Glanbia PLC (LSE: GLB), the nutrition group, is doing well after accepting a divestiture and unveiling a share buyback program.
The group has signed a binding agreement to sell its 40% stake in Glanbia Ireland DAC – the largest milk processor and grain buyer in Ireland – to its co-owner Glanbia Co-op for € 307 million in cash.
The value of the assets involved in the transaction stood at 225.2 million euros in July, and the company contributed 8.5% to Glanbia’s profits in 2020.
This decision continues Glanbia’s strategy of focusing on its global nutrition business.
The proceeds from the sale will be used to stimulate growth and return capital to shareholders, with up to 50% being used for a share buyback.
To date, it has already launched a buyback program worth up to 50 million euros.
Group CEO Siobhan Talbot said: “Glanbia will generate strong operating cash flow this year while continuing to invest in growth opportunities and returns for shareholders. In accordance with our capital allocation policy, we are today launching a new share buyback program for an amount of up to 50 million euros. given the strong cash performance of the company in 2021. ”
Glanbia shares rose 4.24% to € 12.29.
9:28 am: Byotrol (AIM: BYOT) drops as it cuts market forecast for the year
Byotrol (AIM: BYOT) fell sharply after its performance fell short of expectations.
The infection prevention and control company said semi-annual sales of £ 3.2million were down from the £ 6.7million generated by COVID-19 a year ago, but better than the £ 2.1million reported in 2019.
Likewise, gross profit of £ 1.66million was down from £ 2.91million in 2020 and above £ 0.91million in 2019.
The company said: “Performance in the first six months has shown substantial and continuous improvements over our pre-COVID-19 performance, but was below management’s expectations for the period, commensurate with the experience of other companies in our markets and reflecting slower than expected and crowded markets are showing peak pandemic demand. “
As a result, it lowered the market forecast for the whole year.
He said: “After a difficult first half, especially in hand hygiene products, October and November sales were above the first half average and the order book is now growing strongly, growing Currently standing at £ 850,000 compared to an average of £ 300,000 in the first half of the year and around £ 350,000 before COVID-19 This request includes a number of large orders from new customers in the UK and overseas.
“Market demand and gross margin, however, are expected to remain volatile in the near term and are subject to a potential negative impact of full and partial lockdowns on demand for consumables. This is especially true at present with the current uncertainty introduced by the new Omicron variant of COVID-19.
“Third party interest in our intellectual property and related commercialization remains strong, with a number of active discussions with clients underway. Such deals can be profitable, but we cannot say for sure which deals will be made and when. We are anticipating our first significant royalty income. in the current fiscal year.
“While we expect to be both profitable and cash-generating in the second half of the year, with these uncertainties, it is difficult to predict the amount at this point. At this time, we expect IP sales to make up the majority of the anticipated shortfall. on the sale of products, but the projection of the timing of IP sales is even more uncertain, so we believe it is prudent to reduce the market forecast for the current year now. well positioned for future growth and excited about the significant opportunities that lie ahead. “
Stocks, however, are down 13% or 0.65p to 4.35p.
8:47 am: Quiz climbs after growing demand for party wear drives business
Quiz PLC (AIM: QUIZ) is all the rage after the urge to dress up has boosted its activity.
(No mention of whether there were any sales of party outfits in Downing Street).
The fast fashion brand’s half-year revenue rose 109% to £ 36million, while underlying pre-tax losses were reduced from £ 5.6million to £ 1.3million (This excludes a gain of £ 16.2million the previous year from the administration of a subsidiary.)
A higher level of full-price sales and a reduction in discounts resulted in an increase in gross margin to 57.5% from 51.7% a year ago.
Online sales grew strongly, up 43% through its own website and up 27% overall.
Since the half-year, revenue for the two months to the end of November has increased 108%, although he warned that December sales could be affected if the omicron variant suppresses demand.
Tarak Ramzan, Founder and CEO, said, “The removal of social restrictions resulted in a substantial increase in income during the period as customer demand for the brand’s formal and formal wear returned.
“The positive steps taken over the past 18 months in restructuring our business, tight cost control and inventory management have all proven to be beneficial.
“While there is still some near-term uncertainty, we remain confident in the strength of our brand and are very confident that the clear demand for Quiz-branded formal wear will support continued profitable growth. “
Group shares are up 8.7% or 1.6p to 20p.
Elsewhere Equals Group PLC (AIM: EQLS) climbed 10.32% or 6.5p to 69.5p after the fintech payments firm said it had largely exceeded expectations for the entire year.
Revenue rose 51% to £ 40.4million, helped by a large international payments transaction for a large corporate client which generated revenue of £ 1.5million.
CEO Ian Strafford-Taylor said: The strong performance we saw in September and October has continued and allowed us to significantly exceed market expectations for the full year in early December. Our results show the results of the strategic steps we took three years ago to pivot the business towards a B2B orientation and invest in our platforms and connectivity. “