Good Afternoon,
After significant emails/messages regarding APR Energy, there's nothing further to add...EMC: Time to Press the Button on APR Energy (March 2015). No change in viewpoint now the departure of Brian Rich and the trading update (profits warning) has been announced. Simply, APR should have raised funds sooner.
Majestic Wine (MJW), full year results and bottom line were pretty much as expected, save for the revenue increase that was a surprise. They're operating in a tough market where their main competition is the non-bulk sellers (supermarkets) who are under pressure to beat on price more than any other time. With the shift online, could there be an argument for a complete rationalisation of their estate?
With a 5.4% increase in active customers to 678,000 (from 643,000 (2014), where as revenue is up 2.3% to £284.5m (from £278.2m 20:14) suggests customers are ordering less often. This is creating a greater promotional environment. The market is not dead, but with a complete shift required in ordering and perception of Majestic Wine (and subsidiary offerings)perhaps the consumer needs re-educating with their offering on a national (or strategic regional) level.
Little time to cover it in-depth.
Atb Fraser
Fraser- Hi- I agree re IOF- they need sales to cover the extra production and they have said they will pursue this via external sales and off takes and given the weak market, that could be at lower margins. So a 10% tick up today but they need to give some positive info re cash position if they are to get a rerate.
ReplyDeleteRe SOU- they reconfirm that Nervesa 2 was a dud, albeit they have Nervesa 1 which was a home run so they will move on to production there now. The new asset in Morocco will be drilled later in the year, they get EIA approval re two of their other Italian prospects so the initial reaction (down 4p to 12p) was silly, hence a cheeky buy at 13.24p here. The mkt is waking up now, partially prompted by Malcy, so the price is now around 15p, which is probably fair in the circumstances. Its a good thing that mkts aren't efficient or we wouldn't be paid for our early starts each weekday.
Cheers. The Leggie