EQTEC confirms stance on North Fork Community Power project

Liam Roche
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EQTEC confirms stance on North Fork Community Power project

NFCDC is a volunteer-led, not-for-profit, local, community initiative

EQTEC (AIM:EQT), a gasification technology company, felt ‘obliged’ to clarify certain issues in relation to North Fork Community Power (NFCP) project based in California.

Following a board meeting at the end of June, minutes from the meeting published onto the EQTEC website made claims with respect to NFCP and its project to build a 2MWe plant based on EQTEC technology.

The project is being designed with the purpose of locally sourcing forestry waste into power and biochar for the local community whilst reducing the risk of forest fires in the area.

The AIM-listed company said that some of the comments in the minutes gave the impression of a lack of understanding of ‘project accountabilities and contractual relationships’, and it has communicated directly to NFCDC to express its concerns.

EQTEC said it “would like to clarify that it is the technology provider to the Project and has no role or scope in relation to project management. In its role as a Managing Member and equity owner in NFCP with a vested interest in the success of the Project, the Company has consistently driven NFCP to appoint dedicated, professional Owners Representatives and Project Managers to improve discipline, focus and risk management on the Project”.

NFCDC is a volunteer-led, not-for-profit, local, community initiative formed to promote in particular the old mill site on which the project is located.

David Palumbo, CEO of EQTEC, commented:

“We remain fully committed to the North Fork community and value our relationship with North Fork Community Development Council, our fellow Managing Member for NFCP. The plant at North Fork, enabled by EQTEC’s Advanced Gasification Technology, is the beginning of our efforts to generate cleaner energy for California and reduce the risk of forest fires, through clearing out forestry waste and putting it to constructive use. It is our hope that the North Fork plant becomes another Market Development Centre (“MDC”) for us that allows us to bring our capabilities to more communities across the state.”

Tip: Prosperous niche drugs strategy

Andrew Hore
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Tip: Prosperous niche drugs strategy

In the past five years this pharma company has gone from reversing into an AIM-quoted shell to the brink of being one of the top 100 AIM companies by market capitalisation when its latest acquisition is approved by shareholders at the end of July.
There is still plenty of growth in revenues to come from the company’s two niche drugs, because they are still at an early stage of commercialisation and there are more markets where they can be launched. The latest purchase brings a third drug into the portfolio. There are more specialist treatments in development.
Management has already identified ...

Tip update: AdEPT Technology

Andrew Hore
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Tip update: AdEPT Technology

Managed IT and networking services provider AdEPT Technology (LON: ADT) limited the downside to last year’s Covid hit figures and the stronger momentum in the fourth quarter has continued into this year.  
The purchase of cloud-based networking and cyber security services supplier Datrix for an initial £9m, will supplement organic growth this year. There is potential deferred consideration of up to £7m based on the growth of Datrix.
Datrix will be transitioned to the One AdEPT platform by September. In the year to March 2021, Datrix is estimated to have made a pre-tax profit of £600,000 a...

Lloyds share price takes a breather as investors review optimism over UK recovery

Liam Roche
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Lloyds share price takes a breather as investors review optimism over UK recovery

Lloyds Share Price

The Lloyds share price is up by 2.07%, as the FTSE 100 recovered from a wave of negative sentiment that knocked it over on Thursday. It is been a difficult period for the major bank over the past month, amid creeping uncertainty over the strength of the UK’s economic recovery, as the Lloyds share price fell by 3.56% over the past 30 days. However, some investors may see at an opportunity to secure shares in the bank for a reasonable price, especially as it looks to resume its impressive dividend.

UK Recovery

While investors are taking a pause to examine the outlook of the UK economy further, in recent months they have been optimistic about its prospects. There of course is the possibility that this level of optimism could return. Boris Johnson and Savid Javid have both hinted at the final removal of restrictions, which would bode well for the Lloyds share price. Having said that, the Lloyds share price remains subdued for a reason. Risks remain over the continued spread of the Delta variant, as infections are spiking at present despite the ‘success’ of the vaccine roll-out.

Analysts’ View

Analysts at Barclays are behind the Lloyds share price, suggesting that UK investors should keep faith with the bank. The analysts have suggested that owners of Lloyds shares who are thinking of selling could potentially lose out, even if they have already made gains from their investments. This is according to a note sent to clients earlier this week.

Barclays’ view comes as rumours swirl around whether or not the Bank of England’s Prudential Regulation Authority will allow banks to resume dividend payments. However, while there is an expectation among investors that the dividend payments will be allowed again, Barclays suggests that “the sustainable yield is more relevant”.

A flurry of good news has put the Deliveroo share price on a better path

Liam Roche
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0
A flurry of good news has put the Deliveroo share price on a better path

Deliveroo Share Price

The Deliveroo (LON:ROO) IPO turned out to be a huge disappointment as shares plunged 26% on the company’s debut back in March. Investors at the time were concerned about what the food delivery company’s dismal stock market debut meant for its longer-term prospects. However, following a long period of sideways movement, the Deliveroo share price has been on the ascendency over the last couple of weeks, now standing at 308.7p. With a recent spout of good news, the outlook looks brighter for the food delivery company, which is drawing the attention of UK investors.

Court Ruling

While it may not be welcomed news for its couriers, the Deliveroo share price surged towards the end of June as a UK court ruled that the people who deliver the food on bikes are self-employed. The ruling was passed by three judges who came to a unanimous agreement.

“Concern about the company’s reliance on the gig economy model was one of the factors which contributed to its disastrous IPO in March,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.

However, Deliveroo may not be in the clear just yet, as a European Commission review of how the gig economy operates is now underway.

“Although the gig economy stronghold is for now staying largely firm, over time there may be fresh capitulations as companies tweak their models to satisfy ongoing concerns under the spotlight being increasingly trained on firms by institutional investors,” said Streeter.

Investment

Deliveroo announced this week that it would hire 400 software engineers, data scientists and designers during the next year in an effort to improve its ability to innovate.

The London-listed firm said the growth of its workforce would allow it to improve its logistics, benefitting restaurants, delivery workers and customers.

Sales Forecast

Deliveroo revised its sales forecast up this year after it saw strong sales growth during H1 2021.

The food delivery service believes its sales will increase by 50-60% compared to 2020. This would mean the total value of its transaction would exceed £6bn this year.

While there has been a recent flurry of good news, challenges lie ahead for Deliveroo. As people eat out more as restrictions are increasingly being eased, Deliveroo will need to make sure it retains customers.

While it is expecting demand to fall back to a more normal level, it has been difficult to know how much of its recent growth is down to exceptional circumstances of lockdowns. Perhaps the Deliveroo share price will offer some clarity over the coming months.

America to add more Chinese companies to blacklist over human rights abuses

Liam Roche
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America to add more Chinese companies to blacklist over human rights abuses

The Biden administration is making an effort to hold China to account says Reuters

The US has again moved against China as it looks set to add additional companies to its economic blacklist because it believes the Chinese government is implicated in human rights abuses.

Up to 10 business could be added to the list by the Biden administration with immediate effect, according to Reuters.

Among the accusations are the use of forced labour camps by the Chinese government in Xinjiang.

The decision by America represents efforts by Biden and his staff to hold China to account, Reuters reported.

China continues to distance itself from such allegations, saying its policies are needed in order to eliminate religious extremism.

“The Chinese side will take all necessary measures to safeguard the legitimate rights and interests of Chinese companies and rejects U.S. attempts to interfere in China’s internal affairs,” said foreign ministry spokesman Wang Wenbin on Friday.

The names of the companies on the list have not been revealed, while additional firms from other countries could yet be added.

Earlier this week it was reported that major companies from China were coming under pressure as the country pledged to come down on Chinese companies on US exchanges.

Among the countries being scrutinised are Didi, Alibaba and Tencent.

“U.S. investors will have to weigh the risks of owning ADRs at a time when tensions between Beijing and Washington remain elevated while all global investors will have to balance the allure of China’s vast addressable market with the possibility that officials may reshape company prospects at the stroke of a pen via the imposition of regulatory strictures,” BCA Research chief global strategist Peter Berezin said in a note Wednesday.

Didi, the Chinese ride-hailing app, was removed from US app stores soon after it raised $4.4bn following its listing in America, one of the largest by a Chinese company since e-commerce giant Alibaba in 2014.

FTSE rebuilds after taking hit from Covid and inflation fears

Liam Roche
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0
FTSE rebuilds after taking hit from Covid and inflation fears

The FTSE 100 added 0.75% on Friday, taking the UK index to 7,083, as it recovered from a wave of negative sentiment that knocked it over on Thursday.

“What may spook investors is that usually the concerns have centred around either inflation or the risk of Covid-19 tilting the recovery off course,” said Russ Mould, investment director at AJ Bell.

“This time it appeared both fears were rearing their head at the same time – raising the spectre of stagflation or slowing economic growth accompanied by rapidly rising prices.”

Latest UK GDP figures for May in the UK suggest the speed of recovery is starting to slow down, despite the fourth consecutive month of growth.

“We may get more insight into how central banks are weighing these issues later today with Bank of England chief Andrew Bailey and European Central Bank head Christine Lagarde set to participate in a panel discussion at a big finance summit in Venice,” Mould added.

“The question is whether central bankers feel they can navigate these risks as serenely as a gondola traversing a sleepy Venice canal or if they are worried about a torrent of rising inflation and infections overtaking them.”

FTSE 100 Top Movers

Evraz (4.17%), Land Securities (2.83%) and Burberry (2.72%) headed up the FTSE 100 on Friday on a positive day for the index.

While at the other end, not faring so well, is B&M (-1.97%), Sainsbury’s (-0.8%) and Just Eat (-0.79%).

Land Securities

Land Securities gave an update on its rent collection for the quarter ending in June, confirming that the property development company has collected 81% of £103m it is owed.

Most of the rent collected was from offices, with 95% collected, while regional retail spaces came in at 73%, and the rest of London had a collection rate of 71%.

Flight Bookings

Flight bookings departing the UK surged as the government announced fully vaccinated adults and their children will be able return from ‘amber’ countries without needing to quarantine from 19 July, airlines reported on Thursday.

Passengers, however, will be required to take a Covid-19 test three days before their arrival back in the UK, in addition to a PCR swab a day after they return to home soil.

Flight bookings soar following update to travel list

Liam Roche
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Flight bookings soar following update to travel list

Passengers must still take Covid-19 test three days before their arrival back in the UK and a PCR swab a day after they return

Flight bookings departing the UK surged as the government announced fully vaccinated adults and their children will be able return from ‘amber’ countries without needing to quarantine from 19 July, airlines reported on Thursday.

Passengers, however, will be required to take a Covid-19 test three days before their arrival back in the UK, in addition to a PCR swab a day after they return to home soil.

EasyJet has said that in the few hours after the announcement that flight booking soared by 400% compared to the week before, as the airline provided an additional 145,000 seats.

Johan Lundgren, the EasyJet CEO who has been outspoken in recent months in support for the easing of travel restrictions, said the vaccine was key to boosting the industry.

“We have always said that vaccination is the key to unlocking travel and this means that millions will finally be able to reunite with family and loved ones abroad or take that long-awaited trip this summer,” Lundgren said.

British Airways said that the announcement caused its website traffic to double, driven by ‘green’ listed destinations.

The announcements also means that major destinations including France, Spain and Portugal are realistic for Brits seeking a vacation this year. Additionally, the US and Mexico could be added to the list.

One cause of concern, particularly for families, is that a private PCR test cost in the region of £100, which adds on a substantial amount to the price of a holiday.

The EasyJet share price is up by 2.33% on Friday morning, while the IAG share price has risen by 2.07%.

UK GDP well below expectations in May

Liam Roche
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0
UK GDP well below expectations in May

UK GDP rose by 0.8% in May

Despite the renewed easing of lockdown measures, the UK saw its growth slowdown in May, as its recovery lost some momentum.

The Office for National Statistics (ONS) revealed that UK GDP rose by 0.8% in May, well below its expectations of 1.5%.

The figure for May is lower than the 2% growth achieved in April, as restrictions were eased for non-essential retailers.

The economy remains 3.1% below its pre-pandemic level, despite seeing its fourth consecutive month of growth.

The ONS Deputy National Statistician for Economic Statistics Jonathan Athow said: “The economy grew for the fourth consecutive month, albeit at a slower pace than seen recently, but remains around three percent below its pre-pandemic peak.

“Pubs and restaurants, who were again able to welcome indoor guests, were responsible for the vast majority of the growth seen in May. Hotels also saw a marked recovery as restrictions lifted.”

Commenting on UK GDP falling by 0.8%, Ian Warwick, Managing Partner at Deepbridge Capital, said: “Today’s data serves as a further reminder that the UK economy is not out of the woods just yet. We are however clearly moving in the right direction and as we focus on economic recovery, it remains critically important that scale-up businesses, particularly in high-growth sectors such as digital technologies and life sciences are supported; as they will be at the very heart of economic growth as we create an economy fit for the twenty-first century.”

“Government initiatives such as the Enterprise Investment Scheme (EIS) have never been more important for helping entrepreneurs and innovators source the funding they require, whilst also offering private investors with tax incentives to develop UK-supporting private equity portfolios. With our EIS funds reaching record levels of funding in 2020/21 it is evident that there is considerable demand from investors and financial advisers alike to invest in early-stage UK companies which we believe will be at the forefront of our economic recovery,” Woods added.

Land Securities provides positive update on rent collection

Liam Roche
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0
Land Securities provides positive update on rent collection

Land Securities confirmed that its Q1 dividend for the 2021/22 financial year will be 7p

Land Securities (LON:LAND) gave an update on its rent collection for the quarter ending in June, confirming that the property development company has collected 81% of £103m it is owed.

Most of the rent collected was from offices, with 95% collected, while regional retail spaces came in at 73%, and the rest of London had a collection rate of 71%.

Urban opportunities (50%), along with sub scale sectors (43%), saw the lowest levels of rent collection over the same time period.

Of the £18m of rent outstanding, £6m relates to customers who have withheld payment pending documentation of agreed concessions, the FTSE 100 company confirmed.

“We continue to take a proactive approach to addressing the challenges the pandemic presents to our people, our customers and our business. In early April 2020, we established a customer support fund of £80m for occupiers who most need our help. To date, £50m of rent concessions has been allocated to customers,” the company said in a statement.

Land Securities also confirmed that its Q1 dividend for the 2021/22 financial year will be 7.0p per ordinary share.

The Land Securities share price is up by 2.28% during the first hour of trading on Friday.

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