The following is a round-up of updates by London-listed companies, issued on Thursday and not separately reported by Alliance News:
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Pittards PLC - Yeovil, Somerset-based leather and leather goods producer - Pretax profit for 2022 will fall short of market expectations, as a ‘number of factors’ hurt its performance in the latter part of the year. It took a $1.5 million hit in the latter part of the year, stemming from post-mini-budget pound weakness hurting its UK business, amid a dollar-denominated overdraft and maturing hedges. ‘US dollar revenues make up a high proportion of sales and the group’s hedging strategy involves a combination of forward USD hedges and a USD overdraft, which is aimed at allowing the business time to adjust selling prices and costs in the event of a change in the value of the GBP,’ Pittards explains. It adds that sales were weaker in the final quarter of 2022, amid customers destocking ahead of Christmas and an early Chinese New Year.
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R&Q Insurance Holdings Ltd - speciality non-life insurer - Hails ‘record year’ for F&Q Accredited offering in 2022. Gross written premiums rise 80% to $1.8 billion from $1.0 billion. Programme fee income jumps 78% to $80.0 million from $45.0 million. In addition, it will sell 40% of Tradesman arm to Roosevelt Road Capital Partners LLC, the controlling shareholder of the remaining 60%. ‘The total consideration is $47 million, subject to post-closing adjustments based on 2022 audited financials of Tradesman. Approximately $41 million of the consideration will be paid in cash upon closing of the transaction and another $6 million will be paid in the form of a 2-year promissory note. R&Q will use the proceeds from the transaction for general corporate purposes and to pay down debt,’ R&Q says. Tradesman is a managing general agent.
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abrdn European Logistics Income PLC - investment fund focusing on European logistics real estate - Portfolio value falls to €758.7 million at December 31 year end, from €807.4 million. Decline due to ‘market wide outward yield movements as a result of rising interest rates’. Net asset value per share falls 8.0% to 118.9 cents from 129.2 cents at end of September. ‘The portfolio valuation fell in the final quarter of 2022 as property yields moved out and values weakened across all parts of the real estate sector, a result of rapid central bank rate rises. Despite this, the portfolio has demonstrated its resilience versus the greater declines witnessed in the wider listed sector, reflecting the strategic location of our assets, the strength of the occupational market supported by historically low vacancy rates and that the majority of our leases are subject to annual indexation. Whilst we expect the macroeconomic uncertainty to persist in the first half of 2023, the critical undersupply of Grade-A space and continued supply chain reconfiguration should underpin ongoing rental growth,’ abrdn fund manager Troels Andersen says.
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Regional REIT Ltd - real estate investment trust - Announces fourth-quarter dividend of 1.65 pence per share, meaning a total 2022 payout of 6.6p, up from 6.5p. Says fourth quarter rent paid stands at 97.2%, or 97.9% when including adjustments for monthly rents. For the year, rent paid is 98.4%, or 98.6% when factoring in those on monthly rents. Portfolio value falls to £789.5 million in 2022, from £906.1 million in 2021. ‘Although, as elsewhere in the commercial real estate sector, property valuations were impacted negatively during the period by the macroeconomic environment, operationally the company has performed well,’ CEO Stephen Inglis says.
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Trident Royalties PLC - mining royalty and streaming company - Says Thacker Pass lithium asset operator Lithium Americas Corp receives ‘letter of substantial completion’ from US Department of Energy Loan Programs Office for financing support application for project. Letter says application ‘contains all the information necessary to conduct an eligibility assessment’ for department’s Advanced Technology Vehicles Manufacturing Loan Program. If LAC is offered the loan, it expects 75% of Thacker’s capital costs for construction to be financed. It would be in addition to a $650 million equity investment by General Motors Co as part of a supply agreement. ‘With the expected funding from the ATVM Loan Program, in combination with GM’s $650 million equity investment and cash on hand, LAC expects to have secured the necessary funding to substantially de-risk Thacker Pass Phase 1 construction,’ Trident says. Trident holds 60% interest in a gross revenue royalty over the entirety of Thacker Pass. In addition, Trident completes a gold royalties agreement with Franco-Nevada Corp relating to the sale of pre-production gold royalties. The move generates proceeds of up to $15.6 million. ‘The transaction has delivered to Trident a significant return on its initial investment, while balancing the gold exposure within its portfolio and further strengthening the company’s balance sheet for subsequent acquisitions,’ Trident adds.
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Pembridge Resources PLC - copper-focused mining company - Gold output in 2022 rises 3.3% to 12,168 ounces, from 11,783 ounces a year earlier. Silver output improves 0.4% to 135,878 ounces from 135,354. Payable copper production for 2022 was 28.9 million pounds, up 13% and in line with 28.0 million to 31.0 million expectation. ‘Copper sales increased in the first, second and third quarters of 2022, compared to the same periods in 2021,’ Pembridge says. Guides for 2023 copper output between 31 and 34 million pounds. Says Greg McKnight steps down as chair with effect March 15. Joe Phillips to replace McKnight. ‘Phillips has over 45 years of experience in the construction, commissioning and operation of mining projects in 13 countries in 5 continents. Over his career he has directed the construction, commissioning and operation of 11 plants and mining operations, all of which met or exceeded their designed capacities,’ Pembridge adds. Phillips is a current director.
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Ascent Resources PLC - Latin America and Europe-focused energy and natural resources company - Signs collaboration deal with Beryl International (Pty) Ltd which will see duo ‘identify and potentially fund’ two Latin American ESG metals opportunities, as well as new African opportunities introduced by Beryl. ‘The company believes that a number of opportunities contained within Beryl’s inventory of natural resource investments in South Africa are thematically consistent with Ascent’s strategy to acquire energy and resource processing businesses that offer early cashflow generation, modest capital investment, low geological risk and, critically, are consistent with the company’s core priorities in the environmental, social and governance arenas,’ Ascent adds. ‘Ascent and Beryl will collaborate with a view to identifying and securing resource processing operations in Africa, which are typically expected to have relatively low geological risk and the opportunity of being near term cash generative with a route towards profitability within the first year of operations.’ Beryl subscribes for £1.0 million in Ascent shares at four pence each.
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Gensource Potash Corp - fertilizer development company based in Saskatchewan, Canada - Strikes ‘new business relationship’ with indigenous Nekaneet First Nation. ‘Gensource is proud to welcome Nekaneet as a business partner in its goal to implement environmentally-leading modular and scalable potash production systems. Being a partner in sustainable resource development means participating in making business decisions for the creation of wealth to the benefit of a growing Indigenous community and growing province,’ Gensource says. The deal will see Nekaneet get equity ownership of Gensource, therefore an interest in the firm’s potash projects in Saskatchewan.
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Helium One Global Ltd - Tanzania-focused primary helium explorer - Enters cooperation agreement with Noble Helium Ltd which will see duo ‘cooperate in sourcing and securing a suitable drilling rig, associated services and arranging logistics’ for drilling campaign.
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