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Quoted Micro 14 October 2024
AQUIS STOCK EXCHANGE
Cardio health probiotics products developer ProBiotix Health (PBX) increased sales by 39% to £1.53m and the gross profit margin is stable in the nine months to September 2024. This is due to a recent product launch on Amazon and in 2,000 Target stores. A commercial partnership with Mexico-based Raff should generate commercial sales of LP LDL as an ingredient in new products by late 2005/early 2006. There is no need for further funding. The company has appointed Frederik Bruhn-Petersen as a non-exec director. He represents the new 21% shareholder Holdingselskabet af 29. Juni 2010 Aps.
Invinity Energy Systems (IES) is pleased with the UK government’s announcement of a cap and floor regime for investment in new large-scale, long-duration electricity stage projects. This includes vanadium flow batteries, and this is a large increase in the opportunity for the business. The minimum project size is 300MWh.
Café chain Cooks Coffee Company (COOK) increased store sales by 26% to £16.4m in the first half. The UK store sales were 36% ahead and Ireland is 7% ahead. Like-for-like sales are 5.1% higher. There are 83 stores, and ten further outlets are expected to open before the end of March 2025. Katherine Scott has been appointed finance director.
Ananda Developments (ANA) has signed a contract with contract research organisation Southern Star Research to carry out a phase 1 clinical trial in Australia for the pharmacokinetic profile, tolerability and safety of lead asset MRX1. There is an R and D tax incentive of up to 43.5% of eligible costs.
Bitcoin mining company Vinanz (BTC) has added five Bitmain Antminer S21 Pro 234 Terahash (TH/s) machines to its fleet in Nebraska, which has attractive power costs.
Unicorn AIM VCT has taken a 7.39% stake in Good Life Plus (GDLF) following the recent fundraising. Winforton Investments increased its stake from 20.6% to 21.1%.
EPE Special Opportunities (EO.P) intends to buy back shares. It has acquired 48,000 shares at an average price of 150p each. The NAV was 316.09p/share at the end of September 2024.
Silverwood Brands (SLWD) executive director Andrew Gerrie bought 25,000 shares at 25p each. Newbury Racecourse (NYR) director Dominic Burke bought 16,000 shares at 540p/share, taking his stake to 7.03%. Marula Mining (MARU) director Jason Brewer has acquired one million shares, taking his stake to 8.78%. Kevin Hastings has a 3.375% stake.
California Two Pizza Ventures Inc has taken a 23.9% in Pitch Pit (PICH).
Trading in the shares of Mydecine Innovations Group (MYIG) has been suspended.
Majestic Corporation (MCJ) has appointed Oberon Capital as broker.
AIM
After the close on Friday, retailer and brand owner Frasers Group (FRAS) announced a revised proposed bid for Mulberry (MUL) of 150p/share in cash. This is well above the original proposal of 130p/share and the 100p subscription price.
Energy and water efficiency services provider Eneraqua Technologies (ETP) reported a rise in interim revenues from £26m to £29.9m. However, there is a greater proportion of lower margin energy services work, and the loss increased from £400,000 to £3.8m. The General Election delayed decisions on contracts, but the decisions are beginning to be made. The order book has improved to £114m. Two-fifths of this order book should be delivered in the second half and that would return the business to profit. Singer forecasts a pre-tax profit of £2.4m for the year to January 2025 and Eneraqua Technologies should move into a net cash position.
Cloud computing and connectivity infrastructure-as-a-service company Beeks Financial Cloud (BKS) reported figures in line with expectations and profit growth is set to accelerate this year. In the year to June 2024, revenues were 27% higher at £28.4m and annualised recurring revenues were 18% ahead at £28m. Underlying pre-tax profit improved from £2.3m to £3.9m. Net cash is £6.6m. Recurring revenues cover more than two-thirds of the 2024-25 forecast revenues. Canaccord Genuity has edged up its pre-tax profit forecast from £6m to £6.1m on revenues of £39.6m.
Smart sensing software developer Oxford Metrics (OMG) is acquiring The Sempre Group, a measurement technology business for up to £5.5m. Gloucester-based Sempre helps clients to improve productivity and efficiency through high precision metrology. This fits with the previous acquisition of Industrial Vision Systems, which will help geographic expansion, and provides further diversification from the entertainment and health sectors. In 2023, Sempre made a pre-tax profit of £700,000 on revenues of £6.5m and the performance is improving this year. The deal should be earnings enhancing. Following the post-trading statement slump in the share price, OMG is spending up to £6m on share buy backs.
Marine tracking technology developer Windward (WNWD) has won two new customers outside the US with a combined annual contract value of $1.9m. Renewals are as expected. Existing customers are taking up the AI technology when they are renewing. This year there should be 30% subscription/sales growth and Windward is heading towards breakeven.
Blue Star Capital (BLU) is continuing the strategy to seek an exit of its investments. The launch of the de-fi project to Pendulum and Nabla that is called Vortex is the key to the valuation of the SatoshiPay investment and the sale has been suspended. The funding of Vortex is not yet in place. Around 90% of the NAV is based on the 27.9% SatoshiPay stake and this valuation depends on the launch of Vortex and if SatoshiPay raises additional funds then this stake will be diluted.
Novacyt (NCYT) is closing its loss-making IT-IS International, which was acquired to produce Covid tests. This should add £1m to annual EBITDA. The restructuring charge will be £700,000. The IP infringement dispute with Roche Diagnostics will continue.
SkinBioTherapeutics (SBTX) is acquiring Bio-Tech Solutions for £1.25m. Bio-Tech is a manufacturer of personal care products. This will enable the group to manufacture its own products. The acquired business should generate £3m in 2024-25, up from £2.1m, and EBITDA could be £900,000. SkinBioTherapeutics should have enough cash to last until the summer of 2026.
Data analytics software provider Rosslyn Data Technologies (RDT) is raising £1.64m via placing at 5p/share and £250,000 from a retail offer that closes on 10 October. A convertible loan note will raise a further £1.2m and existing convertibles will be converted at 5p/share. This will fund growth and the development of technology. Rosslyn Data Technologies is trading ahead of previous expectations.
Cambria Africa (CMB) shares recommenced trading after 2022-23 accounts and subsequent interims were published. Early buying has flushed out some sellers later in the morning. The shares will be suspended again on Monday because there will be no nominated advisers. Shareholders have voted to cancel the AIM admission on 22 October.
John Gunn has acquired a 12.1% stake in SEEEN (SEEN). This makes him the second largest shareholder in the video sharing platform developer behind Gresham House.
Inspirit Energy (INSP) is returning to its previous existence as a shell (it was previously Kleenair Systems International) because the lead engineer of its subsidiary has to stop working for the company to care for a relative. This has put waste heat recovery engine development on hold. The company will preserve cash and become a shell and seek takeover opportunities.
Investment company Seed Innovations (SEED) says investee company Clean Food Group has partnered with cosmetics products developer THG LABS. The initial focus is developing a high-performance oil for use in beauty and personal care products. The sustainable oils and fats developer uses yeast strains and food waste as the source of its sustainable oils. Seed Innovations has a 4.76% stake.
MAIN MARKET
Fairview International (FIL) was set up to buy two international schools in Malaysia and it is seeking more acquisitions in Asia and the UK. New schools could also be developed. The global higher education market is expected to grow at an annual rate of 12%. Fairview raised £2.65m gross at 10p/share. The share price started at 11p and kept at this level for the whole of the first day of trading when 10,000 shares were traded. Pro forma net assets are £4.11m. Agodeus, whose shareholders include executive chairman Daniel Chian and his family, owns 89.9% of the company.
Online retailer ASOS (ASC) has completed its partnership with Heartland that will leave ASOS with 25% of Topshop and Topman brands.
Imaging technology company IQ-AI (IQAI) says Braveheart Investment (BRH) has acquired a 29.5% stake in the company for £720,000. IQ-AI chief executive and Braveheart Investment chief executive Trevor Brown sold the shares.
Shell company Milton Capital (MII) has a non-binding term sheet for the acquisition of certain subsidiaries of Horizon Energy Global Corporation, which wishes to separate European and North American assets. Trading in the shares is suspended.
Andrew Hore
Quoted Micro 4 September 2023
AQUIS STOCK EXCHANGE
Valereum (VLRM) says the takeover of the Gibraltar Stock Exchange will go ahead in September. In the middle of September, a US fund is due to provide funding of £5m-£8m in two tranches. Trading in the shares has been suspended ahead of the publication of an admission document, which is likely to be in early October.
Fibre optic cables materials supplier Unigel Group (UNX) reported a dip in interim revenues from £18.8m to £18m, even so pre-tax profit jumped from £442,000 to £852,000 due to lower overheads. There was a £244,000 cash inflow from operating activities. The market declined by 3% during the period because of a slowdown in 5G investment.
Marula Mining (MARU) has acquired ore sorters to expand processing capacity at the Blesberg lithium and tantalum mine. Two ore sorters will cost £1.74m in total. The target production is up to 50 tonnes/day of lithium spodumene product from existing stockpiles. An agreement has been signed for an initial sale of 27.5 tonnes of high-grade material from Blesberg. The sale price is $3/000/tonne, based on a minimum grade of 6%. The company is negotiating to cancel a previous offtake agreement with Southern Jade Resources.
Cadence Minerals (KDNC) has warned that the Sonora lithium project licences, where it owns 30% of the entity that owns them, could be cancelled by the Mexican government because of minimum investment obligations between 2017 and 2021. Evidence of the spending may not have been submitted when required. This is subject to appeal. WH Ireland has already put a cautious value on the asset because of this uncertainty.
Psychedelic substances investment company Clarify Pharma (PSYC) had net assets of £1.1m at the end of May 2023. Cash had fallen to £183,000 at the end of August.
AQRU (AQRU) continues to reduce the number of employees and streamlined its investment pipeline. The main digital asset businesses have been injected into Langland Software Solutions in return for a 30% stake. Three directors are leaving the board, including Phil Blows who controls Langland. AQRU retains individual stakes, plus cash and crypto tokens.
KR1 (KR1) had net assets of 48.13p/share at the end of July 2023. There was income of £572,000 generated during the month.
Shareholders of Oscillate (MUSH) voted against voluntary liquidation. Net assets were £2.95m at the end of May 2023, including £1.17m in cash.
PanGenomic Health Inc (NARA) had net liabilities of $1.45m at the end of June 2023.
Clean Invest Africa (CIA) has received £200,000 from the convertible loan note issue. This will provide additional working capital. Pascal Portmann has become a non-exec director.
Black Sea Property (BSP) has raised €7.56m through a loan note issue.
Andrew Offit has taken a 4.8% stake in NFT Investments (NFT).
AIM
Pharma IT systems supplier Instem (INS) is recommending an 833p/share cash bid by Ichor Management, which is controlled by funds managed by Archimed SAS. The bid is still below the share price peak of 905p in September 2021. Instem is valued at £203m. The board believes that private ownership will provide greater access to capital to fund acquisitions and growth.
SailPoint Technologies UK is bidding 2.35p/share for Osirium Technologies (OSI), which may be nearly double the previous market price, which was an all-time low, but it is well below the share price peak of 201p during the 4 May 2016, less than one month after it joined AIM. The bid values the cyber security company at £3.11m. SailPoint Technologies believes that the business will fit well with the SailPoint Identity Security Platform. A unified platform will be developed for securing privileged and non-privileged identities for customers and there will be enhanced regional opportunities.
Frasers Group (FRAS) continues to build up its stake in online fashion retailer boohoo (BOO) from 9.1 to 10.4%. Frasers has also edged up its interest in ASOS (ASC) from 19.3% to 19.8%, although 9.2% is held through financial instruments.
Sustainable wood products supplier Accsys Technologies (AXS) made a strong start to the financial year, but it warns that demand from the construction market is declining. Sales volumes for the year to March 2024 will be worse than expected and profit will be much lower than anticipated. Operating costs are being reduced.
Revolution Beauty (REVB) has appointed Lauren Brinley as chief executive. The beauty and cosmetics products supplier also published its 2022-23 accounts. Lauren Brindley was until recently head of American retailer Walgreen’s beauty and personal care operations across its stores and online. Prior to that she worked at Boots and Tesco. Revolution Beauty has new distribution agreements with Walgreens and Boots. In the year to February 2023, revenues edged up 2% to £187.8m, while the loss reduced from £45.9m to £33.9m. That masks improved trading in the second half. First quarter sales were 60% higher, but there was destocking in the corresponding period last year. EBITDA was £3.5m in the period. Net debt increased to £21.5m.
Rosslyn Data Technologies (RDT) raised £2.7m from a placing and subscription at 0.5p/share and a retail offer to existing shareholders could raise up to £500,000 more. On top of the share issue, there is a proposed issue of 10% convertible loan notes to raise £600,000 from Hargrave Hale AIM VCT, Octopus AIM VCT and Octopus AIM VCT2. The conversion price is the lower of 0.5p or the issue price of another fundraise. There are also plans for a 50-for-one share consolidation. There will be a resolution at the general meeting on 18 September to gain shareholder approval.
Summary results for the phase II dose ranging study assessing Orenetide for hypoactive sexual desire disorder were disappointing and that has hit the Ovoca Bio (OVB) share price, which slumped 78.7% to an all-time low of 2.4p. The results of the study in Australia and New Zealand show that the treatment was not statistically significantly better than placebo. The ckinompany will have to decide how to move forward with the product and whether it should continue development. Ovoca Bio had €2.6m in the bank at the end of July.
Kinovo (KINO) says that it would not recommend a 56p/share bid from Rx3.
Linear Generator technology developer Libertine Holdings (LIB) says fees expected from Hyliion may not be recognised this year. This means that the loss would be higher than the £2.6m forecast. The first phase of development is complete and Hyliion has a six-month option period to negotiate IP rights. Work on the MAHLE powertrain was completed later than scheduled. There is £1.2m in the bank, which should last until May.
Application specific integrated circuits designer Sondrel Holdings (SND) has been hit by contract delays. Three major customers have delayed development for 6-12 months because of economic uncertainty and concerns about consumer confidence. Interim revenues will be 17% higher at £9.3m, but the full year forecast has been cut from £28.4m to £13m. Sondrel is likely to move into a net debt position by the end of 2023, but this should be temporary.
EnSilica (ENSI) has secured a $2.4m contract with an existing European customer for the development of an advanced networking ASIC. Most of this revenue will be recognised in the year to May 2024, which underpins forecasts. It has also won a €2.5m contract for its satellite broadband chip.
Pelatro (PTRO) will ask shareholders to vote to cancel the AIM quotation because of the cost and the inability to raise cash. The general meeting will be held on 21 September. Finance director Nic Hellyer is leaving the board. A matched bargain facility will be put in place.
Star Energy (STAR) is moving into geothermal project development in Croatia. This is part of the company’s move to refocus from gas to geothermal energy. A 51% interest in A14 Energy is being acquired for €1.3m in cash plus €300,000 back costs. A14 owns the Ernestinovo licence in the Pannonian Basin in Croatia. Bids have been placed for further licences. Up to €1.5m more is payable if the licences are granted.
MAIN MARKET
Networking and biomedical technology company BATM (BVC) grew interim revenues by 5% to $60.2m and gross margin improved. Pre-tax profit improved from $1m to $2.3m. Cash declined to $41.9m at the end of June 2023.
RegTech Open Project (RTOP) was the biggest riser in the Main Market last week. The share price rose 55.4% to 172.5p, having joined the market on 25 August at 100p. This values the business and operational resilience software company at £103.5m. The underlying business generated revenues of £1.1m in 2022, down from £1.31m in 2021, due to a fall in operational resilience fees. The operating loss increased from £930,000 to £2m. RegTech Italy, which is part of a group that owns 65% of RegTech Open Project, is providing a shareholder facility of up to £8m with an initial cash drawdown of £2m that will help to pay the expenses of the listing. The company estimates total directors’ remuneration of £505,000 over the next 12 months.
Andrew Hore
ASOS #ASC, ECR Minerals #ECR, Technology Minerals #TM1, UK inflation, and Battery Metals with Alan Green – UK Investor Magazine podcast
Alan Green joins the UK Investor Magazine Podcast for our weekly instalment of markets and UK equities.
Today, we focus on:
- ASOS (LON:ASC)
- ECR Minerals (LON:ECR)
- Technology Minerals (LON:TM1)
We start by looking at the UK’s 10.1% inflation reading and what it could mean for the FTSE 100 in the short term. The FTSE 100 is trading in a tight range and we look at the potential scenarios that could lead to a breakout.
ASOS shares rose after realising final results but the performance may not be as positive as today’s share price movement suggests. The company is struggling as the cost of living crisis takes hold and have had to seek credit lines.
ECR Minerals updated the market on their progress at the Creswick Project having drill a number of holes finding gold grade up to 0.7m @ 47.75 g/t Au.
Technology Minerals is driving forward with their plans to create a circular economy in battery metals with the proposed acquisition of Recyclus.
Ian Pollard – Polypipe #POLY Breaks More Records
Polypipe Group plc PLP delighted to report another record performance and claims significant strategic progress for 2018 together with a continued focus on organic growth ahead of the market. Revenue rose by 5.2%, profit before tax by 4.7% and underlying basic earnings per share by 4.4% The dividend is to be increased by 4.5% and the balance sheet is robust.
Learning Technologies Group plc LTG Profit came in ahead of expectations for the year to the 31st December, with EBIT up by 104% to £27.2m. Revenue rose by 83% with half of it coming from the US. and the full year dividend is to be increased by 67%. In the five years since the company was listed on the London Stock Exchange a compound annual growth rate of 48% in adjusted diluted EPS has been achieved. A good start has been made to 2019.
EasyJet EZY has abandoned talks to join to join the consortium which would have bid for Alitalia although it said at the time that it was not certain that a bid for Alitalia would materialise. The Italian government has now given Delta Airlines and the Italian State Railway, the two remaining members of the consortium, until the end of this month to come up with a rescue plan for AlItalia.
Softcat plc SCT produced a very strong performance over the six months to the 31st January characterised by additional market share gains and a 36.4% rise for the shareholders, in the interim dividend. Revenue for the half year rose by 21%, diluted earnings per share by 40,8% and gross profit by 26.5% The company is debt free and has a cash balance of £52.8m. It is anticipated that the outcome for the full year will be marginally ahead of previous expectations.
Bonmarche Holdings BON the main aim of Bonmarche during the winter “sale” period covering January and February 2019, was to recover from the third quarter sales experience which was below expectations and in that it has succeeded. Autumn/winter season stock levels are now 40% lower than at this time last year but that has only been achieved at the cost of heavy discounting. And now things have got worse. Trading since the beginning of March has become significantly weaker, reversing sales gains which had been made in the previous months.It is now anticipating that the the underlying loss for the year will be far greater than the anticipated £4.0m. and current estimates are that it will rise to between £5.0m and £6.0m.
ASOS plc ASC for the 3 months to the end of February total retail sales rose by 11%, The UK outperformed with growth of 14% and France and Germany both proved to be challenging. For 2019 unchanged sales growth of 15% is expected.
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Ian Pollard: ASOS Badly Impacted With Online Growth Weakest For Years
ASOS ASC experienced a significant deterioration in “the important trading month of November” and conditions remain challenging. As a result, it has had to reduce expectations for the current financial year. Total retail sales for the 3 months to the end of November rose by 12%, the UK leading the way with a 19% rise and Rest of the World bottom with a fall of 2%. November was seriously behind expectations and there is almost an air of desperation in some of the company’s comments.
Consumer confidence is seen as weakening and growth in online clothing sales is the weakest of recent years. Heavy discounting and promotions will see the weighting between first and second half profitability transformed from the 30/70% seen in recent years to an even more substantial weighting towards the second half. Trading conditions across its two largest European markets of Germany and France, which account for c.60% of EU sales, have become significantly more challenging, with growth at 15% for the year to date.In Rest of the World performance has been significantly behind expectations with an actual fall. Not many companies are so badly hit that they are forced to recalibrate expectations for the full year, at the end of the first quarter
Safestyle UK plc SFE is confident thatits recovery and performance in 2019 will be ahead of current market expectations after delivering an underlying loss before tax for 2018 of between £8.2m and £8.6m)
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Ian Pollard: Dart Group To Substantially Exceed Expectations In 2019
Dart Group plc DTG is proposing to increase its final dividend by 54 % after strong passenger growth for both Jet2.com and Jet2holidays saw revenue for the year to the 30th June increase by 38%. Profit before tax rose by 49% and basic earnings per share by 44%. Demand has strengthened even more since the start of the new financial year and having regard to current forward bookings Group profit before foreign exchange revaluations and taxation for the year ending 31 March 2019, will substantially exceed current market expectations.
ASOS plc ASC retail sales for the four months to the 30th June grew by 21% on a constant currency basis, slightly down on the ten month figure of 23%. In the UK market share continued to increase and full year profit for 2018 is expected to be in line with consensus.
Computacenter CCC Following a strong start to the year, momentum has continued into the second quarter and The first half has shown considerable progress in adjusted profitability, and even further progress in adjusted earnings per share. Trading result for 2018 will now be comfortably in excess of previous expectations.
GYG plc GYG Trading has been significantly weaker than expected in the half year to the 30th June due to lower than expected project wins and some additional delays in anticipated contracts. Full year revenue is now expected to be flat and adjusted EBITDA to be materially below the Board’s expectations at approximately €5 million. There is however grounds for optimism for the the immediate future as the New Build Order Book stands at €13.4 million for 2019 and €5.6 million for 2020 compared to a meagre 1m only a year ago.
Portmeirion Group PMP updates that total group sales for the six months to the 30th June have increased by 11% or, on a constant currency basis, 15%.
Telford Homes TEF updates that the London Market has remained robust since the year end in May although, as a sign of the times, the average selling price of open market homes is expected to remain constant. The strategy of concentrating on build to rent homes is believed to be the correct one.
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Brexit Fears Grow Over Freedom To Fly
Dart Group DTG is aware of the uncertainty surrounding Brexit negotiations and the effect which the outcome of these could have, especially on the extent of its “freedom to fly”. For the year to 31st March revenue rose by 23% and the proposed final dividend is to be increased by 26%. Profit before tax for the year fell by 14% after considerable investment to launch its new operating bases at Birmingham and London Stansted and a £10.9m charge for foreign exchange revaluation losses. Without the foreign exchange losses the fall in profit before tax was limited to 4%. Basic earnings per share fell by 14%.
Telford Homes TEF expects that the current financial year will produce profit before tax of £40m of which over 80% has already been secured and that in 2018-19 the figure will rise to £50m of which over 60% has already been secured.
ASOS ASC Total reported retail sales in the 4 months to the end of June rose by 32% or 26% on a constant currency basis as the company’s strong first half sales momentum continued. The only weak spot appeared to be in the US where reported sales growth fell from 51% over ten months to 38% in the 4 month period.
Babcock International BAB has made a good start to its new financial year with 82% of revenue now in place for for 2017-18 and 55% for 2018-19. A major contract worth up to £500m. has been secured to operate a fleet of specialist fixed wing aircraft for the Norwegian Health Service.
AdEPT Telecom ADT is increasing total dividends for the year to 31st March by 19.2% after the company’s 14th consecutive year of underlying EBITDA growth.This year saw a rise of 27.2% to £7.83m. and adjusted earnings per share were up by 20.3%
BTG plc BTG The strong performance experienced in 2016-17 has continued into the new financial year and double digit sales growth is expected over the full year.
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Koovs Continues To Rocket
Koovs plc KOOV continues to see sales rocket with a rise of 87% in the year to 31st March. Registered users were up by 80% and units shipped and repeat customers rose by 100%, as it pursues its main strategy of significant growth and outperforming e commerce sector growth in India by fivefold. India is now the fastest growing economy in the world.
Keywords Studios KWS enjoyed a year of strong growth in 2016, both organically and from acquisitions and is increasing its final dividend by 10%. Group revenue for the year to 31st December rose by 67%, adjusted basic earnings per share was up by 61% and adjusted profit before tax by 86%. Further good progress is expected in 2017.
ASOS ASC claims a strong set of results for the half year to 28th February but by comparison with Koovs it is positively pedestrian. It also illustrates the continuing decline in the importance of the UK market where sales grew by “only” 18% compared to international sales which rose by 54%. Group revenue rose by 37%, or 31% on a constant currency basis and profit before tax was up by only 15%, Meanwhile the group pursues its ultimate goal of becoming the worlds no.1 for “fashion loving 20 somthings”.
Wizz Air Holdings WIZZ the largest budget arline in Eastern and Central Europe saw passenger numbers rise by 19% in March whilst load factor rose by 4.1 PPTS to 90%.
The High Street – Still Alive And Kicking But Online Threat Grows
Marks & Spencer MKS gives a very brief summary of its trading for the 13 weeks to the 31st December. Group sales rose by 5.9% on a reported basis. Food did well with a rise of 5.6% or 0.6% on a like for like basis and continuing to increase its market share. Sales in clothing and home did even better on a like for like basis with a rise of 2.3%. Total like for like sales were up by 1.3%. The high street may still be a battleground but at least Marks emerged unscathed from the most important trading period of the year.
Tesco TSCO claims its first increase in market share since 2011 following strong and sustained progress in its 3rd quarter, covering the 13 weeks to the 26th November, which also produced the 8th consecutive quarter of volume growth. Over the 6 weeks to the 7th January the rise in like for like sales continued with growth of 0.3%, the UK being particularly strong with a rise of 0.7%. Clothes and toys produced over all sales rises of 4.3% and 8.5% respectively. The one weak point was International which produced like for like falls in both the 3rd quarter and over the 6 week Xmas period.
Mothercare MTC showed a return to growth in the UK for the 13 weeks to 7th January with a 1% rise in like for like sales but International sales still has problems with a total fall of 6% in constant currency terms, the day being saved by currency fluctuations which turned that into a rise of 13% in real terms. Online growth was particularly strong with a rise of 5.5% taking online’s percentage of total sales up to some 40% of total sales. Perhaps this is an indication of the future of retailing.
Debenhams DEB Is pleased with what it claims to be a resilient performance, with like for like sales over the 18 weeks to 7th January up by 3.5% or 0.5% on a constant currency basis. Online sales were strong with a rise of 13,9% taking online’s growth over 2 years to more than 25%. The 7 week Xmas period to 7th January produced like for like growth of 5% or 1.7% on a constant currency basis.
ASOS ASC provides more evidence of the growing power of online retailing with growth which dwarfs that of the high street retailers. Total group revenue rose by 30% on a constant currency basis for the 4 months to the end of December. The UK looked positively pedestrian against this with a rise of only 18%, which ASOS nonetheless claims is a strong performance in a more promotional market.
Villas & houses for sale in Greece – visit; http://www.hiddengreece.net
Brand CEO Alan Green talks Feedback (FDBK), Burberry (BRBY) & ASOS (ASC) on TipTV
Brand CEO Alan Green discusses Feedback (FDBK), Burberry (BRBY) & ASOS (ASC) with Zak Mir on TipTV.