Upstream Share Discussion Threads

[master rsi] 17/12/2024 13:29

Capita shares fall on increased cash outflows; eyes AI cost savings

(Alliance News) - Capita PLC shares were down on Tuesday as it said it expects as much as GBP140 million in cash outflow in 2024 due to lower revenue, but it will look for further cost savings from artificial intelligence.

The London-based outsourcing and professional services company in a trading update said it expects free cash outflow of between GBP120 million and GBP140 million in 2024 due to a fall in revenue and "a more sustainable approach to working capital management".

It also expects cash flow to be hurt by GBP50 million in additional restructuring costs in the first half of 2025, with "positive and consistent" free cash flow expected from the end of 2025. Free cash outflow in 2023 was GBP115.5 million, before the impact of business exits.

Shares in Capita PLC were down 11% to 15.44 pence in London on Tuesday afternoon. The stock is down 29% over the past 12 months.

The company said its outlook for 2024 adjusted operating profit was unchanged from GBP106.5 million, matching last year's results. It said it sees adjusted operating profit margin up 50 basis points to 4.5% from 4.0% last year due to cost savings.

Capita said it expects around an 8% drop in adjusted revenue in the eleven months to the end of November on the impact of headwinds from the previous year and exiting lower margin service lines.

The company also expects a "broadly flat revenue performance" in 2025, compared to 2024, as it continues to exit low margin activities.

Capita said it was "increasingly confident" of delivering its 6% to 8% medium-term operating margin target.

[master rsi] 17/12/2024 12:49

MARKET REPORT
LONDON MARKET MIDDAY: Stocks down as BoE sure to "hold rates steady"

(Alliance News) - Stock prices in London were still in the red at midday on Tuesday, following the morning's UK unemployment and eurozone trade data.

For the rest of the week, Hargreaves Lansdown's Matt Britzman said: "Rates are expected to hold firm in the UK later in the week, while the US looks all but certain to cut on Wednesday."

The UK Office for National Statistics reported that unemployment in the three months to the end of October remained unchanged on-month at 4.3%. However growth in average earnings including bonuses picked up to 5.2%, easily beating the FXStreet-cited consensus of 4.6%.

"A sluggish economy isn't exactly providing the fuel for job creation and realised fears about potential tax rises in the Budget have made employers cautious," warned AJ Bell's Danni Hewson. "These figures are backwards looking, but recruiters have said they are situated in the crow's nest to provide a sort of early warning system.

"Their concerns about a potential recession on the horizon were given further weight by the latest PMI data which showed the private sector cut jobs at the fastest rate in four years this December as businesses reacted to tax changes."

"Adjusted for inflation, real wages continued to climb, but the stronger print has all but assured the Bank of England will hold rates steady on Thursday, with markets pricing in a 93% chance of no change," Britzman predicted. "Investors are now in wait-and-see mode, watching whether the labour market cools in the wake of the Budget, with February's rate cut prospects looking like a coin toss."

The FTSE 100 index was down 57.51 points, 0.7%, at 8,204.54. The FTSE 250 was down 207.89 points, 1.0%, at 20,605.14, and the AIM All-Share was down 6.05 points, 0.8%, at 723.44.

The Cboe UK 100 was down 0.6% at 823.69, the Cboe UK 250 was down 1.2% at 18,102.93, and the Cboe Small Companies was down 0.2% at 16,034.75.

Bunzl remained the FTSE 100's biggest loser, down 5.9%.

This was despite its trading statement celebrating another year of "significant progress", but which cautioned that continuing price deflation will have a "slight" impact on annual profitability.

"It's rare to see Bunzl doing anything other than plod along so a warning from the distribution company has caught the market by surprise, explained AJ Bell's Hewson. "The company says stickier than expected deflation will hit profit and that’s upset the share price...a deflationary environment can act as a headwind if it has already bought a lot of stock at higher prices and has to sell them for less than originally expected."

Chemring was the worst FTSE 250 performer, dropping 10% despite its annual results including profit and revenue rises, as well as higher dividends.

"At a time when much of its peer group is benefiting from an increase in global security risks and instability, defence outfit Chemring continues to shoot itself in the foot," Hewson remarked. "While there were several positives in the company’s full-year results, fall in underlying profit margins did not go unnoticed by the market."

She added: "To put its share price underperformance into context, since the invasion of Ukraine by Russia in early 2022, BAE Systems shares have more than doubled, while Chemring is up just 30%."

Among small caps, Capita fell 8.9%.

It said its 2024 outlook for adjusted operating profit was unchanged, and that it was "increasingly confident" in delivering its medium-term operating margin target of 6% to 8%.

However, it claims to expect around GBP20 million in additional annual costs due to planned national insurance increases.

Moreover, Hewson said, Capita "guided for up to GBP140 million of free cash outflow in 2024 as a result of lower revenues and a change in approach to managing its working capital. It also guided for a hit to free cash flow in its new year, completing a barrage of bad news that left investors shaking their heads in disappointment."

Technology Minerals had a much better day, as its shares more than tripled.

The stock was restored to trading in London on Thursday. The firm also announced that its 48%-owned subsidiary Recyclus has signed a black mass offtake deal with Glencore.

In European equities on Tuesday, the CAC 40 in Paris was up 0.3%, while the DAX 40 in Frankfurt was up 0.2%.

The eurozone's international trade surplus contracted in October, figures from Eurostat showed, shrinking to EUR6.8 billion from EUR9.4 billion a year ago and contracting on-month from EUR11.6 billion in September.

The monthly reduction was mostly due to a reduced surplus for chemical and related products, which contracted to EUR19.2 billion from EUR21.7 billion.

Exports grew annually by 2.1% in October to EUR254.0 billion, with imports up by 3.2% to EUR247.2 billion.

The pound was quoted slightly higher at USD1.2698 at midday on Tuesday in London, compared to USD1.2694 at the equities close on Monday. The euro stood lower at USD1.0491, against USD1.0504. Against the yen, the dollar was trading lower at JPY153.81 compared to JPY154.23.

Stocks in New York were called mostly lower. The Dow Jones Industrial Average was called down 0.3%, the S&P 500 index down 0.2%, and the Nasdaq Composite up 0.1%.

Brent oil was quoted lower at USD73.35 a barrel at midday in London on Tuesday from USD73.82 late Monday.

"Hopes for a rebound in consumption were tempered by weak economic data from China, while forecasts of oversupply next year kept a lid on further gains," commented Hargreaves Lansdown's Britzman. "Still, ongoing geopolitical tensions and anticipation of the US Federal Reserve's final rate decision, where a rate cut is widely expected, helped keep oil prices steady."

Gold was quoted at USD2,640.55 an ounce against USD2,650.30.

Still to come on Tuesday's economic calendar, the US releases retail sales, industrial production and the Redbook index reading.

[master rsi] 17/12/2024 12:32

How the UPS are performing during last month

[master rsi] 17/12/2024 12:17

How the UPS are performing today

[master rsi] 17/12/2024 11:58

German business sentiment unexpectedly improves in December - ZEW

(Sharecast News) - German business sentiment unexpectedly improved in December, according to a survey released on Tuesday by the ZEW Center for European Economic Research in Mannheim.

The headline ZEW investor expectations index rose to 15.7 from 7.4 the month before, beating expectations for a reading of 6.2.

Meanwhile, the current situation index fell 1.7 points to -93.1. Analysts were expecting a reading of -92.6

ZEW President Achim Wambach said: "With snap elections ahead in Germany and the resulting expectations of an economic policy encouraging private investment as well as the prospect of further interest rate cuts, the economic outlook is improving.

"Our daily analyses also show that after the meeting of the European Central Bank's Governing Council on 12 December, experts still expect further interest rate cuts for the coming year. The fact that the majority of the survey respondents expect a stable or falling inflation rate in the eurozone supports this assessment. The experts appear to assess the recent rise in inflation as a temporary phenomenon."

[master rsi] 17/12/2024 11:20

TLW 21.44p (-1.86 / -7.98%) / Tullow Oil tumbles as Kosmos walks away

(Sharecast News) - Tullow Oil tumbled on Tuesday after Kosmos Energy said it does not plan to make an offer for the oil and gas exploration company.

Kosmos did not provide any reasons for its decision, saying simply that it does not intend to make an offer "at this time".

Shares in Tullow surged last week after it confirmed it was in preliminary talks with Kosmos about a potential takeover.

Kosmos had until on 9 January 2025 to either announce a firm intention to make an offer or walk away.

[master rsi] 17/12/2024 10:59

VLX spread 291 v 292p -
With the Market well down once again, the share price has been marked down to 61.8% retracement. and could be the way to bounce back
the latest movements from 275p low to 320p intraday high

Retracements
0% 320
23.6% 309.38
38.2% 302.81
50% 297.5
61.8% 292.19
76.4% 285.62
100% 275

[master rsi] 17/12/2024 10:21

UK defence ministry buys back 36,000 military homes for GBP6 billion
(Alliance News) - Thousands of military homes in the UK will be brought back into public ownership at a cost of almost GBP6 billion.

The Ministry of Defence will buy back 36,347 homes from property firm Annington, reversing the 1996 privatisation process.

Ministers and officials said the deal would mean ending the GBP230 million annual rental cost of the homes.

Defence Secretary John Healey said the "dreadful deal" to privatise the service family estate was a "fire sale" by the Conservatives in the run-up to the 1997 general election.

"Today ends one of the worst-ever government deals," he said.

Healey said problems with military accommodation "will not be fixed overnight" but "this is a decisive break with the failed approach of the past and a major step forward on that journey".

He said: "This is a once in a generation opportunity, not only to fix the dire state of military housing but to help drive forward our economic growth mission, creating jobs and boosting British housebuilding.

"Our armed forces and their families make extraordinary sacrifices: theirs is the ultimate public service.

"It is shameful that in the lead up to Christmas, too many military families will be living with damp, mould and sub-standard homes – issues which have built up over the past decade.

"We are determined to turn this around and renew the nation's contract with those who serve.

"These important savings to the defence budget will help fix the deep-set problems we inherited."

The service family estate sold in 1996, which is now valued at GBP10.1 billion when not subject to leases, is being purchased for GBP5,994,500,000.

The process of taking the homes back into public ownership began under the Conservatives, with the MoD winning a legal battle in 2023 to take some of the properties back.

The arrangement with Addington meant homes were rented at a discount from market rate but the taxpayer was responsible for maintenance costs – and improvements could potentially push up rents.

Despite most of the properties dating from the 1950s and 1960s, the Annington deal has prevented the MoD from being able to demolish them to build newer accommodation.

The MoD said the previous deal left the taxpayer nearly GBP8 billion worse off, with GBP4.3 billion in rental payments and vacant properties worth around GBP5.2 billion handed back to Annington, partially offset by the GBP1.7 billion income generated in 1996 as part of the original deal.

Because the deal eliminates the liabilities associated with the leases, the impact on net financial debt will be limited to GBP1.7 billion despite the near GBP6 billion outlay.

Treasury Chief Secretary Darren Jones said: "This is a landmark deal that will start saving the taxpayer money immediately, all while driving forward our mission to create growth across the country.

"Not only does it open the door to major development and improvements across the military housing estate, but most important of all, it will help us on our mission to build more houses and deliver our service personnel the homes they deserve."

[master rsi] 17/12/2024 09:31

MARKET REPORT
LONDON MARKET OPEN: Stocks in red but average UK earnings perk up

(Alliance News) - Stock prices in London opened lower on Tuesday, with the data docket including eurozone trade balance, two ZEW economic sentiment surveys, and the US Redbook index.

The Office for National Statistics reported that UK unemployment, in the three months to the end of October, remained unchanged at 4.3% compared to the three months to the end of September. Growth in average earnings including bonuses picked up to 5.2% from 4.4%, however, easily beating the FXStreet-cited consensus of 4.6%. Average earnings growth excluding bonuses increased to 5.2% from 4.9%, outperforming the consensus of 5.0%.

"There's a disconnect between the rising tide of misery among businesses, anxiety building for economists, and festive cheer running rampant among the workforce: these figures show why," said Hargreaves Lansdown's Sarah Coles. "For businesses, the Budget brought huge challenges of rising employment costs, so every announcement of recent weeks has been laced with dire warnings of what the future might hold in store...For economists, rising wage inflation is a matter of concern...For the rest of the population, things are on the up. Wages are rising even faster than a month ago – and well ahead of inflation, so we feel richer with each passing month."

Coles added: "Anyone wondering whether we might get another [Bank of England] interest rate cut this week can now be fairly confident it's going to be off the table entirely in December."

The FTSE 100 index opened down 63.74 points, 0.8%, at 8,198.31. The FTSE 250 was down 105.17 points, 0.5%, at 20,707.86, and the AIM All-Share was down 2.23 points, 0.3%, at 727.26.

The Cboe UK 100 was down 0.7% at 823.11, the Cboe UK 250 was down 0.7% at 18,205.49, and the Cboe Small Companies was down 0.1% at 16,051.19.

London Stock Exchange Group was the biggest large-cap winner, up 0.6%.

UBS raised it to 'buy' on Tuesday morning from 'neutral', increasing the price target to 13,500 from 11,500 pence.

Bunzl was the biggest loser, down 4.5% despite a generally positive trading update.

The firm said it expects 2024 revenue to be up 3% on 2023 at constant currency, "driven by acquisitions", but either flat or down 1% at reported rates. Moreover, it expects adjusted operating profit in 2024 to represent a strong annual increase at constant exchange rates.

"Looking ahead, despite uncertainties relating to the wider economic and geopolitical landscape, the group expects robust [CER] revenue growth in 2025...driven by announced acquisitions and slight underlying revenue growth," Bunzl added.

Chemring was the FTSE 250's biggest loser, down 8.7% despite reporting increased earnings.

It declared a final dividend of 5.2 pence, up 13% on-year, also lifting its annual dividend 13% to 7.8p from 6.9p.

Revenue rose to GBP510.4 million from GBP472.6 million, while pretax profit increased to GBP53.3 million from GBP44.1 million. Looking ahead, it expects 2025 to be in line with expectations.

Goodwin was 250's runaway leader, surging 15%.

Pretax profit for the first half year rose to GBP16.7 million from GBP12.1 million, while revenue rose to GBP106.4 million from GBP97.6 million. However, Goodwin declared no interim dividend.

GSTechnologies lost 6.1%.

It said it is "extremely well-positioned for the future" after a "period of significant development" in the form of its first half year.

Its pretax loss narrowed to USD110,000 from USD737,000 the year before, while revenue surged to USD2.2 million from USD256,000.

In European equities on Tuesday, the CAC 40 in Paris was down 0.3%, while the DAX 40 in Frankfurt was down 0.2%.

The pound was quoted flat at USD1.2693 early on Tuesday in London, compared to USD1.2694 at the equities close on Monday. The euro stood lower at USD1.0490, against USD1.0504. Against the yen, the dollar was trading lower at JPY153.86 compared to JPY154.23.

In Asia on Tuesday, the Nikkei 225 index in Tokyo was down 0.2%. In China, the Shanghai Composite was down 0.7%, while the Hang Seng index in Hong Kong was down 0.2%. The S&P/ASX 200 in Sydney closed up 0.8%.

In the US on Monday, Wall Street ended mixed, with the Dow Jones Industrial Average down 0.3%, the S&P 500 up 0.4% and the Nasdaq Composite up 1.2%.

Brent oil was quoted lower at USD73.28 a barrel early in London on Tuesday from USD73.82 late Monday.

Gold was quoted lower at USD2,648.35 an ounce against USD2,650.30.

Still to come on Tuesday's economic calendar, US retail sales and industrial production readings come out this afternoon.

[master rsi] 17/12/2024 08:58

NEWS

UK unemployment rate stays at 4.3% in October; earnings rise faster

(Alliance News) - The UK jobless rate remained flat in the three months to the end of October, while growth in average earnings picked up a bit.

The Office for National Statistics reported that unemployment in the three months to the end of October remained unchanged at 4.3%, compared to the three months to the end of September.

Over the same time, annual growth in average earnings including bonuses picked up to 5.2% from 4.4%, easily beating the FXStreet-cited consensus of 4.6%.
Average earnings growth excluding bonus increased to 5.2% from 4.9%, outperforming the consensus of 5.0%.

Lindsay James, investment strategist at Quilter Investors, said that the data "reflects a labour market that is not yet budging under the strain of the economic headwinds it's facing."

-----------------------
UK regulator clears Carlsberg takeover of Britvic

(Sharecast News) - Carlsberg's purchase of soft drinks maker Britvic has been given the green light after the UK's competition regulator said it would not refer the $4.23bn deal for an in-depth probe.

The deal will see the Danish brewing giant take over Britvic's bottling agreement with PepsiCo.

The two companies said all regulatory conditions have been satisfied, including clearances from the European Commission and the UK's Competition and Markets Authority.

[master rsi] 17/12/2024 08:34

British govt approves Bharti's acquisition of 24.5% BT stake

(Sharecast News) - The British government has approved Bharti Global's acquisition of a 24.5% stake in telecoms firm BT Group from France's Altice.

Following a national security assessment and assurances from BT, the government said in a statement on Monday that the acquisition had been approved "on the basis that BT will establish a National Security Committee within BT to oversee strategic work that BT performs which has an impact on or is in respect of the national security of the United Kingdom".

BT announced in August that India's Bharti had reached an agreement to buy the stake from Patrick Drahi's Altice.

Chief executive Allison Kirkby said at the time: "We welcome investors who recognise the long-term value of our business, and this scale of investment from Bharti Global is a great vote of confidence in the future of BT Group and our strategy.

"BT has enjoyed a long association with Bharti Enterprises, and I'm pleased that they share our ambition and vision for the future of our business. They have a strong track record of success in the sector, and I look forward to ongoing and positive engagement with them in the months and years to come."

[master rsi] 17/12/2024 08:21

FTSE

Opening lower with 63 points

[master rsi] 16/12/2024 23:28

THG 53.90p +2.35 (4.56%) / One of Britain's richest men known for Madeleine McCann search buys £37m stake in THG

One of Britain's richest men, who used to own Sale Sharks and Stockport County, has snapped up a £37m stake in Manchester-headquartered online retail and software giant THG.

Brian Kennedy, who is also known for working with the family of Madeleine McCann following her disappearance in 2007, has bought up almost 3 per cent of the group which includes brands such as Cult Beauty, Lookfantastic and Myprotein.

Mr Kennedy co-financed Tommy Lee Jones film The Homesman in 2014 and made his fortune from a number of companies including the double-glazing firm Everest.

Mr Kennedy had a fortune of £275m in 2019, according to the Sunday Times Rich List, and now chairs private equity firm Latium Enterprises. The deal means that Mr Kennedy is the sixth largest shareholder in THG behind CEO Matthew Moulding, Sofina SA, Balderton Capital (UK), Qatar Investment Authority and Jupiter Asset Management.....

[master rsi] 16/12/2024 22:56

HUM 1.675p = / Hummingbird Resources agrees takeover terms with Nioko

Hummingbird Resources PLC - gold miner with operations in Mali, Guinea and Liberia - Agrees GBP13.8 million cash takeover from Nioko Resources Corp. Nioko offers 2.6777 pence per Hummingbird share. Nioko is a wholly-owned subsidiary of CIG. Hummingbird agrees that USD30 million outstanding under the new CIG loan will be converted, in two tranches, into ordinary shares in Hummingbird. The conversion would increase Nioko's voting rights to around 50% from 42%, and thereafter to around 72%. Hummingbird says will need to work with its creditors to restructure some USD140 million in debt.

Geoff Eyre, chief executive of Hummingbird, comments: "Hummingbird requires a very material amount in equity financing to address the significant issues facing the business."

"With a debt repayment schedule of USD30 million due by the end of December to CIG adding additional financial strain to the company's balance sheet, the offer by Nioko represents an opportunity for independent shareholders to realise some cash sum for their holding now, which may not otherwise be available if the resolutions are not passed."

[master rsi] 16/12/2024 22:08

DOW

Finishing once more lower with 110 points

[master rsi] 16/12/2024 16:27

How the UPS are performing during last month

[master rsi] 16/12/2024 16:14

How the UPS are performing today

[master rsi] 16/12/2024 16:00

London's FTSE 100 was down 0.4% at 8,270.67 in afternoon trade on Monday.
Entain was under the cosh after Australia's financial crime regulator began civil penalty proceedings against the company related to alleged contraventions of an anti-money laundering and counter-terrorism financing act.

Entain said that, judging by the fines handed out for similar cases in the past, the investigation "may result in a penalty being levied which could be potentially material".

Russ Mould, investment director at AJ Bell, said: "A company would never want the words 'money laundering' anywhere near it and that's why news from gambling outfit Entain is potentially damaging.

"The Ladbrokes owner is being taken to court by the Australian regulator, significantly the first time it has launched civil proceedings against an online betting company, over serious non-compliance with the country's money laundering and anti-terrorism financing laws.

"This doesn't look to be a one-off incident, with Entain on the block for not conducting appropriate checks on 17 high-risk customers and allegedly helping them obscure their identities. The company's recent history is chequered - it had to pay out a large sum last year for failing to prevent bribery at a former Turkish subsidiary and paid out fines over anti-money laundering failures in the UK in 2022.

"An Australian crackdown has seen other operators pay out material sums in fines and Entain faces a nervous wait to find what, if any, damage will be done to the balance sheet and its reputation by any eventual judgement.

"This issue could hang over the business for some time to come as proceedings at Australia's federal court could take a good while to reach a conclusion. This could weigh on recently appointed CEO Gavin Isaacs' attempts to turn around the business."

Persimmon also fell after boss Dean Finch told The Times that budget tax rises and a new cladding levy will cost the housebuilder up to £40m a year and add "billions" of expenses across the industry.

Finch said there was a "disconnect" between the government imposing ever-increasing costs on the sector and its calls for developers to build 300,000 new homes a year.

On the upside, Bunzl was boosted by an upgrade to 'outperform' at RBC Capital Markets.

FTSE 100 - Risers

3i Group (III) 3,713.00p 1.84%

Rolls-Royce Holdings (RR.) 582.60p 1.75%

International Consolidated Airlines Group SA (CDI) (IAG) 297.30p 1.40%

Smith (DS) (SMDS) 554.50p 1.37%

Bunzl (BNZL) 3,568.00p 1.36%

London Stock Exchange Group (LSEG) 11,530.00p 1.23%

Halma (HLMA) 2,761.00p 1.02%

Experian (EXPN) 3,633.00p 0.94%

Intermediate Capital Group (ICG) 2,168.00p 0.93%

Rightmove (RMV) 683.60p 0.86%

FTSE 100 - Fallers

Entain (ENT) 761.60p -6.55%

Centrica (CNA) 127.00p -3.16%

Convatec Group (CTEC) 227.80p -2.98%

Croda International (CRDA) 3,357.00p -2.41%

Persimmon (PSN) 1,237.50p -2.29%

SSE (SSE) 1,630.50p -2.28%

BP (BP.) 387.95p -2.02%

Unite Group (UTG) 812.50p -1.81%

Legal & General Group (LGEN) 228.80p -1.46%

B&M European Value Retail S.A. (DI) (BME) 363.90p -1.46%

[master rsi] 16/12/2024 15:49

BTC-Bicoin

Is breaking new records as has gone over the $106.000 yp $ 106,106

[master rsi] 16/12/2024 15:31

THG 54.25p +2.70

Not long ago has managed to get again to the best of the day

[master rsi] 16/12/2024 14:46

DOW

Not much direction as is 0.95 up

[master rsi] 16/12/2024 14:31

VTU 61.10p (60.90 v 61.30p )

the last "UPS" is on the up though with a larger spread earlier 60.90 v 63.10p