Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Strong sales momentum continues at Telecom Plus
Telecom Plus LON:TEP, the company behind Utility Warehouse, has published a brief trading update ahead of the AGM, noting that the strong trading performance highlighted in the annual results announcement of almost two months ago is continuing. The current rate of growth leaves the business on track to double the customer base to 2 million in the medium term, whilst continuing to expand profits and shareholder returns.
#2. Neo Energy Metals acquires SA interest – is the deal too generous?
Neo Energy Metals [LON:NEO] has this morning announced the acquisition of a multi-million pound uranium and multi-million ounce gold resource in South Africa. This puts the company on track to become one of SA’s leading uranium companies. The deal sees Sunshine Mineral Reserves selling and receiving a cash and equity deal in return. Sunshine will own no more than 29.9% of Neo, a cash payment of around £7.5m will be made and royalty payments are also in the equation. Will investors feel not enough has been left on the table?
#3. Volumes up at Gem Diamonds but prices remain flat
The half year update from Gem Diamonds [LON:GEM] is out today as well, noting a 9% increase in the volume sold against H1 last year although there has been no uptick in the per carat price received. Critically the decline in prices between H1 ’22 and H1 ’23 dropped 22%, underlining the impact of the surge in demand seen during the pandemic which failed to be sustained.
