Beauty brands supplier Brand Architekts (LON: BAR) expects an 11% decline in 2021-22 revenues to £14.2m – even with a one month contribution of £800,000 from Innovaderma. The group is loss-making, although there should be cost savings to come from integrating Innovaderma. Net cash is £11.3m. The share price dived 19.1% to 46.5p.
Mattresses retailer eve Sleep (LON: EVE) slumped 13.5% to 0.8p as sales decreased by 17% in the first half. Management says the market fell by 30%. France is holding up better than the UK. Trading is improving, though. There was cash of £1.5m at the end of June 2022 and eve Sleep had drawn down £900,000 of working capital facilities. A small number of expressions of interest in the company are undertaking due diligence.
Credit provider Morses Club (LON: MCL) has fallen a further 8.9% to 4.69p after yesterday’s announcement that the increasing level of customer redress claims means that it is considering a scheme of arrangement.
The merger between Tern (LON: TERN) and Pires Investments (LON: PIRI) is not going ahead because not enough of the latter’s shareholders voted for it. Tern has risen 5.8% to 11.9p, while Pires Investments has fallen 6.3% to 4.1p. Tern wants to generate cash from exiting one or more of its investments as soon as it is feasible. There will not be any new investments until there is a realisation of an investment, although there are likely to be commitments to existing investments that may mean a fundraising will be required.
There is further share price recovery for floorcoverings and tiles manufacturer Victoria (LON: VCP) following Tuesday’s full year results. The share price fell from 440p to 404p on the day, but it has recovered to 481p, up 13.2% today. Victoria is acquisitive, but it also generates organic growth. All parts of the business generated like-for-like growth, including the new US distribution business. That growth is continuing in the first quarter of the new year. Net debt was £406.6m at the end of March 2022, but cash generated from operations will help to finance further acquisitions.
Newcrest Mining can pay $60m to Greatland Gold (LON: GGP) to take up an option to acquire a further 5% stake in the Havieron project. Given the progress that has been made on the project over the past year this is an attractive price, and it is likely to take up the option. The cash will pay off the $50m loan facility from Newcrest and leave money for further investment. Greatland Gold will still own 25% of Havieron. The share price rose 7.5% to 10.8p.
Xtract Resources (LON: XTR) says that the first gold has been poured at the Fair Bride gold asset in Mozambique. The share price rose 15.6% to 3.9p.
Ex-dividends
Hercules Site Services (LON: HERC) is paying an interim dividend of 0.6p a share and the share price is unchanged at 47p.
Volex (LON: VLX) is paying a final dividend of 2.4p a share and the share price rose 4p to 308p.
M Winkworth (LON: WINK) is paying a dividend of 2.7p a share and the share price is unchanged at 172.5p.
