MOVERS OF THURSDAY 14 JANUARY 2021

Francesca Morgan
Francesca Morgan
Market Report
16:33, 14th January 2021

Just Group (JUST FOLLOW) shares ticked up 16.13% to 80.03p following business boost 

In a business update for the year ended 31 December 2020, the retirement income specialist announced that retirement income sales for 2020 had increased by 12% to £2.1 billion. 

Meanwhile, defined benefit de-risking ("DB") sales were up 22% during the year to £1.5bn 

The group highlighted that the defined benefit market remains buoyant - ‘this has been the second highest year for market transaction volumes and the industry pipeline is very strong.’ 

During the year, the company noted that it has written 23 transactions. Meanwhile, DB De-risking sales in the 2H of the year were over £1 billion, a record six months for the Group. 

“As we head into 2021, supporting the welfare of our colleagues, providing outstanding service to our customers and distribution partners, and further improving the resilience of our capital position remain our top priorities.  We have a strong pipeline of new business and we start the year with increased confidence,” said David Richardson, JUST’s Chief Executive. 

The company highlighted that it would present its full year results on 11 March 2021. 

JUST price chart

Best of the Best (BOTB FOLLOW) shares jump 38.71% to 2,150p after raising profit expectations 

The company said it expects pre-tax profits for the full year to be materially ahead of management's expectations following ‘encouraging’ sales momentum for the period. 

"These strong results reflect our successful move to a pure online model together with our increased confidence in marketing investment as we look to accelerate growth,” said CEO, William Hindmarch, after revenue soared to £22.1m in the six months to 31 October 2020. 

Total revenue for the six months improved from £7.60m in FY19 while profit before tax soared to £6.8m from £1.38m. Net assets came to £6.75m (FY19: £2.26m), substantially underpinned by property and cash while cash as at 31 October 2020 stood at £11.18m. 

BOTB price chart

ARC Minerals (ARCM FOLLOW) shares rise 27.27% to 6.35p on possible deal with AAL 

Shares in the AIM-listed copper and cobalt explorer continue to rise for a second day in a row after it detailed to investors that it has commenced discussions regarding a possible exclusivity agreement with Anglo American subsidiary, Anglo Exploration Zambia Ltd. 

ARC’s two subsidiaries, Zamsort and Zaco, signed a confidentiality and six-month exclusivity deal with Anglo Exploration Zambia in respect of its copper exploration licenses in Zambia. 

At the time of the signing in July 2020, Arc Minerals stated that during the exclusivity period, Anglo American will be permitted to conduct a technical review which, if satisfactory, could result in an extension of the exclusivity and the negotiation of a commercial transaction. 

The company has noted there is no guarantee it will enter any commercial transaction. 

ARCM price chart

URU Metals (URU FOLLOW) shares were up 26.67% to 285p as it sells Zebediela Nickel Project 

The exploration and development firm said on Wednesday that it has entered into a letter of intent with Blue Rhino Capital to dispose of the Zebediela Nickel Project in South Africa. 

URU will receive 41m shares in Blue Rhino, which is 80% of the company's issued share capital, and a 2.5% royalty for the project, where an additional 2% can be bought for $3m. 

Upon the successful completion of the proposed acquisition of Zebediela Nickel Company which controls the project, it is anticipated that BRC will be listed as a Tier 2 Mining issuer on the TSX-V and will be involved in the exploration and development of the Project.  

URU price chart

Dunelm Group (DNLM FOLLOW) shares fell 6.33% to 1,212.5p despite 12% Christmas sales rise 

Shares the UK homeware retailer fell on Thursday afternoon trading despite posting a strong performance in the run-up to Christmas with sales rising 11.8% despite COVID restrictions. 

 During the quarter, it said consumer demand for homewares remained buoyant, and when its retail system, including stores, was fully open, it performed ‘significantly ahead of the market.’  

Online home delivery business has more than doubled since FY20 as DNLM said it ‘continues to enhance the digital customer experience and ramp up our operational capabilities.’ 

The company said it expects pretax profit for its 1H21 to come to around £112m for FY21 - up from £83.6m in FY20 - but it stated that it is unable to provide meaningful guidance for 2H21. 

Currently, all 174 stores are closed, with all but five stores still able to operate a Covid-secure and contactless Click & Collect service while Home Delivery services continue as normal. 

During the restricted store trading period, DNLM anticipates that Click & Collect and Home Delivery services will continue to be permitted. At this level of restriction, it expects to make ‘a modest weekly loss’ given its fixed cost base and the decision not to claim JRS support. 

DNLM price chart

 

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.

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