MOVERS OF MONDAY 30 DECEMBER
(LON:CMCX ) shares ticked up 4.14% to 389p after record performance
In recent weeks, the online trading platform posted a record 1H21 performance with net operating income up £128.6 million (126%) to £230.9 million (H1 2020: £102.3 million).
The company highlighted to investors that its CFD business has seen ‘significant revenue growth’ as a result of its ‘ongoing focus on its high value, sophisticated global client base and continuous improvements to its risk management strategy and customer proposition.’
Gross CFD client income increased 68% to £173.6m, with client trading activity across the business improving significantly due to market conditions. Client income retention also rose 115% (1H20: 82%) which is usually expected to reduce in more normalised conditions.
Following a strong 1H21, a strong start to 2H21, and encouraging signs in regard to the longevity of new clients, the Board said it is confident that net operating income for the year will be in excess of £370m while H2 2021 operating costs are likely to be similar to 1H20.
Chief Executive, Peter Cruddas, said he believes that CMC is in “an excellent position”. He commented that, “the significant increase in net trading revenue across all areas of the business in H1 2021 is a result of the Group's unwavering focus on our strategic initiatives.”
Shares in the video advertising technology group increased by over a quarter after the group reported a period of ‘record revenue and profit growth’ for the year ending 31 December 2020.
Tremor International’s share price fell sharply back in June 2020 when the company told investors that trading had been “severely impacted” by the ongoing Covid-19 pandemic.
However, Tremor has since driven ‘substantial customer momentum’ in 2H of the current financial year, demonstrating strong organic growth despite the impact of Covid-19.
Revenues generated across October and November 2020 were the highest in its history. The company now expects to achieve 37-43% revenue growth in 2H20, compared to H2 2019.
As a result of this performance, Tremor expects trading for the year ending 31 December 2020 to be significantly ahead of the ranges outlined in its October 2020 trading statement.
This included $340-360m for revenues and $30-36m in Adjusted EBITDA. Tremor now expects revenues, net revenue* and Adjusted EBITDA to be in the ranges of $390-400m, $171-175m and $50-52m respectively.
Tremor believes its current growth trend is set to continue, ‘reinforcing the synergies of its recent acquisitions and the benefits of Tremor's strengthened footprint in the market.’
The online provider for UK consumers moving home, has sold its wholly owned subsidiaries Conveyancing Alliance (Holdings) and Conveyancing Alliance ("CAL") £27.3m in cash.
The two subsidiaries will be sold to Project Ophelia Bidco Limited, a company which also controls O'Neill Patient Solicitors LLP which is the largest conveyancer on the CAL panel.
The proceeds from the disposal will be used to repay all of the company’s existing debt facilities, leaving around £25 million of pro forma cash on its balance sheet, it noted.
Martin Rowland, Chairman of ULS Technology, has described the sale as “a pivotal moment” for ULS and said the disposal will enable the company to accelerate its growth strategy.
ULS said it has become ‘increasingly clear’ that CAL, which provides an effective but simple conveyancing comparison site to individual mortgage brokers, does not support this strategy.
The Group acquired CAL in 2016 for a total consideration including earn-outs of £12.5m on a debt free cash free basis. Since then, CAL has generated £6.5m in dividends for the Group.
The rare earth exploration company has been awarded a grant from the Industrial Strategy Challenge Fund, delivered by UK Research and Innovation ("UKRI"), for a new project which is known as "Rare-Earth Extraction from Audio Products" ("REAP" or the "Project").
The grant will go to HyProMag and its partners European Metal Recycling Limited and University of Birmingham. Mkango's subsidiary, Maginito Limited ("Maginito"), holds a 25% equity interest in HyProMag, with an option to increase its interest up to 49%.
As part of this, REAP will investigate ways of recycling rare earth magnets from speakers used in automotive and consumer electronics applications, which account for approximately 20% of the current market for rare earth magnets, according to Adamas Intelligence.
Mkango said this will represent ‘a significant opportunity’ for rare earth magnet recycling.
“Rare earth magnet recycling from end-of-life components represents a significant market opportunity and will become an increasingly important part of the rare earth supply chain in the UK, Europe and elsewhere,” said William Dawes, Chief Executive of Mkango Resources.
Shares in the consulting and digital services business have taken a hit despite gaining value in recent weeks after reporting that Q320 trading was ‘in line with expectations.’
The share price movefollows Capita confirming last week that it is in negotiations to sell its Education Software Solutions (ESS) arm which will give the group a chance to slash debts.
The company informed investors that it was putting the division up for sale earlier this year but stated that any disposal would require a shareholder vote and approval from its lenders.
Last week, Capita confirmed that it has entered into exclusive talks with European private equity firm, Montagu, over the potential sale of ESS. It told investors that ‘there can be no certainty that a sale will be concluded nor any certainty over the terms of any such sale.’
According to MergerMarket, the group offered £350-£400m for the division, the Financial Times reported this weekend - when asked, the FT said Montagu had declined to comment.
Brokers at UK Investment Bank, Peel Hunt, said the potential sale "could be crucial in reducing net debt and leverage to acceptable levels", with December 2020 net debt estimated to be around 3.4 times EBITDA, versus the current bank covenant of 3.5 times.
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