JTC PLC saw its shares surge 8.5% higher to 834p in late afternoon trading after the fund manager reported growth in both revenues and profits in the six months to June 30, 2022.
The group said first-half revenues had risen by 38.8% to £93.0mln leading to a 46.7% advance in underlying operating profits to £20.2mln and 49% growth in underlying pre-tax profits to £16.9mln.
JTC highlighted an "outstanding performance" and improved margins in its ICS division, with good growth and new business wins, while high performances were said to have continued in its PCS division, with solid margins and good new business wins.
BT Group lower even as Deutsche Bank upgrades
BT Group PLC shares were lower in afternoon trading, down 0.5% at 143.85p even as Deutsche Bank analysts took the telecom giant's stock off its 'Sell' list upgrading the company to 'Hold' after it went below its unchanged 140p price target.
The stock retreated from a session high of 147.55p in line with a reversal by the FTSE 100 index following some disappointing US inflation numbers.
Although the Deutsche Bank analysts view the shares as more expensive than telco peers (especially relative to risk) they said they feel there is now a less skewed balance of potential newsflow.
The Deutsche Bank analysts said BT could benefit from a stay on planned tax rises, ongoing inflation feeding through automatically to prices and perhaps a stronger pound which would benefit 'domestic' stocks within the FTSE 100 index. Against this is consumer and B2B weakness and the risk of higher churn in the face of higher prices and a recession, they cautioned while ultimately alt-net proliferation will increase both business-to-commerce and business-to-business competition.
Fevertree shares advance despite fall in profits
Shares in Fevertree Drinks PLC soared 11.5% this morning despite the group reporting a drop in first-half profits which were hit by rising costs.
In the six months to June 30, 2022, pre-tax profit slid 30% to £17.6mln, while adjusted earnings before interest, tax, depreciation and amortisation were 25% lower at £22mln.
Revenues rose by 14% to £160.9mln but the gross margin declined to 37.4% from 44.1% in the same period last year.
Fevertree highlighted increased sea freight costs and while it has taken pricing actions to mitigate these increases this was not enough to offset the impact of inflationary headwinds in the first half.
Broker Peel Hunt remained positive. “The revenue growth delivery, product innovation, market share gains in all geographies and the margin recovery potential from self-help provides an attractive investment case for a high quality, asset-light, branded consumer staple play,” its analysts said.
Ocado slides after retail arm warns on profits
Shares in Ocado Group PLC fell 13% following a warning of lower sales and profits at its Ocado Retail joint venture.
Richard Hunter, head of markets at interactive investor said today’s warning from Ocado Group of lower sales and profits at Ocado Retail has the impact of confining Ocado to becoming a perennial “jam tomorrow” stock.
Hunter said Ocado Retail, the joint venture with Marks and Spencer PLC, remains the major driver of group revenues, but lighter baskets and heavier costs are weighing on progress.
“Even though it accounts for around 90% of total group revenues, today’s statement relates solely to the joint venture with Marks & Spencer and does not, therefore, provide an update on the Solutions business” Hunter noted, adding: “The high-tech and unique offering driven by robotics and seamless delivery is one where strong growth has been long-anticipated but has yet to materialise meaningfully.”
Hunter concluded: “The jury remains out on prospects for the time being with the market consensus still stuck at a hold, albeit a strong one.”