Is the bottom of the market behind us?
Welcome to taking stock on....Wednesday 19th July 2023
It's a look at today's top business news & investment views plus the winners, losers, the most read & the most followed including:
Top Business Stories
Interest rates are predicted to rise less sharply after the UK saw a surprise drop in inflation in June.
The Bank of England has put up rates 13 times since December 2021 to try to cool soaring price rises, driving up borrowing costs for millions.
Experts say it is now under less pressure to act after inflation slowed to 7.9% in June, down from 8.7% the previous month.
It means UK inflation has dropped to its lowest level in more than a year.
Falling fuel prices contributed to the slowdown in June, while food prices are rising less quickly.
However, the UK's inflation rate remains almost four times higher than the Bank's official 2% target - and far above other developed countries.
WINNERS
- SweetBiotix® overview
Market need
The sugar substitutes market is projected to grow from USD 18.8 billion in 2023 to USD 24.3 billion by 2028, growing at a compound annual growth rate of 5.2% (Research and Markets, April 2023).
Meeting the market need
OptiBiotix has developed a portfolio of novel, patented, zero or low calorie sweet dietary fibres, called SweetBiotix®. They are unique in that they do not have the health concerns associated with sugar, corn syrup, or sweeteners and importantly, from a health and nutritional labelling perspective, are classified as dietary fibres.
- Trading Update
The Group has recently achieved new business wins in multiple EU countries which will generate revenue in excess of €500,000.
- Funding Update – issue of £2.2m Convertible Loan
LOSERS
- Trading Update
At the time of the interim results on 23 May, we announced the forward sale of our PBSA scheme in Bristol and noted that we had five other forward sales targeted for completion in FY23, two of which were under offer.
Since then, we have completed the announced forward sale of Titanic Quarter in Belfast. In the period since the interim results, market conditions have become more challenging.
In particular, the recent increases in interest rates and prevailing economic uncertainty have impacted negatively on market liquidity. As a result, there is now a greater degree of risk over these transactions completing by the year end.
In the event that we do not complete any new forward sales in the balance of the year, and taking into account the impairment charge referenced above, we would not expect to materially improve on the Underlying PBIT recorded in H1 of £2m. Our current expectation is that these challenging market conditions will persist into FY24, and against this more cautious backdrop, our FY24 PBIT is likely to be in the range of £15m to £20m.
At 30 June 2023 our gross and net cash position was £68m and £36m respectively.
Watkin Jones is the UK's leading developer and manager of residential for rent, with a focus on the build to rent, student accommodation and affordable housing sectors.
Most Followed
- Upgraded JORC Resource - Laguna Verde Li Project
Most Read RNS
- Result of Placing
Together, the Placing and Retail Offer was oversubscribed by both new and existing shareholders, and the Capital Raise in aggregate comprised 57,500,000 new Ordinary Shares, and will raise gross proceeds of approximately £5.75 million.
The Placing Price represents a discount of approximately 14 per cent. to the 30 trading day VWAP of the Company's existing ordinary shares for the period ended on 18 July 2023.
- Azule Acquisition & Sonangol Acquisition Update
SPA with Azule to acquire a further 12% of Block 3/05 and up to 16% of Block 3/05A
Amended Sonangol Acquisition to acquire 14% of Block 3/05 offshore Angola
Shares suspended.
In accordance with the AIM Rules for Companies, the Company's ordinary shares will be suspended from trading on AIM with effect from 7:30 a.m. today. Trading in the Company's ordinary shares will remain suspended until such time as either an admission document is published, or an announcement is released confirming that the Amended Sonangol Acquisition and the Azule Acquisition are not proceeding. The Company expects to publish the Admission Document in early Q4 2023, with both the Azule Acquisition and the Amended Sonangol Acquisition being subject to shareholder approval thereafter. We now expect both transactions to complete, subject to shareholder approval, in Q4 2023.
RNS Worth Reading
- Half Year Report
Financial and operational KPIs
· H1 revenue of US$31.8 million (H1 2022: US$40.9 million), predominantly reflecting the loss of the Morbid podcast which left the network in May 2022
· Q2 revenue of US$16.4 million, up 6.5% on Q1 2023 (US$15.4 million)
· Total H1 adjusted opex of US$5.5 million, down 11% on H1 2022 (US$6.2 million), demonstrating strong cost control
· Adjusted EBITDA profit of US$0.3 million (H1 2022: US$2.0 million)
· Group cash at 30 June 2023 of US$5.3 million (31 March 2023: US$5.1 million), with a further US$1.9 million available via an undrawn overdraft. A further US$2.7 million has been collected in July
- AGM Statement
H1 2023 Revenue Guidance
The Company has performed strongly in the year to date and continues to trade in line with expectations as set out in its 2022 Full Year Results and Current Trading announcement on 28 June 2023.
Driven primarily by the delivery of a number of large-scale projects in the U.S., Canada and Australia (see pictures below), the Company advises that it now expects to recognise total income of no less than £13.0m for the first half of 2023 (HY22: £1.4m), representing a more than 9.3x increase period-on-period and a 3.6x increase when compared to total FY22 income (£3.6m).
The Company will announce its full interim financial statements to 30 June 2023 in September.
Revenue for 2022 was £3.6m, here’s the forecasts with the % increases.
2023E = £25m (7,700%)
2024E = £52m (108%)
2025E = £120m (130%)
- Significant Progress in Paraguay
Highlights:
· Increase of 120-megawatt ("MW") power purchase agreement ("PPA") at Phase I Villeta Project to 145MW
· Entry into 300MW pre-PPA agreement for Phase II Yguazu Project with commencement of necessary studies
· Approval of ATOME's application for tax-free zone status at Villeta Project conditional on completion of environmental studies
· Multiple expressions of interest from leading international players for offtake of Phase I Villeta production
· Final Investment Decision ("FID") for Phase I Villeta expected in Q4 2023
Top Business Stories
Jaguar Land Rover-owner Tata has confirmed plans to build its flagship electric car battery factory in the UK.
The new plant in Somerset is expected to create 4,000 UK jobs and thousands more in the wider supply chain.
Tata said it will invest £4bn in the site but it is understood that the government is providing subsidies worth hundreds of millions of pounds.
The plant is described as the most important investment in UK automotive since Nissan arrived in the 1980s.
The new gigafactory, at 40GWh, will be one of the largest in Europe and will make batteries for Jaguar Land Rover vehicles like Range Rover, the Defender and the Jaguar brands.
The plan is to supply other car manufacturers as well, with production at the new factory is due to start in 2026.
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.