Controlled environmental agriculture technology developer Light Science Technologies (LON: LST) is acquiring Tomtech for £500,000 with an initial cash payment of £75,000. Tomtech, which supplies and installs monitoring and control systems for greenhouses, has £284,000 in cash and there could be additional cash payments if it is above £185,000 on completion. This deal is immediately earnings enhancing – Tomtech reported a pre-tax profit of £79,000 on revenues of £680,000. There is a complementary product range and cross selling opportunities to Tomtech’s 160 customers. The hare price jumped 24.4% to 2.8p, still well below the flotation price of 10p.
STM Group (LON: STM) has reached agreement with PSF Capital GP II over a 67p a share cash bid for the pensions and financial services provider. The bidder is securing a new credit facility to fund the bid. Originally, it was stated the offer could be as high as 70p/share, but the share price shows that investors were not counting on it being that high. This is conditional on STM boss Alan Kentish acquiring the UK SIPP business and those related to the Master Trust. The share price increased 22.2% to 55p, which is still well below the bid price.
Restore (LON: RST) has won a digital contract with the HMRC worth up to £140m for between five and seven years. It commences this month. The shares recovered 18.6% to 213.5p and it is nearly back to the level prior to the profit warning at the beginning of July.
Genedrive (LON: GDR) has achieved UKCA marking for the CYP2C19 genetic test, which helps to manage the treatment of strokes. There are more than 60 million ischaemic strokes each year globally, including 100,000 in the UK. The share price rose 17.8% to 13.25p.
Paint manufacturer Dulux has been appointed distributor for three years for the fire protection paint ranges of Zenova Group (LON: ZED). There are more than 230 Dulux Decorator Centre stores. The share price rose 4.55% to 5.75p, which continues the recovery since the end of June.
FALLERS
Satellite communications equipment supplier Global Invacom (LON: GINV) is asking shareholder permission to dump the AIM quotation and maintain the one on the Mainboard of the Singapore stock market. There is a lack of liquidity on AIM, and this makes it difficult to raise cash. There is also the cost and management time taken up with being on AIM. A subsidiary has signed a multi-year contract with Eutelsat Communications. The share price slumped 22.7% to 3.75p. The July 2014 placing price was 19.75p. The shares have been trading below that price for more than eight years.
Manufacturing problems hit margins at Surgical Innovations (LON: SUN) and it will fall back into loss this year even though revenues are growing. Year end net cash could halve to £500,000. An operational review should help to improve efficiency and price increases will also help margins recover. The share price fell 11.1% to 1.6p.
Powerhouse Energy (LON: PHE) did not generate any revenues in the first half of 2023 and the operating loss increased from £920,000 to £1.3m. There should be revenues from engineering business Engsolve in the second half. The share price decreased 3.31% to 0.555p.
Kodal Minerals (LON: KOD) has cash of £1.98m in the bank. Pre-construction activities are nearly complete at the Bougani lithium project in Mali. Construction can begin when funding is secured. The share price dipped 1% to 0.505p.
