logo-loader

Joules shares recover some lost ground despite profit shortfall

Last updated: 02:37 09 Feb 2022 AEDT, First published: 19:37 08 Feb 2022 AEDT

internet of things

Joules Group PLC (AIM:JOUL), the clothing, accessories and homeware retailer, slumped more than 40% last week when it issued a trading statement and cut its full year profit guidance.

Now it has recovered some lost ground after it announced its half year results, showing profits up from £1.3mln to £2.6mln but below expectations.

It blamed supply chain issues, rising costs, Brexit-related duties and taxes which hit its EU business, and labour shortages.

Chief executive Nick Jones said: "Whilst the group experienced strong levels of customer demand that resulted in good revenue growth against the prior two comparative periods, group profitability in the first half was impacted by various factors, most notably the severe inflationary cost environment.

"We have a clear plan of action to simplify the business, enhance efficiencies and mitigate the cost pressures that will enable the group to convert the strong levels of customer demand into sustainable, profitable growth."

Last week it said it would spend less on marketing, sell old and slow-moving stock to outlets, change its wholesale operations and put up prices when it could.

On financing, it said: "The directors believe that the likelihood of the group being in breach of its facilities over the twelve months from the date of this report is low and that mitigating actions available are sufficient to address these risks.

"Therefore, there is a reasonable expectation that the group has adequate financial resources to continue to operate for at least the next twelve months from the date of this report."

Its shares are up 15.86% at 60.25p.

2.30pm: CAP-XX (AIM:CPX) climbs after winning US Internet of Things deal

CAP-XX (AIM:CPX) has seen its shares climb after America's MCCI Corporation chose the company's ultra-thin supercapacitors for its latest long range module.

MCCI chief executive Terry Moore said: "The thin CAP-XX (AIM:CPX) supercap handles the periodic wireless data transmissions that require high burst power, offloading that role from the battery and enabling designers to use smaller batteries in often space-constrained Internet of Things sensors."

CAP-XX (AIM:CPX) is up 9.9% at 5.55p.

12.11pm: Rainbow Rare Earths rises after positive update from South Africa

Rainbow Rare Earths Ltd (LSE:RBW) is heading higher after positive test results from its Phalaborwa Project in South Africa.

It said the results of the tests - conducted with Australia's ANSTO Minerals and US group K-Technologies - would allow the company to push ahead with the feasibility study for the project.

Chief executive George Bennett said: "We are delighted by this positive test work and are very reassured that results received to date continue to demonstrate Phalaborwa's robust fundamentals. The studies have identified several key opportunities for capital and operating cost savings as well as underscoring the significant environmental benefits of the project. The potential to participate further downstream in the value chain and produce rare earth oxides with 99.5-99.9% purity has been confirmed by K-Tech's study, which also highlights flexibility for phased project development if required."

Rainbow shares are up 3.58% at 17.35p.

11.11am: Deltex Medical drops as it raises £1.4mln to help fund launch of new monitor

Deltex Medical Group plc (AIM:DEMG) has dropped after the monitoring specialist raised £1.4mln at a discount to the market price.

The funds are being raised via a subscription for 111.72mln new shares at 1.25p each.

In the market Deltex is down 10.91% at 1.22p.

The proceeds from the fundraising will be used in part to launch and market its next generation TrueVue monitor, as well as for general working capital.

The company has also extended a £0.5mln standby loan from a company controlled by its chairman Nigel Keen from December 2022 for an extra year.

Its financial performance in 2021 was hit by the impact of COVID-19 and the subsequent delays in elective surgical procedures around the world, reducing demand for its equipment.

Keen said: "This fund raising enables Deltex Medical to develop and launch the next generation of its technology, including the new non-invasive TrueVue Doppler with significantly broader applications throughout hospitals.

"We believe that Deltex Medical will benefit this year from a combination of the world learning to live with COVID-19 and pressure continuing to build on health systems to reduce the substantial backlog of elective surgical procedures."

"The group's next generation monitor and new, novel non-invasive haemodynamic monitoring technology should help position Deltex Medical to build market share as the backlog in elective surgery is tackled around the world."

10.03am: Midwich Group on the acquisition trail with telecoms group purchase

Midwich Group PLC (AIM:MIDW) is looking bright after snapping up telecoms group Nimans.

The audio visual distributor is paying £27.5mln in cash to Nycomm Holdings for Manchester based Nimans, a specialist in communications and telecoms hardware.

Its key brand relationships include BT, Yealink and Jabra, and it has more than 2,500 telephony, IT and retail customers .

Midwich group managing director Stephen Fenby said: "Nimans is a long-established business with a great reputation for technical excellence, customer service and logistics.  Its traditional telecoms market has experienced significant change in recent years, bringing with it new revenue opportunities which the company has developed strongly, in areas such as unified communications, video conferencing, security and networking."

The deal is expected to be earnings enhancing in the year to 31 December 2022.

 Midwich shares have added 4.17% to 625p.

9.43: Filtronic shares jump after upbeat outlook

Filtronic PLC (LSE:FTC) is flying after returning to profit.

The maker of products for the aerospace, defence and communications markets, said half year revenues rose from £7.1mln to £8mln.

It made a £0.7mln profit compared to a £0.1mln loss this time last year.

Adjusted EBITDA climbed from £0.6mln to £1.1mln.

In an upbeat outlook statement chairman Jonathan Neale - recently appointed from McLaren - said:  "We are confident we will achieve a third consecutive year of EBITDA growth despite the headwinds of supply chain disruption from global semiconductor shortages. Coupled with a healthy cash position, this provides a robust platform to further develop the business and continue investing in revenue growth initiatives and the technology roadmap...

"Recent investments in product development and operational capability align with the UK government's ambition for sovereign capability within the core markets we serve, as well as emerging markets such as Low Earth Orbit Space. This positions us well to capitalise on these opportunities and we are now starting to see the flow down into the supply chain and our opportunity pipeline. To this end, we are confident we can achieve our key strategic objective of broadening the customer base to add to our recent contract win with a leading 5G over-the-air equipment provider."

Filtronic is up 8.66% to 12.77p.

8.37am: Avon Protection lifted by US defence order

Avon Protection PLC (LSE:AVON) is in demand after unveiling a US defence contract.

The company will supply its advanced combat helmet to the US Defense Logistics Agency in a deal worth a maximum of US$204mln over five years.

Chief executive Paul McDonald said: "This is another significant, multi-year helmet contract for Avon Protection, following the award for the U.S. Army next-generation Integrated Head Protection System...

"This contract helps underpin the medium-term outlook and visibility for Avon Protection and reflects the strength of our offering to both military and first responder customers globally."

The company's shares have climbed 6.89% or 76p to 1179p.

Also flying higher is Hummingbird Resources PLC (LSE:HUM).

The miner has added 5.77% to 13.75p after a positive update from the Dugbe gold project in Liberia, which is being developed by Pasofino Gold and where Hummingbird has a controlling interest.

The feasibility study on the project is expected to be completed by April, and Hummingbird chief executive Dan Betts said: "The completion of the [study] will mark a major milestone for Dugbe and complete its journey from being a pure exploration asset to a viable project, with strong project economic fundamentals."

 

 

Australian Strategic Materials signs US$600 million LoI

Rowena Smith, CEO and managing director of Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF), joins Jonathan Jackson in the Proactive studio to discuss the company’ s Dubbo Project, in Central West New South Wales. This project aims to extract and process critical minerals and rare earth...

10 hours, 17 minutes ago