TRADING UPDATES: Supermarket REIT Ups Stake In Sainsbury's Portfolio

Thu, 18th Feb 2021 12:15

(Alliance News) - The following is a round-up of updates by London-listed companies, issued on Thursday and not separately reported by Alliance News:

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Supermarket Income REIT PLC - real estate investment trust dedicated to investing in supermarket property - Doubles stake in UK's portfolios of Sainsbury's supermarket properties from an Aviva Investors managed fund. Stake in the portfolio upped to 51% from 25.5%. The 25.5% interest has been acquired through the company's existing 50-50 joint venture with British Airways Pension Trustees Ltd. The purchase price is GBP115.0 million, meaning the company's contribution to the JV to fund the acquisition is GBP57.5 million. The JV acquired its initial 25.5% interest from British Land PLC in May last year. Following this second acquisition, the JV's ownership in the portfolio is 51%. The remaining 49% beneficial interest is held by J Sainsbury PLC. The portfolio was originally created through two sale and leaseback transactions by Sainsbury's in 2000 and consists of the freehold interest in 26 Sainsbury's supermarkets. Company reiterates strategic rationale remains "compelling for this high quality portfolio of predominantly omnichannel supermarkets".

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Brunner Investment Trust PLC - active investment globally - Net asset value per share ends November at 988.7 pence, up from 945.8p at same point year before. Total net assets improve to GBP422.1 million from GBP403.8 million. Proposes final dividend of 6.05p, brining total dividend to 20.06p - up from 19.98p year before. NAV total return 6.2%, which is ahead of the composite benchmark index, 70% FTSE World Ex-UK and 30% FTSE All-Share Index, which rose by 5.3%. Company says: "There are some key themes that we see driving the portfolio, such as digitalisation, stretching beyond just the tech companies, global demographics and the energy transition. That said, despite these strong themes proving to be drivers of growth, the manager's overriding strategy remains to find individual companies from a bottom up perspective that provide the requisite quality and growth characteristics, at sensible valuations."

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Trifast PLC - Uckfield, England-based industrial fastenings firm - Says trading levels continue to strengthen, with group revenues up about 5% year-on-year in the four-month period to the end of January 2021 at constant currency. "As always, March represents a key trading month for the group, however at present run rates, we expect financial 2021 revenues to exit slightly ahead of current market expectations," company says. Will reinstate dividends, to recommend final dividend for financial 2021, ending March 2022. Company adds: "The group's continued recovery, in addition to a strong pipeline and high activity levels, provides a solid base for the business to move forward. As a full-service provider to our multinational customers, delivering reliable product engineering, quality and supply, via flexible global logistics solutions, we believe it is these core skills that will allow us to maintain growth by increasing market share across a wide customer base."

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Arbuthnot Banking Group PLC - London-based private and commercial banking - Expects 2020 pre-tax loss better than current market expectations. Reported GBP7.0 million profit in 2019. Sees increase in loan enquiries in lending markets in fourth quarter, as business activity continued to increase. "The return to pre-pandemic credit appetites enabled the business to develop new lending pipelines that we expect to draw in 2021," lender says. Plans 21p special dividend, in line with dividend declared, but then suspended, prior to pandemic. Company adds: "Given that the full year results of the group in 2020 will record a loss before tax, the board has decided that no dividend will be paid in respect of 2020. The directors will monitor the trading performance of the group for 2021, and taking note of the guidance from the PRA will decide on the appropriate distribution policy for further dividends in 2021, as the group's results improve after suffering the effects of the pandemic and the reduction in base rates during 2020."

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essensys PLC - London-based software for flexible workspace operators - Sees robust performance in the first half of the year, ended January 31, with revenue in line with management expectations at GBP10.6 million. "Despite the continued impact of Covid-19 the Group's US business continues to grow strongly with half year recurring revenue increasing 18% to GBP4.4 million from GBP3.8 million whilst the UK business continues to prove its resilience," company says. Connect site churn remains very low at 3% year to date. Company closes the half year with 431 live Connect sites, a net increase of 8% year-on-year. Annual recurring revenue run rate at GBP19.9 million was slightly ahead of year before at GBP19.7 million. Notwithstanding continued uncertainty around the short-term impact of Covid-19, the company continues to expect current year financial performance to be in line with market estimates.

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MGC Pharmaceuticals Ltd - medicinal cannabis firm - Signs minimum 3-year exclusive master supply and distribution agreement with European nutraceutical producer and distributor, Swiss PharmaCan AG for the sale and distribution of the company's food supplement ArtemiC product line. ArtemiC is a clinically tested food supplement containing four natural based ingredients consisting of artemisinin, curcumin, boswellia serrata, and vitamin C. "The agreement represents the first sales of ArtemiC as a food grade product and provides MGC Pharma direct access to the large and rapidly growing markets that are still reporting high numbers of Covid-19 cases," company says. It adds, the agreement includes a minimum wholesale order quantity of 40,000 units of per quarter and an initial wholesale order of 10,000 has already been received from SPC. This initial 10,000 unit order equates to a retail market value of USD850,000 to SPC.

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JKX Oil & Gas PLC - UK-based hydrocarbon exploration and production company - Says Hungarian regulators kibosh sale of company's wholly owned Hungarian subsidiary, Folyopart Energia KFT. JKX had agreed sale in March last year to Starhol Holding Ltd for USD2.90 million in cash. Folyoport, JKX said, is also known as Riverside Energy KFT. But now Hungarian authorities have refused the necessary consent to the transaction pursuant to legislation introduced as a result of the current Covid-19 pandemic. Consequently, the transaction will not proceed. JKX CEO Victor Gladun says: "Despite this development JKX will continue to explore other options in relation to Riverside in line with our previously announced strategy of focusing our portfolio on our most prospective opportunities."

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Inspiration Healthcare Group PLC - Crawley, West Sussex-based medical devices - Expects annual revenue, for year ended January 31, to exceed GBP36.8 million, representing an increase of 52% from the year before with the inclusion of SLE, Viomedex and the one time ventilator orders relating to Covid-19 in the UK. As previously noted, Ebitda is expected to be not less than GBP4.9 million, representing growth of more than 53% year on year. Chief Executive Neil Campbell says: "I am delighted to confirm that the group achieved a record turnover in the last financial year against a backdrop of uncertainty caused by the Covid-19 pandemic and Brexit. It demonstrates that the group is well balanced in terms of products and services. We are pleased with the progress of integration of the SLE business into the group along with its contribution to growth and we are well positioned to continue growth this year and beyond."

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Altus Strategies PLC - Africa-focused mining royalty company - Reverse circulation drilling has extended the strike length of the TS prospect by at least 150 metres, to beyond 3 kilometres at the Tabakorole gold project in southern Mali. Altus notes intersections include 2.0 grammes per tonne over 23 metres from 178 metres, 1.24 grammes per tonne over 24 metres from 13 metres, and 0.81 grammes per tonne over 25 metres from surface. Altus holds a 49% equity interest and 2.5% net smelter return royalty on the project. Exploration activities at Tabakorole are being funded by Marvel Gold Ltd under its joint venture with Altus.

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Canadian Overseas Petroleum Ltd - oil and gas company focused on Sub-Saharan Africa - Says previously announced USD65 million senior credit facility approved by lender, a US based investment firm. Says approval significant positive step in the previously disclosed planned process of obtaining financing and completing the closing of its acquisition of Atomic Oil & Gas LLC. Facility has term of four years and has base size of USD45 million, with an additional, or "accordion", USD20 million to fund future development at the sole discretion of the lender. "The terms of the facility are market competitive and availability of the facility remains subject to execution of final definitive loan documentation and satisfaction of customary conditions precedent," company adds.

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TomCo Energy PLC - unconventional hydrocarbon development in US - Pretax loss in year to September 30, widens to GBP1.1 million from GBP782,000 year before. Did not generate revenue in either period. Administrative expenses rise to GBP1.0 million from GBP778,000. Postponed next stage of the TurboShale field testing at start of 2020. "A decision on when to restart the field test programme is likely to be made in the second quarter of 2021," TomCo says. Company adds: "The directors note that Covid-19 has had a significant negative impact on the global economy and oil prices have been volatile, which may mean it is harder to secure additional funding than it has historically been. Notwithstanding this, the Directors have a reasonable expectation based on successful recent fundraisings, that they can secure any additional funding that might be required."

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Mycelx Technologies Corp - clean water firm based in Minnesota - Sells building in Duluth, Georgia. Sale will allow company to right-size its office space needs across its three operating locations. Will net a cash consideration of USD5.4 million. Has a debt obligation of about USD2.6 million on the property, so the net cash proceeds are expected to be in the range of USD2.8 million. The current net book value of the property is USD2.9 million, so MYcelx will recognise a financial gain of about USD2.5 million. Notes, when the building was originally purchased, the company's engineering and business development capability was based in Duluth. However, now has other offices across the globe and subsequently, personnel have relocated to these locations resulting in vacant office space.

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By Paul McGowan; paulmcgowan@alliancenews.com