AO World (LON: AO.) is acquiring musicMagpie (LON: MMAG) for 9.07p/share, which values the pre-owned products supplier at just under £10m. There are irrevocable undertakings and letters of intent totalling 54% to accept the offer. AO World believes that the two companies have complementary online models, and a technology trade-in service will enhance its product offering. AO World says that the musicMagpie disc media and books business should not require significant investment. The musicMagpie price jumped 49.6% to 8.6p.
Battery and electronic components supplier Solid State (LON: SOLI) is acquiring Gateway Electronic Components, which manufactures ferrite and magnetic components for £1.4m. These are used by electromechanical and Industrial Internet of Things businesses. The run rate pre-tax profit is £200,000, so the multiple is less than ten This purchase broadens the range of components that can be supplied by Solid State. The deal will enhance 2025-26 earnings by 2% to 14.4p/share. The share price improved 17% to 275p.
Celadon Pharmaceuticals (LON: CEL) has secured a new five-year sales contract to supply medicinal cannabis product to an established healthcare company. The value is up to £10.5m based on minimum quantities over five years. These deliveries will build up over the first three years. The first delivery from the UK facility should be within 12 months. The order book is worth £40.7m with the previous £26m contract supplied via the Danish partner Valeos Pharma. The share price recovered 12% to 28p.
Westminster Group (LON: WSG) has been selected to provide security services to a major international organisation via a number of individual contracts. The combined value is more than $1.2m. The share price increased 6.52% to 2.45p.
FALLERS
Trafalgar Property Group (LON: TRAF) returned from suspension yesterday afternoon following the ending of acquisition talks with Ecap Esports and the share price continues to fall. Housebuilding development operations continue. The share price declined 12.5% to 0.035p.
Neo natal respiratory equipment supplier Inspiration Healthcare (LON: IHC) interims were slightly short of expectations with a lower than anticipated gross margin of 43.5%. That meant that the loss was £2.5m. The full year loss estimate has been raised from £700,000 to £1.9m. Panmure Liberum has reduced its target price to 30p. The company is making a habit of disappointing the market and following a recovery in the share price it has fallen back 11.6% to 19p.
Agricultural products supplier Wynnstay Group (LON: WYN) says the second half has been hit by wet weather and weaker farmgate prices in part due to government policy uncertainty. Shore has reduced its 2023-24 pre-tax profit forecast by 35% to £7.5m and this will have a knock-on effect in the year to October 2025 where the profit forecast has been cut by 29% to £8.5m. Wynnstay should still have net cash, and the NAV is estimated at around 600p/share. There is also a 17.5p/share dividend. The share price slipped 6.25% to 300p.
Borders & Southern (LON: BOR) raised £1.5m at 1.5p/share to finance the development of the Darwin gas condensate discovery. The oil and gas company has raised the equivalent of one year of working capital so that it can seek a partner for the project. The share price dipped 8.33% to 1.65p.
Mosman Oil and Gas (LON: MSMN) has completed the sale of US oil and gas assets for up to $1.75m. The share price fell 5.56% to 0.034p.