Upstream Share Discussion Threads

[master rsi] 28/11/2024 08:31

THG 45p +1.50p - THG PLC - Transfer from the Equity Shares (Transition) Category to the Equity Shares (Commercial Companies) Category (effective 6 January 2025) and eligibility for inclusion in FTSE UK Index Series from March 2025

THG PLC ("THG" or the "Company" and together with its subsidiaries, the "Group") announces that it is proposing to transfer the listing category of all of its ordinary shares of £0.005 each (the "Ordinary Shares") from the equity shares (transition) category of the Official List maintained by the Financial Conduct Authority (the " FCA ") (the " Official List ") to the equity shares (commercial companies) ("ESCC") category of the Official List, in accordance with UKLR 21.5R and UKLR TP 2 (the "Transfer").

The provision of a minimum of 20 business days' notice (which period commenced by way of today's announcement) is required to effect the Transfer. No shareholder approval is required in connection with the Transfer. It is anticipated that the Transfer will take effect at 8.00 a.m. on 6 January 2025. The Transfer is conditional on the approval of the FCA.

1. Background to and reasons for the Transfer
.... more

---------------
Posting of Circular and Notice of General Meeting

The Company confirms that the following documents are today being posted or otherwise made available to the Company's Shareholders:

· a circular dated 28 November 2024 (the "Circular"), incorporating notice of a general meeting of the Company (the "General Meeting") to be held in connection with the proposed demerger of the Company's Ingenuity business into an independent private company;

· the associated Form of Proxy; and
· the associated Form of Election.
... more

[master rsi] 28/11/2024 08:16

FTSE

Opening higher with 16 points

[apotheki] 28/11/2024 08:00

Beacon Energy plc / LSE:BCE

Corporate Update


Beacon Energy (AIM:BCE), the full-cycle oil and gas company with a portfolio of onshore German assets through its wholly-owned subsidiary, Rhein Petroleum GmbH ("Rhein Petroleum"), provides the following corporate update.

· Reservoir performance from the SCHB-2 well continues to disappoint with current production of approximately 45 bopd, a decline of approximately 20% since the installation of a rod pump in early September 2024

· Notwithstanding the material cost reduction initiatives previously disclosed, production at these levels places doubt on the future financial viability of Rhein Petroleum, absent material capital investment

· As previously disclosed, Beacon Energy had put forward a fully financed restructuring plan to the Rhein Petroleum creditors aimed at maximising cash generation from the Rhein Petroleum business and delivering value for creditors

· Given the production declines seen at the SCHB-2 well, Beacon Energy has been unable to put forward a restructuring offer which is agreeable to the Rhein Petroleum creditors

· The Company has now been informed by Rhein Petroleum's creditor representative that it has agreed to sell certain assets of Rhein Petroleum to a third party (with completion expected in early January 2025), following which Rhein Petroleum would be expected to be liquidated (the "Proposed Liquidation")

· As previously disclosed, Beacon Energy has not provided any parent company guarantees related to the debts of Rhein Petroleum (approximately €7.5 million)

· As a consequence of the Proposed Liquidation of Rhein Petroleum, Beacon Energy is expected to become an AIM Rule 15 cash shell in early January 2025

· As a result of material cost reduction initiatives previously announced and assuming the Proposed Liquidation proceeds as expected, the Board believes it has sufficient liquidity to progress new business development through to end Q2 2025

· The Company's strategy continues to be the creation a self-funding oil & gas production company taking advantage of growth opportunities resulting from industry players as they reshape their portfolios

· By concentrating on cash-generative assets and capitalising on the current deal pipeline, the Company aims to lever the time and cost expended in assessing potential new ventures over the last year built on the Board's extensive industry relationships. The opportunities the Company is assessing across Europe, Africa and the Far East are suitable for debt or vendor financing, and the Company will continue its efforts to mature these options

· The Board is presently in discussions on a range of opportunities and is confident that it will enter into an agreement on at least one opportunity before mid-year 2025

Stewart MacDonald, CEO of the Company, said:

"The performance of the SCHB-2 well continues to disappoint to the extent that it calls into question the ongoing financial viability of Rhein Petroleum. We are disappointed that agreement could not be reached with the creditors of Rhein Petroleum and that their preferred course of action is a sale of certain assets and the ultimate liquidation. Whilst Erfelden remains a potentially material oil discovery, very significant capital will be required in order to deliver its potential.

The ringfencing of Rhein Petroleum's liabilities ensures Beacon has no further financial exposure to the subsidiary and can utilise remaining cash to progress the compelling value accretive opportunities currently being assessed by our experienced Board.

"Beacon Energy has an exciting set of opportunities in the business development pipeline and a motivated and high-quality Board focused on growing the Company and creating long term sustainable value for shareholders. Reducing the cost base leaves the Company with sufficient cash, and importantly allows more time, to assess and progress this pipeline. We will provide further updates to the market as appropriate."

[master rsi] 27/11/2024 23:21

US close: Stocks lower as traders thumb over multiple data points
Wed, 27th Nov 2024 21:59Sharecast News

(Sharecast News) - Wall Street closed lower on Wednesday as market participants digested a slew of economic data, including the Federal Reserve's preferred inflation gauge.

At the close, the Dow Jones Industrial Average was down 0.31% at 44,722.06, while the S&P 500 lost 0.38% to 5,998.74 and the Nasdaq Composite saw out the session 0.60% weaker at 19,060.48.

The Dow closed 138.25 points lower on Wednesday, reversing gains recorded in the previous session.

Wednesday's primary focus was October's personal consumption expenditures index, which revealed Americans continued to spend freely last month amid a slight pick up in price pressures. According to the Department of Commerce, personal consumption expenditures grew at a month-on-month pace of 0.4% in October and personal incomes by 0.6%. Economists had expected to see both rise by 0.3%. The rate of PCE growth for the prior month was revised higher by one-tenth of a percentage point to 0.6%.

The annual rate of increase in the headline PCE price deflator meanwhile rose from 2.1% for October to 2.3% in November, as expected. Core PCE inflation sped up by one-tenth of a percentage point to reach 2.8%, which was also as anticipated, while the personal savings rate improved from 4.1% to 4.4%. The PCE reading, closely watched by the central bank, will be key to investors who have hoped to gain some kind of insight into just what the Fed's move may be at its December meeting.

[master rsi] 27/11/2024 22:59

Director dealings: Easyjet director raises stake
(Sharecast News) - Easyjet revealed on Wednesday that non-executive director David Robbie had acquired 7,404 ordinary shares in the London-listed budget airline.

Robbie, who was appointed to the board of Easyjet in November 2020, purchased the shares at an average price of 550.0p each, for a total price of £40,722.

As of 1650 GMT, Easyjet shares were down 0.59% at 537.20p.

Reporting by Iain Gilbert at Sharecast.com

Top Director Buys

Airtel Africa (AAF)

Director name: Mittal,Shravin Bharti

Amount purchased: 1,794,702 @ 96.70p

Value: £1,735,476.85

Airtel Africa (AAF)

Director name: Mittal,Shravin Bharti

Amount purchased: 688,175 @ 98.20p

Value: £675,787.85

Easyjet (EZJ)

Director name: Robbie,David

Amount purchased: 7,404 @ 550.00p

Value: £40,722.00

Bellway (BWY)

Director name: Honeyman,Jason

Amount purchased: 1,274 @ 2,528.00p

Value: £32,206.72

Motorpoint Group (MOTR)

Director name: Morgan ,Chris

Amount purchased: 18,632 @ 133.48p

Value: £24,869.99

Georgia Capital (CGEO)

Director name: Janin,Neil

Amount purchased: 2,000 @ 1,170.00p

Value: £23,400.00

Bellway (BWY)

Director name: Adey,Keith

Amount purchased: 777 @ 2,528.00p

Value: £19,642.56

Walker Crips Group (WCW)

Director name: Gelber,David

Amount purchased: 811 @ 1,840.00p

Value: £14,922.40

Bellway (BWY)

Director name: Scougall,Simon

Amount purchased: 515 @ 2,528.00p

Value: £13,019.20

Foresight Solar Fund Limited (FSFL)

Director name: Ohlsson,Alex

Amount purchased: 11,071 @ 80.50p

Value: £8,912.16

Top Director Sells

[master rsi] 27/11/2024 22:05

DOW

Finished 138 points lower

[master rsi] 27/11/2024 16:28

How the UPS are performing during last month

[master rsi] 27/11/2024 16:14

How the UPS are performing today

[master rsi] 27/11/2024 15:36

Transense reports strong start to new financial year

(Sharecast News) - Sensing and measurement systems specialist Transense Technologies announced a 48% increase in revenue for the first four months of its financial year in an update on Wednesday.

The AIM-traded firm, which was holding its annual general meeting, said net profit grew 10%, despite increased costs to support the scale-up of its Translogik and SAWsense businesses.

It recorded a 23% rise in revenues from its Bridgestone iTrack partnership, while combined revenues from Translogik and SAWsense more than doubled.
Gross margins remained robust at over 85%.

The company said its key operational achievements included the successful in-house integration of Translogik production, which improved efficiency, quality, and cost control.
Transense also introduced a subscription-based solution in partnership with Tiretask, bundling software with its TLGX product range.
It said the offering was currently undergoing customer trials, and had generated a strong pipeline of interest.

SAWsense had meanwhile made significant progress in collaborative research and development projects, including Airbus's LandOne and Protean PULSE, alongside other customer-funded initiatives.

To meet rising demand, Transense expanded its workforce from 18 to more than 30 employees in the past year, with new hires in engineering, quality control, and manufacturing.

[master rsi] 27/11/2024 14:57

What is moving higher on the COMMODITIES market

Gold $2,653 +$21
BTC-Bitcoin $94,558 +2,586
OIL WTI $69.045 +0.22

[master rsi] 27/11/2024 14:41

DOW

On the UP with 105 points

[master rsi] 27/11/2024 14:20

Electric Guitar shares suspended as seeks insolvency advice

Electric Guitar PLC - London-based digital marketing and advertising - Asks for shares to be suspended from trading on AIM in London on Tuesday "pending clarification of the company's financial position".

Electric Guitar explains that "advanced negotiations for a substantial further investment" in the company are "unexpectedly terminated" on Monday. This, combined with "updated trading information", prompts the board to meet on Tuesday to consider the company's financial position.

The board "decided that it should consider all options for the future of the company and that advice from insolvency practitioners should be sought," it says. Back in September, Electric Guitar said its pretax loss for the financial year that ended March 31 widened to GBP1.4 million from GBP537,690, due to one-off acquisition costs of GBP927,605, up from none the year before.

Last stock price: 0.25 pence

[master rsi] 27/11/2024 14:05

US mortgage applications surge 6.3pc week-on-week

(Sharecast News) - US mortgage applications surged 6.3% in the week ended 22 November, according to the Mortgage Bankers Association of America, building on the prior week's 1.7% increase.

Last week's increase marked the sharpest increase in mortgage applications in two months, principally due to benchmark mortgage rates easing off somewhat.

Applications to purchase a home soared 12% week-on-week, while those to refinance an existing home loan fell by 3% against the previous week.

[master rsi] 27/11/2024 13:25

Reynolds to confirm UK government will consult on easing EV rules
(Alliance News) - UK Business Secretary Jonathan Reynolds is set to confirm the government will consult on easing rules related to the phasing-out of new petrol and diesel cars, the PA news agency understands.

The Cabinet minister is expected to use a speech to the automotive industry on Tuesday night to announce that changes to flexibilities available to manufacturers as part of the zero-emission vehicles ,Zev, mandate will be proposed.

Under the mandate, at least 22% of new cars sold by each manufacturer in the UK this year must be zero-emission, which generally means pure electric.

The threshold will rise annually, including to 28% in 2025.

Under the current rules, the mandate will reach 80% by 2030, but the government has committed to bring the ban on the sale of new petrol and diesel cars and vans forward from 2035 to 2030.

Failure to abide by the mandate or make use of flexibilities – such as buying credits from rival companies or making more sales in future years – will result in a requirement to pay the government GBP15,000 per polluting car sold above the limits.

The consultation, which will be launched in the coming weeks, is unlikely to propose changes to the mandate's percentages.

It will include amendments to the options for how non-compliant manufacturers can avoid fines.

Reynolds will give a speech to the annual dinner of the Society of Motor Manufacturers & Traders, SMMT, at London's Grosvenor House Hotel.

Last week, bosses from the SMMT and major manufacturers met Reynolds and Transport Secretary Louise Haigh to discuss the mandate.

They expressed concerns that the policy is putting jobs at risk at UK vehicle factories.

The prime minister's official spokesman said: "We do recognise the global challenges the industry are facing, which is why ministers have been getting around the table with key industry figures to discuss how we can ensure the transition delivers for them and the future of UK auto manufacturing.

"We'll bring forward a consultation on our proposals in this space in due course and how we implement the 2030 transition deadline and ensure that voices and insights from the industry are heard every step of the way."

Dan Caesar, chief executive of campaign group EVUK, said: "The switch to electric vehicles is creating jobs now and this will increase significantly in the immediate future, and open up opportunities for the UK.

"The Zev mandate is world-leading legislation that will put the UK firmly on the map with green tech investors and send a clear signal that the country means business when it comes to the global energy transition.

"Clean air and sustainable employment are surely the legacy we all want, and the existing zero-emission mechanisms are critical."

Quentin Willson, founder of pro-EV group FairCharge, said: "Ministers should not dilute the UK's EV ambitions.

"Long-term government policy has made us the second-most successful EV market in Europe – an advantage we should strengthen, not weaken.

"Our Zev mandate targets are world-leading. Don't let the intense lobbying from legacy auto ruin them."

SMMT figures show registrations of fully electric new cars across the UK rose by 14.2% during the first 10 months of the year compared with the same period in 2023, with a growth in market share from 16.3% to 18.1%.

[master rsi] 27/11/2024 12:33

MARKET REPORT
LONDON MARKET MIDDAY: FTSE 100 flat but tariffs, French woe hit peers

(Alliance News) - Stock prices in London made a minor gain heading into Wednesday afternoon, though worries of Donald Trump tariffs and French budget concerns kept a lid on sentiment in mainland Europe.

The FTSE 100 index added 4.24 points, 0.1%, at 8,262.85. The FTSE 250 rose 15.49 points, 0.1%, at 20,584.14, and the AIM All-Share added 1.29 points, 0.2%, at 731.88.

The Cboe UK 100 was flat at 830.61, the Cboe UK 250 down marginally at 18,046.38, and the Cboe Small Companies was also fractionally lower at 15,657.39.

The CAC 40 in Paris slumped 1.2%, and the DAX 40 in Frankfurt fell 0.7%.

Automakers in Europe continued to struggle, on worries concerning Trump's tariff rhetoric, while French banks struggled on budget worries in France.

In Paris, lenders Societe Generale and Credit Agricole shed 4.3% and 2.6%. In Frankfurt, BMW lost 1.4%, while Volkswagen fell 0.6%.

Analysts at UBS commented: "President-elect Donald Trump on Monday vowed to issue executive orders imposing new punitive tariffs on all imports from Mexico, Canada, and China on the first day of his presidency. Posting on social media, Trump said he would target Canada and Mexico with a 25% tariff, and China with a 10% tariff 'above any additional tariffs,' until the three countries address complaints over illegal migration and drug trafficking.

"This early proposal from President-elect Trump may prompt investors to consider risk outcomes for trade, including the potential for large, blanket tariffs imposed on imports from multiple countries. At a minimum, a return to US diplomacy by social media posts and tariffs suggests a new period of heightened cross-asset volatility may be ahead. While we remain alert to new tariff risks, we keep our constructive stance on global equities, and on US stocks in particular."

The pound was quoted at USD1.2603 early Wednesday afternoon, rising from USD1.2548 late Tuesday. The euro stood at USD1.0517, up from USD1.0475. Against the yen, the dollar was trading at JPY151.52, slumping from JPY153.52.

The personal consumption expenditures reading for October is among a US data dump released at 1330 GMT. There is also gross domestic product data, initial jobless claims and durable goods orders.

The core PCE index is the Fed's preferred inflation gauge. Core PCE prices are expected to have picked up 2.8% on-year last month, accelerating from 2.7% in September, according to FXStreet cited consensus.

SPI Asset Management analyst Stephen Innes commented: "While the broader market has shifted attention away from US inflation obsession, a persistent high reading could revive doubts about the Federal Reserve's decision to cut rates in December."

Before the US data, stocks in New York are called to open lower. The Dow Jones Industrial Average is called marginally lower, the S&P 500 down 0.2% and the Nasdaq Composite 0.3% lower.

In London, Just Eat Takeaway.com fell 1.3%. It said it plans to call time on its London listing, soon after having sold its US business.

The Amsterdam-based food delivery firm is a former FTSE 100 index constituent, but it was removed from FTSE indices in late 2021, after its nationality was reassigned to the Netherlands by index provider FTSE Russell. Then at the end of 2022, Just Eat switched to a standard listing in London from a premium one, making the London Stock Exchange a secondary listing. Its primary listing is on Euronext Amsterdam.

On Wednesday, Just Eat said it "has recommenced and continued its review to determine optimal listing venues".

"As part of this review, the company has considered, amongst other things, the liquidity and trading volumes, as well as cost and administrative requirements related to its primary listing in Amsterdam and secondary listing in London," Just Eat explained.

Just Eat, formed out of a tie-up between Just Eat of the UK and Takeaway.com of the Netherlands in 2020, said the delisting is likely to take effect next month, with the final day of trading in London on December 24.

AJ Bell analyst Dan Coatsworth commented: "Changes to the UK listing rules were meant to make the London Stock Exchange more attractive, drive up the number of flotations and stop the flow of companies leaving the market. So far, it's too early to make any judgment whether those changes have been a success. It can take six months to prepare for an IPO which implies a greater volume of flotations won't emerge until the new year.

"The changes are more beneficial to companies that are only listed in London and which previously didn't qualify for the FTSE indices under the old rules because they had chosen a tier-two category for various reasons such as looser regulation. Under the new system, they can move to the ESCC listing category in a bid to qualify for the indices. For example, Deliveroo has already switched from a second-class listing under the old system to the new ESCC category and it is now primed to join the FTSE 250 at next month's quarterly index reshuffle. Coca-Cola Europacific Partners and Oxford Nanopore are next in line, with the Coca-Cola bottling company expected to join the FTSE 100 and the science expert eyeing the FTSE 250, both at the March 2025 reshuffle.

The analyst continued: "If anything, we're likely to see more companies in Just Eat's situation think hard about the need to have secondary listings in London if their primary listing on another exchange is functioning well and they are looking for ways to cut costs. If trading is thin in London, it's hard to justify the costs of retaining the listing."

Pets At Home fell 13%, the worst mid-cap performer, as it has grappled with a "subdued market", though it noted it outperformed.

In the half-year to October 10, revenue rose 1.9% on-year to GBP789.1 million from GBP774.2 million. Pretax profit improved 47% to GBP51.1 million from GBP34.7 million.

"However, we are operating in an unusually subdued pet retail market which we now expect to continue through H2. We are confident this will be temporary, and growth will return to historical norms with the longer-term attractive outlook for the UK pet care market unchanged," the pet care retailer said.

It now expects underlying pretax profit to grow "modestly" in the full-year. In August, it predicted an outcome in line with consensus at the time of GBP144 million, which would have represented growth of 5.6%.

Aston Martin Lagonda said it had raised around GBP211 million to fund future growth, including its electrification strategy. Shares fell 5.1%.

The Gaydon, Warwickshire-based luxury carmaker confirmed it had raised GBP111 million via a placing at 100.00 pence per share, a 7.3% discount to Tuesday's closing price of 107.90p.

Leading shareholder Yew Tree Overseas Ltd subscribed for GBP50.5 million worth of stock through the placing. The Yew Tree consortium is led by Aston Martin Executive Chair Lawrence Stroll.

In addition, Aston Martin raised GBP100 million through the private placement of additional senior secured notes, which attracted strong support from bond holders.

A separate retail offer raised just under GBP1.3 million, the firm added.

Aston Martin said proceeds will provide "increased financial resilience and strength" as the company maximises the potential of its next-generation models.

Funds will support capital investments related to the electrification strategy, consistent with Aston Martin's plans to invest around GBP2 billion over the five-year period between 2023 and 2027.

It also plans to use the proceeds to repay the borrowings under its existing super senior revolving credit facility, to pay fees and expenses, and for general corporate purposes.

Chief Executive Adrian Hallmark thanked investors "who continue to show strong support for the company".

Aston Martin announced the fundraise after the London market close on Tuesday.

In a statement, the firm trimmed earnings guidance to reflect the delayed delivery of some Valiant models.

The luxury carmaker expects full-year adjusted earnings before interest, tax, depreciation and amortisation between GBP270 to GBP280 million.

It had previously forecast adjusted Ebitda to be "slightly below" the GBP305.9 million it achieved last year. This guidance was cut in September.

Citi put the consensus before Tuesday's announcement at GBP290 million.

Racing higher, however, Motorpoint surged 13%. The vehicle retailer reported a swing to half-year profit, despite a revenue decline. It also noted an improving market backdrop, with "macroeconomic pressures to generally ease".

Pretax profit in the six months to September 30 totalled GBP2.0 million, swinging from a loss of GBP4.7 million a year prior. Revenue fell 7.3% to GBP563.1 million from GBP607.2 million.

Motorpoint said "strong momentum has continued" into the second-half.

Brent oil was quoted at USD72.60 a barrel early Wednesday afternoon, weakening from USD73.42 at the time of the London equities close on Tuesday. Gold climbed to USD2,649.77 an ounce, from USD2,629.43.

[master rsi] 27/11/2024 12:18

How the UPS are performing during last month

[master rsi] 27/11/2024 12:07

How the UPS are performing today

[master rsi] 27/11/2024 11:46

Multiple reasons to be bullish according to JP Morgan - Edmond Jackson
UK shares trade at a 40% discount to developed market peers, and our market’s composition could shift from being a drag on performance to a tailwind. Technology has contributed 32% of global returns since 2010, hence the FTSE All-Share’s 1% average weighting to tech been problematic.

Yet a weighting to energy and financials implies the UK market stands to benefit similarly as in 2022, after Russia’s invasion of Ukraine fuelled interest in energy security. I still see a question mark over financials: some bank shares have fallen lately amid concern their net interest margin will reduce as rates fall; also, asset managers’ outflows have yet to convincingly turn positive.

I agree with JPM regarding takeovers, at least during the last year. But if Brexit is a manifest disaster, why the rush of trade and private equity buyers for UK listed companies? Peel Hunt cites 19 transactions by FTSE 350 companies alone during the first three quarters of 2024, versus two for the whole of 2023.

JPM also notes buybacks – ahead of the US - as indicating UK companies consider their shares cheap. Indeed, each morning brings a tide of such announcements. Mind, and regarding the US differential, buybacks can also signal a lack of attractive investment projects.

These analysts appear to take a left-wing economic view of how “a redistribution of wealth towards lower income cohorts” implies net positive growth for the UK. “Recent public sector wage increases could add a further tailwind to growth.”

Real wage growth has persisted for 14 months, they say, mitigating cost-of-living pressures. It remains to be seen how public and private sector pay, and also employment, balance out as higher national insurance takes effect.

A CBI survey shows that in response to the Budget raising costs, nearly two-thirds of firms plan to cut investment and a third to reduce workforces. Perhaps retailers are an acute example but Sainsbury SBRY, Asda and Morrisons have noted £1.3 billion higher costs from the NIS rise alone.

Goldman: benefit for UK consumer spending
Though Goldman’s note was published last week, after digesting likely effects of the Budget I struggle with the idea that UK consumer spending will benefit from lower inflation and wage growth.

Indeed, the publican behind a petition for another general election has said on radio today it is because “smaller businesses will get hit hard...Labour is taking Britain down the wrong road...beer will need to rise 25p a pint to cope with the rise in minimum wage and other costs.”

Are London-based investment bank strategists dialled into such realities? Goldman’s top picks are UK retail, travel and leisure stocks are linked to discretionary income. Lower interest rates will further support the stock market’s recovery.

I guess this would qualify as “contrarian” investing and yes perhaps it works – if you had deft timing for JD Sports, end-of last week.

Goldman is cautious on continental European stocks, anticipating only a circa 6% rise in 2025 due to sluggish underlying economies and war in Ukraine. Corporate earnings are projected to grow by 3%, well below historic averages.

The analysts argue that the UK’s more services-oriented economy is a plus compared with Europe’s manufacturing base, and would fare better in a scenario of US trade tariffs. Yet the Centre for Economics and Business Research here estimates a £20 billion hit to the UK economy if Trump follows through with 20% tariffs on US imports, reducing UK economic output by 0.9% by the end of his presidency.

Where is the feel-good factor around this new government?
Probably Labour wants to take tough actions early in its term, allowing time for enough people to forget by the next election, after benefits of public spending have manifested.

A key question for equity investors, however, is whether shares already discount a weak short to medium-term scenario – or it is going to mean further profit warnings?

The UK Purchasing Managers’ Index (PMI) eased to 49.9 in November from 51.8 in October, the first contraction in 13 months. The manufacturing PMI hit a nine-month low and services a 13-month low. This was attributed directly to government intending to raise taxes, thus affecting sentiment. Employment has fallen for two consecutive months.

One must be careful not to over-react – gross domestic product (GDP) is easing only at a 0.1% quarterly rate. Pantheon Macroeconomics’ chief economist says: “UK growth certainly slowed over the summer and we have had a couple of disappointing months. We were close to stalling in October. There’s any number of risks. We think growth will improve from here but growth could be worse than that.”

Government borrowing surged more than expected in October – to £17.4 billion against £12.3 billion expected – as spending on public services, benefits and debt repayments/interest out-stripped higher tax receipts. It’s unclear where this leaves public debt as a percentage of GDP, which was 98.5% at end-September. Mind, the US went over 100% in 2019 and was over 123% as of last June.

Tactical trading looks an intelligent response
Higher public debt and scope for more profit warnings suggests overall risk on UK shares is increasing, but it’s not clear whether and when we will see the rewards.

At 254p, Kingfisher continues to slip but in months ahead a sensible approach might be to see how the effects of new UK and US government affect business, with a view to buy shares in overall strong businesses – where any drops look overdone.

[master rsi] 27/11/2024 11:23

Another "UPS" stock SDY is bouncing after the results ...

SDY 29.60p +0.90p

[master rsi] 27/11/2024 11:05

Cordiant Digital's confidence swells after interim revenue growth
(Alliance News) - Cordiant Digital Infrastructure Ltd on Wednesday hailed growing demand for digital infrastructure as it declared a higher dividend and net asset value growth.

The UK-based investor is specialist digital infrastructure said half-year revenue rose 9.1% to GBP160.8 from GBP146.3 million the year prior.

Net asset value per share was 124.40 pence at September 30, up from 120.10p at March 31. Total NAV return was 5.4%, ahead of the company's 9% annual target, and an improvement from 1.1% a year ago.

The company noted that shares "have continued to trade at a significant discount to NAV" but that the discount had started to narrow in the past few months, standing at 30.55% on September 30 compared to 46.7% on March 31.

Cordiant Digital declared its interim dividend 2.10p, in line with the firm's 4.20p full-year target and up 5.0% from 2.0p a year ago.

The firm is looking ahead to the financial year "with confidence", it said, as demand for digital infrastructure continues to grow. The firm suggested that earnings growth reflected the "impact of inflation-linked revenues".

Cordiant Digital also attributed the boost in performance to new contracts brought by recent acquisitions Emitel, a Polish telecommunications infrastructure provider, and CRA, a Czech data platform.

The results follow an October announcement that Cordiant Digital will acquire a 47.5% stake in Belgian Data Centre businesses DCU Invest and DCU Brussels. The deal is estimated to be worth EUR92.3 million and is expected to close early in the first quarter of 2025.

Cordiant Digital Chair Shonaid Jemett-Page commented: "We maintained our focus on efficient investment in the existing portfolio, through disciplined capex spend, coupled with bolt‑on acquisitions where appropriate".

[master rsi] 27/11/2024 10:39

ATG 510p (69.50p / 15.78%%) - Auction Technology Group posts solid FY numbers

(Sharecast News) - Online marketplace operator Auction Technology Group posted strong full-year numbers on Wednesday, leading it to provide some solid guidance.

Auction Technology said operating profits increased by 17% to $32.4m in the year ended 30 September, driven by a 5% uptick in revenue to $174.2m, with a notably strong 12% increase in its arts and antiques unit.

Adjusted free-cash flow grew to $65.8m from $61.1m, while net debt dropped to $114.7m from $141.2m at the same time a year earlier.

Looking forward, the FTSE 250-listed group expects FY25 revenues to grow 4-6% and stated that EBITDA margins were forecast to remain steady at 45-46%.

"Trading in the first eight weeks of FY25 has continued to show positive momentum from the second half of FY24. ATG remains confident in its ability to sustain this growth through the delivery of its strategic initiatives," said Auction Technology.

As of 0940 GMT, Auction Technology shares had surged 15.78% to 510.0p.

[master rsi] 27/11/2024 09:42

The movers