AO World (LON:AO.) shares continue to rise 14.26% higher to 359.25p after group said it expects profits to rise
The European online electrical retailer 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 on Friday, AO World said that UK revenue rose by around 54% during the period with German sales increasing by 83% on a constant currency basis.
It said 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. Looking ahead, the group predicts that it is on track for its biggest ever peak trading period.
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.
Vela Technologies (AIM:VELA ) shares rose 38.98% to 0.102p following yesterday’s acquisition of interest in potential COVID-19 treatment for diabetics
The investment company announced that it has acquired an economic interest in a late-stage Phase II therapeutic project to develop a potential coronavirus treatment for diabetics.
The Company is investing £2.35m in the project, partly funded by a £1.25m raise via a placing of new ordinary shares at 0.065p for an interest in the potential asset from St George Street.
Under an agreement entered into back in August 2019, SGS acquired the right to develop and commercialise two assets from a major global pharmaceutical firm, one of which includes the licence to a drug that could benefit diabetic patients suffering with COVID-19.
Diabetics have significantly higher mortality compared with non-diabetic patients with COVID-19, and in clinical studies the drug, SGS002, has been found to be safe in almost 1,000 patients with diabetes and has a blood glucose lowering effect for four months.
Shares in Vela Technologies have increased 250% in value since August 2020.
“Vela looks forward to providing shareholders with news on the outcome of these trials as this highly regarded team pursues its quest for a drug to provide a therapeutic treatment for the effects of COVID-19 on diabetic patients,” said James Normand, Executive Director of Vela.
In a separate statement, the group posted its half-year results for the six months ended 30 September 2020 which it said represented ‘a significant period of activity’. Chairman, Brent Fitzpatrick, said Vela is positioned on ‘a stronger financial footing’ with a solid investment portfolio as well as a strong pipeline of near-term investment opportunities.
Vela is now debt free and well capitalised with a portfolio of six investments, holding cash on deposit as at 30 September 2020 of £1.628m. Post period end, Vela invested £0.25m in Mode Global Holdings plc, a UK-based fintech group, as announced on 5 October 2020.
Thor Mining (AIM:THR ) shares were up 32.77% to 1.175p after confirming visible gold
The exploration and development company said its latest sampling at the Pilbara Goldfield tenements project located in Western Australia has confirmed gold in stream sediments.
In a report from a third phase of gold geochemical sampling carried out earlier this month at the site, Thor said 3 of the 54 stream sediment sites confirmed the presence of visible gold.
The Company said that the presence of visible gold panning is ‘consistent along an interpreted 13-kilometre anomalous gold corridor’ and that 14 rock chip samples have been collected from a traverse within the corridor for assaying.
“Another step closer in the process of narrowing down Ragged Range drill target selection, with visible gold again found in the stream sediment samples consistently along the 13 kilometre corridor of anomalous gold,” said Mick Billing, Executive Chairman of Thor Mining.
Thor will now include a further sampling programme focussed on priority targets, subject to the findings of geochemical analysis and the recently flown airborne magnetic survey.
Pipehawk (AIM:PIP ) shares jumped 23.08% to 8p after pre-tax profit soars 1517%
The Company reported an increase of 23.9% in turnover for the year ended 30 June 2020 to £8.3m (2019: £6.7m) while its pre-tax profit soared 1517% to £0.194m from £0.012 in FY19.
Despite uncertainty around Brexit and ‘faffing around’ from politicians, Chairman, Gordon Watt, said a window of opportunity has enabled orders to be placed and allowed ‘some optimism to return with the business ultimately wrestling into an excellent trading result.
The Company said it was able to move forward with several orders that had previously been placed on hold as a result of the coronavirus pandemic, in particular, from the Company’s division QM Systems which saw its ‘best year ever both in terms of turnover and profit.’
‘Despite the extensive lockdown we all experienced for three months followed by the easing of the lockdown, QM Systems has continued to operate effectively,’ it told investors.
‘All divisions of the Group are currently performing well and I remain optimistic in my outlook for the Group, subject always to any unusually negative impact from further Coronavirus lockdown or an absurd reaction from the EU if there is a WTO term Brexit,’ added Watt.
Centamin (LON:CEY ) shares fell by 16.88% to 135.07p after lowering its guidance
Shares in the gold mining company slipped after the group lowered its guidance and posted lower gold production and sales as it paused operations at its Sukari project in Egypt.
The company said it sees guidance in a range of 445,000 to 455,000 ounces of gold produced for 2020, while 2021 production will decline at 400,000 to 430,000 ounces.
The dual-listed miner said production fell 2% to 128,240 gold ounces in the three months ended 30 September 2020 after slightly weaker ore mined and recovery rates. Sales declined 9% to 118,617 ounces whoever this was offset by a 12% increase in average prices.
The stronger gold price resulted in a 31% increase year-on-year in the average realised price of gold to US$1,933/oz. Revenue for the quarter was $230m, 43% higher than a year earlier.
The group added that it has commenced an increased waste stripping programme to improve optionality in the open pit, the benefits of which are expected to start to flow through in 2022.
‘We will present the conclusions of the Phase 1 Life of Asset review on 2 December 2020. This will cover in more detail the three-year outlook for Sukari, as well as a series of initiatives targeted at improving costs and productivity,’ the Company told investors this morning.