In fact, UK Mail recorded parcel volume growth of 8% in the quarter, while its mail business saw a rise in sales of 2% in the same period. Looking ahead, UK Mail expects to meet expectations for the current year and has maintained guidance for next year, which indicates that today’s share price gains are a relief rally.

With UK Mail forecast to grow its bottom line by 47% in the next financial year, its price to earnings growth (PEG) ratio of 0.3 indicates that further gains are on the cards. And with a yield of 6.5%, it continues to be a highly enticing income play, too.

Also soaring today is financial services company Tungsten (LSE: TUNG). Its shares are up by over 18% despite there being no significant news flow having been released by the company.

Of course, its shares have been volatile in recent weeks after it posted a disappointing set of results and also announced the planned sale of its banking division. Clearly, with losses widening in the first half of the current year and additional losses forecast for the second half of the year as well as for next year, Tungsten is experiencing a challenging period at the present time.

While this could be viewed by some investors as a good time to buy, since it is prior to a potential turnaround, there are a number of other stocks which offer good value for money and yet are highly profitable at the present time. Certainly, Tungsten will have a generous cash pile from the sale of its banking division, but until profitability is achieved or at least is on the near-term horizon, it may be prudent to watch, rather than buy, the company.

Meanwhile, KBC Advanced Technologies (LSE: KBC) has risen by more than Tungsten and UK Mail combined today, with its shares up by almost 50%. That’s because it has agreed a deal to be acquired for around £158m in cash by US software peer Aspen Technology, which works out as 185p per share or a premium of 49% to KBC’s closing price from yesterday.

The deal appears to be a good one for KBC’s investors, with it putting the oil and gas industry software provider on a price to earnings (P/E) ratio of 19.2. And with the outlook for the industry being rather uncertain, being part of a larger group could provide more stable financial prospects for the combined entity over the medium to long term.

However, with only 0.5% upside from the current share price to the offer price, buying KBC now has little potential reward.

The post Too Late To Buy UK Mail Group Plc (+10%), Tungsten Corp Plc (+18%) & KBC Advanced Technologies Plc (+48%) Today? appeared first on The Twelfth Magpie.

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Peter Stephens has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

However, at time of writing Tungsten’s shares had recovered some of their early losses after the group announced that it had reached an agreement to sell Tungsten Bank for approximately £30m in cash, following a previously announced strategic review. The consideration represents net assets of £25.4m plus a premium.

Commenting on the disposal, Richard M. Hurwitz, Chief Executive Officer said: 

“We have undertaken a thorough self-assessment of all aspects of our business, which has given us great clarity on the strategic outcomes we desire and the paths we will take to achieve them… The management team can now concentrate on Tungsten’s core businesses as we look to create the world’s most trusted business transaction network.”

But while the sale of Tungsten’s controversial banking division is relatively good news, Tungsten’s figures for the six months to the end of October are hardly anything to get excited about. 

Losses growing 

For the reported period, Tungsten’s revenue rose 28% to £13.1m and the group’s earnings before interest, tax, depreciation and amortisation improved by £3.7m to £9.5m. However, the group’s loss after tax rose to £17.6m, compared to £14.7m reported a year ago. 

Group net cash and cash equivalents were £39.7m at the end of October, although it’s unclear how much of this cash belonged to Tungsten Bank. Still, when the sale of the bank closes, Tungsten will receive a much needed cash infusion of £30m.

Nonetheless, it’s clear from Tungsten’s half-year report that the company is making progress. The company boasts that during the period it signed nearly 500 new integrated supplier customers, worth £0.5m in first-year revenues, and a further 13,000 web form suppliers. 

Also, during the six months to the end of October, the group saw a 10% increase in e-Invoice volumes to 7.5m with a 14% increase in e-Invoice value to £55.9bn. Total invoice volume growth was 8%. What’s more, during the period the company was able to negotiate, “renewals with 14 buyer customers to deliver future price increases averaging 70% as customers recognise the increasing value they derive from Tungsten.“

Time will tell 

So, Tungsten’s key performance indicators seem to be heading in the right direction, but City analysts don’t expect Tungsten to report a profit anytime soon.

Analysts expect Tungsten to report a pre-tax loss of £18.3m for the year ending 30/04/2016 and a further loss of £5.3m for the financial period ending 30/04/2017. If all goes to plan, Tungsten is on track to report a profit for the year ending 30/04/2018. It should be noted however, that these forecasts are likely to change now that Tungsten has announced the sale of its bank. The sale will reduce group costs by £2m per annum, and free up funds for reinvestment, which could help accelerate sales growth. 

The post Tungsten Corp PLC’s Losses Grow As The Company Struggles appeared first on The Twelfth Magpie.

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Rupert Hargreaves has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Tungsten (LSE: TUNG) and RM2 (LSE: RM2) are both falling this morning after the two companies issued interim trading updates. Pallet producer RM2’s trading update was the more disappointing of the two, and the market has reacted accordingly, sending the company’s shares down by as much as 30% in early trading. And it’s clear why the market has reacted in this way.

Based on feedback from customers, RM2 has decided to change the design of its pallets. Specifically, management has decided to change the friction coating method from powder coating to a gel-based system. This change has been made to address customers’ health, hygiene and safety needs as well as bringing efficiencies and cost savings to the manufacturing process.

However, while this change should benefit the company over the long term, RMs short-term production will take a hit. As a result, revenue and production numbers for the full year will be significantly below previous guidance. 

City analysts had been expecting RM2 to report revenues of £12.3m for 2015 and a pre-tax loss of £8.1m before breaking even during 2016. Production delays are likely to mean that it will now take longer for RM2 to generate a profit.

Still, demand for RM2’s pallets remains high and the group had $83m in cash at the end of 2014. So, there’s no clear reason to sell up just yet. 

Moving in the right direction 

The market has also reacted negatively to Tungsten’s relatively upbeat trading statement issued today. In a statement issued ahead of the company’s annual meeting, management revealed revenues were up 20% year-on-year during the first four months of the financial year. What’s more, all other key performance indicators seemed to be moving in the right direction.

Two new buyers had contracted to join the Tungsten Network in the period, and six existing buyers agreed contract renewals, at an average expected fee increase of 22%. Nearly 7,000 net additional e-invoicing suppliers were activated in the four-month period. 238 suppliers are now registered to use Tungsten Early Payment with 89 live.

After raising £17.5m earlier this year, Tungsten’s management believes that the company has sufficient cash resources to be able to deliver its current strategy. Management made the same statement a few months before the June capital raising. 

City analysts are expecting Tungsten to report a pre-tax loss of £18.3m for 2016 and a pre-tax loss of £5.3m for 2017. Based on these forecasts, Tungsten’s cash balance might not last long. 

Bright prospects 

Iofina’s (LSE: IOF) shares have slumped by more than 50% year-to-date, against the backdrop of challenging iodine market, where prices are below historical trends. Nevertheless, management has reacted quickly to the challenging environment by slashing costs and ramping up production.  

And thanks to these actions City analysts expect Iofina to report its maiden profit this year. Analysts are expecting a pre-tax profit of £0.1m for full-year 2015 on revenues of £16.8m. Earnings per share are expected to jump 641% during 2016 to 1.53p and on this basis Iofina is trading at a 2016 P/E of 12.5. If the company can meet these forecasts, it could be a great play for growth investors.

The post Could It Be Time To Sell Iofina plc, Tungsten Corp PLC And RM2 International SA? appeared first on The Twelfth Magpie.

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Rupert Hargreaves has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

However, over the past month there have been some signs that the market is starting to trust these two companies once again. Tungsten and Monitise could be on the road to recovery. 

Regaining trust 

Invoicing, analytics and financing company Tungsten has continually disappointed since its initial public offering in 2013.

Over the past 12 months, the company’s shares have lost 82% of their value as the company has consistently failed to meet the growth targets set by management. And as the company’s cash balance has dwindled, earlier this year Tungsten was forced to conduct a placing to raise £17.5m. 

Nearly six months on from the placing and Tungsten hasn’t released much in the way of news to suggest that trading has improved. Nevertheless, the company’s preliminary results for the year ended 30 April 2015 showed that its key performance indicators were all moving in the right direction. The number of buyers using the company’s electronic invoicing network jumped by 39.5% and the number of suppliers using the system increased by 7.7% to 181,000. The total value of transactions over the network ticked higher by 10% to £121bn.

Moreover, since the end of July some of Tungsten’s directors have taken the plunge to add to their holdings of the company’s shares. So, things could be looking up for the company. Only time will tell. 

Disappointing 

Monitise hasn’t issued any news releases during the past few months, but that doesn’t mean there’s nothing going on behind the scenes. Under the leadership of new CEO Elizabeth Buse, the company has been working to reduce its cost base over the past year, which should improve margins.

Further, according to the company’s latest press release, Monitise is still on track to meet its goal of achieving profitability on an earnings before interest, tax, depreciation and amortization basis next year. Also, management believes that the group has enough cash on hand to finance the company through to break-even and beyond. 

Still, Monitise has a lot to prove before the company can regain the trust of shareholders and head higher. However, investors don’t have long to wait for an update on the company’s progress. Monitise is scheduled to release its full-year 2015 results this Wednesday. 

Unfortunately, in my opinion, Wednesday’s results will be Monitise’s last chance to prove that it really is on the road to recovery. If the company warns on profits once again, reveals yet another surprise fundraising or lowers its outlook for growth, it could be time for investors to give up on the company. On the other hand, if Monitise surprises to the upside, the company will be on the road to recovery. 

The post Are Tungsten Corp PLC And Monitise Plc On The Road To Recovery? appeared first on The Twelfth Magpie.

More reading

• What investors need to know about the new 22% Stocks and Shares ISA tax
• By July 2027, BAE Systems shares could turn £5,000 into…
• The £15bn defence splurge that could send UK shares soaring in July
• Up 446% in 12 months! What’s next for the Ceres Power share price?
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Rupert Hargreaves has no position in any shares mentioned. The Motley Fool UK owns shares of Monitise. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.