Safety and compliance services provider Marlowe (LON: MRL) is selling part of its governance, risk and compliance software and service business to Inflexion for an enterprise value of £430m. That will pay off debt and enable £150m plus to be paid to shareholders. That could leave £60m of cash in the business. This could fund acquisitions in the remaining business areas of testing, inspection and certification, and occupational health. Marlowe chief executive Alex Dacre is leaving with the disposal. The sparked a share price increase of 51.4% to 530p. This is the highest the share price has been since early last November.
Two directors have been buying shares in broker Fiske (LON: FKE) and the share price soared 45.8% to 87.5p. Chairman Tony Pattison bought 15,000 at 69p each and non-exec Martin Perrin acquired 10,600 shares at 65p each. However, Alexander Fiske-Harrison took advantage of the price rise to sell 30,000 shares at 80p each. At the end of the previous week, Fiske announce improved revenues by one-third to £3.46m in the six months to December 2023. A positive interest contribution enabled pre-tax profit to jump from £28,000 to £429,000. Dividend payments are resuming with a 0.25p/share interim.
Frasers Group has acquired a 8.9% stake in models and collectibles supplier Hornby (LON: HRN). Frasers Group has been welcomed as a shareholder by Hornby chief executive Olly Raeburn and points out that the retailer has built up scaled shared services with brands. The Hornby share price jumped 37.5% to 27.5p.
Fertiliser producer Harvest Minerals (LON: HMI) recovered by one-third to 1.2p. Orders to the end of 2023 totalled 34,880 tonnes and 28,707 tonnes were invoiced and cash received for 27,024 tonnes. The 2024 orders have reached 7,067 tonnes. Management believe that orders could reach 70,000 tonnes this year, even though the market remains difficult. There was $630,000 in the bank at the end of 2023.
Retail and promotional business Spaceandpeople (LON: SAL) did slightly better than expected in 2023 with revenue of £5.8m, up from £4.7m. The company has changed its revenue recognition policy in the UK and revenues will be recognised on a net rather than gross basis. Without the change the 2023 revenues would have been more than £6.5m. The German business is recovering, and its revenues will still be recognised on a gross basis. There is no change to pre-tax profit – £90,000 is forecast. Net cash was £800,000 at the end of 2023. The share price rose 32.5% to 77.5p.
FALLERS
Electric drivetrain developer Saietta Group (LON: SED) it needs more cash by the end of March or it will have to find a bidder and that made it the top faller on AIM for the second week in a row. Cash payments have been delayed. The share price slumped a further 80.8% to 1.2p. The July 2021 placing price was 120p, so the share price has declined by 99%.
Horizonte Minerals (LON: HZM) estimates that it will cost $454m to complete construction and deliver first metal at the Araguaia nickel project. This means that the estimate of overall cost is currently 87% higher than before at $1bn. The company is in talks with shareholders and lenders to secure full funding in the second quarter of 2024. The increased investment requirement means that existing debt facilities will have to be restructured. Short-term funding will be required will the discussions continue. Heikon Investments slashed its shareholding from 7.99% to 0.33%. The share price dived 53.4% to 4.125p – having previously reached a new all-time low of 2.75p.
Finland-based Faron Pharmaceuticals (LON: FARN) is continuing discussions with IPF Fund II SCA due to the default on the secured debt funding agreement. Faron Pharmaceuticals wants a waiver from IPF and for it to unblock pledged bank accounts. Management is seeking alternative finance and plans to ask for shareholder approval for a rights issue. The share price dived 51.9% to 127.5p.
Shield Therapeutics (LON: STX) is making progress with Accrufer iron deficiency treatment sales, but a third party overstated the number of prescriptions in 2023. There would have been 90,500 on the previous methodology, which was lower than expected, but the revised figure is 77,000. Year-end cash was $13.9m. Costs are being controlled, but there is no guarantee that there is enough cash to reach breakeven. Shield Therapeutics expects to be cash flow positive in the second half of 2025 instead of later this year. The share price slipped 51.3% to 2.85p.
