Upstream Share Discussion Threads

[master rsi] 04/12/2024 16:54

How the UPS are performing today

[master rsi] 04/12/2024 16:30

US- ISM services PMI declines in November

(Sharecast News) - The Institute for Supply Management's November services PMI declined to 52.1 in November, down from 56 in October and well and truly short of expectations for a reading of 55.5.

Last month's reading pointed to the slowest growth in the services sector in three months, driven by falling business activity, new orders, employment and supplier deliveries. Inventories and order backlog also declined, while price pressures increased slightly.

The ISM's Steve Miller said: "Generally, respondents' comments were neutral to positive, and both positive and negative impacts were attributed to seasonality. Not surprisingly, election ramifications and tariffs were mentioned often, with cautionary outlooks related to the potential impact on respondents' specific industries."

Elsewhere, S&P Global's services PMI was downwardly revised from a preliminary reading of 57 to 56.1 in November but remained above October's reading of 55. S&P's composite PMI climbed to 54.9 in November, short of preliminary estimates for a reading of 55.3 despite being a 31-month high.

[master rsi] 04/12/2024 15:55

UPS

KEFI 0.507p ( 0.504 v 0.510p )

Monday's late Placing at 0.55p, and since has been under the price but always bouncing from here, that so far is support Has raise £6 million "(In total the Capital Raise is expected to raise £6.0 million ")
----------------- Intraday ------------------------------------------ 2 months ------------------------------- 1 year -------------------
INDICATORS

[master rsi] 04/12/2024 15:21

DOW

On the up with 159 points

[master rsi] 04/12/2024 13:26

Bitcoin bulls win latest battle as $BTC price climbs again

Crypto Daily - From a high of over $98,000 on Monday, the $BTC price sank to a low of $93,600 on Tuesday. However, the bulls stepped in and have buoyed the price back up to $96,700. Can this upside movement continue? Breakout, or yet another rejection to come?

After dropping to the bottom trendline of the short-term triangle it is within, the $BTC price was bought up quickly by the bulls. The price is once again heading to the top of the triangle where a breakout could take place.

Martial law overturned in South Korea
Many factors could have contributed to the rapid fall in price for $BTC - not least, the sudden declaration of martial law in South Korea by its president Yoon Suk-yeol - a move which was swiftly overturned by the nation’s parliament.
Blackrock (NYSE:BLK) IBIT ETF now holds half a million BTC

In the US, the Blackrock IBIT Spot Bitcoin ETF bought another 7.23K BTC on Tuesday, bringing its overall holdings to 500.38K BTC. Half a million Bitcoin purchased in less than a year by just one entity says volumes for where the $BTC price might potentially go over the rest of this bull market.

Crypto-friendly regulators on the way in?
On the regulatory front, Paul Atkins is still the Trump pick to assume the mantle of SEC Chairman. This is despite rumours that Atkins is reluctant to take the job. For the role of overall “Crypto Czar”, former CFTC Chairman Chris Giancarlo is the president’s preferred pick....

Now that the price has had a decent rise, it has come up exactly against the 0.618 Fibonacci to the upside. If it can battle through this level, the 0.786 Fibonacci is just ahead, together with the top of the triangle. Both of these are likely to provide strong resistance

[master rsi] 04/12/2024 13:05

MARKET REPORT
LONDON MARKET MIDDAY: FTSE 100 underperforms before US jobs data

(Alliance News) - London's FTSE 100 faltered, but European peers climbed and US stocks are called to open higher, with focus turning to US jobs data and the outcome of a key vote over in France.

The FTSE 100 index fell 18.05 points, 0.2%, at 8,341.36. The FTSE 250 added 31.42 points, 0.2%, at 20,924.16, and the AIM All-Share rose 0.75 of a point, 0.1%, at 735.84.

The Cboe UK 100 lost 0.4% at 837.01, the Cboe UK 250 was up 0.4% at 18,462.91, and the Cboe Small Companies fell 0.3% to 15,922.01.

The CAC 40 in Paris added 0.3% in early afternoon dealings. The DAX 40 in Frankfurt surged 0.9%.

US stocks are called higher. The Dow Jones Industrial Average is called up 0.4%, the S&P 500 up 0.3% and the Nasdaq Composite 0.6% higher.

The largely positive session for European equities on Wednesday follows "a strange 24 hours in South Korea", which saw martial law briefly declared, XTB analyst Kathleen Brooks commented.

"If anyone thought that political risk would settle down in the final weeks of 2024, they were wrong," Brooks said.

"This is a keen reminder that the political risks can crop up in unexpected places. There is now expected to be a presidential election in South Korea at some point in the first half of 2025. Analysts are also pointing out that events in South Korea are a problem for the US. South Korea is a staunch US ally and a key democracy in the Asia region. However, after Tuesday’s subversion of the democratic process, can the US rely on South Korea at the same time as China is flexing its muscles in the region, and propping up North Korea? The diplomatic ramifications of events in South Korea could be wide ranging. However, the market reaction could be mild, as investors have become adept at pricing in political risk."

Eyes are also on political developments over in France.

France's government on Wednesday faces no confidence votes that could spell the end of the short-lived administration of Prime Minister Michel Barnier, plunging the country into uncharted waters of political chaos.

Analysts at Rabobank commented: "Despite the significant issues facing the UK economy, at least it has a stable government and a budget in place. France and Germany both face significant political challenges and structural issues which could undermine the value of the EUR in the months ahead."

The pound was quoted at USD1.2675 early Wednesday afternoon, rising from USD1.2660 at the time of the London equities close on Tuesday. The euro stood at USD1.0506, fading from USD1.0513. Against the yen, the dollar was trading at JPY150.88, up from JPY149.44.

Still to come on Wednesday is a US ADP jobs report figure at 1315 GMT, before a pair of US purchasing managers' index readings at 1445 GMT and 1500.

Data from the UK showed service sector growth eased last month. The eurozone service sector, meanwhile, sat in contraction territory for the first time since the beginning of the year.

Brent oil was quoted at USD73.85 a barrel early Wednesday afternoon, climbing from USD73.67 late on Tuesday. Gold was higher at USD2,645.86 an ounce from USD2,644.88.

In London, Legal & General shares rose 4.6%, as it set out a decent outlook for a unit and suggested returns could be on the way for shareholders. The life insurer expects mid-single digit growth in operating profit for 2024, in line with guidance. Thereafter, it expects to achieve its 6% to 9% compound annual growth target in core operating earnings per share between 2024 and 2027.

The update came ahead of a "deep dive" into its Institutional Retirement division, the first in a series of events which will cover all its units.

"The global pension risk transfer market is growing and attractive and the group is well-positioned to continue to seize the opportunity," L&G said.

Its pipeline of PRT deals is "as strong as it has ever been". Its guidance of GBP50 billion to GBP65 billion of UK pension risk transfers between 2024 and 2028 is unchanged. In the Institutional Retirement division, it expects compound annual operating profit growth between 5% and 7% between 2023 and 2028.

L&G added: "Year-to-date we have written global PRT volumes of GBP10.0 billion and are exclusive on a further GBP500 million expected to close in 2024. Of this GBP10.5 billion, GBP8.4 billion is UK and GBP2.1 billion is International, with L&G writing its highest ever volumes in the US and Canada.

Strain has also been lower than expected, it said, at 1% compared to initial guidance of below 4%.

"We anticipate returning to shareholders a proportion of the capital not deployed on strain this year. This will form part of the board's wider consideration of buyback capacity, which will be set out at the FY24 results in March 2025 and would be incremental to the capital return intentions indicated at the capital markets event in June," it added.

Putting pressure on the FTSE 100, however, were drugmaker AstraZeneca, down 2.7%, water utility Severn Trent, falling 2.0% and electricity transmission and distribution provider National Grid, 1.4% lower.

"Defensive sectors like pharmaceuticals and utilities were on the back foot," AJ Bell analyst Dan Coatsworth commented.

"These names had been in demand on Tuesday afternoon after South Korean president Yoon Suk Yeol briefly declared martial law. The situation seemed to de-escalate as quickly as it had escalated, with lawmakers voting to invalidate the decision."

Elsewhere in London, Learning Technologies added 6.9% as it backed a GBP802 million takeover from a private equity firm.

The London-based digital learning and talent management firm will be bought out by GASC ABF LP and some of its managed or advised funds, a grouping collectively referred to as General Atlantic.

General Atlantic will pay 100 pence in cash per Learning Technologies share, a 34% premium to the 74.9p share price on September 26, the day before the private equity suitor's interest was revealed.

The bid gives Learning Technologies a GBP802.4 million equity value.

On AIM, Biome fell 38% as it warned on annual revenue amid component delivery woes.

The bioplastics and radio frequency technology company said two projects in the latter division are now unlikely to get going by the end of the year.

"Additional complexities relating to component deliveries for the two large projects, which were expected to be completed in 2024, have arisen recently. In two specific cases, externally manufactured parts and bought in assemblies have required rework or return to their suppliers for replacement," Biome explained.

"The technical paths for rework and replacement are clear. However, despite significant recent work on expediting this, the timetables are such that this will not be delivered within a timeframe that will allow completion of the two final machine builds and the required extensive internal and customer testing acceptance process before the 2024 year end. Internal completion dates have therefore been revised into Q1 2025 and new final acceptance dates are being discussed with the customers."

The firm now expects revenue to be "materially below current market expectations with a consequential impact on profitability".

[master rsi] 04/12/2024 12:33

How the UPS are performing during last month

[master rsi] 04/12/2024 12:16

How the UPS are performing today

[master rsi] 04/12/2024 11:32

GGP 7.75p +0.60p - Greatland completes acquisition of Havieron and Telfer projects
(Sharecast News) - Greatland Gold announced the official completion of its acquisition of Newmont Corporation's majority stake in the Havieron gold-copper project, full ownership of the Telfer gold-copper mine, and associated assets in Western Australia's Paterson region on Wednesday.

The AIM-traded firm said the transfer of ownership took effect at 0800 GMT on Thursday, aligning with the issue of shares to Newmont as part of the agreement.

It said the deal, originally announced on 10 September, granted Greatland a 100% interest in the strategically significant assets, consolidating its position as a gold and copper producer in the region.

The transaction was described as a major milestone for the company, enabling it to fully integrate operations across Havieron and Telfer while advancing its exploration and production capabilities.

"The closing of our acquisition today is a watershed moment for Greatland," said managing director Shaun Day.

"Greatland's discovery of the world class Havieron orebody in 2018 established our platform for growth.

"Returning to 100% ownership of Havieron now gives us the opportunity and control to deliver the project's full potential.

"We have a defined pathway for Havieron to become a low-cost long life gold-copper asset of significant scale."

Day added that Telfer was an "iconic Australian mine" that would "immediately transform" Greatland into a significant producer of gold and copper, with a defined mine plan that was materially de-risked by substantial ore stockpiles, and significant mine life extension prospects.

"Telfer production is expected to generate significant free cash flow, which we expect will help to self-fund the completion of Havieron's development.

"Combining Havieron and Telfer under our single ownership provides the opportunity to operate efficiently and deliver an exceptional platform for continued growth and a compelling opportunity to create value for our shareholders."

[master rsi] 04/12/2024 11:01

SMALL-CAP WINNERS & LOSERS: Treatt climbs as annual profit rises v
SMALL-CAP - WINNERS

Treatt PLC, up 2.1% at 438.92 pence, 12-month range 365.29p-570.00p.

The extracts and ingredients provider reports improved annual earnings and lifted its payout. Pretax profit in the year to September 30 improves 36% to GBP18.5 million from GBP13.5 million. Revenue rises 3.8% to GBP153.1 million from GBP147.4 million. "We made great progress, with growth in both sales and profit, boosted by a really strong revenue performance in the second half, up 13%.

And I am particularly pleased that we have brought net debt right down thanks to our strong cash generation, with further momentum to be cash positive in the new financial year," CEO David Shannon says. "This performance not only reflects good conversion of the order book and the strong cost discipline that's now embedded across the group, but also normalising demand trends and the benefits of investment. We have invested for growth, expanding our commercial teams, bringing them closer to customers, and are close to opening our new Shanghai innovation centre, in line with our strategic focus in the region." Treatt lifts its final dividend by 6.4% to 5.81 pence from 5.46p. Its total dividend is 5.0% higher at 8.41p from 8.01p.

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On the Beach Group PLC, up 1.5% at 209.00p, 12-month range 114.40p-216.49p. The beach holidays retailer extends gains after a 20% advance on Tuesday. It reported robust annual results, declared a final dividend and launched a GBP25 million share buyback on Tuesday.

SMALL-CAP - LOSERS

Genel Energy PLC, down 3.3% at 67.90p, 12-month range 64.10p-103.00p.

The stock struggles again after a 20% slide on Tuesday. The oil & gas company with production assets in the Kurdistan region had suffered that slump after an unfavourable court ruling. The London Court of International Arbitration ruled that the Kurdistan Regional Government validly terminated the Bina Bawi and Miran production sharing contracts, dismissing a Genel Energy counterclaim.

[master rsi] 04/12/2024 10:39

Alphawave joins consortium to advance high-speed AI

Alphawave IP Group PLC - London-based designer of high-speed connectivity solutions - Joins Ultra Accelerator Link consortium to advance high-speed AI connections. The ultra accelerator link is a fabric interconnect for accelerator-to-accelerator communication. The consortium was incorporated in October by a group of leading AI technology companies including Google, Meta and Microsoft.

"Alphawave Semi is at the forefront of connectivity for AI and [high-performance computing], and by working with the UALink Consortium we will deliver our industry leading performance in connectivity solutions for timely, practical solutions to our customers to form the backbone of AI infrastructure," says Vice President of IP Product Marketing Letizia Giuliano.

Current stock price: 137.26 pence, down 0.4% on Wednesday in London

[master rsi] 04/12/2024 09:50

BREAKOUT

GGP 7.65p +0.50p

After yesterday's mark-down at the end of the day. today is advancing fast with a new high
--------------- Intraday ----------------------------------- 2 months --------------------------------------- 1 year ---------------
INDICATORS

[master rsi] 04/12/2024 09:37

UK interest rates to fall more slowly than eyed after budget — OECD
(Alliance News) - UK interest rates will fall by less than expected over the next two years after the autumn budget's significant spending and borrowing plans, according to an influential report.

In its annual economic survey, the Organisation for Economic Co-operation & Development, OECD, said UK inflation will also surpass previous forecasts next year, and upgraded growth projections for the economy, because of a budget boost.

The OECD said the global economy would "remain resilient" over the coming years but that "risks and uncertainties are high".

The global economy is predicted to grow by 3.2% this year and 3.3% next year, the organisation said.

It reflects a slight improvement from its predictions of 3.1% and 3.2% respectively, from its September interim report.

Meanwhile, UK gross domestic product, GDP, is predicted to rise by 0.9% this year.

This is a downgrade from its previous 1.1% forecast after recent data from the Office for National Statistics, ONS, showed that the economy only grew by 0.1% in the third quarter of the year.

"But momentum is positive nevertheless, with retail sales on an upward trend since early 2024," the report added.

It indicated that GDP growth will now strengthen to 1.7% next year as it is "boosted by the large increase in public expenditure set out in the autumn budget". This will then slow to 1.3% in 2026.

Previously, the OECD had forecast 1.2% GDP growth for next year.

In October, Chancellor Rachel Reeves set out plans for almost GBP70 billion a year of extra public spending, funded through tax rises and increased borrowing.

The OECD said on Wednesday that interest rates, which currently sit at 4.75%, are expected to fall back to 3.5% by early 2026.

However, it said higher consumption, partly caused by the autumn budget, meant this is not as sharp a drop as previously forecast.

The report said: "Fiscal policy will be tightening over 2024-26, though by less than expected, with significant fiscal loosening in the tax, spending, and borrowing package announced at the autumn budget."

This is partly linked to higher-than-expected inflation, with the OECD predicting headline inflation of 2.7% for next year.

It had previously pointed towards inflation of 2.4% for the year.

Inflation is then expected to fall to 2.3% in 2026, but will therefore still remain above the Bank of England's 2% target rate.

Reeves said: "Growth is our number one priority, and the OECD upgrade will mean the UK is the fastest growing European economy in the G7 over the next three years.

"That is only the start. Growth only matters if it's matched by more money in people's pockets.

"This government will get our economy growing, with our National Wealth Fund, reforming the remits of our regulators and pension mega funds to attract better investment, as well as reforming our planning laws – all so that we can rebuild Britain for good."

[master rsi] 04/12/2024 09:17

MARKET REPORT
LONDON MARKET OPEN: L&G leads way but FTSE 100 underperforms

(Alliance News) - London's FTSE 100 opened in the red on Wednesday, underperforming European peers, with the CAC 40 marching on despite uncertainty hanging over the French government.

The FTSE 100 index fell 18.05 points, 0.2%, at 8,341.36. The FTSE 250 added 31.42 points, 0.2%, at 20,924.16, and the AIM All-Share rose 0.75 of a point, 0.1%, at 735.84.

The Cboe UK 100 lost 0.3% at 838.05, the Cboe UK 250 was up 0.2% at 18,423.95, and the Cboe Small Companies fell slightly to 15,967.00.

The CAC 40 in Paris added 0.4% in early dealings. The DAX 40 in Frankfurt rose 0.6%.

France's government on Wednesday faces no confidence votes that could spell the end of the short-lived administration of Prime Minister Michel Barnier, plunging the country into uncharted waters of political chaos.

The toppling of the Barnier government after just three months in office would present President Emmanuel Macron with an unenviable dilemma over how to go forwards and who to appoint in his place.

The National Assembly is due to debate two motions brought by the hard-left and far-right in a standoff with Barnier over the budget, which saw the premier force through the social security budget without a vote.

The far-right National Rally, RN, of three-time presidential candidate Marine Le Pen is expected to vote for the motion put forwards by the left, giving it enough numbers to pass.

The greenback was mixed, but ING analysts believe "geopolitics [is] just another reason to hold dollars".

"Dollar strength is not entirely being led by the second coming of Donald Trump. A lame duck government in Germany and potentially France too today if a no-confidence vote is successful, plus this Korean news, will only add to confidence that the relatively high rates (USD one-week deposit rates at 4.6%) and liquidity make the dollar the most compelling currency in which to park cash balances right now," ING added.

The pound was quoted at USD1.2693 early Wednesday, rising from USD1.2660 at the time of the London equities close on Tuesday. The euro stood at USD1.0510, nudging slightly lower from USD1.0513. Against the yen, the dollar was trading at JPY150.42, up from JPY149.44.

South Korean stocks sank. The Kospi index ended down more than 1%, having shed as much as 2.3% at the open, after President Yoon Suk Yeol declared martial law, before reversing that call later.

In Asia, China's Shanghai Composite fell 0.4% and the Hang Seng Index in Hong Kong was marginally lower. The Nikkei 225 added 0.1% in Tokyo, though Sydney's S&P/ASX 200 shed 0.4%.

Brent oil was quoted at USD73.75 a barrel early Wednesday, climbing from USD73.67 late on Tuesday. Gold was lower at USD2,640.41 an ounce from USD2,644.88.

In London, Legal & General shares rose 3.5%, as it set out a decent outlook for a unit and suggested returns could be on the way for shareholders. The life insurer expects mid-single digit growth in operating profit for 2024, in line with guidance. Thereafter, it expects to achieve its 6% to 9% compound annual growth target in core operating earnings per share between 2024 and 2027.

The update came ahead of a "deep dive" into its Institutional Retirement division, the first in a series of events which will cover all its units.

"The global pension risk transfer market is growing and attractive and the group is well-positioned to continue to seize the opportunity," L&G said.

Its pipeline of PRT deals is "as strong as it has ever been". Its guidance of GBP50 billion to GBP65 million of UK pension risk transfers between 2024 and 2028 is unchanged. In the Institutional Retirement division, it expects compound annual operating profit growth between 5% and 7% between 2023 and 2028.

L&G added: "Year-to-date we have written global PRT volumes of GBP10.0 billion and are exclusive on a further GBP500 million expected to close in 2024. Of this GBP10.5 billion, GBP8.4 billion is UK and GBP2.1 billion is International, with L&G writing its highest ever volumes in the US and Canada.

Strain has also been lower than expected, it said, at 1% compared to initial guidance of below 4%.

"We anticipate returning to shareholders a proportion of the capital not deployed on strain this year. This will form part of the board's wider consideration of buyback capacity, which will be set out at the FY24 results in March 2025 and would be incremental to the capital return intentions indicated at the capital markets event in June," it added.

Elsewhere in London, vehicle rental and fleet management firm Zigup lost 5.5%. It said it has "confidence in full year expectations", but reported a half-year earnings decline.

Revenue in the half-year to October 31 fell 0.8% to GBP903.6 million from GBP911.3 million a year earlier. Pretax profit slumped 42% to GBP56.2 million from GBP97.4 million.

Underlying revenue, however, rose 5.6% to GBP775.0 million from GBP733.8 million. The measure excludes vehicle sales.

"Our strategy continues to deliver, and we are well placed with our broadening position in the essential market for mobility services. We are pleased to report underlying growth in revenues, and the delivery of PBT in line with expectations, while reflecting normalising disposal profits as previously stated," Chief Executive Officer Martin Ward said.

The company added: "Recent vehicle supply contracts have provided good visibility for calendar 2025 fleet growth, and expected increases in infrastructure spending are also positive for our UK rental customer base over the medium term. Spain continues to enjoy record demand. While the normalisation seen in residual values will see disposal profits moderate as expected, our confidence in the business, and for our outlook, is unchanged and remains in line with market expectations."

On AIM, Biome fell 39% as it warned on annual revenue amid component delivery delays.

The bioplastics and radio frequency technology company said two projects in the latter division are now unlikely to get going by the end of the year.

"Additional complexities relating to component deliveries for the two large projects, which were expected to be completed in 2024, have arisen recently. In two specific cases, externally manufactured parts and bought in assemblies have required rework or return to their suppliers for replacement," Biome explained.

"The technical paths for rework and replacement are clear. However, despite significant recent work on expediting this, the timetables are such that this will not be delivered within a timeframe that will allow completion of the two final machine builds and the required extensive internal and customer testing acceptance process before the 2024 year end. Internal completion dates have therefore been revised into Q1 2025 and new final acceptance dates are being discussed with the customers."

The firm now expects revenue to be "materially below current market expectations with a consequential impact on profitability".

[master rsi] 04/12/2024 09:02

Results - ups dividend but shares fall as interim profit slumps

ZIG 353p-30p - Good group performance, confidence in full year expectations
ZIGUP (LSE:ZIG), the leading integrated mobility solutions platform providing services across the vehicle lifecycle, is pleased to announce its results for the half year ended 31 October 2024

Key financial highlights

· Underlying revenue strong, up 5.6% with growth in both Vehicle hire (+4.7%) and Claims and Services (+6.3%); total revenue decreased by 0.8% due to lower vehicle sales revenue

· Underlying PBT of £82.0m (H1 2024: £99.1m) mainly due to lower disposal and Claims and Services profits; in addition, Reported PBT of £56.2m (H1 2024: £97.4m) includes non-cash depreciation adjustment of £13.9m cost (H1 2024: £7.6m credit) (see page 14)

· Vehicle hire revenue: Spain up over 8% supported by VOH growth of 7.4%, UK&I up 1.7% benefitting from careful pricing actions, while rental VOH down 4.6% reflecting higher defleets in H2 2024

· Resilient rental margins for both vehicle rental businesses; Spain at 19.3% (H1 2024: 20.8%) and UK&I at 15.7% (H1 2024: 16.3%) reflecting strong demand and efficiencies supporting high utilisation rates

· Disposal profits reduced to £25.8m (H1 2024: £34.7m) as expected, from lower sales volumes totalling 17,200 (H1 2024: 18,800) as well as impact from expected normalising of LCV residual values

· Claims & Services underlying EBIT of £17.6m (H1 2024: £26.3m); reduced volumes in replacement vehicles and legal services and impact of a cyber incident, in part offset by growth in bodyshop and fleet management

· Strong balance sheet with leverage unchanged at 1.6x on prior year, supported by fleet assets of £1.43bn (H1 2024: £1.23bn) and over £347m of facility headroom after £160m additional loan note financing

· Shareholder returns: 6.0% increase in interim dividend to 8.8p; £30m share buyback programme concluded in June 2024 with £5.3m returned within the period

· Exceptional cost of £2.8m arising from management of response to cyber incident in May 2024 principally impacting our legal business, NewLaw (see page 12)

H1 business highlights

· Fleet growth: Group fleet 132,500 vehicles (128,200 at end-FY 2024); improved supply has enabled fleet growth along with strong demand including large fleet orders from core customers in UK&I and Spain; average fleet-ages each reduced by over 2 months vs prior period

· New wins & strong demand: good rental demand momentum, strongest UK new business wins since pre-Covid and healthy Spanish environment; significant additional orders for 2025 from existing large customers plus UK public sector client mandates; new utility partner channels for ChargedEV

· Supporting cross-sell: 'One-road' sales channel simplification, already delivered over 750 new UK&I rentals from cross-sell referrals; ancillary income growth of 13%

· Strong operational metrics: Rental utilisation rates remain strong at 91%; protocol partners at c.70%; improving claims conversion & process efficiencies

· Customer service & digitalisation: 'Customer First' programme delivering record Trustpilot and NPS scores; scaling up of customer self-service capability within UK portals, additional RPA processes enhancing productivity; RTA vehicle recovery product growth

· Growth initiatives: Three new facilities operational in H1 (Dundee, North Barcelona (Parets) and Cadiz); UK&I car rental product growing interest from corporate clients for rental periods over 1 month; launched micro-mobility rental offering

Outlook

Recent vehicle supply contracts have provided good visibility for calendar 2025 fleet growth, and expected increases in infrastructure spending are also positive for our UK rental customer base over the medium term. Spain continues to enjoy record demand. While the normalisation seen in residual values will see disposal profits moderate as expected, our confidence in the business, and for our outlook, is unchanged and remains in line with market expectations.

Martin Ward, CEO of ZIGUP, commented:

'Our strategy continues to deliver, and we are well placed with our broadening position in the essential market for mobility services. We are pleased to report underlying growth in revenues, and the delivery of PBT in line with expectations, while reflecting normalising disposal profits as previously stated.

We have seen a good supply of new vehicles coming through since the year end, reducing the fleet age and strengthening our asset base. Our fleet now exceeds £1.4 billion in value, underscoring our strong market presence.

Claims & Services grew underlying revenues, and is entering its busier winter period with a pick-up in activity seen after an unusual quieter summer period with lower levels of claims made to insurers. Significant progress has been made in cash collection and establishing more protocols with insurers, improving processing efficiencies.

We are also pleased to have secured new, additional long-term funding, which has successfully reduced our average borrowing costs to 3.2%. This not only enhances our financial strength but also provides substantial opportunities to support further fleet growth. Our prospects are strong, and our expectations for the full year are on track.

With our strategic initiatives yielding positive results and a strong financial footing, we are well-positioned to continue our growth trajectory and to capitalise on opportunities within the mobility services market.'

[davethehorse] 04/12/2024 08:58

PMI flying on results today, up 10% and divi maintained @ circa 10%, very cheap asset manager, re rating back towards 70p, currently 60p

[master rsi] 04/12/2024 08:50

Revolut boss says "not rational" to float in UK over US stock market
(Alliance News) - The boss of Revolut has said it is "not rational" to list its shares in the UK over the US, dealing a blow to London's stock market following the fintech firm becoming Europe's most valuable start-up.

Nik Storonsky's remarks came as the chief executive of Barclays PLC said London's stock market had "shrunk" over the past decades, while "the US has grown".

The co-founder and chief executive of Revolut said "sooner or later" the company will want to consider floating on the public market in order to raise cash to return money to shareholders.

Speaking on the 20VC podcast, he said it was less attractive to list in London because of the 0.5% tax rate on most transactions when people buy shares in the UK.

"The problem with the UK is, if you think about it versus the US, it is much more illiquid, and trading in the US is free… so I just don't understand how the product which is being provided by the UK can compete with the product that is being provided by the US.

"It is less liquid so it is much worse compared to the US, plus it is more expensive because you pay stamp duty, it is just not rational."

Revolut clinched a valuation of USD45 billion via a share sale by its employees in August, confirming its position as the most valuable start-up in Europe.

It came after securing a UK banking licence, ending a three-year wait for approval to operate as a bank in its home market.

Meanwhile, Barclays' Chief Executive CS Venkatakrishnan, known within the bank as Venkat, said the UK equity market had "seen structural decline for more than 30 years", and had "shrunk… while the US has grown".

"We're going to have to invest now, and hope our children's generation get the advantage of it, because it'll take time," he said.

Venkat nevertheless stressed that London is a "great financial centre" which will attract significant activity, adding that the global bank wants to "identify deeply with the city and the country".

[master rsi] 04/12/2024 08:27

BTC-Bitcoin $96,691

Is recovering from the retracement lately and the low yesterday $95,500

One beneficiary is ARB now at about placing price 5.50p

[master rsi] 04/12/2024 08:09

FTSE

Down 16 points at opening

[master rsi] 03/12/2024 23:20

Broker tips: Ashtead, DiscoverIE, Direct Line Insurance
RBC Capital Markets upgraded equipment rental firm Ashtead on Tuesday to 'outperform' from 'sector perform' and hiked its price target on the stock to 7,450.0p from 5,200.0p.

The Canadian bank said it has become increasingly optimistic on the prospects for the US economy relative to the rest of the world.

"We are aware that this is the broad consensus already but, taking our cues from the FX and fixed income markets, we think this could re-invigorate US construction activity which has been adjusting to higher interest rates," it said. "This should kick-start more positive earnings per share momentum for Ashtead after an underwhelming 12 months."

RBC said that with almost 95% EBITA exposure to the US, Ashtead was likely to screen well for international investors and was one of only a few ways to gain such exposure in the FTSE 100. It also said demand improvement should clear the current supply overhang.

RBC added that second-quarter earnings due next week have the potential to surprise positively.

Shares in DiscoverIE jumped on Tuesday after interim results from the electrical components group impressed, with the stock given an additional boost from Shore Capital which lifted its recommendation from 'sell' to 'hold'.

The broker said that, with shares having fallen 13% since it downgraded the stock in July, its valuation was up with events.

First-half results from DiscoverIE were in line with market expectations expectations following a detailed trading update in October, with revenues down 5% at £211m and adjusted operating profits down just 2% at 29.1m, as the bottom-line decline was tempered by a 1.4 percentage-point increase in the organic gross margin.

"We lower our revenue forecast for FY25F by 2% with Q3 sales still down organically YoY but maintain our profit forecasts. We see less risk of a profit downgrade for FY25F following a strong margin improvement in H1 and guidance of a further uplift for the full year," Shore Capital said.

The broker added that the company was "well placed to benefit from a range of long-term trends", with the business exposed to attractive end markets, but stated that these exposures were captured in the equity rating and sees more upside elsewhere.

Analysts at Berenberg raised their target price on Direct Line Insurance from 215.0p to 270.0p on Tuesday following Aviva's non-binding 250.0p per share offer for the group.

Berenberg said Aviva's takeover bid showed there was "clear interest" for the company from the UK's largest insurer. However, Direct Line's response that the offer was "opportunistic "made it believe that management sees "a clear path" to the execution of its strategic plan and that this may be potentially quicker than first planned.

The German bank believes that the UK motor insurance market is set for consolidation and that this will likely lead to higher and less volatile margins through the cycle.

Berenberg thinks that Aviva has the ability to pay more and still generate upside for its shareholders, given its roughly 11% market share in UK motor insurance and an approximately 14% share in UK home insurance.

In addition to the increased target price, Berenberg also reiterated its 'hold' rating on the stock.

[master rsi] 03/12/2024 23:05

US close: Stocks rangebound but S&P 500, Nasdaq hit fresh highs

(Sharecast News) - US stocks finished mixed again on Tuesday with markets rangebound amid global geopolitical uncertainty and a surge in oil prices - though the S&P 500 and Nasdaq still managed to close at record highs.

The S&P 500 edged 0.05% higher to a new peak of 6,049.88,
while the Nasdaq gained 0.4% to a fresh high of 19,480.91.
However, the Dow fell for the second straight day after hitting a record on Friday, slipping 0.2% to 44,705.28.

Oil prices, which were already higher ahead of this week's OPEC+ meeting, jumped in afternoon trade after South Korea's president Yoon Suk Yeol declared emergency martial law, arguing that it was needed to defend the country from communists in North Korea. West Texas Intermediate crude was up 2.8% at $69.97 a barrel.

"South Korea's sudden political instability led to an around 2% rise in the oil price due to supply concerns as traders were already buying the black gold ahead of this week's OPEC+ meeting at which continued output cuts are expected to be announced," said IG senior technical analyst Axel Rudolph.

President Yoon later backed down and lifted the martial law with the withdrawal of the military from government buildings after MPs voted to block the move.

[master rsi] 03/12/2024 22:27

MARKET REPORT
LONDON MARKET CLOSE: Stocks up despite US falls; DAX hits new landmark

(Alliance News) - Stocks in London closed higher on Tuesday with blue-chips taking heart from stimulus hopes in China and mid-caps lifted by a number of well received earnings.

The FTSE 100 index rose 46.52 points, 0.6%, at 8,359.41. The FTSE 250 ended 123.69 points higher, 0.6%, at 20,892.74, and the AIM All-Share rose 2.05 points, 0.3%, at 735.09.

The Cboe UK 100 ended up 0.8% at 840.40, the Cboe UK 250 advanced 0.7% at 18,382.22, and the Cboe Small Companies gained 0.6% to 15,973.50.

In Europe, stocks held in the green. The CAC 40 in Paris ended up 0.3%, while the DAX 40 in Frankfurt advanced 0.6%, topping 20,000 for the first time in its history.

Political uncertainty continues to overshadow France. French legislators are expected to hold a vote of no confidence against the government of French Prime Minister Michel Barnier on Wednesday afternoon, parliamentary sources said on Tuesday, AFP reported.

A no-confidence motion tabled by the left-wing alliance is likely to be adopted after the far-right National Rally said it would back it. The debate is set to begin at 1600 CET on Wednesday.

So far, extreme financial turbulence has been avoided.

Stephen Innes at SPI Asset Management said while the political upheaval is reaching a "critical point", thus far, the fallout across European markets has been "surprisingly contained".

But Capital Economics cautioned that as France is unlikely to have a government with a mandate to tighten fiscal policy anytime soon, the risks to its bond market will continue to grow.

"Its debt dynamics are not as bad as those of Greece in the 2010s, but a French sovereign debt crisis would be a problem for the euro-zone as a whole," it added.

In New York, markets were subdued. The Dow Jones Industrial Average was down 0.4% at the time of London's close, the S&P was 0.2% lower, while the Nasdaq was flat.

New York-listed shares in South Korean companies fell at Tuesday’s open after the country's conservative president Yoon Suk Yeol declared martial law.

Yoon, a hardline former chief prosecutor, said in a late night television address on Tuesday that he would "eliminate anti-state forces as quickly as possible and normalise the country".

Telecoms giant KT Corp was down 1.4% in New York. London-listed shares in Samsung Electronics fell 6.6% on the news.

Elsewhere, demand for US workers rose more than expected in October.

There were 7.7 million job vacancies in October, up from 7.4 million in September, the labour department said. Economists had been expecting just under 7.5 million openings.

The figures come ahead of Friday's nonfarm payrolls report for November, which will likely to dictate whether interest rates are cut at December's FOMC meeting.

Bank of America expects nonfarm payrolls to rise by 240,000 in November after coming in at just 12,000 in October.

"This above-consensus forecast is driven by expected payback for the temporary drag on payrolls in October due to Hurricane Milton and the Boeing strike," BofA said.

Fed Governor Christopher Waller told a conference in Washington on Monday that he was likely to back a further rate cut.

"At present I lean toward supporting a cut to the policy rate at our December meeting," he said, noting that many people still expected inflation to fall to the Fed's 2% target over the medium term.

Analysts at Brown Brothers Harriman noted odds of a December cut have risen to nearly 75% but "it’s clear that this Friday’s jobs report will ultimately determine policy."

The pound was quoted at USD1.2660 late on Tuesday afternoon in London, up from USD1.2643 at the time of the European equities close on Monday. The euro stood at USD1.0513, up from USD1.0486.

Against the yen, the dollar was trading at JPY149.44, rising from JPY149.24.

Helping to lift the mood in London, China's top leaders are preparing a closed-doors meeting next week to talk economic targets and stimulus plans for next year, Bloomberg reported.

The report boosted mining stocks on the blue-chip FTSE 100. Antofagasta rose 2.2%, Fresnillo rose 2.8% and Glencore rose 1.4%.

South Korea's sudden political instability pushed the oil price higher, boosting oil majors and London index heavyweights BP and Shell which rose 1.8% and 1.7% respectively.

Brent oil was quoted at USD73.67 a barrel late Tuesday afternoon, up from USD71.85 at the time of the London equities close.

Gold was little changed at USD2,644.88 an ounce compared with USD2,642.00 on Monday.

easyJet was prominent on the leaderboard, climbing 2.9%. Peel Hunt raised its share price target to 900 pence from 850p and reiterated a 'buy' rating.

On the FTSE 250, earnings delivered double-digit percentage increases for DiscoverIE, Greencore and Victrex while SSP also jumped.

DiscoverIE soared 16% as its operating profit and margins increased despite a decline in revenue, and it said it is on track to deliver full-year earnings in line with expectations.

The Guildford, Surrey-based customised electronics manufacturer and designer said third quarter trading is in line with expectations with the order run rate ahead of sales and ahead of the second quarter.

Dublin-based convenience food maker Greencore jumped 13% after better-than-expected annual profit, a share buyback and the restoration of the dividend after a 5-year hiatus.

For the new financial year, it expects adjusted operating profit within the top half of the range of current market expectations, which it puts at GBP98.1 million to GBP107.1 million.

"Greencore is continuing to deliver, both operationally in terms of efficiencies and profit progression, but also in terms of expectations management, where 'beat and raise' has become the new normal," analysts at Jefferies said.

Lancashire, England-based polymer solutions provider Victrex jumped 14% despite reporting a 68% drop in annual profit.

More optimistically, the company expects at least mid-single digit volume growth in the new financial year should current demand levels remain on track.

Meanwhile, SSP was also in demand, rising 9.6%.

The Upper Crust owner reported pretax profit of GBP118.6 million in the year to September 30, an increase of 35% from GBP88.1 million. Revenue improved 14% to GBP3.43 billion from GBP3.01 billion, including like-for-like growth of 9%.

On the downside, Currys slipped 2.5% after Deutsche Bank downgraded to 'hold' from 'buy'.

Wednesday's global economic diary sees ADP private payrolls data in the US plus a slew of composite PMI readings.

Wednesday's local corporate calendar sees full-year results from Treatt and Tritax EuroBox.

[master rsi] 03/12/2024 21:50

DOW

Finished 76 points down

[master rsi] 03/12/2024 17:06

How the UPS are performing during last month