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Movers of Monday 10 May 2021

15:31, 10th May 2021
Francesca Morgan
Market Report
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Greggs (GRG) shares ticked up 11.34% to 2,611p as it says profits could return to 2019 levels 

In a trading update the British bakery chain said profits could return to pre-pandemic levels as the business has seen ‘a strong recovery’ since non-essential shops reopened last month. 

Greggs saw ‘a significant pick up in sales’ with the reopening of non-essential retail, in part reflecting the pent-up demand for retail which has boosted High Street footfall, it noted. Total sales in the 18 weeks to 8 May 2021 were £352m (2020: £280m, 2019: £373m).   

‘If restrictions continue to ease in line with current plans then we now expect our overall sales performance for the year to be stronger than we had previously anticipated,’ it said. 

Given its recent trading performance, the Board said it now believes that profits are likely to be materially higher than its previous expectation and could be around 2019 levels in the absence of further restrictions. 

GRG price chart

Kodal Minerals (KOD) shares jump 21.79% to 0.237p, increasing by nearly 50% in a week 

Shares in the mineral exploration and development company have increased by nearly 50% in value since 4 May 2021 when the company informed investors of its plans to buy back £60m of its shares before the Group enters a closed period ahead of its full-year results. 

Frasers, which is owned by retail entrepreneur Mike Ashley, unveiled the move despite warning investors that it is to suffer a £200m blow as a result of the COVID-19 pandemic.  

In last week’s statement, Frasers, which reopened its estate on 12 April 2021 following the easing of lockdown restrictions in the UK for non-essential retailers, highlighted to investors that “the purpose of the programme is to reduce the share capital of the company.”  

KOD price chart

Tern (TERN) shares rose 20.81% to 18p following publication of new web seminar 

Shares in the IoT investor jumped after it released a new web seminar featuring presentations by its portfolio companies, Wyld Networks, InVMA and Talking Medicines. 

Alongside these presentations, the company has also published a question and answer session which the company told investors is now available to view on its website. 

TERN price chart

URU Metals (URU) shares were up 20.34% to 360p as it receives extension for loan note 

Shares have gained value since the group unveiled to investors that it had been granted an extension for the Convertible Loan Note for a further 29 days with effect from 1 May 2021. 

The company originally announced that it had issued a US$0.25m convertible loan note back in May 2020 to Boothbay Absolute Return Strategies LP, a US-based financial institution. 

URU price chart

Provident Financial (PFG) shares fell 3.17% to 249.9p as it closes doorstep lending division 

Shares in the credit product provider fell after the company announced to investors that it is ending its doorstep lending business after 140 years in operation as part of its strategy to become ‘a broader banking group to the financially underserved customer.’ 

The Company said it had chosen to make the decision ‘in light of the changing industry and regulatory dynamics in the home credit sector, as well as shifting customer preferences.’ 

As a result, PFG will no longer offer any 'high-cost' products and it will not be issuing any high-cost or home collected credit products from any CCD entity in future, it explained. 

Looking ahead, Provident said it intends to build upon its existing unsecured personal loan product expertise during the course of 2021, in the 'mid-cost' segment of the market. 

PFG price chart

 

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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.

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