Heathrow calls on UK government to open up following $4bn in losses

Liam Roche
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Heathrow calls on UK government to open up following $4bn in losses

Heathrow expecting pent-up demand for holidays to bring passenger levels up to 21.5m people in 2021

Heathrow Airport has called upon the UK government to open travel to to passengers who have been vaccinated as its pandemic-induced losses reached £2.9bn.

Prior to the pandemic, Heathrow was one of the busiest airports in Europe. However, during the first half of 2021, fewer than 4m people travelled via the London airport. The number would have been surpassed in less than three weeks in 2019.

The airport is expecting pent-up demand for holidays to bring about a surge in passenger levels, up to 21.5m people, for the remainder of 2021.

During the fist six months of 2021, Heathrow’s revenue came in at £348m, down from £712m compared to the same period in 2020, meaning its loss before tax increased by 18% to just over £1bn.

Heathrow also revealed it had increased liquidity to £4.8bn.

The airport said that changes to the quarantine and testing requirements for passengers arriving in the UK were “encouraging”, however it said the rules for international travellers are continuing to hold back the UK economy from making a full recovery.

The airport has called upon the UK government to open it up to tourists who have been vaccinated from both Europe and the US.

The airport’s chief executive John Holland-Kaye, said: “Replacing PCR tests with lateral flow tests and opening up to EU and US vaccinated travellers at the end of July will start to get Britain’s economic recovery off the ground.”

“The European markets not only are open with each other, but they’ve also opened up to the United States, which they see as being a relatively low-risk country,” said Mr Holland-Kaye. “They’re allowing people who have been double-vaccinated to come from the US. That’s seen a massive uplift in the number of travellers from there.”

FTSE 100 makes sluggish start to jam-packed week ahead

Liam Roche
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FTSE 100 makes sluggish start to jam-packed week ahead

The FTSE 100 faltered on Monday morning, down 0.4% to 6,9931, after mixed trading in Asia overnight linked to a further crackdown by China on its technology sector.

“This set a downbeat tone to what could be a defining week for the markets as some of the biggest US companies report their second quarter earnings and the US Federal Reserve delivers its latest update on interest rates and financial stimulus,” says AJ Bell financial analyst Danni Hewson.

“That meeting on Wednesday isn’t expected to see any rate increase but could see at least the suggestion of a tapering of support for the economy as the Fed weighs inflation risks,” Hewson added.

A second estimate of US GDP for the second quarter will also draw attention later in the week, while a number of major UK companies are set to report, including the banks.

“Expectations for the UK banking sector have been lifted in recent weeks by a strong showing from their American cousins and the decision to give them the green light to start paying dividends again. These heightened expectations could be tough to match.”

FTSE 100 Top Movers

Miners Antofagasta (1.64%), Rio Tinto (1.64%) and Anglo American (1.16%) are leading the way on the FTSE 100 one Monday.

While trailing the pack of UK companies is HSBC (-1.83%), Standard Chartered (-1.74%) and Vodafone (-1.62%).

Castillo Copper returns up to 9% copper in Big One Deposit assays

Liam Roche
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0
Castillo Copper returns up to 9% copper in Big One Deposit assays

Castillo Copper share price well down during morning session

Castillo Copper Limited (LON:CCZ) confirmed on Monday that the initial assays for drill-holes BO_315-317RC returned up to 9.19% Cu and verified extensions to known mineralisation at the Big One Deposit in Mt Isa’s copper-belt.

Additionally, visual inspection of samples from drill-holes BO_322-27RC identified further copper mineralisation, with the best intercept of 26m found in BO_326RC.

The Castillo Copper share price is down by 8.37% during the morning session on Monday following the announcement.

https://twitter.com/CastilloCopper/status/1419549304688099329?s=20

Highlights

  • Initial assays for drill-holes BO_315-317RC verify up to 9.19% Cu and clearly extends known mineralisation – the best intercepts are summarised below:
    • 9m @ 1.42% Cu from 88m including 4m @ 3.06% Cu from 92m & 1m @ 9.19% Cu from 92m (BO_317RC)
    • 5m @ 1.06% Cu from 141m (BO_316RC)
    • 3m @ 1.22% Cu from 65m (BO_315RC)

Encouragingly, visual inspection shows new drill-holes have potentially intersected copper mineralisation up to 26m – the best intercepts are shown in Figure 1:

Figure 1: Best Intercepted Mineralisation

Borehole From (m)To (m)Apparent Thickness (m)
BO_322RC5773.516.5
BO_323RC829715.0
BO_324RC415312.0
BO_326RC13416026.0
BO_327RC60688.0
BO_327RC81908.0
BO_327RC90999.0

Assays for samples from priority drill-holes BO_318RC1 & BO_326RC, which exhibited visual copper intercepts up to 34m & 26m respectively, should be back shortly as the laboratory is fast-tracking the analysis

  • Holistically, a closer examination of the initial assay results by Castillo’s geology team, highlights the following interpretations:
    • Factoring the new data points into the preliminary geological model for the Big One Deposit suggests the underlying system is larger than initially envisaged;
    • There is now increasing evidence that copper mineralisation is potentially structural as it extends beyond the trachyte/dacite dyke; and
    • Using geophysics has enabled significantly better targeting and, in turn, optimised the results of the drilling campaign so far

Simon Paull, Managing Director of Castillo Copper, said: “It is encouraging there is a strong correlation between visual mineralisation and the assays, as the Board optimistically looks forward to receiving further results. Otherwise, the progress of the drilling campaign is taking shape, especially verification the underlying copper system at the Big One Deposit is likely to be larger than our geology team’s initial expectations.”

Castillo Copper is an Australian-based explorer, primarily focused on copper across Australia and Zambia.

This Disruptive Technology share now has a game changing application

UK Investor Magazine
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This Disruptive Technology share now has a game changing application

Unless you are of school age you may have already heard this company say that before… . For over twenty years it has been specialising in suppling and developing technologies that make plastic and rubber products smarter, safer, and sustainable. It’s a big sector to play in and there have been disappointments along the way but at last new approvals make the development of mass market application seem an inevitable game changer.
Last year the U.S. Food & Drug Administration, [FDA] approval its d2p additive for its antimicrobial food contact technology packaging allowing it to be used in wr...

Ryanair raises forecast for passenger numbers amid heavy Q1 loss

Liam Roche
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0
Ryanair raises forecast for passenger numbers amid heavy Q1 loss

Ryanair posted a €273m loss for the quarter between April and June

Ryanair (LON:RYA) confirmed a sharp rise in bookings while the low budget airline raised its forecast for passenger numbers over the coming year as travel restrictions are being eased across the continent.

However, the Irish company posted a €273m loss for the quarter between April and June, as lockdowns meant the majority of flights were cancelled amid ongoing caution.

A year ago, Ryanair recorded a €185m loss during the same Q1 period.

Ryanair carried 8.1m passenger during Q1, up from 0.5m in the same period in 2020, when the pandemic was well and truly underway.

The airline was faced with soaring operating costs of €675m, while it managed to bring its revenue up to €370m.

The low budget airline said its mini-recovery was thanks to vaccinations, as well as the easing of isolation rules for travellers who have taken the vaccine, and the EU’s digital travel pass which the EU introduced at the beginning go July.

These factors have given Michael O’Leary, the chief executive of Ryanair, a degree of confidence over a sustained recovery for the industry, after the pandemic continued to test his company throughout the pandemic.

With a surge in bookings coming from continental Europe, Ryanair will increase its number of flights in operation during the end of summer.

While the airline is still facing challenging circumstances, it suggested that it will end the fiscal year “somewhere between a small loss and breakeven” as restrictions are there to stay for now.

Danni Hewson, financial analyst at AJ Bell, added:

“Could a last minute rush rescue Ryanair’s year? While the summer has been heavily affected by the continued strict restrictions on travel throughout Europe, the company is seeing notably higher bookings both for late summer holiday bookings and the winter,” Hewson said.

“This demonstrates how resilient demand for foreign holidays remains, particularly among the fully vaccinated cohort which now have a little more freedom to travel.”

“If people are booking now given all the uncertainty and hassle involved in flying then you could imagine a more rapid ascent when, hopefully, we finally emerge from the pandemic.”

The Ryanair share price is up by 3.56% during the morning session on Monday.

New AIM admission: Zenova’s fire retardant IP is not a flame proof investment

Andrew Hore
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0
New AIM admission: Zenova’s fire retardant IP is not a flame proof investment

Zenova Group has developed fire extinguisher fluids and fire retardant paints that can be applied to many types of surface. Increasing fire regulation will provide opportunities for Zenova.
The global fire resistant coatings market is estimated to be worth $933m and there is scope for the technology to be used in other coatings that are not currently fire retardant. The insulating paint market is current valued at around $9bn.The fire extinguisher market is expected to grow at 4.6% a year and reach $8.3bn in 2027. There is also potential for ceiling sprinklers.
The marketing focus is construct...

New standard listing: Sivota seeking Israeli technology deal

Andrew Hore
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0
New standard listing: Sivota seeking Israeli technology deal

Sivota is a shell that wants to acquire Israel-based technology businesses, although it will assess companies in other countries. The important person in the set-up is Ziv Ben-Barouch, who has decades of experience in assessing and investing in technology companies, most recently through Pereg Ventures.
This is a tiny company and will have to raise much more cash if it finds a deal. Even due diligence on technology companies can be costly. It could take a while to find a suitable target. The prospectus states that investors will not be asked whether the company should continue or be wound up –...

Vietnam Holding celebrates 15th anniversary

Liam Roche
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0
Vietnam Holding celebrates 15th anniversary

Vietnam Holding (LON:VNH), the closed-ended fund that invests in high-growth companies in Vietnam, is celebrating its 15th anniversary today. The London-listed investment trust, launched in 2006, has followed the Southeast Asian nation through its astonishing transformation since its inception.

History

The fund got off to a strong start in 2006, however, it was soon greeted by the destructive global financial crisis in 2008, which put the world economy in a stranglehold. Following the crisis, Vietnam underwent massive changes, surpassing Brazil as the world’s largest coffee exporter in 2012, followed by high levels of growth in 2013 after years of stagnation.

Vietnam has liberalised its economy over the past few decades and has recorded high economic growth in the process. With the country’s ideal location for manufacturing and established trade deals, in addition to a young and increasingly literate population, this phenomenon shows no sign of letting up. Vietnam was one of the highest growing economies in the world last year at just under 3%.

Over the past five years, the Vietnam Holding share price, now at 246.90p, has risen by 44.1%. Since its inception, 15 years ago, it has added 55.42%.

Vietnam Holding Portfolio

The fund’s portfolio is concentrated with two thirds of its holdings in its top ten companies. Fianancial services, the top sector, makes up 41.06% of the fund’s portfolio, closely followed by technology and real estate at 18.32% and 14.31%. Its weighting towards industrial goods and real estate play towards the aforementioned processes of industrialisation and urbanisation in Vietnam.

UK Investor Magazine Conference 

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

Craig Martin, Chairman of Dynam Capital, the manager of Vietnam Holding, presented the case of investing in Vietnam and provided detailed insight into the Southeast Asian economy.

Worker shortages cause slowdown in UK recovery amid ‘pingdemic’

Liam Roche
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0
Worker shortages cause slowdown in UK recovery amid ‘pingdemic’

IHS Markit UK composite PMI dropped to 57.7 in July

UK private sector growth is at its lowest point in four months, a survey by IHS Markit revealed, while staff shortages dragged on the economic recovery this month.

A phenomenon being referred to as the “pingdemic” is causing a number of healthy workers to isolate at home as they are alerted by the NHS test and trace app. Firms have reported back to IHS Markit that the “pingdemic” is causing material and staff shortages, resulting in the slowest recovery since March.

The stalling momentum is causing levels of optimism to fall to the lowest level in over nine months.

IHS Markit UK composite PMI dropped to 57.7 in July, down from 62.2 the previous month, representing a significant fall. Readings above 50 indicate an expansion in business activity.

Chris Williamson, Chief Business Economist at IHS Markit, commented on the figures released on Friday by IHS Markit: “July saw the UK economy’s recent growth spurt stifled by the rising wave of virus infections, which subdued customer demand, disrupted supply chains and caused widespread staff shortages, and also cast a darkening shadow over the outlook.”

“Although business activity continued to grow, aided by the easing of lockdown restrictions to the lowest since the pandemic began, the rate of expansion slowed sharply to the weakest since March.”

“Transport, hospitality and other consumer-facing services companies were the hardest hit, though manufacturing also saw growth weaken markedly during the month,” Williamson said.

BoE to make green gilts eligible for QE

Liam Roche
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BoE to make green gilts eligible for QE

The move caters to high demand for environmentally friendly investments

The Bank of England (BoE) revealed on Friday that it plans to buy new green gilts issued by the UK government later in 2021.

The move is part of the central bank’s asset purchase programme, which considers the gilts to be the same as other government debt.

In an effort to cater for high demand for environmentally friendly investments, the UK government intends to issue a minimum of £15bn of new debt during the current financial year.

David Barmes, Senior Economist at Positive Money, welcomed the Bank’s decision to make green gilts eligible across its operations. “The Bank should now go a step further and consider actively favouring green gilts in order to support green government spending and fulfill its mandate to support the net zero transition,” Barmes said.

Barmes also drew attention to other European nations which have been quicker out of the box.

“Compared to countries like France and Poland, the UK has been relatively slow to start issuing green bonds. With a huge green investment gap to fill ahead of COP26, the Bank and the Treasury should closely coordinate on how the government can rapidly expand its green spending while keeping borrowing costs low.”

The Bank of England confirmed that the green gilts will be equally eligible to already existing gilts. They can also be used as collateral in other BoE operations by banks.

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