SSP Group (SSPG) shares sees some light relief with shares up 5.78% to 292.85p
On Wednesday, SSP Group said revenue in 3Q had improved to 27% of 2019 levels while revenue in 4Q is expected to be c. 47%, resulting in 2H21 revenue of c. 37% of 2019 levels.
Domestic travel, which accounts for around 60% of Group revenue, and leisure travel, also around 60%, is recovering more rapidly than international and business travel, it noted.
As a result of its recovery, the Group has re-opened c. 60% of its outlets, up from c. 30% at the end of 1H21, and it continues to open its outlets selectively and in line with its recovery.
‘Whilst we anticipate a return to EBITDA profitability in FY22, the out-turn will depend on a number of external factors including the pace of the recovery, higher input cost inflation, the impact of labour availability and the extent of government support schemes.’ it told investors.
The Company concluded: “Reflecting this, our expectation for profit conversion on reduced sales in 2022 compared to 2019 continues to be at the upper end of a range of 25-30%.”
Reabold Resources (RBD) shares soared 18.75% to 0.19p as Rathlin is refused approval
Today, an application made by Rathlin, the operator of the West Newton A site, was refused by ‘a narrow margin’ by The East Riding of Yorkshire Council Planning Committee, despite it being recommended for approval by The East Riding of Yorkshire Council’s planning officers.
Rathlin is now awaiting the formal decision notice but based on their current understanding of the reasons for refusal are confident that they have a strong basis for a successful appeal.
Testing at the A-2 well continues and initial results are expected in the coming weeks.
Tintra (TNT) shares jumped 16.67% to 70p as it enters negotiations for potential acquisition
Tintra is said to be in ‘advanced negotiations’ with a potential acquisition after the Board concluded that it is ‘the most appropriate way of progressing its strategy to operate a business authorised as an Electronic Money Institution by the UK Financial Conduct Authority.’
In addition, the Company said it has received an offer for its lottery administration business, which is currently under review by the Board with a decision expected within two weeks.
Thirdly, the Company said it has concluded discussions regarding a joint venture with a leading developer of artificial intelligence software within the financial technology sector.
Pipehawk (PIP) rose 15.79% to 16.50p after signing new ten-year lease
Pipehawk’s subsidiary Thomson Equipment Design Limited has concluded its negotiations and has signed a ten-year lease for two modern adjacent open space buildings in Cinderford.
The Company outlined to investors that these would be received at an annual rental of £90,635 (with the first 12 months’ rent free) and that the new premises would comprise around three times the available floor space as compared with TED’s existing premises.
“Since 31 December 2020 TED has steadily increased its factory-based work force by 20%; both the orders and enquiries pipelines are significant and growing,” said Pipehawk’s CEO.
AO World (AO.) shares fell 22.26% to 168.75p as driver shortage impacts growth
The European electrical retailer told investors that its growth has been impacted by the nationwide shortage of delivery drivers and ongoing disruption in the global supply chain.
It said the challenging market dynamics in both the UK and Germany has resulted in lower volumes than expected which affected operational leverage, particularly in the second quarter.
As a result, AO said it expects annual adjusted core profit to be between £35m and £50m compared to the £64m it reported back in FY21 amid high demand during the pandemic.
As a result, shares fell as low as 163.3p on Friday following the trading announcement.