AO World (LON:AO. ) shares continue to rise at 6% to 383p with raised profits
The online electrical retailer recently said that it expects half-year profit to rise by 57% for the six months ended 30 September 2020 due to strong demand in the UK and Germany.
In a trading update released in recent weeks, AO World said that UK revenue rose by around 54% during the period with German sales increasing by 83% on a constant currency basis.
Sales momentum continued in Q1 and Q2 despite the competitor physical stores reopening as customers turned to buying online goods due to concerns regarding COVID-19.
“We believe we have seen a lasting step change in online penetration,” AO World said, further acknowledging that lockdowns have triggered a huge shift in consumer habits. Looking ahead, the group predicts that it is on track for its biggest ever peak trading period.
Russ Mould, investment director at AJ Bell, said, “Anyone working or furloughed at home only has to look out of their window to see delivery vans going up and down the road all day long.”
“Years ago, buying a new cooker would have involved a visit to a showroom and lots of chit chat. Now it's a simple check of the reviews and an order online in minutes,” he added.
Commenting on a positive trading performance, AO Founder and CEO, John Roberts, said:
"The last six months of trading have been like no other during my two decades in the business. AO was in good shape coming into this financial year and the global, structural shift in customer behaviour to online, accelerated by Covid, emphasised our strengths.
“Whilst we remain mindful of the uncertain economic climate caused by the pandemic and Brexit, we are on track with plans and well set for our biggest ever peak trading period in the UK and Germany,” he added.
The Group expects to announce its interim results for the period in late November 2020. Shares in the Company have skyrocketed over 250% since the beginning of the year.
Horizon Discovery Group (AIM:HZD ) shares skyrocketed 110.15% to 186.75p after receiving takeover bid from PerkinElmer
The company has agreed to a takeover bid from PerkinElmer Inc. The boards of the two companies have agreed on a 185p per share cash offer, valuing Horizon at around £284m.
Horizon said the acquisition represents ‘a compelling opportunity’ to realise the full value of their investment in cash at a substantial upfront premium to its prevailing share price.
Horizon focuses on commercialising the application of gene editing and gene modulation technologies to accelerate scientific innovation and biopharmaceutical drug development.
Today’s announced acquisition is currently expected to become effective in January 2021, subject to the satisfaction or waiver of the Conditions and certain further terms it noted.
Commenting on the takeover, Ian Gilham, Horizon’s Non-Executive Chairman said "Horizon has undergone a strategic transformation over the last two years and our reorganised portfolio gives us a strong position in the high-growth markets in which we operate.
“The Horizon Board believes Horizon is ready to be listed in the US and whilst this should create meaningful value for shareholders in the longer term, a combination with PerkinElmer represents an opportunity for Horizon shareholders to immediately crystallise the value of their investment in cash at a premium of 108.3 per cent. to the current share price.”
He added, “In addition, with the support of PerkinElmer, Horizon can accelerate growth and provide customers with a broader and more integrated offering. The Horizon Board is therefore unanimously recommending PerkinElmer's offer".
LiDCO Group (AIM:LID ) shares soared 74.07% to 11.75p with agreed takeover offer
LiDCO and US medtech firm Masimo have agreed to a takeover offer. Masimo is offering 12p a share for LiDCO which values the blood flow monitoring device market at £31.1m.
LiDCO believes the implementation of LiDCO's existing strategy as an independent company “has the potential to generate significant value for LiDCO Shareholders in the long-term.”
“However, the Board also recognises the challenges faced by LiDCO as a relatively small business competing against significantly larger players,” added Chairman, Peter Grant.
The company informed investors this morning that shareholders representing around 37.7% of the issued share capital of LiDCO have already accepted the offer from Masimo.
“The Offer of 12 pence per LiDCO Share provides certainty to the LiDCO Shareholders enabling them to realise, in cash in the near term, the entire value of their holdings at a significant premium to the price at which LiDCO Shares have traded in the market over the past few years,” added Grant.
Commenting on the Offer, Joe Kiani, Chief Executive Officer and Chairman of Masimo Corporation, said, “I believe the complementary strategic fit between our respective technologies and businesses will enhance the prospects for LiDCO's customers as part of Masimo Corporation's global operations."
Remote Monitored Systems (AIM:RMS ) shares jumped 50% to 4.85p as it continues to jump following update over its mask production amid the ongoing COVID-19 pandemic
Shares in the company have risen almost 400% since noting an announcement published by Braveheart Investment Group in respect of Pharm 2 Farm ("P2F") on 23 October 2020.
In recent weeks, Braveheart Investment Group revealed that its investee company "P2F" will launch the sale of a new antiviral face mask that can kill COVID-19 by the end of 2020.
The investment company conditionally agreed to sell its 51.72% holding in P2F back in August 2020 to Remote Monitored Systems (LON:RMS) for 310.4m shares in the latter. On completion of the sale, Braveheart’s stake in RMS will be taken to around 37.12%.
The surgical mask project commenced in June and follows P2F’s development of a textile coating incorporating proprietary nanoparticles to grant long lasting virucidal properties.
The first application of this technology has been to coat a fabric layer in surgical masks and produce a certified antiviral mask for both healthcare professionals and the public.
P2F received test results from two independent laboratories confirming that the mask has a ‘kill rate’ of over 90% for up to 7 hours, meeting requirements for ISO 18184 certification which is awarded to antiviral fabrics proven to deactivate over 99% of enveloped viruses.
P2F has purchased an automated mask production line which is on track to be delivered in November 2020. Manufactured in Europe, it has the capacity to produce up to five million standard or antiviral face masks per month and will be in production by the end of the year.
The survey and inspection services group Remote Monitored Systems released a statement last week stating that it was not aware of any reason for the recent rise in its share price. The company’s share price surged over 50% in early morning trading to reach a high of 4.95p.
Serco Group (LON:SRP ) shares fell 12.75% to 112.95p as Ministry of Defence steps in
Shares in Serco fell after Britain's defence ministry announced that the Atomic Weapons Establishment (AWE) contract will be nationalised and return to state control from June 2021.
AWE is responsible for the research, design, development, production and ongoing support and maintenance of the UK's nuclear warheads and is based at Aldermaston and Burghfield.
AWE Management, an entity which runs AWE to manage the UK’s weapons, has been led by a consortium of companies including Serco Group, Lockheed Martin and Jacobs since 2000.
“The change in model will remove the current commercial arrangements, enhancing the Ministry of Defence’s agility in the future management of the UK’s nuclear deterrent, whilst delivering on core MoD objectives and value for money to the taxpayer,” the government said.
The company told investors that AWE is expected to contribute about £17m ($22m) to both underlying trading profit and pretax profit in 2020. Assuming a smooth transition of AWE, Serco expects all profit to remain broadly in line with its current consensus and at similar levels to the group’s expectations for 2020, representing growth of around 35% over 2019.
According to Reuters, Sky News, which first reported the news, said it was not clear if the companies would receive compensation for the termination of the 25-year contract.
Analysts at Jefferies said they expected some compensation was likely as the consortium was now meeting its targets after a period of underperformance about five years ago.
Shares in Serco fell 13% in early deals on Monday after Serco said it would lose the contract.