Tag Archives: Revenue

Investment News: Ithaca Energy, Thorntons, Tesco & more

11 Wednesday Sep 2013

Posted by in Africa, Azerbaijan, banks, Barratt Developments, Business, Eastern Europe, Fresh Easy, Get rich quick, Ghana, investment, Ithaca Energy, Revenue, Ron Burkle, Ronald Burkle, Sport Direct, Tesco, Thorntons, Trader Dominic Picarda, Uncategorized, United States, US, usa, Yucaipa, Yucaipa California

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Today’s market overview

Equities have started the day flat, but The Trader Dominic Picarda views the price moves of the past couple of sessions as confirmation that the bulls are back in charge.

IC TIP UPDATES:

Ithaca Energy (IAE) has issued a positive flow test result from the first Stella field development well which flowed 10,835 barrels of oil per day and was only limited by the capacity of the equipment available. Undersea infrastructure work is also progressing well and the drilling equipment will now move to the second development well. We maintain our buy recommendation.

Sell recommendation. Kingfisher (KGF) continues to struggle in tough end markets for the DIY retailer. The 26 weeks to 3 August saw total sales edge ahead by 1.5 per cent in constant currency terms but like for like sales dipped by 0.8 per cent. Adjusted pre-tax profits dipped by 1.6 per cent but reported profits were up by 10.2 per cent. During the period the company has acquired 15 stores in Romania and opened a net 29 new stores across the UK, France, Poland, Spain and Turkey.

Simon Thompson recommendation. Thorntons (THT) has posted pre-exceptional profits of £5.6m, up from £900,000 last year, from just a 1.8 per cent uplift in revenues as management continues its turnaround plan. Management has closed 35 stores and will close more this year as the refocus on the fast moving consumer goods segment continues.

Location intelligence technology specialist Ubisense (UBI) grew revenues by 3.6 per cent to £12.4m in the six months to June with recurring revenues up to 26.8 per cent of the total. The company’s order book is up 38 per cent to £14.1m with a further order announced today to deploy its Smart Factory system with an existing European automotive manufacturer for a factory in Eastern Europe. We maintain our buy rating.

Alkane Energy (ALK) more than doubled revenues in the six months to June as it increased its coal bed methane output capacity and its standby power offering to an installed capacity of 81MW by the period end. Cash profits rose by 54 per cent to £3.3m. We keep our buy recommendation.

KEY STORIES:

Tesco (TSCO) has finally announced its exit from the US grocery market after sealing a deal which will see the retail giant pay a loan of £80m to the buyer, Yucaipa Group of Companies, as well as incur further costs for the closure of non-core stores. Yucaipa, owned by US billionaire Ron Burkle, will take on the Fresh & Easy business as a stand alone chain. Tesco will receive warrants which, dependent on success of the business, could see it end up with a 32.5 per cent share of the business.

The continued acceleration of the housing market is reflected in full year results from Barratt Developments (BDEV) which showed revenues up 12.2 per cent in the year to June and pre-tax profits before exceptionals up 73.7 per cent to £192.3m. Since the period end this performance has accelerated with a 29.4 per cent rise in net reservations per week and a 44.4 per cent increase in forward sales to £880.4m.

Fellow housebuilder Redrow (RDW) has announced a new, increased four year banking facility worth £250m as it looks to increase its output.

Retailer Sports Direct (SPD) continues its dominant performance of the sporting sector on the high street posting an 18.2 per cent rise in group sales for the 13 weeks to 28 July and a 23.2 per cent uplift in gross profit.

African Barrick Gold (ABG) has announced the abrupt departure of its chief operating officer Marco Zolezzi.

OTHER COMPANY NEWS:

Advanced Medical Solutions (AMS) grew revenues by 11 per cent to £27.4m and profits by 33 per cent to £6m in the six months to June.

Anglo Asian Mining (AAZ) enjoyed its best month of gold production at the Gedabek mine in Azerbaijan on record in August after the recently completed Agitation Leaching Plant helped push production to 7,600 ounces. An updated resource estimate for Gedabek is expected before the end of this month. Meanwhile, progress is being made at Gosha, 50km away from Gedabek, where the first trial batch of ore has been mined.

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Investment News: Bwin.Party Digital, Restaurant Group, Chesnara & more

30 Friday Aug 2013

Posted by in Africa, banks, Business, Bwin.party digital, Chesnara, Computacenter, Germany, Get rich quick, Ghana, Headlam, Headlam Group, investment, Market, Mytrah Energy, Percentage, Restaurant Group, Revenue, Smiths News, Sports, Trader Dominic Picarda, Uncategorized

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Today’s market overview

Equities are down again after yesterday’s mini-rally and The Trader Dominic Picarda is sure that the current downtrend still has some legs before the rally resumes.

IC TIP UPDATES:

Sell recommendation Bwin.Party Digital (BPTY) suffered a 16 per cent reversal in revenues in the first half of 2013 and a 34 per cent fall in earnings from continuing operations as a betting tax in Germany hit business. Management says it is on track for savings of €70m in the current year with another €20m identified for next year.

Fellow sell recommendation Restaurant Group (RTN) posted more positive figures with its revenues rising 11.5 per cent to £280m in the six months to June and pre-tax profits 15 per cent higher at £30m. The company opened seven new sites in the first half and is planning 30-35 across the year.

Building products supplier Tyman (TYMN) is benefiting from a pick up in the US construction markets. It grew revenues by 11 per cent in the first half to £123.7m and reports order books are higher across the business at the start of the second half. Buy.

Life assurer Chesnara (CSN) more than doubled its profits in the first half of the year to £21.8m as it benefited from better investment markets. We maintain our buy recommendation.

Indian wind power developer Mytrah Energy (MYT) has raised €17.5m and confirmed that it is on track to almost double capacity to 548.1MW by the end of the year. We keep our buy rating.

KEY STORIES:

Smiths News (NWS) has agreed its triennial valuation on its pension liabilities which sees its deficit reduce from £50m to £23m and annual payments fall from £5.8m to £4.1m.

Computacenter’s (CCC) first half results reflect a tough period although revenues and adjusted profits both rose marginally. The company took a hit totalling £29.3m in the form of exceptional costs, most of it connected to loss making contracts in Germany.

OTHER COMPANY NEWS:

Floor coverings distributor Headlam (HEAD) suffered in tough market conditions during the first half with like for like sales dipping by 0.8 per cent in the UK and 5.2 per cent in Europe. This led to a 10 per cent reversal in pre-tax profits.

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GHANA: MINERALS DEVELOPMENT FUND UNDERWAY

23 Friday Aug 2013

Posted by in ACCRA, Africa, banks, china, CNOOC Limited, EITI, Extractive Industries Transparency Initiative, Get rich quick, Ghana, Ghana News Agency, investment, Korea, Mine, Mining, Natural resource, Revenue, Singapore, Uncategorized

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Reflex Eco Group – Ghana News

Antony Sedzro (Local journalist)

sedtony@yahoo.com

Ghana’s Lands and Natural Resources Minister, Inusah Fuseini, has announced that government is developing a bill to spell out the disbursement of revenues from the mining sector.

The bill will be similar to the existing Revenue Management Law which guides the usage of revenues from the country’s oil and gas sector.

Players in the mining sector have been calling for a fund which would help track revenues from the sector and enable Ghanaians appreciate its contribution to the economy.

Mr Fuseini announced this at the opening of the 6th Revenue Watch/GIZ Summer School for participants from 12 countries, in Accra.

He said “Ghana has also decided to put in place a Mineral Development Fund Bill which is going to be laid before Cabinet, to provide transparency in the management of ceded royalties to mining communities.”

When passed into law, the Fund is expected to track mining revenues and their disbursements. Currently, most mining royalties go to local assemblies and Chieftaincy stools and there are no clearly spelt out means of tracking the disbursements, especially by the local Assemblies.

Local mining communities will now identify projects for which the fund would be channeled into, the minister revealed. This, he believes, will bring transparency and accountability in the disbursement of mining inflows. He said this will also clear the perception that mining has contributed little to the development of the nation.

Speaking at the same event, the former CEO of the Ghana Chamber of Mines, Dr. Joyce Aryee challenged African leaders to stop failing their people in the midst of abundant natural resources.

Citing countries like China, Korea, and Singapore, Dr. Aryee said if these countries have become economically prosperous despite the global economic challenges, then Africans have no excuse to fail.

Ghana is a member of the Extractive Industries Transparency Initiative (EITI), an international body that sets a global standard for transparency in oil, gas and mining sectors. The EITI has 39 countries as members, and 23 have achieved “EITI compliant” status including Ghana.

In May this year, the EITI approved a revised standard of performance requiring its 39 implementing countries to release wide-ranging new information about their oil, gas and mining industries.

This move by Ghana to establish a Mineral’s Development Fund is therefore seen as part of the measures to comply with the EITI’s standards.

According to the Ghana’s EITI publication of February this year, the mining sector recorded $942,698 million and $897,710 million as government revenue and company payments respectively, with the oil and gas sectors pooling in $792 million and $652 million as government revenue and company payments for 2011, information from the Ghana News Agency revealed.

The EITI gave impetus to related laws including the Minerals and Mining Law, ACT 703 of 2006 and the Petroleum Revenue Management ACT, ACT 815 of 2011.

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