Diagnostics company Cambridge Nutritional Sciences (LON: CNSL) gained some momentum following yesterday’s results that showed the benefits of concentrating on its core personalised health and nutrition business. The share price increased a further 12.7% to 3.1p. Interim revenues rose 44% to £4.9m and the loss was reduced. Production problems have been sorted out. There was strong growth in North America as management puts more resources into the region. A small full year loss is expected.
Mothercare (LON: MTC) increased its profitability even though Middle East franchise income fell. Interim revenues fell from £38.5m to £29m, while under lying pre-tax profit improved from £1.7m to £1.8m. Online sales increased by 5%. Underlying 2023-24 pre-tax profit is expected to dip from £3.4m to £3.2m, after interest charges of £3.8m. Management is still seeking to refinance borrowings, which would improve profit. The share price is 6.6% higher at 4.05p.
i3 Energy (LON: I3E) chief executive Majid Shafiq bought 337,291 shares at 10.08p each and executive director Ryan Heath acquired 228,571 shares at C$0.175 each. WH Ireland published analysis suggesting that a worst case scenario for the oil and gas producer would be cash generation from operations of £37.2m in 2024. The current forecast is for cash flow of £71.3m, leaving net debt of £300,000. The share price improved 2.3% to 10.23p, valuing the company at £123m.
Coro Energy (LON: CORO) is paying up to $290,000 in cash and shares to acquire a further 7.5% of the renewables joint venture in Vietnam. The partner will retain 7.5%. This values the joint venture at $4m. There is a 50MW rooftop solar project in Vietnam. The Italian gas assets are being sold for €7.3m. This will provide finance for further renewables investment. The share price rose 1.1% to 0.2275p.
FALLERS
Video games developer Team17 Group (LON: TM17) says 2023 trading is slightly better than expected, although some titles are not performing as well as anticipated and that has hit margins. There has also been overspending and delays on some development projects. That means that underlying EBITDA will be around one-sixth lower than forecast at around £40m. Some titles are being reassessed and that is likely to lead to impairment charges of up to £11.5m. The share price slumped 38.7% to 192.5p. That is not far from the all-time low at the end of 2018.
After a strong rise in the RUA Life Sciences (LON: RUA) share price earlier in the week it has fallen 11.1% to 28p – still 78% ahead on the week. Although there are potential contracts for the contract manufacturing business its revenues declined in the fist half. Interim revenues will be 28% lower at £794,000, even though Elast-Eon royalties increased by 6%. Trading volumes are back to normal in the second half.
Telematics supplier Trakm8 (LON: TRAK) moved back into profit in the first half. Revenues fell 5% to £8.5m and the number of connections was 7% lower at 324,000 as management focused on higher margin business. Gross margins improved and cost savings enabled a £1.08m loss to be turned into a £119,000 pre-tax profit. Full year revenues are expected to be higher and a pre-tax profit of £1.83m is forecast, which would put the shares, down 3.23% to 15p, on less than four times earnings.
