Online marketing services provider XL Media (LON: XLM) is selling its North American business for up to $30m in cash, with $20m payable on completion and up to $10m in April – based on revenues and gross profit in 2024. Some cash should be redistributed to shareholders by the end of the year. The company will effectively become a cash shell. The share price jumped 37.1% to 12.75p.
EnergyPathways (LON: EPP) has been asked by the UK government to participate in the Hydrogen Storage Business Model. This will help to define the new investment support scheme. The first Hydrogen Storage Allocation Round should be in 2025. The share price rebounded 23.2% to 4.25p.
Helium explorer Helix Exploration (LON: HEX) has successfully re-entered and deepened the wellbore on the Clink #1 well at the Ingomar Dome project. The well will be completed and tested. There could be multiple zones to test. The share price improved 12.2% to 23p.
Light Science Technologies (LON: LST) continues to win fire protection business. An existing customer has placed a further order worth £1.17m. The full year contribution from fire protection should be between £1.5m and £1.7m with additional visibility for 2025. The share price rose 7.69% to 2.8p.
Oil and gas company Deltic Energy (LON: DELT) has a 25% working interest in the Selene project, where drilling has reached target depth. There are gas shows throughout the Leman Sandstone reservoir. Final results of sampling and logging should be available at the end of October. Deltic Energy is reducing costs and seeking new opportunities, possibly in sub-Saharan Africa. The share price increased 5.43% to 4.85p.
FALLERS
Information and data publisher Merit Group (LON: MRIT) has been hit by the ending of project work and the lack of replacement work. Sales resource is being added, but that will take time to boost revenues. Canaccord Genuity has changed its 2024-25 forecast from a £900,000 profit to a loss of £800,000 after a 11% reduction in expected revenues to £18.5m, which is lower than the 2022-23 figure. A return to profit is forecast for next year. There are management changes that are flagged for next year. The share price slumped 38% to 37.5p.
Ethernity Networks (LON: ENET) has received a £195,000 warrant exercise notice from New Technology Capital Group, which gives it 21.6% of the enlarged share capital. This led to the issue of 195 million new shares. There is a remaining balance of £170,000, although this varies if the exercise price is higher than 0.1p/share. The share price dipped 29.9% to 0.1875p.
Audio visual products distributor Midwich Group (LON: MIDW) says the market remains challenging, particularly in Germany. There is unlikely to be an improvement this year, although gross margin should be maintained. Operating profit will be well below the 2023 level. Three small UK acquisitions have been made for £12m. These are higher margin businesses. There will be a trading update on 20 January. The share price fell 15.9% to 269p, which is the lowest level for eight years.
Vast Resources (LON: VAST) produced 229 DMT of copper at the Baita Plai project in the second quarter, down from 613 DMT in the previous quarter. Reorganisation and delays in obtaining finance held back production. Operational breakeven has been reduced. Gold production and recovery levels improved at the Aprelevka mine, where Vast Resources has a 4.9% interest. Second quarter gold production was 2,878 ounces, up from 1,808 ounces in the previous quarter. Reprocessing of tailings has started, and production costs reduced. Production has recommenced at the Takob project. The share price declined 7.14% to 0.0975p.