Tremor International recovers from pandemic to post record performance in Q4

Liam Roche
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Tremor International recovers from pandemic to post record performance in Q4

Tremor International net revenue increased to $184.3m

Tremor International (LON:TRMR) posted a record breaking performance for Q4 – and more broadly the second half of the year – as the advertising company posted its full-year results on Wednesday.

The AIM-listed company confirmed its programmatic net revenue rose by 30% to $161.6m, however, this was offset by a forecasted decrease of 43% in performance activity.

Tremor International‘s net revenue increased to $184.3m, up 12%, with 88% of net revenues generated from programmatic activities. This compared to 76% in 2019.

The company announced a record H2 adjusted EBITDA of $58.7m, up 51% from the previous year, while Tremor International’s EBITDA for the full-year was $60.5m.

The advertising company confirmed it will not being paying any dividends to shareholders for the foreseeable future despite having done so in the past.

The company confirmed its earnings were affected by the pandemic’s impact on the global advertising industry during the first half of the year.

Ofer Druker, chief executive of Tremor International, commented on the company’s performance during the coronavirus pandemic:

“The record performance that Tremor achieved during the second half of 2020 and the strong start of 2021 is a clear endorsement of our strategy, the Company’s platform and our ability to generate sustainable organic growth. Whilst, as previously flagged, Tremor was impacted in the first half of 2020, as Covid-19 reduced demand across the advertising sector, overall, 2020 was a significant year in the Company’s development. It is clear that we have the right foundations in place to generate significant growth,” said Druker.

“On behalf of the Board and Tremor’s management team, I would like to thank all of our employees worldwide for their tenacity and dedication during what has been a challenging period for everyone. Tremor’s resilience, highlighted by our strong second half performance, would not be possible without each employee’s contribution.”

“We look forward to the future with real confidence in delivering further value for all our stakeholders.”

Bitcoin heading for $70,000 after breaching $55,000 mark

Liam Roche
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Bitcoin heading for $70,000 after breaching $55,000 mark

Norwegian gas and oil giant Aker ASA now investing in bitcoin

Bitcoin rose for the fourth day in a row yesterday, briefly getting above the $55,000 mark.

Heading into lunchtime on Wednesday the cryptocurrency is sitting at $54,863 following a slight retreat back.

Its market cap is again above $1tn as investors ponder the prospect of a new all-time high.

Only recently bitcoin recovered from a pullback. Having reached an all-time high above $58,000 towards the end of February, the cryptocurrency dipped below $44,000.

Bitcoin

Analysts are making the case that the blockchain technology is heading for $70,000 having overcome shorter-term price constraints.

“Bitcoin is very much out of trouble zone now as the price has broken most of its obstacles,” said Naeem Aslam, chief market analyst at Avatrade.

“The next target for the Bitcoin price is really the all-time high, and from there onwards the journey will begin towards a new target of 70K.”

Major players in finance are continuing to invest in the cryptocurrency, including Norwegian gas and oil giant Aker ASA, which confirmed its plan to launch a cryptocurrency arm with a massive $59 million opening investment.

The Restaurant Group to raise £175m from shareholders due to coronavirus challenges

Liam Roche
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The Restaurant Group to raise £175m from shareholders due to coronavirus challenges

The Restaurant Group owner Wagama needs to pay down existing debt

The Restaurant Group (LON: RTN), owner of Wagamama, is aiming to raise £175m from shareholders as a number of its restaurants had to close during the pandemic.

The company plans to use this money to pay down its existing debt, as well as a buffer in the event that lockdowns are prolonged.

During 2020 The Restaurant Group saw a 57% drop in its sales to £459.8m as many of its restaurants closed.

The impact on sales during the pandemic, in addition to its ongoing costs, meant the group confirmed a loss before tax of £127.6m, compared to a £37.3m loss in 2019.

Danni Hewson, financial analyst at AJ Bell, commented on the size of the fundraising as well as the group’s association with the Eat Out To Help Out Scheme.

“The Restaurant Group might be forever linked with the government’s Eat Out To Help Out scheme because of that photo of The Chancellor enjoying a Wagamama’s but now the business is hoping investors will “Buy In”,” said Hewson.

“The £175m it hopes to raise would be the sixth biggest secondary raising of the year so far in the UK and the business promises it is “well positioned to deliver long-term shareholder value.”

The pandemic has had a debilitating impact on the industry throughout the lockdown as causal dining firms recorded 30,000 job losses.

Andy Hornby, chief executive of the Restaurant Group, commented on the year-gone, as well as the proposed impact of the capital raising.

“The COVID-19 pandemic has presented enormous challenges for our sector but the TRG team has responded decisively to re-structure our business and preserve the maximum number of long term roles for our colleagues. TRG is operationally a much stronger business than twelve months ago,” said Hornby.

“The Capital Raising, announced today, will significantly strengthen the Group’s balance sheet and provides TRG with the flexibility to invest in growing our business. Whilst the sector outlook remains uncertain, and we are mindful of continuing restrictions across the UK, we are confident that the actions announced today will allow us to emerge as one of the long term winners.”

According to the UK Government’s current plans to ease lockdown restrictions, restaurants and other hospitality venues will reopen for outside dining on 12 April, while indoor dining is set to return on 17 May.

FTSE 100 dragged back by mining companies

Liam Roche
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FTSE 100 dragged back by mining companies

The FTSE 100 opened 31 points down on Wednesday, or -0.45%, at 6700 points.

“While the rest of the markets opened flat, the FTSE took a drubbing after the bell, hammered by its mining stocks,” said Connor Campbell, financial analyst and Spreadex.

“Though copper’s losses have stalled after 2 days of decline, the UK index’s weighty miners are still deep in the red. Rio Tinto and BHP Group were the worst hit, falling 3.2% and 2.9% respectively.”

FTSE 100 Top Movers

Spiral-Sarco (3.33%), M&G (2.21%) and Just Eat (1.87%) headed up the index on Monday’s morning trading.

At the bottom end were three mining companies, Rio Tinto (-2.44%), Fresnillo (-1.84%) and BHP (-1.75%), the FTSE 100’s top fallers so far.

Just Eat

Just Eat Takeaway confirmed on Wednesday that it anticipated additional growth in 2021 after an increase in orders due as nationwide lockdowns to the coronavirus pandemic allowed the company to meet its expectations for 2020. 

Demand for food-delivery services soared by 42% to 588m orders during 2020 as lockdown restrictions kept customers away from restaurants. The FTSE 100 company also expects to increase its market share in 2021 in the UK on the basis of an 88% increase in orders over January and February of this year.

Legal and General confirmed on Wednesday that its profits fell for the financial year gone although the firm says it is still on course to meet its five-year ambitions. The asset manager announced its operating profit fell by 3% to £2.2bn, while profit before tax was dipped by 12% to £1.6bn.

The FTSE 100 company put these figures down to lower interest rates and market movements. Legal and General paid out a full year dividend of 17.57p per share despite the pandemic and in line with its five-year ambitions.

Legal and General outlook remains strong despite dip in profits

Liam Roche
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0
Legal and General outlook remains strong despite dip in profits

Legal and General (LON:LGEN) confirmed on Wednesday that its profits fell for the financial year gone although the firm says it is still on course to meet its five-year ambitions.

The asset manager announced its operating profit fell by 3% to £2.2bn, while profit before tax was dipped by 12% to £1.6bn.

The FTSE 100 company put these figures down to lower interest rates and market movements.

Legal and General paid out a full year dividend of 17.57p per share despite the pandemic and in line with its five-year ambitions.

The company’s assets under management rose by 7% to £1.3bn, up from £1.196bn in 2019.

Legal and General announced its insolvency ratio fell to 177%, down from 184% the year before, however the company estimated a ratio of 192% on March 5.

Nigel Wilson, chief executive at Legal and General, commented on the results, as well as the company’s shift to an ESG mindset.

“Legal & General delivered a robust and resilient performance for all stakeholders, providing stability to our people, customers and shareholders.  Our balance sheet remains strong, with the Solvency II coverage ratio currently over 190%, and trading remains consistent with delivering our growth ambitions which are supported by six long term growth drivers.  Our commitment to Inclusive Capitalism, ESG and investing in climate change means we intend to play an important role in the post pandemic recovery.”

Just Eat to increase its market share in 2021 after pandemic aids takeaway company

Liam Roche
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0
Just Eat to increase its market share in 2021 after pandemic aids takeaway company

Just Eat orders soared due to lockdown restrictions

Just Eat Takeaway (LON:JET) confirmed on Wednesday that it anticipated additional growth in 2021 after an increase in orders due to the coronavirus pandemic allowed the company to meet its expectations for 2020.

Demand for food-delivery services soared by 42% to 588m orders during 2020 as lockdown restrictions kept customers away from restaurants.

Just Eat also expects to increase its market share in 2021 in the UK on the basis of an 88% increase in orders over January and February of this year.

The takeaway company’s sales increased by 54% to €2.4bn in 2020, in line with analysts’ expectations.

Just Eat’s EBITDA, also known as adjusted earnings before interest, taxes, depreciation and ammortization, rose to €256m, up from €217m the year before.

Dan Thomas, analyst at Third Bridge, said the pandemic created ideal conditions for Just Eat.

“The pandemic has created ideal business conditions for food delivery platforms and this is reflected in both strong order growth and restaurant onboarding for Just Eat Takeaway.”

“Just Eat Takeaway.com is currently sacrificing profitability in order to scale its UK delivery capabilities. Expansion may be coming at a considerable cost, but it remains a vital route to new customers in a fierce marketplace, where Deliveroo is poised to IPO,” Thomas added.

Just Eat has announced plans to last year to buy US-based app Grubhub in a $7.3bn (£5.8bn), making it the biggest food delivery company outside China.

The company also pushed up its investment in the second half of 2020, including its marketing push which involved paying a reported £5m to Snoop Dogg to appear in its TV adverts.

He added that the firm had ramped up investments in its Just Eat business significantly in the second half of the year.

Jitse Groen, chief executive at Just Eat, commented on the results and the company’s outlook for 2021:

“2020 was an exceptional year for Just Eat Takeaway.com. Right before the completion of the merger between Just Eat and Takeaway.com, the world was hit by Covid-19. This brought unprecedented challenges to our restaurants, consumers as well as to our organisation and staff, but it also created tailwinds for our business.”

“In the second half of the year, we increased our investments into the legacy Just Eat business significantly, building on our position as one of the largest food delivery companies in the world. Our revenue2 grew 54% in 2020, and we expect a further acceleration of our order growth in 2021 compared with last year.”

Argo Blockchain raises funds to boost investment in Pluto Digital Assets

Liam Roche
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Argo Blockchain raises funds to boost investment in Pluto Digital Assets

Argo intends to pursue strategic opportunities

Argo Blockchain (LON:ARB) confirmed on Monday that it had finalised a fund-raising to allow the company to complete an investment in Pluto Digital Assets.

In addition, Argo intends to pursue strategic opportunities in crypto mining, capital investment, decentralised finance (DeFi) and Web 3.0 initiatives.

Following yesterday’s market close, Argo confirmed it has raised £26.8m via the placing of 9.6m new shares to investors. The cryptocurrency miner also offered a subscription of 361.977 shares to a number of US investors, as well as a subscription of 3.4m shares by PrimaryBid, each prices at 200p, a discount of 20%.

Argo Blockchain has struck an agreement to invest £7.3m in Pluto’s current funding round to secure its 25% shareholding. Argo will receive 121m shares issued a 6p per share, along with 121m warrants exercisable at a price of 12p each.

Argo Blockchain chief executive, Peter Wall, commented on the fundraising and the company’s expansion:

“We are pleased to announce this fundraising which presents Argo with the opportunity to further invest in and expand its mining infrastructure. It will also allow the company to diversify its investments within the cryptocurrency and blockchain ecosystem through our follow-on investment in Pluto Digital Assets,” Argo chief executive Peter Wall said in a statement.

“Argo’s anchor investment in Pluto demonstrates the company’s desire to operate at the forefront of new blockchain technologies which are revolutionising the sector. We are also very excited to be able to open this round to existing retail shareholders and institutions that have been so supportive of us to ensure that as many of our shareholders as possible are able to invest in the company during the fundraising,” he added.

Since the turn of the year, Argo has seen a sharp upturn in the value of its stock. 

Nasdaq jumps up 3% in early trading as Tesla soars

Liam Roche
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Nasdaq jumps up 3% in early trading as Tesla soars

Tech stocks push the Nasdaq index up

Nasdaq index jumped by 3% in early trading on Tuesday, gaining 379 points to 12,988.

Some of the major tech stocks clawed back following recent downward spirals. Tesla is up by 9.11%, while Apple and Amazon are up by 3.63% and 3.54% respectively. Nio, the New York-listed electric vehicle manufacturer, made an 11.9% gain to round off an excellent start to the morning for tech stocks.

The news comes in the wake of mass sell-offs of tech stocks in recent weeks which brought doubt over the sector, and growth stocks more generally.

Russ Mould, investment director at AJ Bell, noted a recent shift by investors towards value stocks.

NASDAQ Composite slid into correction territory, just over 10% below its mid-February closing peak, to once more raise the issue of whether investors are now preferring ‘value’ stocks – which potentially offer rapid growth today – over ‘growth’ names, which are usually seen as offering increases in profits and cash flows well into the future,” said Mould.

However, as US bond yields fell back, investors returned to the deflated technology stocks, reversing a recent trend of moving towards value stocks.

10-year Treasury bond yields slid back to 1.54% after edging towards a 13-month high of 1.613% yesterday.

Rising bond yields have put pressure on the stock market in recent weeks, in particular tech stocks.

“Tech stocks are overdue for some kind of bounce after the downfall they have had so far with most investor maintaining a positive outlook on tech stocks in the medium to longer term,” said Michael Sheldon, chief investment officer at RDM Financial in Westport, Connecticut.

“Potential headwind for the market is if interest rates rise further from this point over the short period … since they have risen too fast in too little time.”

Is silver the next asset class to fly?

Liam Roche
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1
Is silver the next asset class to fly?

Silver rallied on Monday and into the Tuesday session, edging towards the $26 level. Earlier in the year, the devil’s metal rose by 15% to $30, its highest level in eight years. This came as Reddit investors flocked to silver by following comments on the WallStreetBets’ forum. Over the last 12 months, the precious metal is up by 52.8%.

Silver

The precious metal could yet again rally as analysts are even predicting a super cycle. One such firm is JP Morgan which has said signs of inflation support this view. “We believe that the new commodity upswing, and has started,” the JPMorgan analysts said. “The tide on yields and inflation is turning.”

A question mark arises over whether or not silver will be a part of this rally. According to analysts, it will.

“Silver is used in solar panels significantly. It hasn’t grown as much as wind and hydro, but it is an important component within the solar industry. If you do look at the longer-term dynamics, it will benefit as a result,” Hynes explained. 

The metal has the potential to reach $60 this year according to Jon Deane, CEO of Trovio.

“Short-term, silver is your best trade. There is a lack of silver around the world. There is not much silver at any refineries and getting your hands on physical silver is difficult. There is still a risk of a real silver squeeze,” Deane told Kitco News. 

Deane also makes the case that the metal will outperform gold in 2021.

“Silver will outperform gold this year. There’s a lack of available silver, plus it got the climate angle. Silver could trade in the $40-$50 range and potentially even hit $60 at some point this year.”

Swiss investment bank UBS has announced that it expects silver to outperform gold in 2021, following a year which saw “safe haven” precious metals hit record highs and reap the benefits of global stock market volatility.

Triple Point Social Housing REIT acquires seven new properties

Liam Roche
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0
Triple Point Social Housing REIT acquires seven new properties

Triple Point Social Housing REIT (LON:SOHO) announced on Monday that it completed the acquisition of seven new supported housing properties.

The newly purchased sites, made up of 68 individual units, will cost around £12.1m.

The properties are located across the UK, including the North West (24 units), the North East (23 units), Yorkshire (10 units), the East (7 units) and the South East (4 units).

Triple Point Social Housing REIT has entered into new FRI leases in respect of each of the properties for a minimum period of 20 years with the ability to extend.

The leases are with specialist charities or housing associations regulated by the Regulator of Social Housing, including Blue Square Residential, Care Housing Association, Chrysalis Supported Housing and Independent Housing.

Triple Point Social Housing REIT was one of three organisations that presented investment opportunities at February’s UK Investor Magazine Virtual Investor Conference. 

The trust’s aim is to allow investors to get a solid long-term return while having a positive impact on society. Their mission is geared towards addressing the ongoing housing crisis by investing in the UK social housing sector.

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