17th Jan 2024. 8.56am
Regency View:
Update
Regency View:
Update
Centamin’s maiden EDX drill yields encouraging results
Centamin (CEY) reported positive results from its maiden drill program on the Eastern Desert Exploration (EDX) landholding in Egypt. The program covered 3,000 km² of greenfield exploration tenements in the Nubian Shield.
The CEO, Martin Horgan, highlighted the encouraging drill results near the Sukari Gold Mine and emphasised Egypt’s attractiveness as an exploration jurisdiction. The company is well-positioned to leverage this, given its experience and long-standing presence in the country.
The 16,216-meter maiden drill program revealed significant gold mineralisation in targets like Little Sukari and Umm Majal, supporting the company’s growth strategy. Notable results include 46m at 3.3 g/t Au and 77m at 1.84 g/t Au at the Little Sukari prospect, and 18m at 2.33 g/t Au and 5m at 16.20 g/t Au at the Umm Majal prospect.
The 2024 exploration program is set to be exciting, involving geological mapping, ground surveys, and up to 15,000 meters of drilling for follow-up testing. Other activities include metallurgical studies, conceptual resource estimates, and optimisation studies.
The company also plans exploration activities on other blocks, such as Um Rus and Najd, with results-driven programs and sampling. Generative exploration activities, including soil geochemistry, rock chip sampling, and detailed geological mapping, aim to identify new drill targets across all licenses.
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Experian Q3 2023: Revenue jumps, upbeat on full-year prospects
Experian (EXPN) released a strong trading update for the third quarter ending on December 31, 2023.
The credit checking giant reported good growth, with a 9% increase in revenue at actual exchange rates and a 7% increase at constant exchange rates. The organic revenue growth stood at 6%. For the full year 2024, Experian expects organic revenue growth to be between 5-6%, with modest margin growth, all at constant exchange rates and on an ongoing basis.
In terms of regional performance, North America, which constitutes 67% of Group revenue, achieved 5% organic revenue growth, with positive contributions from various segments, including Health, Automotive, and Consumer Services. Latin America, contributing 15% to Group revenue, experienced impressive organic revenue growth of 13%, driven by positive performances in Brazil and Spanish Latin America.
The UK and Ireland, accounting for 12% of Group revenue, achieved 3% organic revenue growth. Strong performance in consumer bureau activities and new product initiatives contributed to this growth. Consumer Services in the UK and Ireland, however, reported flat organic revenue, reflecting stability in subscription revenue trends.
EMEA and Asia Pacific, contributing 6% to Group revenue, demonstrated a 7% organic revenue growth, with notable progress in key markets like Australia, India, and Italy.
Overall, Experian’s trading update indicates positive performance across regions, with a focus on organic revenue growth and ongoing activities.
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Hunting wraps up 2023 with strong performance and bullish outlook for 2024
Hunting (HTG) has released an in-line trading statement for the final quarter of 2023…
The oil and gas engineer anticipates adjusted earnings (EBITDA) in the range of $96-$100 million, with a revenue range of $925-$930 million. The EBITDA margin for the year is approximately 10.5%, showing improvement from 7% in 2022 and aligning with the 2025 target of 14-16%. The sales order book has strengthened, reaching around $575 million, reflecting a 21% increase from the 2022 year-end.
In Q4 2023, Hunting achieved strong cash generation, and the disposal of residual oil and gas production assets was completed to streamline operations. The 2030 strategy was launched in September 2023 and the 2024 EBITDA expectations remain unchanged at approximately $125-$135 million, driven by a robust sales order book.
The company’s diverse product lines contributed to solid top-line growth, with strong performances in South America, Asia Pacific, and international markets. Sales within the OCTG (Oil Country Tubular Goods) product lines and Subsea segments showed substantial growth, while the overall share of non-oil and gas revenue is expected to increase to approximately 8% of total revenue.
Hunting’s operating segments in North America, Titan, Subsea Technologies, EMEA, and Asia Pacific reported varying results, with positive performances and improvements in different areas. The Board is optimistic about 2024, expecting further EBITDA growth in line with market expectations based on the strong sales order book.
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JD Sports faces setbacks as peak season trading update falls short
JD Sports (JD.) faces challenges as its peak season trading update revealed a constant currency organic revenue growth of 6%, slightly below expectations. The like-for-like growth of 1.8% reflects the impact of milder weather affecting apparel revenue and a softer, more promotional peak trading season, indicating cautious consumer spending.
The gross margin rate for the period aligns with the previous year but falls below expectations due to heightened promotional activity. As a result, the full-year gross margin rate is anticipated to be slightly lower than last year. Various factors, including a reclassification of capital expenditures, lower interest income following the ISRG NCI acquisition, and dual running infrastructure costs, contribute to a profit before tax and adjusted items estimate ranging between £915m and £935m for the year ending February 3, 2024.
JD Sports remains comfortable with its current inventory position, but the challenges in the trading environment have impacted the overall outlook. The full-year results will be released in a timeframe similar to the previous year, with a full-year trading outcome update planned for March, including initial guidance for FY25.
CEO Régis Schultz acknowledged the challenges but highlighted progress in achieving the five-year strategic plan, with global organic revenue growth of 6% and the opening of over 200 new JD stores in the year. Despite increased promotional activity, the company maintains confidence in its strategy, continuing investments in the supply chain, systems, and stores, supported by strong cash generation and a healthy balance sheet.
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Qinetiq posts strong Q3, initiates £100m share buyback
Qinetiq (QQ.) has released a third-quarter trading update, showcasing good operational performance with continued organic revenue growth and operating profit margin in line with expectations.
The defence tech firm reported strong order intake, with year-to-date orders at approximately £1.35 billion and 95% of revenue under contract for the full year. Cash generation has been robust, exceeding 100% in the quarter, aligning with the expectation of 90%+ cash conversion for the full year.
EMEA Services performed well, with strong revenue growth offsetting modestly lower Global Solutions revenue due to prolonged US market uncertainty and budget delays. The Avantus revenue growth is expected to be around the lower end of second-half expectations, but the business continues to secure significant new contracts aligned with national defense and security priorities.
Qinetiq also announced the initiation of a share buyback program to return up to £100 million to shareholders over the next 12 months, subject to shareholder approval. The decision is driven by the Group’s strong balance sheet, high cash generation, and the Board’s view of the current undervaluation of the company. The buyback program is considered an attractive use of capital to enhance shareholder value while maintaining financial flexibility for ongoing strategic growth initiatives.
CEO Steve Wadey expressed confidence in delivering another year of good organic growth, stable margins, and strong cash conversion. The share buyback program reflects the Group’s commitment to delivering long-term sustainable growth and maximizing shareholder returns.
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Tesco reports robust Q3
Tesco (TSCO) has reported strong trading results for Q3 and Christmas, revealing a solid 6.9% increase in like-for-like sales across the UK and the Republic of Ireland (ROI).
In the UK segment alone, there is a robust growth of 7.5%, supported by strong market share performance and consistent volume growth. The ROI segment achieved an impressive 7.3% rise, propelled by strong performances in fresh food and substantial market share gains.
Booker, a key contributor to Tesco’s success, recorded a 4% increase in like-for-like sales. Despite Central Europe facing challenges, Tesco maintains a solid overall retail growth of 6.4%.
Ken Murphy, Tesco’s Chief Executive, acknowledged the exceptional efforts in providing a strong range of value-for-money and high-quality food, contributing to Tesco’s best Christmas yet. As Tesco heads into the New Year, the CEO reiterated his confidence in the company’s strategy and its ability to continue delivering for customers.
The announcement reflects Tesco’s ongoing efforts to stay competitive and meet customer expectations in the hyper-competitive retail landscape.
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Disclaimer:
All content is provided for general information only and should not be construed as any form of advice or personal recommendation. The provision of this content is not regulated by the Financial Conduct Authority.
Disclaimer:
All content is provided for general information only and should not be construed as any form of advice or personal recommendation. The provision of this content is not regulated by the Financial Conduct Authority.