Unilever share price could pick up as life returns to normal

Liam Roche
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Unilever share price could pick up as life returns to normal

Unilever Share Price

The Unilever share price (LON:ULVR) dropped dramatically in March 2020 to 3,854,5p as lockdowns came into effect. However, demand for consumer goods held steady throughout the pandemic, allowing the FTSE 100 company to surpass its pre-pandemic level, getting as high as 4,450p. Despite some volatile movements over the past 12 months, the Unilever share price is pretty unchanged overall, down 0.41%.

Since the turn of the year, the company has lost 4.23% in the value of its shares. With restaurants, cafes and shops reopening, Unilever is likely to see its revenues grow, and as people head out to socialise, demand will rise again for beauty and personal care products. Therefore investors may be tempted by the staple consumer goods company heading into the summer and beyond.

‘A’ Rating

Firstly, Fitch, the ratings agency, said that Unilever’s competitiveness became more robust in 2020, and expects the company’s sales growth to pick up as life returns to normal.

Fitch asserted Unilever’s Long-Term Issuer Default Ratings (IDRs) and senior unsecured ratings at ‘A’. The rating demonstrates the consumer goods company’s “strong business profile”, as “one of the largest and most diversified” consumer goods and food companies (FMCG) in the world.

“The Stable Outlook reflects our expectation that potential asset divestments are unlikely to reduce leverage as we assume that proceeds will be used for bolt-on M&A or returned to shareholders through share buybacks,” Fitch said.

Meat-Free Market

While Unilever has a vast product line, the company is still expiring new areas to diversify into. The latest is its proposal to bring plant-based meat products to market. The consumer goods giant recently announced a partnership with Enough, a food-tech company, to use a fermentation process to grow a high-quality protein.

The non-meat sector is seeing massive growth across the world as more people consider the environmental impact of meat eating, as well as health implications. It has been estimated that the industry will be worth $290 billion in 2035.

It follows Unilver’s investment of €85m in Hive, a facility for food innovation in the Netherlands, in an effort to support the development of plant-based foods.

Carla Hilhorst, executive vice-president of R&D for foods and refreshment at Unilever, said: “Plant-based foods is one of Unilever’s fastest growing segments and we’re delighted to partner with Enough to develop more sustainable protein products that are delicious, nutritious, and a force for good.

“We’re excited by the potential that this technology has for future innovations across our portfolio, and we can’t wait to launch more plant-based foods that help people cut down on meat, without compromising on taste.”

Director dealing: Sportingbet founder tops up online gaming holding

Andrew Hore
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Director dealing: Sportingbet founder tops up online gaming holding

Mark Blandford, founder of one of the early online betting firms Sportingbet, has bought more shares in an AIM online gaming company where he is currently a non-executive director at a cost of nearly £102,000. The prospects for online gaming in the US are the attraction of this company.
Sportingbet floated on Ofex, now Aquis Stock Exchange, in the nineties and subsequently graduated to AIM and then the Main Market. Formerly AIM-quoted online gambling company GVC Holdings, now Entain (LON: ENT), in association with William Hill, acquired Sportingbet in a cash and shares bid that in 2013 valued ...

Crude oil prices reach highest point in nearly 3 years on strong demand in US

Liam Roche
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0
Crude oil prices reach highest point in nearly 3 years on strong demand in US

Analysts at Goldman Sachs believe that Brent crude oil could reach $80

The price of Crude oil has made further gains into this week, reaching its highest point in 32 months.

With Brent crude oil at $71.47 per barrel in the early afternoon on Monday, the energy market is being supported by speedy roll-outs of vaccines worldwide, as well a coherent plan by OPEC+ to control supply levels.

Similarly West Texas Intermediate is at $71.70, its highest level in nearly three years, carrying on its recent bull run.

The run comes as more and more Americans are venturing outdoors and getting back to a normal mode of life.

New cases of coronavirus are falling in the US to the lowest levels in over 12 months, while over 50% of Americans have been vaccinated.

Daily air travellers in the USA went past 2m for the first time since before the pandemic, confirming strong demand for fuel as the summer season nears.

Demand for oil is expected to surpass pre-pandemic levels before the end of 2022, according to the International Energy Agency (IEA).

Analysts at Goldman Sachs believe that Brent crude oil could reach $80 per barrel this summer.

Bitcoin closing in on $40,000 as Musk and president of Tanzania have their say

Liam Roche
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0
Bitcoin closing in on $40,000 as Musk and president of Tanzania have their say

A number of south and central American nations have hinted at being willing to follow El Salvador’s lead

Bitcoin appeared revitalised on Sunday evening and into Monday as the digital currency is now up by 8.94% in the past 24 hours to $38,179.

There are a number of factors which appear to have encouraged the move on the back of El Salvador’s announcement that bitcoin is now legal tender in the central American country.

A number of south and central American nations have hinted at being willing to follow El Salvador’s lead, while more recently, Tanzania’s leader Samia Suluhu Hassan has urged the country’s central bank to prepare for the digital currency.

Hassan drew attention to the development of crypto in the region. “Throughout the region, including Tanzania, they have not accepted or started using these routes,” she said.

“My call to the Central Bank is that you should start working on that development. The Central Bank should be ready for the changes and not be caught unprepared.”

Furthermore, Elon Musk has waded back in, saying that Tesla will again accept bitcoin payments when bitcoin is more weighted to renewable energy sources.

“When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing bitcoin transactions,” Musk said in a tweet yesterday.

Less than a week ago bitcoin threatened to go below $30,000 for the first time this year.

Along with the news from Tanzania, Musk’s words have been able to push the cryptocurrency towards $40,000, after it spent most of the weekend below $35,000.

As bitcoin regains momentum following dramatic falls during May and into June, investors which be keenly watching the digital currency to see if it could continue into the week.

Oriole Resources shares tumble on results from project in Cameroon

Liam Roche
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Oriole Resources shares tumble on results from project in Cameroon

Oriole Resources says remaining results will not be released until end of second quarter

Oriole Resources (LON:ORR) has announced further results from the recently finished 3,118 metre maiden diamond drilling programme at its Bibemi gold project in Cameroon.

The gold miner also said the remaining results will not be released until the end of the second quarter.

The results are from the 5.3km-long Bakassi Zone 1 prospect, and include best intersections of 2.45 metres grading 2.96 grammes per tonnes, 3.6 metres grading 1.75 grammes and 12.4 metres grading 0.71 grammes.

The findings have confirmed more than 100 metres vertical continuity from surface to the system, which remains open at depth.

They also include best intersections of 2.45 m grading 2.96 g/t Au, 3.60m grading 1.75 g/t Au and 12.40m grading 0.71 g/t Au.

Oriole Resources CEO, Tim Livesey, said: “We are very pleased to share these early results from the Bakassi Zone 1 prospect, a significant strike length of mineralisation within the more extensive Bibemi gold system. These results prove that our preliminary exploration model for mineralisation is correct and that the orogenic-style mineralisation we had previously identified at surface does indeed continue vertically along the mapped shear / vein systems.

“These results prove that our preliminary exploration model for mineralisation is correct and that the orogenic-style mineralisation we had previously identified at surface does indeed continue vertically along the mapped shear/vein systems. The structural logging, mapping and interpretation work carried out by our geological team, in addition to the recent support of a specialist structural geologist from SRK, has further strengthened our understanding of the area. Each of the four prospect areas at Bibemi shows subtly different host geology and dynamic structural regimes and we are looking forward to developing our geological models further once the remaining results are returned later this month.”

The Oriol Resources share price fell by over 13% on Monday morning.

FTSE 100 unfazed by rumours of lockdown extension

Liam Roche
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FTSE 100 unfazed by rumours of lockdown extension

Widespread speculation that England will delay lockdown easing hasn’t troubled markets, with the FTSE 100 up 0.39% to 7,167.

“That puts the UK index at its highest level since February 2020, but there is still some way to go to hit the 7,400 levels seen before Covid triggered a global market crash,” says Russ Mould, investment director at AJ Bell.

“Many other major stock markets in the world have already recovered all of their Covid crash losses and since rallied to considerably greater heights, including the S&P in the US and the Nikkei 225 in Japan.”

Driving the UK market on Monday were oil stocks, consumer goods firms, overseas-focused banks and pharmaceutical companies, with Unilever the largest driver for the index in points terms.

“These movements would suggest that investors are focusing on companies that do business beyond the UK, taking a positive view on the global economy,” said Mould.

“Gold fell back 1.1% to $1,858 as some investors lost interest in safe-haven assets, pulling down shares in precious metal miners Polymetal and Fresnillo.”

Leisure companies could be worst affected by any delay to lockdown easing in England as it will require a continuation of the social distancing rules, meaning pubs and restaurants can’t operate at full capacity.

“However, investors don’t seem too bothered by the risk, perhaps because speculation points to a mere four-week delay, albeit during a seasonally busy time. Pubs group Marston’s slipped 0.5% while Restaurant Group was unmoved,” Mould said.

“Airlines fared worse as any cautious tone by the Government doesn’t bode well for relaxing guidance on foreign travel. The travel sector is waiting with bated breath to start taking more passengers overseas, but hopes are fading for widespread flying this summer. International Consolidated Airlines fell 2.3% while EasyJet dropped 1.8%.”

FTSE 100 Top Movers

BT (2.55%), Halma (2.12%) and Just Eat (2.06%) are leading the way early on Monday.

While at the bottom end of the FTSE 100 is Rolls-Royce (-3.18%), IAG (-2.62%) and Polymetal International (-1.62%).

VietNam Holding records impressive growth on digitisation of Vietnam

Liam Roche
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0
VietNam Holding records impressive growth on digitisation of Vietnam

Vietnam Holding saw its share price soar by 60% this year

Vietnam Holding (LON:VNH) released a statement on Monday that said Vietnam was the best performing stock market in the world during May, while the investment firm’s performance surpassed the national benchmark.

The trust’s largest holding, FPT, saw its share price soar by 60% during this year, according to a report issued this month by Dynam Capital, the manager of the trust.

Dynam said that its recent success in Vietnam can be put down to the spread of the internet, which reached 69% of the population in 2020, which rose to 73% in 2021.

“For FPT, fast internet means customers can stream content over their rapidly growing Pay TV business …[and] contribute greatly to economic growth,” Dynam said.

“Considering Vietnam’s software engineers on average cost one third of the level of those in India and China, the opportunity for a Vietnamese company, such as FPT, to be internationally competitive is also immense. FPT already serves many Japanese and US companies, which are trying to move their activities to the cloud and upgrade their technologies to adapt to new customer usage patterns.”

The digitisation of the country has benefitted other industries too, as banks propped up the country’s economy as they have been more able to connect with customers online.

Dynam said that banks in its portfolio have risen in value following strategic decisions by the management team.

“Other drivers in the digitalisation momentum currently taking place in Vietnam include education and government regulations… The government is also pushing hard for digital technologies as a way to scale Vietnam’s development as a modernising industrial nation and is planning to promote e-payment and e-government.”

“Soft infrastructure is as important as hard infrastructure, and both can have a multiplier effect on economic growth, in our view.”

“Digitalisation is helping Vietnam stay on course to reach its 30-year track record of 6.5% growth.”

Vietnam Holding presented at the UK Investor Magazine Virtual Conference on 23 March.

Average age of US vehicles reached record 12.1 years in 2020

Liam Roche
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0
Average age of US vehicles reached record 12.1 years in 2020

According to IHS Markit, vehicle miles in the US fell by over 13% during 2020

The average age of cars in America jumped to a record 12.1 years during 2020 according to IHS Markit.

It happened as Americans drove less and scrapped more cars throughout the pandemic.

However, as lockdown restrictions are easing, IHS Markit said the data may not last long sales of both new and used cars are starting to pick up again.

According to IHS Markit, vehicle miles in the US fell by over 13% during 2020, while more than 15m vehicles were scrapped. That amounts to 5.6% of the Toal vehicle population.

High scrap rates generally accompany a decline in the average age of a vehicle, IHS Markit said.

However, a fall in car sales during the pandemic as people travelled fewer miles, saw the average age increase by 2 months from 11.9 years in 2019.

Another cause of a fall in vehicle production, according to IHS Markit, was an ongoing shortage of semiconductors, which led to inflated prices and a subsequent increase in used vehicle prices.

Lockdown easing set to be delayed as working from home will continue

Liam Roche
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0
Lockdown easing set to be delayed as working from home will continue

The prime minister is expected to confirm the decision during a press conference later on Monday

The UK government is set to end the lockdown restrictions in England later than June 21, the originally planned date, meaning workers’ returns to their offices will be delayed.

The BBC has reported that a number of senior ministers have agreed on a decision to maintain current rules for an additional four weeks.

As a result of the delay, people will still be encouraged to work from home if possible, while nightclubs will stay closed.

The prime minister is expected to confirm the decision during a press conference later on Monday.

The extension will be put to a vote in the House of Commons later in June, and could face a rebellion from a number of Conservative MPs.

Stage four of the roadmap out of lockdowns will see limits on social contact gone, although mask wearing and social distancing could however remain.

Scientists have suggested the next step should be delayed as the Delta variant is more transmissible.

This, it is suggested, would allow the rate of vaccinations to increase, and minimise a potential rise in vaccinations.

On the other hand, some politicians and business owners are becoming frustrated at the news, as they consider the vaccine roll-out to have been a success.

Over 70m vaccine doses have been given out across the UK, as 55% of people receiving two jabs.

The hospitality industry is one in particular which has warned against the potential harm caused by the continuation of social distancing measures. Nightclubs and theatres also remain unable to operate.

Nightclubs and bars could sue the government to prevent a delay to coronavirus restrictions being lifted on 21 June in England.

Ted Baker records £107.7m pre-tax loss as sales slashed

Liam Roche
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0
Ted Baker records £107.7m pre-tax loss as sales slashed

Ted Baker (LON:TED) saw its revenue fall by 44% to £352m during 2020 as the retail industry was left reeling from the multiple lockdowns across the UK.

The UK fashion brand also confirmed it made a pre-tax loss of £107.7m, rising from £77.6m the year before.

In better news for the company, Ted Baker secured two long-term territory licenses in March to broaden its reach into Indonesia, the Middle East and North Africa.

While its retail sales fell by 42.2%, Ted Baker‘s eCommerce sales rose by 22% £144.9m. This in part a result of the fashion brand’s increased investment.

James Andrews, Personal Finance Expert at money.co.uk, said:

“If you set out to design a shop to do badly under coronavirus restrictions, you’d end up with something a lot like Ted Baker,” said Andrews.

“It’s reliance on physical stores – not infrequently in airports – while shops were shut and holidays outlawed. Concessions in department stores that are now in insolvency or closing branches. A focus on workwear as people set up home offices and special occasion outfits while weddings and other parties were banned.”

“The good news for investors is that as offices reopen, weddings start again and travel tentatively returns later on in the year, things will get better – especially as the firm continues its pre-pandemic push into online sales.”

In response to demand for climate aware clothing, Rachel Osborne, chief executive of Ted Baker, said the company had improved its sustainability strategy.

“We are making good progress against our strategic transformation plan and Ted Baker is increasingly well placed to take advantage of the significant growth opportunities ahead of us. The Ted Baker brand has strengthened further, with the number of active customers growing to 1.2m by the end of the year,” Osborne said.

“While the impact of COVID-19 is clear in our results and has amplified some of the legacy issues impacting the business, Ted Baker has responded proactively and is in a much stronger place than it was a year ago. During the period, we delivered robust cashflow generation, fixed our balance sheet, refreshed our senior leadership team and today we are upgrading our financial targets for the second time since outlining our new strategy last summer.”

“Additionally, we have made good progress with our sustainability strategy, Fashioning a Better Future, including the mapping of all of our factory partners within our supply chain and significantly increasing our usage of cotton from sustainable sources to 69%.”

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