Tavistock Investments (LON: TAVI) is raising up to £37.75m from disposals, which is more than treble the market capitalisation before the sale, with nearly £11m payable on completion and a further £11m from discharge of intragroup debt. The rest is payable based on performance. The two businesses made a pre-tax profit of £1.5m in the year to March 2023. The cash will be used for working capital and acquisitions. There could also be share buy backs. The share price jumped 53.5% to 3.3p.
Roadside Real Estate (LON: ROAD) has sold part of its shareholding in Cambridge Sleep Sciences for £8.5m, which is £8,500/share, to US venture capital fund CGV. This is payable by the end of November or on the delivery of the first Smart Pillows. There is contingent consideration of £1.5m if there are dispatch notices for 35,000 smart pillows by the end of January. A further 360 CSS shares have been transferred to Roadside Real Estate loan note holders. Roadside Real Estate has reduced its stake from 61.4% to 47.8%, so CSS will no longer be consolidated. The disposal of Barkby Pub Company has been completed. The share price rose 8.6% to 24p.
Engineering services provider Renew Holdings (LON: RNWH) says full year revenues and operating profit are ahead of expectations. The operating profit will be slightly higher than the £70.1m consensus forecast. There is also a strong order book underpinned by maintenance and committed infrastructure spending. Net cash will be higher than the previous consensus of £22.1m. The results will be announced on 26 November. The share price improved 7.79% to 1134p, which is a new high.
FALLERS
Marketing and data analysis services provider Jaywing (LON: JWNG) continues to find trading difficult with clients delaying spending. The bright spot is Australia. More cash is required, and the company is talking to shareholders who can lend money to finance the restructuring of the business. The share price slumped 28.9% to 1.6p.
Africa-focused resources company Armadale Capital (LON: ACP) had cash of £66,000 and investments of £776,000 at the end of June 2024. The monthly cash burn is about £25,000. The first half cash outflow from operating activities was £654,000, because of a change in fair value of investments of £510,000. The share price slipped 27.3% to 0.2p.
ECO Animal Health (LON: EAH) is finding the markets in China and south east Asia tough and expectations were not achieved in the first half. This has led to downgrades for the year to March 2025. Pre-tax profit is forecast to fall from £4.2m to £3.3m this year due to the £8m downgrade in Asian revenues. The share price declined 20.1% to 77.5p.
Oil and gas company Empyrean Energy (LON: EME) reported a cash outflow of £1.9m in the first half of 2024, although that was offset by a share issue raising £2.79m. There was cash of £981,000 at the end of June 2024. There are convertible loan notes of £7.59m, which will be repaid through proceeds from the Mako gas sell down. Empyrean Energy remains in dispute with CNOOC over potential outstanding obligations for Block 29/11. The share price fell 5% to 0.285p, having been around 0.23p earlier in the day.