FTSE 100 advances as Chinese stocks stage mini-comeback

Liam Roche
-
0
FTSE 100 advances as Chinese stocks stage mini-comeback

The FTSE 100 advanced 0.65% to 7,062 on Thursday, with the top riser being ratcatcher Rentokil after it said its core businesses had all returned to growth.

“The UK market saw investors flock to stocks that would benefit from economic expansion, principally commodities producers and banks,” says Danni Hewson, financial analyst at AJ Bell.

More broadly, across the world, global markets cannot seem to make their mind up.

“After the debacle involving a big sell-off in China-related stocks, Asian markets staged a big comeback with Hong Kong’s Hang Seng index up 3.1% and China’s SSE advancing by 1.5% on chatter that Beijing wouldn’t be overtly draconian towards Chinese companies with listings in foreign markets if they kept in line with local laws,” said Hewson

Regulatory interference has been behind the recent slump in China-related stocks and there have been growing fears this would lead to investors turning their backs on the growing number of Chinese companies listed in places like New York.

FTSE 100 Top Movers

Rentokil (5.8%), Anglo-American (4.36%) and Shell (3.63%) are leading the way atop the FTSE 100 on Thursday, having each released positive results.

At the other end, Smith and Nephew (-7.66%), BT Group (-7.11%) and SSE Group (-4.43%), have been dragging back the UK index.

Everyman Media Group poised for strong recovery

Liam Roche
-
0
Everyman Media Group poised for strong recovery

Everyman used the closure period to upgrade its facilities and improve its customer experience

Everyman Media Group (LON:EMAN), the independent cinema company, confirmed on Thursday that the business returned to a profit following its re-opening.

Admissions in the period since re-opening until 1 July reached 66% of 2019 levels, ahead of director expectations.

This is despite restrictions such as the Rule of Six, table service, 50% capacity restrictions in venues, and social distancing all being in place during this period.

The news comes after all of its venues were closed for the first 20 weeks of FY21 due to Covid, with 33 venues re-opening on 17 May, and social distancing measures remaining in place until 19 July.

The AIM-listed company used the closure period to upgrade its facilities and generally improve its customer experience.

Alex Scrimgeour, Chief Executive Officer of Everyman Media Group, said:

“We are delighted to have welcomed back so many Everyman customers since re-opening in May, subsequently delivering a period of profitable, cash-generative trading.”

“The speed and confidence with which the Everyman community has returned, together with our increased market share, demonstrates the ongoing appeal of our offering. People are clearly still looking to spend a great time out with friends and family, in an environment which instils confidence and provides high quality hospitality; now more than ever.”

“With significant available liquidity and more positive market conditions we are excited to be again turning our focus to plans for growth. We’re expecting you, Mr. Bond.”

The Everyman Media Group share price is up by 0.36% during the morning session on Thursday.

Diageo poised for return of nightclubs but warns of volatility ahead

Liam Roche
-
0
Diageo poised for return of nightclubs but warns of volatility ahead

Diageo increased its dividend by 5%

Diageo (LON:DGE), the alcoholic beverages company, confirmed on Wednesday that its net sales rose by 16% on an organic basis to £12.7bn.

The company, which makes Smirnoff, Guiness and Gordon’s, saw growth in all regions, which it put down to its downturn in sales during the pandemic.

Diageo’s underlying profit rose at a quicker rate than its sales, with an increase of 18% to £3.7bn.

The FTSE 100 company confirmed it will pay a final dividend off 44.59p per share, an increase of 5% compared to the year before, bringing its full year payment to 72.55p.

The alcohol seller is expecting its organic net sales growth to continue into the next financial year, as well as anticipating a return to pre-pandemic levels of growth in North America.

At the time of writing the Diageo share price is down by 0.31%.

Sophie Lund-Yates, Senior Equity Analyst at Hargreaves Lansdown, commented further on Diageo’s results:

“As the maker of Smirnoff, Guinness and Gordan’s it comes as no surprise that the shuttering of bars and night clubs left Diageo with a nasty hangover of problems.”

“However, the strength of the group’s brands means it was able to recoup some of its losses through a huge increase in supermarket trade in some key markets, and it’s come out of the pandemic in remarkably resilient shape. It’s now poised to make the most of the re-opening of Europe’s bar and nightclub scene.”

“Something to keep in mind is the volume of footfall in bars and nightclubs. There’s certainly excitement about re-opening, we’ve all seen the early queues, but there’s also a have-fun-at-home sentiment that’s been bred by lockdowns. It’s possible this could see a permanent reduction in the number of feet on dancefloors as things get back to normal, which could see the likes of Diageo face a headwind.”

Facebook warns of slow growth ahead

Liam Roche
-
0
Facebook warns of slow growth ahead

Facebook revenue surpasses analysts’ expectations for the quarter

Facebook (NASDAQ:FB) on Wednesday revealed that it expects its revenue growth to slow “significantly” in H2 of 2021.

During the three months to 30 June the social media company’s revenue rose to $29bn (£21bn). The figure was up from $18.69bn compared to the same period a year before.

Th revenue figure surpassed analysts’ expectations of $27.9bn.

The tech giant reaped the rewards from lockdowns as its ads targeted people who were at home more often than usual.

However, as Facebook “laps” periods which previously saw high levels of growth, it expects to see a slowdown in its sales.

Facebook warned that revenue growth during Q3 and Q4 was likely to “decelerate significantly”. In after-hours trading on Wednesday the Facebook share price fell by 4%.

Year-to-date its share price has added 38.8%.

Facebook’s results come amid a string of strong performances from America’s tech giants, including Alphabet, Apple and Microsoft, over the past quarter.

Facebook now has 2.9bn monthly users and owns WhatsApp and Instagram.

Tip update: More than 40% rise in Hargreaves Services price in three months

Andrew Hore
-
0
Tip update: More than 40% rise in Hargreaves Services price in three months

Hargreaves Services (LON: HSP) has put out a string of trading statements since it was recommended during April. A strong performance from the German associate boosted profit in the year to May 2021, while the longer-term prospects for the core operations are good.
Last year was a tough one for Hargreaves Services, but it remained profitable and cash generative.
Hargreaves Services is no longer involved in coal or British Steel. That hit the contribution of the environmental, logistics and minerals business. The mechanical and electrical engineering and materials handling businesses increased ...

Barclays share price: dividends are back as profit smashes expectations

Liam Roche
-
0
Barclays share price: dividends are back as profit smashes expectations

Barclays Share Price

Barclays (LON:BARC) topped the FTSE100 on Wednesday after its quarterly numbers sounded the right notes with news on dividends, share buybacks and a greater than expected release of provisions set aside to cover any potential loan losses relating to Covid. During the afternoon the Barclays share price is up by 3.74%, bringing it into the green over the past month.

Following a hot start to 2021 for the bank, the Barclays share price plateaued from the middle of March onwards. However, with today’s news, investors will be hoping now is a turning point for the Barclays share price to regain momentum.

Dividend

Firstly, a key reason for today’s jump is Barclays confirming it will be resuming its dividend payout, in addition to announcing a £500m share buyback.

After the Bank of England gave the green light for payouts to resume back in July, Barclays confirmed its shareholders will receive an interim dividend of 2p per share.

The FTSE 100 bank will also buy back £500m of its own shares. This is on its expectation that impairments will remain below historical levels on the improved outlook of the UK economy.

Profits

Secondly, Barclays is able to commit to a shareholder payout as its profit levels far exceeded its own expectations. 

Barclays’ profit before tax increased by 52% to £1.6bn, well ahead of estimates of £1.2bn. Its profits came about thanks largely to its investment banking arm, which thrived during the pandemic. First half feed rose by 27% to £1.7bn on merger and acquisitions and stock market flotations.

UK Outlook

The improving outlook of the UK economy helped the Barclays share price. As restrictions are mostly lifted, while cases are set to fall for the seventh consecutive day, the banking giant was able to release £1bn in bad debt provisions. It had initially set the money aside to cover pandemic-induced defaults. 

However, the bank warned: “the outlook remains uncertain and subject to change depending on the evolution and persistence of the Covid-19 pandemic”. 

While the results smashed expectations, which was reflected by the jump in the Barclays share price, investors may not yet be in the clear.

Helium One share price bounces as company overcomes drilling delays

Liam Roche
-
1
Helium One share price bounces as company overcomes drilling delays

Helium One Share Price

The Helium One share price (LON:HE1) is up by 18.04% over the pst five days as the helium exploration company revealed some positive news regarding drilling results. The Helium One share price has been on an outstanding run since the beginning of the year, adding 223.1% in the period. Following a mini-dip, which started at the end of June and finished at the end of July, investors will be hoping the Helium One share price can kick on. Chief Executive Officer David Minchin certainly has confidence in his company’s strategy.

Drilling Results

Earlier in July, Helium One identified helium gas in the Red Sandstone Group between 552m and 561m. However, there were delays in drilling due to parting of drill pipe in the midst of drilling the gas show.

Two things can be learned from this event which impacted the Helium One share price recently and will continue to do so. Firstly, there is a great deal of potential at the Tai-1 well. Secondly, however, while the company is in its early stages, things do not, and will not always, go smoothly. This will result in an element of volatility in the Helium One share price, which also has the potential for a longer-term upwards trajectory.

On this occasion, the drilling set the company back a few weeks, although it will not hope to make a habit of such delays, which could weigh down on Helium One’s overall development.

“The sidetrack has been a success, so we can now start to push to our target depth, and we’ll be, obviously, keeping the market informed as the drill hole progresses and we move on first exploration drill into our first discovery drill,” said Minchin.

Strategy

Helium One is a helium exploration company, with its main focus being on its flagship project in the Rukwa basin in Tanzania. The AIM-listed firm has so far acquired 4,500 square kms of sought after ‘helium prospective land’.

Crucially for Helium One, helium is a useful commodity in the transition to a greener world economy.

“We’ve got a 100 best estimates un-risked prospective helium resources of 138 billion cubic feet, we’ve measured the gas coming up to surface at 10.6% helium, which positions us well to be a potentially strategic player in provision of this important commodity into the next century,” David Minchin said.

Investors with an eye on the Helium One share price will be well served by understanding the future impact of helium on the world economy, in addition to Helium One’s ability to find and supply the commodity effectively.

Pound enjoys strong resurgence against the dollar

Liam Roche
-
0
Pound enjoys strong resurgence against the dollar

Just after lunchtime on Wednesday cable stands at $1.3869

The pound has sharply risen against the dollar over the past five days, with a big move coming yesterday afternoon.

Covid cases fell in the UK, allowing the pound to win back some gains, while orders for durable goods fell short of Wall Street’s expectations, giving the US economy a headache.

Positive economic data has been coming out of the UK, as well as the eurozone, which is giving investor’s a renewed appetite for risk.

Just after lunchtime in the UK on Wednesday cable stands at $1.3869,

In the UK, Covid cases are set to fall for the seventh day in a row, which is propping up the pound, although there are fears that cases could rise again in the near future.

The pound strengthening is a continuation of the trend that started in December when the UK and EU put pen to paper on a trade deal in the aftermath of Brexit.

Since the middle of March, the pound is up against the euro by 13.1%.

In terms of the dollar, the upcoming Fed meeting where the US central bank will discuss its monetary policy will influence sentiment around the greenback over the coming weeks.

Barclays, US Tech Stocks and Junior Miners with Alan Green

UK Investor Magazine
-
0
Barclays, US Tech Stocks and Junior Miners with Alan Green

Alan Green joins the UK Investor Magazine Podcast for our latest instalment of UK equities and global markets. We discuss Barclays (LON:BARC), Power Metal Resources (LON:POW) and Tertiary Minerals (LON:TYM)

We start with looking at US Tech stocks in Apple and Alphabet and go through the numbers from their bumper quarterly updates. Both produced revenue figures that surpassed analyst estimates in a strong quarter for two of the world’s largest technology companies.

Given the strong results from Apple and Alphabet, we explore whether we may be reaching the top of the earnings cycle as we come out of the pandemic and if a period of weaker growth could cause waves in equities.

Barclays (LON:BARC) also reported a huge jump in profits as they released half year profits that rose to £5bn helped by the reversal of COVID provisions and strong investment banking activity. Barclays also increased their dividend and we look forward to what investors could expect from Barclays and other UK banks in terms of payouts in the future.

We also explore Power Metal Resources (LON:POW) and Tertiary Minerals (LON:TYM).

Oakley Capital Investments portfolio strength drives 11% NAV uplift

Liam Roche
-
0
Oakley Capital Investments portfolio strength drives 11% NAV uplift

Oakley Capital Investments (LON:OCI) confirmed its portfolio strength drove an 11% NAV uplift as the investment company released a trading update for the six months ending in June 2021.

NAV Growth

Oakley Capital Investments’ (OCI) unaudited NAV at the end of June was £804m, amounting to a NAV per share of 445p. The total NAV per share return, including dividends, is 11% since December 2020 and 26% since June 2020.

Performance

Oakley Funds sustained its solid performance levels and EBITDA growth, while the impact of Covid-19 continues to take a toll on its operations. Of its current portfolio, 14 companies equalling 52% of NAV grew their revenues at or above exceptions during the six month period. Four companies accounting for 14% of NAV saw a modest impact on financial performance due to Covid, while three companies which make up 29% of NAV, continue to be significantly impacted, the company said.

Investments

Over the past six months, OCI made a total look-through investment of £95m which, aside from some minor follow-on investments, was attributable to the acquisition of four new platform investments: idealista (Fund IV), Dexters (Fund IV), ICP Education (Fund IV) and ECOMMERCE ONE (Origin Fund).

Cash and Cash Commitments

  • Balance sheet – OCI has no leverage and had cash on the balance sheet of £172 million at 30 June 2021, comprising 21% of NAV
  • Recent commitments – OCI’s total commitment to the Oakley Capital Origin Fund, which closed in January 2021, was €129 (£111) million
  • Total outstanding commitments – outstanding Oakley Fund commitments are £438 million

OCI is a Specialist Fund Segment traded investment vehicle that aims to provide shareholders with consistent long-term capital growth in excess of the FTSE All-Share Index by providing liquid access to private equity returns through investment in the Oakley Funds.

The Oakley Capital Investments Limted share price is up by 0.85% during the morning session on Wednesday.

1...961962963...1,860Page 962 of 1,860