures.”

“We continue to take actions as necessary to mitigate ongoing industry-wide supply chain challenges and cost inflation.”

“The Group is well positioned for growth in 2022 and beyond, benefiting from long-term structural industry growth drivers, our strategic initiatives and building on our portfolio of differentiated products, market-leading brands and deep customer relationships. “

Lloyds share price: an opportunity for long term investors

The Lloyds share price has provided investors with an opportunity to enter the UK banks following a sharp decline from highs of 56p.

For long-term investors, the recent pull back in Lloyds shares, coupled with their recent market update, may create the perfect scenario for those considering a purchase of the bank’s shares.

Lloyds share price

Lloyds shares are currently trading just above 45p – the lowest level since December 2021 – having dropped nearly 20% from recent highs around 55p.

This dip will provide a great opportunity for investors who have digested Lloyds recent report and are optimitic about their outlook.

Lloyds reported a 9% increase in Net Income to £15.8bn and enjoyed a rise in return on tangible equity to 13.8%.

This reflected an improvement in trading conditions in 2021 as the bank recovered from the pandemic.

Lloyds reported a statutory profit before tax of £6.9 billion and statutory profit after tax of £5.9 billion which was helped by increased income and the reversal of bad debt provisions made during the pandemic.

Lloyds also said they were hoping to put the HBOS issues to bed by making provisions for the total estimated cost of charges.

However, Lloyds shares have since plummeted, not solely because of disappointment around their earnings, but the impact of geopolitics on markets and interest rate expectations.

Lloyds Net Interest Margin

Lloyds saw Net Interest Income rise 4% to £11.2 billion in 2021 and there will be expectations this increases further in 2022.

This argument can be justified by the expectations of higher interest rates, and because of recent strong performance in their lending business.

Lloyds saw their Net Interest Margin rise to 2.54% in 2021 from 2.52% in the year prior.

Although the crisis in Ukraine may dampen the Bank of England’s enthusiasm for the number of interest hikes in 2022, Lloyds will already be enjoying the impact of two rates hikes in recent months.

Lloyds dividend

Notwithstanding hopes for increased earnings, an important attraction for long-term holders of Lloyds shares is the banks progressive dividend policy.

Lloyds paid a dividend of 2p for 2021 which would equate to a 4.4% yield with Lloyds share price at 45p.

Given Lloyds are once more embarking on a progressive dividend policy as the impact of the pandemic diminishes, buyers at 45p will likely see their yield increase as dividend payouts rise.

Lloyds Shares Valuation

With a Lloyds share price of 45p, the bank is trading at just 5.9x historical earning and 7.1x forward earnings.

Although UK banks are increasingly valued on their price-to-book multiples, the potential for Lloyds PE Ratio to move back inline with historical averages suggests Lloyds shares have plenty of upside.

Allergy Therapeutics on course to relieve hay fever and peanut allergies

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Allergy Therapeutics delivered substantial update on pollen and peanut allergy remedies at a US industry gathering.

Allergy Therapeutics is a completely integrated commercial biotechnology company focused on allergy vaccines. The Group is focused on allergens that can be treated with subcutaneous and sublingual immunotherapy like, pollens, house dust mites, pets and moulds.

At the 2022 American Academy of Allergy, Asthma, and Immunology Annual Meeting in Phoenix, Arizona, the group delivered promising new results from its two lead immunotherapy programmes.

Allergy Therapeutics Update

Allergy Therapeutics reported extensive results from the G309 exploratory field study, indicating safety and effectiveness of Grass MATA MPL, the Group’s short-course injectable allergen-specific immunotherapy (SCIT) candidate for allergic rhinoconjunctivitis caused by grass pollen. This was a multi-centre, double-blind, placebo-controlled, randomised and parallel-group clinical experiment with participants from 13 different locations in Germany and the United States.

In comparison to the historically used placebo group’s effective dose on the clinical outcome, the presentations disclosed a more prominent, clinically significant, and statically relevant progress in the primary combined symptom and medication score for the conventional and extended posology groups, respectively.

This increase of 39.5% is higher than the estimated number of 36.8% announced by the Group in October2021, when the two placebo groups were pooled. These findings indicate the superior treatment effect sizes reached after six Grass MATA MPL injections.

The Group also provided post-hoc analyses of a previous Phase II grass trial, showcasing the robust prognosis of the baseline CPT (conjunctival provocation test) score for IgG4 increase after SCIT treatment, laying the groundwork for the impending vital G306 Phase III trial, which will begin in the autumn of 2022.

The company also released information of a pollen monitoring network set up by Allergy Therapeutics in the U. S., complete with central reading procedures for correctly estimating daily pollen counts and determining the peak grass pollen season, which is crucial for determining the G306 Phase III trial’s primary study results.

Dr. Mohamed Shamji, an Imperial College London Reader in Immunology and Allergy, delivered findings from the VLP001 ex-vivo biomarker study.

The study looked at the group’s peanut allergy vaccine candidate, VLP Peanut. When compared to the predominant allergen, Ara h2, the data indicated that VLP Peanut is a hypoallergenic, and leads in a considerable reduction in basophil activation and histamine release in peanut allergic people. These biomarker results show significant help for VLP Peanut’s possible immunologic mode of action in encouraging transferring from the allergic Th2 pathway to the more immunological tolerant Th1 pathway, highlighting VLP Peanut’s potential as a peanut allergy treatment.

Company Vaccine Portfolio

The Group has a vast variety of vaccines at different stages of the pipeline.

The vaccines cater to two forms of therapy which are Modified Allergen Tyrosine Adsorbed (MATA) and Subcutaneous Immunotherapy (SCIT).

Allergy Therapeutics have a handful of drugs which are already on the market or registered which include, hay fever meds, bee and wasp remedies. Peanut allergy remedies are still under Phase 1.

“Demonstrating a nearly 40% reduction in combined symptom and medication score compared to placebo in a grass pollen allergy trial is a significant event in our history. We are very much looking forward to the pivotal G306 clinical trial of our Grass MATA MPL immunotherapy that is due to commence later this year and, if successful, would enable registration in Europe and the US. Such a product would permit patients suffering from grass pollen allergy the opportunity to address the cause of their disease, not just mask their symptoms. I am also very proud to see the data from our VLP001 study being presented internationally – data that provides us with confidence in the product profile of our novel short course peanut allergy vaccine candidate as we head into the clinic later this year,” said Manuel Llobet, Chief Executive Officer, Allergy Therapeutics.

ECR minerals continue to strike gold

ECR minerals shared good news regarding the result of hole BH3DD019 drilled into the north end of the Maori Reef inside HR3 at Bailieston, Victoria.

ECR minerals is a gold exploration and development company based in Australia. HR3 is completely owned by ECR minerals.

BH3DD019

Hole BH3DD019 is one of four holes designed to crosscut H43 goldfield. The series of the four holes entail BH3DD012, BH3DD014, BH3DD020, and BH3DD021. Due to staffing issues during the pandemic, the drills and tests were put on hold. However, post recovery of the pandemic, the results from BH3DD019 are in.

Results

Four mineralisation zones have been found in BH3DD019 from tests taken on the drill hole. This is the deepest hole dug beneath the Maori Reef’s north end. The outcome declares findings of further deposits of gold. The presence of visible stibnite in holes drilled into the Maori Reef corresponds with the likelihood of finding gold.

Stibnite, arsenopyrite, and gold mineralisation are all part of a ‘epizonal’ form of mineralisation encountered in surrounding deposits including Costerfield, Nagambie, and Whroo.

The findings include 0.5m @ 9.5 g/t Au from 99.9m, 0.8m @ 4.96 g/t Au from 100.4m, 0.3m @ 4.59 g/t Au from 143.4m and 0.6m @ 6.15 g/t Au from 231.5m.

“I am delighted to report that our team of geologists headed by Adam Jones are reporting some very encouraging gold grades at hole BH3DD019. Furthermore, the epizonal mineralisation identified through the drilling work and assay results correlates with nearby deposits at Costerfield, Nagambie and Whroo mine and this is assisting with our understanding of the regional gold trend as we work towards identifying a possible ore resource,” stated David Tang, Chairman, ECR.

ECR shares were trading down at 0.21% to 1.4p on Wednesday.

Hiscox report five-year high $215.6m underwriting profit

The Hiscox share price rose by 5.4% to 944.2p on Wednesday after the company released strong financial results.

The insurance provider reported gross premiums of $4.27 billion against a 2021 figure of $4 billion.

Hiscox further noted net premiums of $2.9 billion compared to a 2020 result of $2.7 billion.

The company also reported a five-year high underwriting profit of $215.6 million against its 2020 loss of $370.6 million.

The Group announced a total ordinary dividend per share of 34.5¢ alongside a final dividend of 23c.

Hiscox reported that gross premiums were driven by positive rate momentum across its three divisions, alongside a significant level of customer growth in Retail.

The company added that net premiums climbed as a result of “big-ticket businesses” as an increased level of risk was retained as conditions improved. 

“I am pleased with the strong results the Group has delivered despite elevated natural catastrophe losses, reflecting successful execution of our strategy, and the management actions we have undertaken to improve the performance and quality of our portfolios,” said Hiscox CEO Aki Hussain.

“Hiscox has a significant technical underwriting capability, which combined with investment in digital, positions us well to capitalise on the many opportunities ahead as we continue to serve our customers and build a sustainable insurance business.”

Hotel Chocolat report 40% climb in revenue in half-year results

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Hotel Chocolat reported an increase in revenue of 40% to £142.9 million against its H1 2021 sales of £101.9 million.

The chocolate company also noted an underlying EBITDA increase of 35% to £33.8 million against H1 2021 results of £24.9 million, alongside a profit before tax increase of 56% to £24.1 million against a H1 2021 figure of £15.5 million.

The group’s earnings per share increased to 14.2p compared to a H1 2021 dividend of 9.7p.

The company saw a 38% increase in active UK customer database to 2.3 million, and the brand’s joint-venture with Japan saw a 131% increase in consumer sales.

“I am delighted that we have achieved a great set of results both in terms of sales and profits, indicating the global strength of the Hotel Chocolat brand and our direct-to-consumer business model,” said Hotel Chocoalt CEO Angus Thirlwell.

“These results enable continued new job creation based in our British manufacturing operations, as well as roles in technology and multi-channel retailing.”

“We have remained focused on our opportunities, delivering a sustained acceleration in growth over the last 18 months.”

“Since the end of the financial reporting period, trading has continued to be in line with the Board’s expectations. The multi-channel performance of the UK remains encouraging, and the new markets continue to show promising potential for growth and profitability.”

Hotel Chocolat’s shares declined 2% on Wednesday trades despite the company reporting strong interim results for H2 2021.

Aviva to acquire Succession Wealth for £385m

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Aviva is reportedly set to acquire Succession Wealth for a consideration of £385 million, according to an announcement from the Group on Wednesday.

The multinational insurance company’s share price saw a rise of 1.6% at noon to 413.1p.

The consideration will reportedly be paid in cash, and is expected to deliver a “double digit return on invested capital in the medium term.”

The company added that the transaction is anticipated to be completed in H2 2022, subject to FCA approval.

Succession Wealth will reportedly continue its operations as a separately regulated, independent firm under the Succession Wealth brand.

Aviva mentioned that the estimated 2022 EBITDA for Succession Wealth is expected to be around £24 million, on a pro forma basis.

“The acquisition of Succession Wealth boosts Aviva’s presence in the fast-growing UK wealth market; supports our strategy to grow sustainably; and expands Aviva’s ability to offer high quality financial advice to millions of our customers,” said Aviva CEO Amanda Blanc.

Succession Wealth CEO James Stevenson added: “We are delighted to become part of Aviva and to offer our independent financial planning capability to Aviva customers who don’t have an adviser.”

“The demand for financial advice across the entire wealth spectrum has never been greater, and the opportunity to combine Succession Wealth’s holistic financial planning expertise, with the capabilities and customer reach of Aviva is hugely exciting.”

Aviva exceeds payout expectations

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Aviva Insurance records higher dividends and significant capital returns.

Aviva had set a goal of returning more than £4bn to shareholders. The company has successfully exceeded that goal by returning £4.75bn in capital returns inclusive of the £1bn share buyback from the past.

A final dividend of 14.7p was also announced, up from 14.0p.

The acquisition of Succession Wealth, a national finance advisory firm is said to be in place to help the company improve their competencies and expedite their growth.

Operating profits for Aviva have decreased to £2.2bn in 2021 from £3.1bn in 2020. The operating profits took a hit due to the impact of profits from operations which have been discontinued.

Despite a quiet first half, UK & Ireland Life sales increased by 22% to £35.6bn in 2021 from £29.3bn in 2020, with good rises in Savings & Retirement which were up 33% and Annuities & Equity Release which were up 5% to £7.9bn in 2021.

“Aviva has the foundations in place to deliver its promise. We’ve achieved a lot in the last year but we’re only just getting started. There is so much more Aviva can and will deliver for our customers and our shareholders,” commented Amanda Blanc, Group Chief Executive Officer, Aviva.

In the past year, Aviva has sold 8 non-core companies for a total yield of £7.5 billion.

Sophie Lund, equity analyst, Hargreaves Lansdown said, “Put simply, Aviva is a much simpler beast than it once was. The new, leaner structure has operational and shareholder benefits. The structural benefits are clear to see, and has also resulted in Aviva upping its planned shareholder returns programme to well north of the £4bn target. “

“The group is also making waves to increase its presence in the wealth management market through the £385m acquisition of Succession Wealth. As a giant in the workplace pension world, being able to offer advice to those same customers makes strategic sense.”

Aviva shares were trading steady at 0.86% to 410p despite the announcements on Wednesday morning.