A more positive trading statement from film and video translation services provider ZOO Digital (LON: ZOO) as management believes that demand should recover following the disruption of recent strikes in Hollywood. Revenues of $40m are now expected for the year to March 2024. A new film and TV distribution client has been won and there is greater visibility of work. The company still might not move back into profit in 2024-25, though. There is potential disruption from a craft workers strike in Hollywood. The share price jumped 29.6% to 28.5p.
Crossword Cybersecurity (LON: CCS) has launched a new CyberAI practice to provide focused consulting services to clients. This includes assessment and testing. The share price improved 17.7% to 5p.
Manx Financial (LOO: MFX) reported an increase in 2023 pre-tax profit to £7.04m, up from £5.21m, even though the provision for loan impairment was slightly higher. Management believes that high interest rates will continue for the rest of the year and that will hit net interest margin, but when they fall growth should accelerate. Acquisitions could help growth. The outcome of the FCA review on commission arrangements in the motor finance sector remains uncertain, but it should not have a material impact. The share price recovered 15.6% to 26p.
Following yesterday’s results, Ocean Harvest Technologies (LON: OHT) director Stephen Walker bought 35,000 shares at 13.2p each. The seaweed-based feed producer increased 2023 revenues by one-fifth, but it remains loss-making. The share price rose 7.41% to 14.5p.
Floorcoverings manufacturer Airea (LON: AEIA) increased sales of its Burmatex-branded product by 14% to £21.1m. Pre-tax profit was flat at £1.4m, although it included a small valuation gain in the latest year. Higher finance costs relate to the pension scheme and operating profit increased. The net asset value is £14.9m, including net cash of £3.4m. Strong cash generation can cover the £5m investment in new capacity and a 10% increase in the dividend to 0.55p/share. The new capacity should be ready in early 2025 and will enable Airea to take advantage of own brand opportunities for clients. The share price increased 6.78% to 31.5p, which values the company at £13m.
FALLERS
Revolution Bars Group (LON: RBG) is assessing its options that include restructuring the business or selling all or part of the operations. There are currently no bidders. Luke Johnson is involved in talks concerning a fundraising. The share price slumped 44.8% to a new low of 1.6p.
Good Energy (LON: GOOD) had a strong performance in 2023 due to high energy prices, but 2024 will not get that benefit and energy supply profit will fall sharply. In 2023, pre-tax profit doubled to £5.7m, but the 2024 forecast has been downgraded from £8.4m to £6.7m. The energy services business, including solar and heat pump installation, is being built up and it will become a more significant profit contributor over the next couple of years making the group performance less volatile. The share price slipped 19.1% to 272p.
Semiconductor designer CML Microsystems (LON: CML) is being hampered by lower than expected shipments as clients reduce stocks and this is continuing into the new financial year. In the year to March 2024, revenues will be slightly lower than expectations at £23m and underlying EBITDA will be £6.4m, compared with a forecast £6.8m, due to more sales of lower margin products. Full year pre-tax profit will be just under £3m. The balance sheet remains strong with net cash of nearly £18m. The full benefits of the Microwave Technology acquisition, which has performed well, will show through over the next couple of years. The share price dipped 15.6% to 315p.
