Weekly review
By Josh White
Date: Friday 27 Dec 2024
(Sharecast News) - The FTSE 100 ended the Christmas-interrupted week down 49.33 points, or 0.6%, closing at 8,149.78 on Friday.
Equity view
Maritime tech group SRT Marine Systems has said it has kicked off a new maritime domain awareness contract worth $9m over a 10-year period. The contract was first announced in November but has now been signed and started, SRT said on Friday. The new work is for an existing Middle East coastguard customer, which is upgrading its systems to integrate more sensor systems and new functionalities.
Life science investor Syncona said its investment Achilles Therapeutics has sold cancer study assets to AstraZeneca for $12m (£9.58m). The deal involves transferring of the commercial license of data and samples from Achilles' TRACERx non-small cell lung cancer study to AstraZeneca, including samples and data. Achilles added that it intended to cut an unspecified number of jobs and reduce the size of its board of directors.
Titanium minerals and zircon-focused miner Kenmare Resources has reassured investors that operations at its Moma project in Mozambique are continuing as normal despite civil unrest spreading across the country. Kenmare said that there have been "no material incidents" and no damage to facilities at the Moma Titanium Minerals Mine on Mozambique's north-east coast.
Gemfields updated the market on the unrest in Mozambique on Thursday, reporting two deaths as "illegal" ruby mining groups exploited ongoing political instability. The AIM-traded firm first reported disruptions, including fires and attempted invasions, on 24 December, targeting facilities operated by Montepuez Ruby Mining Limitada (MRM), a joint venture in which Gemfields holds a majority stake. It said that on Christmas Eve, over 200 people attempted to breach the MRM residential village near Namanhumbir, setting fire to structures, including a community cash point.
Point-of-care pharmacogenetic testing specialist Genedrive announced on Friday that clinical performance data for its Genedrive CYP2C19-ID Kit had been published in the Journal of Molecular Biology. The AIM-traded firm said the study highlighted the test's advantages over laboratory platforms and other point-of-care alternatives in identifying genetic variants critical for guiding the use of clopidogrel in patients with ischemic stroke (IS) and transient ischemic attack (TIA).
Democratic Republic of the Congo-focussed tin explorer Rome Resources announced the receipt of subscription funds from Stanvic on Friday, as part of its strategic investment initiative. The AIM-traded firm, formerly known as Pathfinder Minerals, said that, following the receipt of the funds, it expected the admission of the corresponding subscription shares to trading on the AIM market at 0800 GMT on or around 30 December.
AstraZeneca has pulled its European marketing authorisation application for its non-small cell lung cancer treatment based on the results of a phase III trial. The filing for datopotamab deruxtecan (Dato-DXd), jointly developed by AstraZeneca and Japanese pharma group Daiichi Sankyo, was voluntarily withdrawn after feedback on the Tropion-Lung01 trial from the Committee for Medicinal Products for Human Use of the European Medicines Agency, the company said on Tuesday.
Israeli maritime tech group Windward has received a £216m takeover offer from a US private equity firm that has been unanimously recommended by its directors, causing shares to soar early on Tuesday. FTV VIII, a fund managed by FTV Capital, has offered 215p per share for Windward, a 47% premium to Monday's closing price of 146p and a 92% premium to the six-month average.
Shares in Kooth jumped on Tuesday after the youth digital mental healthcare company announced a new $1.5m pilot contract in the US and a £1.5m share buyback plan. The new contract will see Kooth provide mental health support via its Soluna platform to school districts within New Jersey, reaching 50,000 students aged 13 to 18, for an initial period of one year from mid-January 2025.
Harworth Group, a UK-based specialist in regenerating land for sustainable development, announced the completion of the £53.5m sale of its 278-acre strategic land site in Ansty, Warwickshire, to Rugbyalpha Freeholdco on Tuesday. The FTSE 250 company said the deal, originally agreed in December 2021, was contingent on the successful grant of hybrid planning permission, which had since been achieved. It said the Ansty site, located near Junction 2 of the M6 with links to the M69, was acquired by Harworth in 2019, with additional land assembly completed over the following two years.
Gemfields said on Tuesday that there could be interruptions to its mining operations in Mozambique due to civil unrest. "On Monday 23 December 2024, the Mozambican Constitutional Council issued its decision regarding the October 2024 election," Gemfields noted, adding that news of the ruling has given rise to further unrest in Mozambique. Gemfields has several operations in Mozambique's northernmost province of Cabo Delgado, the largest being Montepuez Ruby Mining Limitada in Mozambique (MRM), in which it owns a 75% share.
Self-storage group Safestore said on Tuesday that it has entered into a 50/50 joint venture with Nuveen Real Estate to acquire Easybox, Italy's second largest self-storage operator by number of stores, for €175m. Safestore will make an initial investment of around €45m for its share in the JV, which has also been funded by joint venture level debt. The investment is estimated to have a negative earnings per share impact of 0.3p in FY25 and to be accretive to EPS in FY27 as the newly developed stores mature.
Technology specialist Cohort announced a revised timeline for its acquisition of EM Solutions, a subsidiary of Australia's Electro Optic Systems Holdings, on Tuesday. The AIM-traded firm said the transaction, initially expected to close earlier, was now anticipated to complete by the end of February. It said that any impact on EM Solutions' net contribution to Cohort's financial performance for the year ending 30 April would be negligible.
AstraZeneca's lung cancer treatment Tagrisso has been approved by European Union regulators on the back of "powerful results" from a phase III trial. Tagrisso, otherwise known as osimertinib, will now be administered for adults with unresectable, EGFR-mutated non-small cell lung cancer (NSCLC), after reducing the risk of disease progression or death by an unprecedented 84% compared with a placebo in the LAURA trial.
Petrofac said it had entered into a binding agreement with key financial creditors on the terms of a comprehensive restructuring "to significantly strengthen the financial position of the group" and enable it to deliver its strategy. The restructuring will deliver at least $325m of new funding to the group. After repayment of certain obligations, including payments required to extinguish certain historical claims and contingent liabilities, and payment of transaction costs, this will result in an immediate increase in liquidity of at least $195m, Petrofac said.
Frasers Group responded to the outcome of Boohoo's Friday shareholder vote on Monday, after it saw the rejection of the proposed board appointments of Frasers' Mike Ashley and restructuring expert Mike Lennon to the Boohoo board. Almost 64% of shareholders voted against each candidate during the general meeting, marking a decisive stance from Boohoo's independent investors. In a statement on Monday, Frasers said it respected the views of Boohoo's shareholders, and acknowledged the company's invitation to propose an alternative candidate.
Rocky Mountains-focused oil group Zephyr Energy has signed a rig contract with American drill contracts Nabors at its flagship project in the Paradox Basin, Utah. Zephyr is to use Nabors' B29 rig to drill an extended lateral from the existing wellbore of the State 36-2 LNW-CC-R well in January. The company expects ultimate recoveries from the well, following its completion, could be up to two million barrels of oil equivalent.
Online fashion retailer Boohoo said on Monday that it has completed the sale of its London office, located on Great Pulteney Street, Soho, for £49.5m in cash. The property was sold to independent property fund Global Holdings UK Limited. "The action taken to dispose of this non-core and non-strategic asset will further strengthen the company's balance sheet," Boohoo said.
Falcon Oil & Gas announced on Monday that it has successfully drilled the Shenandoah S2-4H (SS4H) well in the Beetaloo Sub-basin of Australia's Northern Territory as part of its Shenandoah South Pilot Project. The AIM-traded firm said the horizontal well reached a measured depth of 6,452 metres, or 21,169 feet, and was cased and cemented without complications. Data from the SS4H well indicated strong gas shows and high-quality shale and rock properties, consistent with results from earlier wells in the project, including Shenandoah South 1H and Shenandoah South 2H (SS2H ST1).
NAHL Group updated the market on the potential sale of Bush & Co, its critical care division, on Monday, confirming ongoing discussions with final bidders. The AIM-traded company said it had engaged with a range of potential buyers, and was working to conclude the process promptly. It emphasised that, as with any mergers and acquisitions process, there was no guarantee that a transaction would be completed or what the terms of such a deal could entail.
Economic news
The number of UK retailers facing "critical" financial problems rose more than 25% in the last three months, according to data released earlier by restructuring firm Begbies Traynor. Begbies said there were 2,124 retailers in "critical financial distress" between October and 16 December, up from 1,696 between July and September. Still, this was a little lower than the 2,142 reported in the last quarter of 2023. Begbies put the increase down to subdued consumer confidence and rising costs.
Private sector firms in the UK expect activity to fall in the first quarter of 2025, with expectations at their weakest levels in more than two years. According to the CBI's monthly Growth Indicator survey, projected business volumes for the three months to March fell to a weighted balance of -24% of firms, down from -10% last month. Expected economic activity in the services sector is expected to decline (-18%), while manufacturers also estimate output will fall (-31%), with expectations in the latter sector at their weakest since May 2020.
The UK economy stagnated in the third quarter of the year, according to figures released on Monday by the Office for National Statistics. The economy showed no growth, down from a previous estimate of 0.1% growth. The ONS also revised its estimate for growth in April to June to 0.4%, down from 0.5% initially estimated. The data showed there was no growth in the services sector in the latest quarter, while a 0.7% increase in construction was offset by a 0.4% fall in production.
International events
China's industrial profits declined by 7.3% in November compared to a year earlier, a significant improvement from the 10% drop recorded in October, according to fresh data released on Friday by the National Bureau of Statistics (NBS). Despite the narrower decline, full-year industrial profits in 2024 were still on track to post their steepest percentage drop since at least 2000 when using broader historical measures, according to Reuters. The improvement in November reflected the initial impact of government stimulus measures, analysts said, with the narrowing profit contraction aligning with a slower decline in producer prices.
Inflation in Tokyo accelerated in December, with core consumer prices rising 2.4% year-on-year, slightly below market expectations of 2.5%, according to government data released on Friday. The increase, driven by higher utility bills and food prices, supported market expectations that the Bank of Japan could raise short-term interest rates in the near term, though signs of economic weakness could temper the outlook. Tokyo's core consumer price index (CPI), which excludes fresh food, rose from a 2.2% annual increase in November.
Delivery Hero tumbled on Friday after the sale of its Taiwan subsidiary to Uber Technologies was blocked. The Taiwan Fair Trade Commission ruled that the proposed takeover of Foodpanda could reduce competition. In a statement released on Christmas day, the company said: "Delivery Hero...confirms that the TFTC has issued a press release today informing of its decision not to issue approval for the intended sale of Delivery Hero's Foodpanda business in Taiwan to Uber."
American department-store chain Nordstrom on Monday announced a deal to sell the company back to its founding family and Mexican peer El Puerto de Liverpool. Erik, Pete, Jamie Nordstrom and other members of the family and Liverpool will buy up all of the outstanding common shares of Nordstrom they don't already own in a deal valuing the retailer at $6.25bn. The Nordstrom family collectively will hold a majority stake in the company once the deal completes.
Xerox Holdings said on Monday that it has agreed to buy printer maker Lexmark International in a $1.5bn deal. Lexmark is being bought from Ninestar Corporation, PAG Asia Capital, and Shanghai Shouda Investment Centre. Xeros said the deal will strengthen its core print portfolio and build a broader global print and managed print services "business better suited to meet the evolving needs of clients in the hybrid workplace".
French banking giant BNP Paribas has purchased the investment management arm of AXA for €5.1bn, taking over €850bn of assets under management. After announcing the start of exclusive negotiations between the BNP Paribas Cardif insurance business unit and AXA back in August, the bank on Monday said it has now signed a share purchase agreement for AXA Investment Managers. The signing of the deal, which followed an "information-consultation procedure" with relevant employee representative bodies from both groups, will see the combined entity oversee €1.5trn of assets, making it one of the largest players in Europe.
Japanese auto giants Nissan and Honda have announced plans to merge their businesses into one in 2026 following recent speculation surrounding a possible tie-up. The companies said on Monday that they had signed a memorandum of understanding "to start discussions and considerations toward a business integration between the two companies through the establishment of a joint holding company". The potential merger, which is said to have received backing from the Japanese government, would create a company with sales in excess of 30trn yen (£152bn) and operating profit of more than 3trn yen.
Consumer sentiment in the US unexpectedly declined in December, pulling back after strong gains over the previous two months as concerns about the future outlook returned. The Conference Board's closely followed consumer confidence index fell to 104.7 this month from 112.8 in November, surprising analysts who had forecast a small improvement to 112.9. This was the first decline in three months and followed a jump of 13.6 points over the previous two months combined, sending the index to its highest level since July 2023 and the second-highest mark since late-2021.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN