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AIM movers: Keywords Studios bid approach and Metals One fundraising

Video games services provider Keywords Studios (LON: KWS) has received a bid approach from Sweden-based EQT Group. There have been four other unsolicited proposals from EQT, which has a range of investment portfolios, including a private equity fund. Discussions are advanced. The suggested bid level is 2550p/share in cash, which is a level the share price has not been at for one year. The share price jumped 62.5% to 2389p. The final dividend of 1.76p/share will be paid.

Automotive interior components supplier CT Automotive (LON: CTA) returned to profit in 2023, while net debt was reduced to $3.8m. Liberum expects underlying pre-tax profit to improve from $8.3m to $10.2m in 2024, even though revenues are forecast to decline. Improved efficiency is helping to boost margins. The Mexico factory is operating at 50% of capacity so there should be further improvement as this figure increases. The share price recovered 20.5% to 67.5p. The December 2021 placing price was 147p.

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KEFI Gold and Copper (LON: KEFI) says the Tulu Kapi gold project has been launched. There is $190m secured debt from development banks, with a further $130m of risk capital from Ethiopian corporations and local and federal government. The share price improved 16.9% to 0.844p.

Scientific instruments supplier SDI Group (LON: SDI) says trading in the year to April 2024 was in line with expectations. Pre-tax profit declined from £11.8m to £8m, but the new chief executive is addressing underperformance of some subsidiaries. Net debt is £13.2m, but there is still room for further acquisitions. The share price rose 13.2% to 72p.

FALLERS

Metals One (LON: MET1) is raising £895,000 at 1p/share to finance development of the Black Schist nickel zinc copper cobalt project in Finland. There will be a resource upgrade programme. This cash will enable the termination of the farm-in agreement with Gunsynd (LON: GUN) and enable Metals One to regain 100% ownership of the project. The Metals One share price lost 16.7% to 1.125p.

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Bigblu Broadband (LON: BBB) has sold its Nordic operations to management – including Bigblu Broadband chief executive Andrew Walwyn who is stepping down – at an enterprise value of £1.3m. There could be contingent consideration. Finance director Frank Waters becomes chief executive. The disposal leaves operations in Australia, which could be sold or floated on the ASX, and a stake in Quickline. Cavendish forecasts a 2023-24 pre-tax profit of £3m. The share price dived 13.1% to 36.5p.

Haydale Graphene (LON: HAYD) says that longer than expected product testing cycles at the US silicon carbide business will hit revenues in 2023-24. Customers remain positive, though. The nanomaterials business is gaining new contracts. Cavendish has reduced its forecast from £5.8m to £4.7m. That means that the loss could be £4.6m. The share price dipped 7.87% to 0.41p.

Oil and gas explorer Union Jack Oil (LON: UJO) says that the Andrews 1-17 well (45% working interest) in Oklahoma is a commercial discovery and flow rates will be announced soon. There are plans for further expansion in the US. The UK assets generated £2m in 2023 and cash reached £5.2m. The share price is 6.25% lower at 22.5p.

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