Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
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I am sure after reading the RNS it is 56p per share.
On the basis of 1.78bn shares in issue that would work out at something in excess of 55p per share assuming "up to £1bn " means £1bn. Anyone got any ideas if that is close to what it will be? No-one seems to have put a figure on the announcement in dividend per share,
I believe this has droped to a level that it can only go one way now = UP
Our last refers. Over 1 mio bought at closing today. Somebody with a bit of money sure likes late trading
Over 1 mio bought in last few minutes of trading today and we have a nice 17p price rise on the day. About time !
You look somewhat lonely on this site Jange. I bought in a few months ago around 850 and was pleased to see it move smoothly up over 900. Past couple weeks has seen the price drop to where I started. Would have thought that this is a pretty well-run outfit and that the shares would have moved steadily upwards. Any idea why we are still languishing around 850 ?
Compass Group: JP Morgan takes target price from 890p to 950p and retains an overweight rating.
However, Leinster noted that the stock has risen around 23% over the past year against EPS growth of just 9.0%. He said: "We have previously based our investment case on cashflow growth and cash returns but we note in FY'13 that the share repurchase will be lower than FY'12 and the cashflow will be impacted by higher expected capex, the rationalisation in Southern Europe and payments into the pension fund. Therefore the re-rating of the stock is far more apparent in cashflow yield terms."
UBS has downgraded its rating for contract caterer Compass Group from 'buy' to 'neutral', but has raised its forecasts for the company after accounting for foreign exchange changes. Due to the strength of the US dollar and euro, the broker has upgraded next year's forecasts (year ending September 2014) for earnings per share (EPS) by around 2.0%. "This change is entirely currency translation related but we would note that Q1 organic sales growth, at almost 6.0%, was in excess of our FY'13 estimate (4.2%), though this was partly the timing of the ramp up of the Ascension contract [large contract with US healthcare group]," said analyst Jonathan Leinster. The target price for the shares has been raised from 770p to 790p.
"We are deeply concerned by this finding and that, despite the written assurances we and our supplier received, we have had this breach of our supply chain. We are working with the Food Standards Agency and the Food Safety Authority of Ireland to establish the details of what happened and to ensure it doesn't happen again." The company said that the horse meat contaminated product had not been supplied to any mainland UK sites and said it was undertaking a DNA testing programme across its processed meat products. Rangeland Foods' specialises in producing beefburgers and describes itself as "committed to operate with due care and regard for the environment" on its website. It is accredited by the European Food Safety Inspection Service higher level.
FTSE 100-listed contract catering company Compass has admitted that Horsemeat DNA has been found in the burgers of one of its suppliers, Rangeland Foods. The company reported that a minor amount of hourse DNA had been found in a sample of the withdrawn product, which was on sale in Ireland and Northern Ireland. Compass said that Rangeland, the firm which produced the burgers, had given it written assurances that none of the identified horse DNA had entered its production. However, Compass was informed to the contrary when one of its Irish suppliers told the group that it had supplied one burger product from Rangeland Foods to a small number of sites in the Republic of Ireland and Northern Ireland. "We immediately took the precautionary measure of withdrawing this product and we stopped any further purchases. We subsequently carried out a DNA test on a sample of the withdrawn product, which identified a minor amount of horse DNA." The company said: "This is totally unacceptable. We have informed all of the affected sites of these developments, explained the actions we have taken and issued unreserved apologies.
Positive Points "A good start to the new financial year" was noted by the Chief Executive. First quarter organic revenue growth of nearly 6% was reported. This is up from the 5.4% reported at its full year results. Organic revenue growth in North America was noted as "particularly strong", with its Ascension Health contract contributing over 1% to global sales in the quarter. Its Fast Growing & Emerging division continued to enjoy strong levels of organic revenue growth from both new business wins and like for like revenue. Particularly good performances in Australia, Turkey and Latin America were noted. Actions to try and counterbalance the difficulties in Europe are being taken. Previously announced cost reduction plans were said to be "on track." Group diversification continues to provide a key ingredient, with a 'balanced portfolio' of client industries - both cyclical and defensive - combined with a wide geographical spread playing a significant part in the group's business model. Management retains a tight rein on costs, with the group's efficiency programme ongoing. Small bolt-on acquisitions are being pursued, while management also continues to push the group's services into non-food support services. From 2008 to 2010, it spent a total of £550 million on acquisitions. Since 30 September 2012, Compass had committed £77 million to infill acquisitions. Investor returns continue. A new £400 million buyback was previously announced and commenced in early January. A progressive dividend policy continues to be pursued.
Negative Points Management noted that "economic conditions in Europe & Japan remain difficult and, as expected, we have seen a decline in organic revenue." Within its last full year results, a near £300 million exceptional charge was taken with regards to the restructuring of its Southern European operations. Food cost inflation was previously highlighted by management. The printing of money by many Central Banks across the world has arguably pushed up soft and hard commodity prices across the board. Unseasonal weather is also creating volatility. Volatility in currency markets can work against the company. Competition across the global industry remains intense.
Financial Highlights: Organic revenue growth of nearly 6%. £77 million spent on acquisitions. A £400 million share buyback programme commenced.
First quarter trading update: Compass Group enjoys a "good start". The news saw Compass Group reassuring investors, with the share price up over 1% in early trading. "A good start to the new financial year" was noted. Organic or revenues adjusted for acquisitions and disposals climbed by nearly 6%. Particularly strong organic revenue was reported for the group's North American region, aided by a significant health contract, with its Fast Growing & Emerging division also enjoying strong demand. The environment for its European business had remained difficult, although previously announced cost reduction plans aimed at combating the challenges were on track. In tandem with the update, Compass also announced that its Chairman of more than six years is to step down come February 2014. In all, despite some recent challenges emanating from its Europe & Japan division, the group's defensive growth attributes continue to appeal
Compass Group: Bank of America moves target price from 865p to 885p keeping a buy rating.
Jefferies has upgraded its rating for contract caterer Compass Group from 'underperform' to 'hold', saying that last week's full-year results offset some concerns.
For analysts at Nomura Compass Group's latest fiscal year results - which showed an 11% increase in earnings per share - encapsulated the key attractions of the investment case. These were strong turnover growth (5.4%), excellent cash flow conversion and continued margin expansion (+8bp). Interestingly, and as regards the company's £400m buyback, the broker remarked: "Rather than welcoming the extended buyback per se, we believe it acts as a useful reminder of the free cash-flow generation [of the company] and disciplined approach to Mergers&Acquisitions (medium-sized deals at an average enterprise value/earnings before interest and taxes ratio of 10.4). As regards the weak trading conditions expected in Europe they commented that: "This remains the greatest area of risk, but we believe the downturn is being well navigated by the newly-appointed management." Nomura raised its price target on the shares of the company to 832p from 800p before-hand, while reiterating its buy stance.
Compass Group: Citigroup raises target price from 750p to 800p, buy rating remains unchanged. Credit Suisse raises target price from 791p to 813p, outperform rating reiterated. Oddo raises target price from 660p to 720, outperform rating maintained.
Positive Points The Chief Executive noted that "Compass has continued to perform well." The board's outlook comments proved to be broadly positive in tone. Positive trading momentum for its North American and Emerging Market regions had continued. Its North American business reported organic revenue growth of 8.3%. Organic revenue growth in the Fast Growing and Emerging markets business of 11.8% was reported, with strong new business wins seen. In China, Compass won the food service contract with Caterpillar (Suzhou) and, in Hong Kong, it extended its contract with MTR Corporation. While trading, particularly in Southern Europe, had deteriorated, actions to try and counterbalance the decline were being taken. Group diversification continues to provide a key ingredient, with a 'balanced portfolio' of client industries – both cyclical and defensive – combined with a wide geographical spread playing a significant part in the group’s business model. Management retains a tight rein on costs, with the group's efficiency programme ongoing. Small bolt-on acquisitions are being pursued, while management also continues to push the group's services into non-food support services. From 2008 to 2010, it spent a total of £550 million on acquisitions. Investor returns continue to be increased. The existing £500 million share buyback remains on track, whilst a new £400 million buyback was announced for 2013. The full year dividend was increased by 10% to 21.3 pence.
Negative Points Management highlighted that economic conditions in many parts of Europe, particularly in Southern Europe, had worsened throughout the year. It had experienced a slight decline in organic revenue of 0.7%. This was due to increasingly negative like for like volume trends in Europe, with the fourth quarter showing minus 2-3%. The challenging conditions had also put some modest pressure on client retention. As previously flagged, a near £300 million exceptional charge was taken with regards to the restructuring of its Southern European operations. Trading conditions in Japan had substantially recovered following the earthquake and tsunami of 2011, although the ongoing power shortages continued to affect the supply chain. Food cost inflation was again highlighted by management. The printing of money by many Central Banks across the world has arguably pushed up soft and hard commodity prices across the board. Unseasonal weather is also creating volatility. Volatility in currency markets can work against the company. Competition across the global industry remains intense.
Financial Highlights: Group revenue increased by 8% to £16.9 billion. Organic revenue growth of 5.4%. Underlying or adjusted pre-tax profit rose by 7% to £1.09 billion. Reported pre-tax profit declined by 17.6% to £789 million. A new £400 million buy-back announced for 2013. Total dividend payment over the course of the year increased by 10.4%.
Full year results: Compass Group grinds out further progress. Compass continued to grind out progress, although difficulties in Europe did impact. Organisational desire to cut costs continues to fuel progress, with management's own ongoing efficiency programme still playing its part. On the downside, negative organic sales for its European and Japanese division were reported, with business closures in Southern Europe now pressuring client retention rates. Rising food costs continue to be battled, whilst the outlook for the Japanese economy remains uncertain. In all, Compass still provides investors with broad comfort. Defensive growth remains an appealing proposition. Strong cash flows continue to underpin shareholder returns. However, conditions clearly remain challenging for its Europe/Japan business, a segment generating over one third of group revenues, whilst the group's newly announced share buy-back scheme appeared to be light of some analyst expectations.
Company overview Compass Group is an international food and support services company. It operates in around 50 countries, employs over 470,000 people and serves over 4 billion meals every year. The Company specialises in providing food and a range of support services across the core sectors of Business & Industry, Defence, Offshore & Remote Site, Healthcare, Education, Sports & Leisure and Vending.