OnTheMarket in demand after it makes its first profit
Shares in property portal OnTheMarket PLC (LON:OTMP) are being snapped up like a bargain in a des res area.
The company saw full year revenue jump 22% to £23mln and it made its first profit, reporting earnings of £5mln compared to a £7.1mln loss.
It has of course benefited from the booming housing market, and current trading is also strong due to – among other things – pent up demand and the stamp duty holiday which does not completely end until September.
House broker Shore Capital said: “We like OnTheMarket’s commitment to innovation and fair pricing, ability to offer equity to agents and potential in the new homes market and we see considerable scope for its experienced, entrepreneurial, and ambitious management to drive average revenue per advertiser.”
The company’s shares have climbed 4.76% to 110p.
2.50pm: US demand helps leak detection group
Its figures for the calendar year 2020 showed a 17% rise in revenue and a 78% jump in pretax profits to US$4.2mln.
It also released a trading update for the period to the end of April which showed an even better performance. Revenues grew by 47% and profits by 154% to US$2.2mln.
It benefited from providing solutions for failing water infrastructure as an “essential service provider” during the pandemic.
Chairman Dr Patrick DeSouza said: “Despite COVID-19 disruptions, we delivered a breakthrough 2020 and an even more remarkable first third of 2021 with strong advances in every part of our business: financial results, operating key performance indicators, technology reinvestment to keep differentiating our brand, new business lines to address market demand and experienced leaders to strengthen both board and management as we move to the next level of corporate development.
“Ironically, the pandemic only served to reaffirm our sense of mission and the value of our enterprise. Our team worked very hard to deliver for our customers as an “essential service” provider for water and wastewater infrastructure needs while communities had to “shelter in place”…
“With the public visibility of $100 billion in investment in water infrastructure sought by the American Jobs Plan, market demand for our technology-based solutions will continue to grow rapidly.”
Its shares have added 6.43% to 910p.
12.56pm: Miner sees feasibility study accepted
The mineral exploration and development company said the project had moved a step closer after the Direction Nationale de la Geologie et des Mines wrote to accept the feasibility study for its mining licence application.
Kodal now has to pay the £135,000 application fee, which it plans to do promptly.
Chief executive Bernard Aylward said: “Our Mining Licence application is progressing through the final regulatory stages and the receipt of this letter confirming the Feasibility Study for the development of the Bougouni Lithium Project and the request to pay the Mining Licence application fee is a very positive development and brings us significantly closer to a fully permitted project.”
Kodal has climbed 23.97% to 0.3p.
11.27am: Mortgage lender in demand
Its shares have climbed 8.11% to 553.5p after the buy-to-let specialist saw its pre-tax profits jumped 69% to £96.4ml and it announced a £40mln share buy-back.
New mortgage loans jumped 45% in the half-year to end-March 2021 to £1.13bn with demand back to just below the pre-pandemic rate.
Buy-to-let advances rose 58% on the previous six months to £715mln with the portfolio worth £10.9bn.
10.30am: Kitchen specialist upbeat
Its shares are up 4.53% or 7p at 161.5p after it said the US hospitality and leisure sectors were opening faster than anticipated, with its franchisees delivering a record $4.6mln of revenue in April, up from $3.1mln in January and well ahead of April 2019 ($4.3m), when $52m was achieved in the full year.
In the UK the reopening has been more cautious but it said: “The company’s decision to focus on supermarkets and fast food chains has been a major factor in driving revenues whilst the hospitality venues have been closed, resulting in an increase in equipment installations and a robust sales pipeline.”
Europe has also started to reopen and the company sees good growth opportunities there.
Chief executive Jason Sayers said: “The success of the vaccine rollouts is certainly helping to drive the reopening of our markets and to instil greater confidence in the restaurant and hospitality sector. In the US, our revenue run-rate is now ahead of pre-COVID-19 levels and we were delighted to deliver record network revenue in April. With a majority of our largest customers expected to have reopened during the third quarter, we expect further revenue growth in the second half of the year.”
The company is taking part in today’s Cenkos and Proactive Investors’ Virtual Growth & Innovation Forum at 13:30pm.
9.33am: Intellectual property group climbs ahead of presentation
The UK intellectual property group, which invests in university technologies, has climbed 1.5p or 10.17% to 16.25p on no news apart from the announcement of a webcast to investors this evening.
The event will be hosted by chief executive Clifford Gross, but the company made a point of saying: “No new material information will be disclosed during the event.”
8.33am: Energy company unveils partnership in Paraguay
President Energy (LON:PPC) has seen its shares surge after unveiling an agreement for its its Pirity concession in Paraguay.
The South America-focused company said that after 20 months of negotiations during the pandemic, it has signed a deal for a “substantial” Northern Hemisphere state-owned energy and petrochemicals company to take a 50% participating interest in the concession.
The state-owned business – whose name is not revealed at the moment – will pay 60% of the costs of an exploration well currently scheduled to commence during the second half of 2022 and will also pay President US$4mln for agreeing certain performance obligations.
The costs of the exploration well are put at US$10-15mln with an estimated chance of success of 30%.
Chairman Peter Levine said: “With the recent robust oil prices and demand increases, the timing is perfect especially when taking into account in a success case the end market opportunities provided in a country that currently imports all its oil in refined form by barge all the way from the River Plate.
“We have in this regard a significant joker in our pack of cards through the possibilities which will be no doubt available through our second largest shareholder Trafigura, one of the World’s leading commodity traders whose associated company in Paraguay, Puma, is an important importer of fuel into the country and has there an extensive and significant network of retail filling stations.”
President has put on 11.63% or 0.25p to 2.4p.
Also heading higher is cybersecurity company Intercede PLC (LON:IGP).
Its shares are up 6.22% or 6p at 102.5p after it reported a 6% rise in full year revenues to £11mln and a 52% rise in profits to £1.5mln.
It said the pandemic had adversely affected key markets in Europe and the Middle East, but US revenues increased by 14%, including a major contract to provide an Identity Management System for the US Department of State and its customers.
Chairman Chuck Pol said: “During the COVID-19 pandemic, Intercede has maintained solid revenue growth at 6% and delivered a substantial increase in profitability with the levels of cash generated being well ahead of market forecasts.
“I remain confident of the group’s future prospects as we emerge from the pandemic and governments and commercial enterprises are able to take the necessary steps to further improve their security environments when taking increased remote working into consideration.”
Proactive news headlines
Feedback PLC (LON:FDBK) said it expects to benefit from “increasing demand” for its software solutions going forward, allowing it to grow repeating revenues and increase product visibility through its software-as-a-service (SaaS) model.
Mineral and Financial Investments Ltd (LON:MAFL), an investor in junior mining companies, saw its net asset value rise 13% in the third quarter to end March 2021 as it increased its precious metals weighting.
Oncimmune Holdings PLC (LON:ONC) said revenues in the year to the end of May were eight times higher year-on-year, in line with expectations. Revenue growth in the current fiscal year is expected to be predominantly driven by the continued strength of the ImmunoINSIGHTS services business.
Panther Metals PLC (LON:PALM) said a soil survey will start next week on the Dotted Lake property in Ontario, Canada that it hopes will build out and in-fill the westerly strike extensions of high-grade gold mineralisation intersected by historical trenching.
Panthera Resources PLC (LON:PAT) said assay results from recent drilling at the Paimasa gold project in central Nigeria will be delayed while some samples are subject to re-assay by accelerated cyanide leach.