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Alan Green talks inflation, BP #BP, Blue Prism #PRSM & Karelian Diamonds #KDR on UK Investor Magazine podcast
We once more welcome Alan Green back to the UK Investor Magazine Podcast for our weekly exploration of UK equities and global markets.
UK inflation was today’s topic of discussion before we drilled down into BP (LON:BP), Blue Prism (LON:PRSM) and Karelian Diamonds (LON:KDR).
UK inflation rose to 2.1% in May as fuel, recreational goods and clothing helped prices higher as the economy reopened. A reading of 2.1% is marginally above the Bank of England’s target rate of 2% but with signs prices could elevated, there may be concerns in some corners of the market that it will force the BoE to hike rates in an economy not fully recovered from the pandemic.
As a gauge of the market’s feeling around potentially higher rates in the future, GBP/USD spiked higher by 40 points to GBP/USD 1.4120 in immediate reaction, before falling back.
Fuel prices rose 17% year-on-year, the biggest jump since 2017 as oil prices continued their march higher.
Alan Green talks COVID stocks Novacyt #NCYT), Synairgen #SNG, Avacta #AVCT, plus Blue Prism #PRSM & Capita #CPI on the UK Investor Magazine podcast
The UK Investor Magazine Podcast is joined by Alan Green for a run down of the dramatic moves in markets this week and exploration of scenarios going into the end of 2020.
The Biden Presidential victory has been overshadowed by news from Pfizer had a breakthrough in the fight against COVID-19 with a vaccine demonstrating 90% effectiveness. We look at the sharp rally in markets and question the sustainability going forward.
We discuss Novacyt (NCYT), Synairgen (SNG), Avacta (AVCT), Blue Prism (PRSM) and Capita (CPI).
Alan Green talks Cadence Minerals #KDNC, Castillo Copper #CCZ & Blue Prism #PRSM on Vox Markets podcast
Alan Green discusses Cadence Minerals #KDNC, Castillo Copper #CCZ & Blue Prism #PRSM with Justin Waite on the Vox Markets podcast. Interview is 23 minutes in.
Hays Drops 8% in London
Hays pls HAS earned all time record net fees in the quarter to 31st March with like for like group fee growth of 10%. Full year operating profit is now expected to be at the top of the current range of market estimates. Continental Europe and the Rest of the World produced 18% broad based growth, led, as usual, by Germany with 23%. Also, as usual, it seems these days, the UK and Ireland performed very badly with a fall of 4% and very significantly London doubled that with an 8% drop.
This is the second time in two days that a major global UK company has reported bad results from the UK which just does not seem to be able to get its act together and grow like the rest of the world is growing. Are these signs that the UK economy is developing or has developed serious problems in its service industries where in the past it has always shone.
There are numerous manufacturing companies, brilliant technology companies which are becoming or have already become world leaders in their field in virtually no time at all, so there is no sign of our inventive genius having fled in the face of Brexit. Where are we going wrong in other areas ?
Blue Prism Group PRSM Expects that after strong first half sales so far and a continuing build up in momentum, full year revenue will be significantly ahead of existing market expectations. Interim results are due to be published in June.
SRT Marine Systems SRT expects that profit before tax for the year to 31st March will be significantly ahead of market expectations after earning revenue of £11m, also ahead of last year. During the year significant progress has been made in all its business segments on a world wide basis.
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Quoted Micro 8 August 2016
ISDX
Chapel Down Group (CDGP) has exchanged contracts on the 1.6 acre site in Ashford that will be used for the proposed new Curious brewery. The deal will be completed when planning permission is obtained.
Valiant Investors (VALP) has raised £71,000 at 0.1p a share in order for it to finance the development of 83.3%-owned apps developer and marketer Flamethrower.
Milamber Ventures (MLVP) says that its grant application partner Private Shares has invested £25,000 at 16p a share and it will invest a further £25,000 at the same share price once Milamber holds a concept development workshop. Any grant writing services provided before 18 February next year will be paid for in shares at 18p each. Milamber non-executive director Barney Battles has invested £12,500 in shares at 16p each and also converted £12,500 of fees into shares at 18p each.
AIM
A positive trading statement from software robots company Blue Prism (PRSM) lead to a share price rise of more than two-fifths. The share price was already nearly double the flotation price of 78p and it reached 211p at the end of the week. A new contract has been won with a major bank and another large bank has renewed its contract for three years. This means that the full year figures will be better than expected.
Branded interior furnishings supplier Walker Greenbank (WGB) has received a second interim insurance payment of £3.2m relating to the flooding at the Standfast & Barracks printing factory in Lancaster at the end of 2015. A payment of £8m had already been paid. An £800,000 payment is expected soon and there could be more to follow. The factory is almost back to full production following the installation of new digital printers and the backlog of orders is being fulfilled. Overall group trading is in line with expectations. UK sales have fallen but overseas sales have grown. There could be a modest boost from the weakness of sterling.
Domain names wholesaler and services provider CentralNic (CNIC) has been awarded the contract to distribute the .FM domain by its owner BRS Media. CentralNIc plans to promote the top level domain to online streaming businesses. The deal also includes the launch of other domains including .AM.
Asset management software provider StatPro (SOG) continues to transfer customers to its StatPro Revolution SaaS-based service. In the six months to June 2016, revenues improved from £15.4m to £17.6m, while underlying pre-tax profit was slightly lower at £827,000. The real benefits of the transfer to monthly revenues for Revolution will show through next year. Edison forecasts a small increase in profit from £2.6m to £2.8m this year and then a 2017 profit of £3.7m.
Ultrasound simulation equipment developer and supplier Medaphor Group (MED) is acquiring Inventive Medical Ltd, which sells cardio ultrasound simulation products under the HeartWorks brand. Medaphor already has a relationship with Inventive Medical and the companies’ products are complementary. Medaphor is paying £3m in shares – at 43p each – for the company. Loss-making Medaphor has £3.5m in the bank and this should last until the end of 2017.
TechFinancials Inc (TECH) enjoyed a strong first half, which has reassured investors following the disappointment of its failed joint venture in Asia. Revenues grew by 30% to $9.6m, while EBITDA nearly doubled to $1m.Full year forecasts have not been changed but there could be scope for upgrades later in the year.
Cloud-based communications software and services provider CloudCall Group (CALL) is raising up to £3.77m at 57.5p a share – a 3.6% premium to the previous closing price. The cash will be used to expand sales activities, particularly in the US. This investment will be coordinated with its partner Bullhorn, which is starting to sell outside of its core recruitment customer base. CloudCall’s product is used by 12% of Bullhorn’s UK customers and 2% of its US customers.
MayAir Group (MAYA) has announced the commencement of a share buyback of up to 10% of its share capital. A maximum of £5.76m can be used for this buyback. This follows $17.7m of industrial and commercial clean air equipment contract wins in recent weeks.
MAIN MARKET
Engineering and environmental consultancy Waterman Group (WTM) expects to report a full year pre-tax profit in excess of its target of £3.3m. Waterman had set itself the target of tripling its profit in the three years to June 2016. Net cash has increased from £3.8m to £5.4m. Trading continues to be strong. The results will be published on 10 October.
Andrew Hore