Galliford Try (GFRD), the UK construction group, announced that its Building division has signed two new contracts worth £101 million.
Comment (Ryan McCallum): Contract win from Home Office, Defence Infrastructure Organisation and Ministry of Justice framework solidifies forward reach of their order book away from traditional Civil engineering projects and Public services. One would expect a continuation of the uptrend for investors.
Sequoia (SEQI) announced the appointment of Paul Le Page as a non-executive Director of the Company, effective 7 June 2024. Mr Le Page is currently a Non-Executive Director of TwentyFour Income Fund Limited, a Non-Executive Director of NextEnergy Solar Fund Limited, and Chair of the Audit Committee of RTW Biotech Opportunities Limited.
Comment (Ryan McCallum): The appointment of Paul Le Page is a huge scalp.
JD Sports Fashion (JD.), the global retailer of sports, fashion and outdoor brands, today announced its full year unaudited results for the 53 weeks ended 3 February 2024. JD. said in the period, it again outperformed the market delivering organic sales growth of 9% and Premium Sports Fashion organic sales growth of 11%. This strong revenue performance was delivered in a challenging market, particularly through our peak trading period.
Comment (Ryan McCallum): Today’s unaudited results demonstrate the hierarchies move across to the US has not been plain sailing with revenue down on the year. However, it must be said the allure of an increased dividend up 12.5% and interest rate cuts expected in the 2nd half of 2024, the investment case may be stronger than anticipated from around 125p.
Frasers Group (FRAS) announced that it has recently increased its investment in Hugo Boss. After taking into account the net premium it will receive, Frasers Group’s maximum aggregate exposure in connection with its net acquired interests in Hugo Boss, with the common stock holding valued at the closing share price on 29 May 2024, is approximately €360m (c. £305m).
Comment (Ryan McCallum): A sensible move in trading one of the mainstays of high street labels, Frasers have been nimble in their approach to bought in brands. This trade can be seen as business savvy whilst Hugo Boss stock continues to rise.
Howard Investments Limited, a wholly owned subsidiary of Wittington Investments Limited has agreed to sell approximately 10.3 million ordinary shares (representing approximately 1.4% of the issued share capital) in Associated British Foods (ABF) to institutional investors.
Comment (Ryan McCallum): The placing of £262m demonstrates the secondary market has returned with healthier than expected appetite and rotation to continue into Q3-4.
Petrofac (PFC) issued its financial results for the year ended 31 December 2023 and an update on progress with respect to its review of strategic and financial options. The Company is in discussions with the Financial Conduct Authority to seek a reinstatement of trading in its shares.
Comment (Ryan McCallum): In their publication of FY results it must be highlighted as rather underwhelming given exceptional order intake and group revenue has been held back. In particular, the Thai Oil Clean Fuels contract where it is in negotiations to seek reimbursement of a proportion of the additional costs. In addition, the challenges in obtaining guarantees for it new EPC contracts, and the impact on liquidity, resulted in the business seeking to deliver a critical financial restructure, which is ongoing and has the full focus of the Board. There is a likelihood here that some M+A would be on the horizon for non-core assets of the company.
CMO Group (CMO) report finals to December and apologise as Revenue fell 14% to £71.5m with a loss before Tax of £2.3m compared to marginal profit of £0.2m. Almost every excuse under the sun is used including the Suez Canal. It listed in July 2021 at 132p claiming to be the UK’s largest pure online retailer of building materials and associated products. It set-out to be a ‘category buster’ with a range of 10 ‘online superstores’ in categories such as Building Superstore, Door Superstore , Drainage Superstore and Insulating and Plumbing etc. Revenues at the Tiles Superstore, one of the biggest categories, fell by 31% to £11m. The management encouragingly anticipate improvement … next year. It’s a relatively cash generative model but there is debt of £1.3m and the current year remains challenging.
Comment (Jon Levinson): At 22p with a £16m Mkt Cap it listed at a £95m mkt cap raising £27m of which £17m was for shareholders exits. We do not challenge the core assumption of underlying strength of the home improvement market and long-term structural shifts to online. HOWEVER, they need money and have disappointed the market on serial occasions…
Critical Metals (CRTM), a mining company established to acquire mining opportunities in the critical and strategic metals sector, currently developing the Molulu copper cobalt mine in the Democratic Republic of Congo, announced that it has received approval from the OTC Market Group for the Company’s ordinary share capital to cross-trade on the OTC Market’s OTCQB trading platform in the USA. Trading will commence when the market opens later today under the ticker symbol “CRTMF”. CRTM said studies show that trading on the OTC by an international company positively effects share liquidity and trading, and with an active development plan to unlock the inherent value of its Molulu project and favourable supply/demand fundamentals, it believes there is strong investor appetite for a company with growth fundamentals like CRTM.
Comment: Shares of CRTM have risen well since the company’s Zaks Traders Café interview a couple of weeks ago, something which underlined how oversold the stock was at a time of record copper prices, and progress at Molulu.
Ananda developments (AQSE: ANA), a company focused on becoming a leading provider of regulator approved CBD-based medicines for chronic inflammatory pain conditions announced that it is a founding member of the Cannabinoid Research and Development Group, established and co-Chaired by George Freeman MP and Professor Trevor Jones. ANA said it was pleased to be part of this taskforce and contribute to creating a robust framework for scientific exploration and drug development which benefits the UK and the global cannabis industry. The CRDGs focus on randomised controlled trials (RCTs) supports Ananda’s classical drug discovery approach to CBD based medicines, and it is confident that the group will work to create a joined-up framework for research and development in the sector.
Comment: Today underlines, as if we did not already know it, that ANA is very much part of the Cannabinoid establishment, something which gives us a very positive read across as far as its journey in terms of producing regulator approved CBD medicines.
ECR Minerals (ECR), the exploration and development company focused on gold in Australia, provided the final bulk sampling results from its reverse circulation drilling programme at the Kuboid Hill site in Creswick earlier this year. Bulk sampling of drilled material highlights high-grade pockets of gold within the broader scale mineralisation footprint. The Company also provides an update on its operations at Bailieston and Tambo in Victoria as well as its forthcoming plans in Queensland. ECR said these positive results from its bulk sampling campaign are highly encouraging, validating the significant potential value it sees in its Creswick gold assets. The discovery of higher-grade gold pockets within a broader low-grade mineralisation halo at Kuboid Hill provides additional evidence that similar mineralisation styles may be present within the Creswick license area.
Comment: Any weakness for ECR shares below 0.3p has been a technical and psychological buy point in the recent past, and it would appear that today’s news will mean that this is still the case.
Mosman Oil and Gas (MSMN) the hydrocarbon, helium and hydrogen exploration, development and production company, noted the update from Greenvale Energy Ltd (ASX:GRV), its farmin partner and Operator of the EP 145 project in the Amadeus Basin in Central Australia. Greenvale updated that: approvals are progressing and on track for seismic acquisition to commence in August, allowing it to advance its high-potential helium project in central Australia. MSMN said it is encouraging to see Greenvale has progressed the permitting and approvals process for this 2D seismic program for EP 145. Seismic is a step before drilling to test the significant potential of this exciting helium and hydrogen asset and it looks forward to providing updates as Greenvale progresses.
Comment: With helium currently being hotter than July – something we see in Helix, Pulsar and Georgina, today’s news should be a shot in the arm for fans of MSMN.
Tirupati Graphite (TGR), the specialist flake graphite company and supplier of the critical mineral for the global energy transition, announced the proposed appointment of Michael David Lynch-Bell as Non-Executive Chairman of the Company. TGR it was delighted to announce the appointment of Michael Lynch-Bell as Non-Executive Chairman. This demonstrates its commitment to enhancing the Board composition with wholly independent, highly experienced, and appropriately skilled operators.
Comment: TGR brings in a blue chip non-exec Chairman, with the question being whether this is timely enough, and whether it will placate shareholders with respect to the requisition. Lynch-Bell’s presence gives the allies a much needed boost as we go into D-Day next month.
Reabold Resources (RBD), the investing company focussed on developing strategic gas projects for European energy security, announced its audited financial results for the year ended 31 December 2023. Final tranche cash proceeds of £4.4 million for the sale of Corallian, received from Shell in January 2024; Reabold net cash of £8.2 million as at 30 April 2024.
Comment: Given that RBD has the cash and at more than its market cap, the question now is perhaps what it will do with it? Given that the company could tell Tirupati a thing of two about dealing with requisitions, the onus is on the company to progress, especially in terms of turning the share price around.
SEEEN (SEEN), the media and technology platform that delivers Key Video Moments to drive increased views and revenues across video content, announced a conditional Placing to raise a total of approximately £763,000 at an Issue Price of 3p per new Ordinary Share, to be undertaken in two tranches. SEEN said today’s announcement that it has secured in excess of $500,000 in additional annualised revenue for the Group this quarter reinforces its continued momentum and it anticipates further growth in its existing video commerce, SEO and social media markets.
Comment: Now that SEEN has got its fundraise out of the way, we would assume the financial bridge from here to profitability is now in place, something which should allow for a rebound in the share price.
Author
