19th May 2020 14:03
(Alliance News) - The following is a round-up of updates by London-listed companies on the impact of the Covid-19 pandemic, issued on Tuesday and not separately reported by Alliance News:
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French Connection Group PLC - clothing retailer - Stores still closed but online sales up 44% year on year over the past 6 weeks. Taken series of cash reduction measures to combat "significant" fall in sales. In discussion with wholesaler partners in US over delayed payments. French Connection also noted it has been "very challenging" to participate in UK government support schemes due to "tight qualification constraints". Due to current cash position and expected continued "weak" trading environment, has opened discussions with "potential funding partners". Confident of securing funds but said cash will "erode" in coming months if current trading levels continue.
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Seeing Machines Ltd - driver monitoring systems - Undergoing permanent structural changes due to slowed growth of sales across all units. Making changes to engineering and technology management in attempt to improve the balance between "innovation and delivery". Also looking to streamline corporate services, which will result in job losses. Hoping to save AUD12 million over financial 2020 and 2021.
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SEC Newgate SpA - communications, advocacy and research - Expects 2019 turnover to be EUR47.6 million, with operating profit of EUR1.8 million and pretax profit of about EUR1.3 million. Net debt at the end of 2019 was about EUR8.7 million. Back at the start of February, SEC Newgate had said it expected to report 2019 turnover in excess of EUR47 million, operating profit of EUR2.3 million and pretax profit of EUR1.6 million. In March, the Milan-based company had said it was seeing "no significant impact" from Covid-19.
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Hydrodec Group PLC - industrial oil re-refining - Trading conditions "unprecedented", but low oil prices offer "additional opportunities". Continues to work on refinancing of Canton plant to replace existing equipment lease. Remains reliant on on-going support of major shareholder Andrew Black, who has provided USD2.4 million since the end of June 2019. Cost cutting measures and headcount reduction in place - and seeking UK government help - but operating performance will reflect "challenges" faced.
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Diaceutics PLC - diagnostic commercialisation firm - Made a "good" start to financial 2020 with first quarter in line with internal expectations. Believes it continues to make "excellent" operational progress with diagnostic network, DXRX. Diaceutics said the network will "significantly" enhance its customer service in meeting increased market demand.
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AFC Energy PLC - hydrogen power generation technologies - Plans made for majority of staff to return to work by end of May. Has seen no slowdown across its science, engineering and manufacturing teams. Has seen rise in number of commercial enquiries for H-Power system - driven by "growing public awareness associated with an improvement in air quality and a reduction in pollution". Increased interest from construction companies due to regulations that come into force in September.
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Ideagen PLC - information management software - Trading in year to April 30 was "strong", with results expected in line with market expectations. Revenue expected 21% higher year on year at GBP56.6 million, with adjusted earnings before interest, tax, depreciation and amortisation expected 29% higher at GBP18.5 million. Annual recurring revenue is expected to be 76% of total revenue, up from 67% the year before. ARR book at April 30 stood at GBP36.4 million, up 34% year on year. Ideagen said growth was driven by 458 new customer logo wins. At April, gross cash was GBP8.2 million with gross bank borrowings of GBP16.8 million. Believes it has "right financial model" to meet market expectations going forward.
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IDOX PLC - management software - Continues to make "strong" progress across all units and expects first half in line with internal expectations. In six months to April 30, revenue to be up 13% year on year to GBP35.1 million, with adjusted Ebitda more than doubled to GBP9.6 million. Net debt at April 30 stood at GBP14.3 million. Financial 2020 performance to be in line with expectations.
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Portmeirion Group PLC - pottery - Stoke-on-Trent ceramic factory partially re-opened on May 6 at reduced capacity. Fulfilling existing export orders and then will increase capacity in coming weeks. Wax Lyrical unit expects to ship over 1 million units of hand sanitiser in second quarter. Sales significantly hurt due to retail store closures but has seen uplift in online sales, with April online sales more than double the year before. Cash burn in second quarter to be less than GBP1 million, with balance sheet remaining "strong".
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McBride PLC - household products - Demand has "moderated" following surge after lockdowns put in place but still above run-rate levels seen year before. As a result, full year adjusted pretax profit to be 15% higher than current market expectations of GBP18.6 million.
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Quixant PLC - technology outsourcer for gaming industry - Gaming industry still largely closed down, demand for products been hit, and receivables collection has been slower than normal. Balance sheet remains "strong" with net cash at end of April at USD14.8 million, with yet unutilised lines of credit totalling USD3.0 million. Looking into UK government scheme help, but reduced overhead costs by about 10%. Confident that its cash reserves and borrowing facilities means it has sufficient working capital to survive a prolonged slowdown.
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By Paul McGowan; [email protected]
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