AIM movers: Sound Energy completes sale and stronger second half for Aferian

Andrew Hore
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AIM movers: Sound Energy completes sale and stronger second half for Aferian

Sound Energy (LON: SOU) has completed the sale of a 55% interest in the Tendrara concession and a 47.5% interest in each of the Grand Tendrara and Anoual exploration permits in Morocco. There will be a $12m payment in phase 1 and $1m in phase 2 development back costs. Sound Energy will retain a 20% interest and will be carried for up to $24.5m in future phase 2 development costs. There will be a further $1.5m payment after first gas production. The share price jumped 30.8% to 0.85p.

Video streaming technology developer Aferian (LON: AFRN) 2023-24 full year revenues will be around $26m after a stronger second half. Aferian moved into profit in the second half, but it still made a full year loss. There are $18m of revenues already contracted for this year. Net debt has been reduced to $12.5m. The share price recovered 23.1% to 4p.

Sancus Lending (LON: LEND) chairman John Whittle acquired two million shares at 0.39p each and chief executive Rory Mepham bought three million share at an average price of 3.6p/share. Sancus Lending spent £2m on buying back ZDP shares funded by an issue of bonds for the same amount. That leaves 16.3 million ZDP shares, and the quotation will be cancelled. The ordinary share price rose 14.3% to 0.4p.

Ascent Resources (LON: AST) has updated shareholders on the insolvency of its former joint venture partner in Slovenia.  A final list of creditor claims has been completed, including Ascent Resources claim. The court has approved a conditional claim of €3.04m and €2.7m out of a claim of €7.78m relating to the production of the joint venture. Ascent Resources intends to submit a claim for a greater payout from the production. This all depends on the final value of the estate. The share price increased 12.9% to 1.75p.

Automotive connection systems supplier Strip Tinning (LON: STG) says that the lifetime value of nominations has risen 12% to £107m. That is mainly due to the major battery technology contract for cell contact systems from £43m to £56.8m. Higher National Insurance costs will be offset by cost savings. Capex spending will be lower than expected over the next two years, so net debt will not rise as rapidly, although it could be £9.3m by the end of 2026. A £3.7m loss is forecast for 2024. Although the 2026 forecast has been lowered, Strip Tinning is set to move into profit in 2027. There is 80% visibility of forecast 2027 revenues of £27m. The share price rebounded 11.3% to 39.5p.

FALLERS

Rockfire Resources (LON: ROCK) says the retail offer was five times oversubscribed and raised £300,000 at 0.12p/share. In total, £1.02m was raised. Rostra Holdings owns 12.2%, TPM Middle East 7.92% and The Wonderful Group 7.82%. The cash will be spent on the Molaoi project in Greece.  The share price declined 16.2% to 0.155p.

Oil and gas company SDX Energy (LON: SDX) shares continue to fall ahead of its departure from AIM. If shareholders agree, then the quotation will be cancelled on 9 January. The share price slipped 15.4% to 0.55p.

Alba Mineral Resources (LON: ALBA) is continuing drilling and blasting at Clogau and there is visible sulphide mineralisation in the blasted rocks and visible gold in blasted ore. Processing will start shortly. However, progress is lower than anticipated. Sampling has started at the optioned projects at Finnsbo and Norrby in Finland. Management has visited the optioned gold projects in Tanzania. The share price dipped 5.36% to 0.0265p.

Mosman Oil and Gas (LON: MSMN) says that its partner Georgina Energy has received written notification of consent from Aboriginal landowners for exploration of EPA155 in the Amadeus Basin. Final negotiations should take up to three months. Georgina Energy is earning a 75% interest in the licence that is currently 100% owned by Mosman Oil and Gas. The share price is 5.63% lower at 0.0335p.

Building Net Zero Homes: Myths, Limitations and Investment Opportunities

Pearcroft Invest
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Building Net Zero Homes: Myths, Limitations and Investment Opportunities

People in the business told us building net zero homes was complex. And making a profit is practically impossible. But we were determined, and we set out to prove them wrong. Imagine our surprise then when the results from our first home confirmed that we had built a better than net zero home, profitably! 

At Pearcroft, we’re eager to work with likeminded investors, so much so, we’re offering between 8% and 20% returns per year and each investment package provides fixed returns. Actual rates vary depending on the type of investment, but we have four different investment packages to choose from and each opportunity has its own terms and details. The beauty with all our sustainable properties is that they’re luxury homes in desirable areas. We’re not forfeiting comfort for efficiency. We balance life’s little luxuries with sustainability. More eco-chic than eco-warrior. So, they appeal to a wide audience with a respectable price point.  

Don’t get us wrong, it’s not easy building net zero homes, but contrary to popular belief, it is possible. And it’s considerably easier than a lot of the industry made out. So, it got us thinking. What’s really stopping every new home being built as net zero today? And how can we encourage more people to choose the more sustainable option? 

Lack of Obligation 

Following exhaustive lobbying from house builders, the Conservative Government scrapped plans to bring in mandatory low carbon housing standards in 2015. Ed Matthew, the campaigns director at the E3G think-tank said: “Successive Tory governments caved into the powerful housebuilder lobby, who were major donors to the Conservatives.” Despite preparing to meet lower carbon standards, as soon as the news hit, they continued building the way they always had, saving billions of pounds.  

Without a legal mandate, changing the traditional mindset of big developers, ruled by robust governance and vocal shareholders, it could be like turning an oil tanker – slow, difficult, and a huge risk of environmental damage. There are some choosing the better way and driving change, however those mindful developers are in the minority so only a small percentage of the government’s 1.5 million new homes target will be low carbon. 

Ignoring the Customer 

There also seems to be a common myth that home buyers or even investors don’t want lower carbon and sustainable homes. Wrong! While there’s still some ambiguity and lack of awareness, there’s been an incredible shift in demand over the last few years. 

Many developers see sustainable features as a luxury rather than essential. Sure, you might save a few quid now, but at what cost to the future? What would have happened if Volvo chose their bottom line over safety and never launched its three-point seatbelt?  

So, when there’s a clear cost-benefit to more energy efficient and lower carbon homes, it’s even more baffling that the majority of the industry is ignoring the demand for these homes.  

Challenging Workforce Misconceptions  

One thing that’s common among the hopeful minority of developers choosing to focus on low carbon properties, is their willingness to learn and listen. We’re not denying that building net zero homes is challenging because unlike traditional construction methods, there is no step-by-step guide to copy or show how to do things, but what we’ve learnt is that a lot of on-site teams already have some of the necessary skills to create and install technologies that assist in making a home Net Zero. And there is an eagerness to learn more! When we recruit, we have an enormous response from highly capable people because they want to work in a more modern and lower carbon way. 

And it’s not just younger recruits. We found all trades, backgrounds and ages show a huge willingness to get involved and learn.  

Zero Energy Bills for Homeowners 

Operational carbon is what most people think of when they hear ‘net zero’. It’s the emissions from the energy and water used in the building. We’ve proven net zero operational carbon is achievable because there are no year-to-year carbon emissions to heat and power Pearcroft homes. That’s why we guarantee homeowners have zero energy bills for five years. Maybe this is how the industry can be enticed to build more sustainably, by seeing a high demand for homes with zero energy bills.  

How We Do More 

As an industry, we’ve all got to do more. Whether that’s holding ourselves to account, supporting one another to improve or radically changing our thinking. Because Pearcroft Homes believe that building homes for the future means more than just meeting today’s standards, we do things differently. It means pushing boundaries, challenging norms, and proving that luxury living and sustainability can go hand in hand. Net zero homes don’t have to be boring ugly boxes, we make beautifully unique and architecturally sensitive homes. And we’ll continue banging our drum and encouraging everyone to join our mission. 

Yes, we’re proud of our net zero achievements, but we want to go further. We want each of our homes to have operational carbon emissions of minus four tonnes. That’s a staggering twelve tonne reduction compared to the average UK home with 8.1 tonnes of carbon emissions each year. 

We’re also looking at ways to tackle embodied carbon and improve our whole-life carbon performance and we think every housing developer should (and can) do this too by: 

  • Sourcing low-carbon and recycled materials. 
  • Optimising design to reduce material use. 
  • Considering the longevity and recyclability of materials. 
  • Choosing best-in-class suppliers actively reducing their carbon footprints. 
  • Reducing carbon in our day-to-day business operations. 
  • Researching and investing in innovative low carbon technologies. 

So whether you’re a seasoned investor or just starting out, talk to us about this critical mission. Together, we can create homes that set the standard for future generations and deliver strong returns for those who join us. 

Explore our website or give us a call to find out how you can be a part of making sustainable history. 

Planes, trains, and automobiles 

Vietnam Holding
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Planes, trains, and automobiles 

On November 30, the National Assembly approved the largest infrastructure project in Vietnam’s history: the US$67 billion, 1,500-kilometer-long high-speed rail (HSR) line connecting Hanoi and Ho Chi Minh City. 

Some versions of this hugely ambitious development have been under consideration for years, though it was rejected in the early 2010s due to cost concerns. 

Vietnam’s economy has grown dramatically since then, while the limitations of the existing rail network – largely built by the French during the colonial era – are stark. Meanwhile, the air route between Hanoi and HCMC is regularly among the world’s busiest, highlighting travel demand between the two cities. 

Once completed, the HSR line will see trains travel up to 350 kph on double-gauge 1,435 mm tracks with 23 passenger stations and five cargo stations. The National Assembly requested that a full feasibility study be completed in 2025, with construction to begin in 2027 and trains to be running along the entire route by 2035. 

Previous proposals had two sections – Hanoi to Vinh and HCMC to Nha Trang – operating by 2035, with the remainder completed over the ensuing decade.  

While laudably ambitious, the difficulty of completing the entire line by 2035 cannot be overstated. Much smaller projects such as HCMC’s first metro line, which costs less than US$2 billion and covers 20 kilometers, have been plagued by numerous delays—the latest schedule is for the metro line to open on December 22nd. 

In domestic media coverage, officials have acknowledged these challenges while projecting confidence and emphasizing the importance of this national-level undertaking. 

They have also stressed the need for financial independence. In October, the government proposed using domestic capital to fund the HSR route while avoiding official development assistance in the form of loans.  

According to VnExpress International, the annual cost of the project would account for 16.2% of public investment through 2030. 

The total estimated cost is $5.9 billion for land clearance and relocation, $33.2 billion for construction, $11 billion for equipment, $800 million for project management, $3.61 billion for construction investments, $900 million for other costs, and $11.85 billion in contingency funding. 

To help raise further funding, Prime Minister Pham Minh Chinh proposed issuing government bonds. 

Less clear at this stage is where the technology needed to build and operate an HSR will come from. China and Japan, among other countries, have expressed interest in helping to develop the project. Both countries have extensive experience with high-speed rail and already invest heavily in Vietnam, but the government’s reluctance to take on debt is clear. Given public sentiment toward Vietnam’s northern neighbour, the possibility of Chinese involvement raises further political sensitivities. 

In any case, the HSR approval has been hailed both domestically and internationally. It will be a transformational project for Vietnam, quickly linking major cities and likely driving investment in currently overlooked areas.  

Once completed, trains are expected to take just five hours to run the full route, a journey that currently takes about 30 hours. In addition to relieving pressure on overcrowded airports, this would also provide viable travel alternatives to Vietnam’s expressway network.  

It will also greatly improve the country’s regional competitiveness, as Southeast Asia has just one operating HSR line – Indonesia’s China-backed route connecting Jakarta and Bandung. Thailand is currently constructing a line, while Malaysia canceled its planned East Coast Route. 

Vietnam’s Ministry of Transport estimates that the construction of the HSR alone will add almost 1% to the annual GDP, with an internal economic rate of return of 12%.  

The benefits are clear, though cautious optimism is warranted given the country’s track record on major infrastructure projects. One certainty is that everyone will be closely watching – and eagerly anticipating – Vietnam’s first high-speed trains.  

Elsewhere in infrastructure development, work on the first phase of Long Thanh International Airport in Dong Nai Province is progressing well. The first terminal and runway, as well as the air traffic control tower, are shaping up for the US$15.5 billion megaproject. 

However, there needs to be clarity over when this may be completed. The state-owned Airports Corporation of Vietnam proposed delaying the opening from late 2025 to late 2026 to build a second runway and clear land for terminals planned in later stages. ACV argues that this would avoid disrupting operations once Long Thanh is open. 

The National Assembly approved this delay in its recent session, but a few days later Prime Minister Pham Minh Chinh ordered work to be completed by December 31, 2025 so that the airport could open by February 28, 2026.  

In Ho Chi Minh City, Tan Son Nhat’s third terminal is also moving along well and is expected to open next year, bringing relief to the chronically overcrowded facility.  

Regarding road networks, as of August, Vietnam had completed about 2,000 kilometres of high-speed expressways nationwide and aims to add another 1,000 kilometres by the end of 2025. 

In long-awaited good news for Ho Chi Minh City, the much-delayed Ben Thanh-Suoi Tien metro line is expected to enter operation next week, 22 December 2024. The line spans almost 20 kilometres and features 11 above-ground stations and three underground stations. Built with Japanese technical and financial assistance, this project—the city’s first metro line—ushers in a new era for transportation.   

Writing credit Michael Tatarski

Cohort shares jump after exceeding first half market expectations

UK Investor Magazine
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Cohort shares jump after exceeding first half market expectations

Cohort shares rose over 6% on Wednesday after the company announced record half-year results, significantly outperforming market expectations for revenue and operating profit.

The company reported a 69% surge in adjusted operating profit to £10.1m, driven by a 25% increase in revenue to £118.2m on higher demand for the defence group’s products.

“Cohort delivered a much stronger performance in the first half compared to the same period last year, with growth in both revenue and adjusted operating profit,” said Nick Prest CBE, Chairman of Cohort.

“Continued strong order intake has driven a record closing order book which underpins most of the second half of this financial year. In line with previous experience we anticipate a stronger performance in the second half and we remain on track to achieve our expectations for the full year.” 

In a clear sign of continued business momentum, Cohort achieved a record order book of £541.1m, surpassing the April 2024 figure of £518.7m.

The company’s order intake remained strong at £139.2m, with particularly notable performance in its Communications and Intelligence division.

“Demand for our solutions and services continues to be driven by heightened international tensions in the Asia-Pacific region as well as conflict in Europe and the Middle East,” said Nick Prest.

“This backdrop is driving increased spending on defence and security. Overall, we continue to see a positive outlook for organic growth in the years ahead.”

Cohort has increased its interim dividend by over 10% to 5.25 pence per share, maintaining its track record of progressive dividend growth.

Share Tip: Currys – worth over £1.2bn, now valued at £910m, trading on 9 times current year and just 7.8 times prospective earnings, ahead of its Interims, its shares at 80p are rated as a Buy, TP 135p

Mark Watson-Mitchell
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Share Tip: Currys – worth over £1.2bn, now valued at £910m, trading on 9 times current year and just 7.8 times prospective earnings, ahead of its Interims, its shares at 80p are rated as a Buy, TP 135p

With its shares currently trading at around the 80p level, Currys (LON:CURY) is valued at some £910m. 
However, sector analysts at Panmure Liberum consider that the retailer is trading significantly below its true value. 
In particular, the researchers conclude that in ‘true valuation’ terms – based upon the potential disposal of its various operations, the actual ‘sum of the parts’ tally is very much higher than today’s market capitalisation. 
On Thursday of this week, 12th December, it will issue its Interim Results for the six months to end-October. 
I expect to see that...

Why GenIP looks to be the pick of London’s AI stocks

UK Investor Magazine
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Why GenIP looks to be the pick of London’s AI stocks

UK investors are starting to sit up and take notice of the deep potential for growth in London’s AI-focused small-cap shares. Although the UK’s listed arena is no match for the mega funding rounds being chalked up in a private setting in the US, some of London’s AI companies are doing very interesting things and have exciting growth prospects.

We explained last week that several AI stocks, including GenIP, Cel AI and Sealand Capital Galaxy, deserved higher valuations. Today, we outline why GenIP looks to be the pick of London’s high-risk/reward artificial intelligence small-cap shares.

GenIP has developed Generative AI models that help Technology Transfer Offices (TTOs) assess the commercial viability of new technological discoveries. With companies like Google and Yahoo starting life as university technology before commercialisation, technology transfer can be a vital revenue source for universities and other research institutions.

However, around 80% of promising technical discoveries never achieve their full market potential due to the challenges of adequately assessing technology and bringing it to market. This is where GenIP comes in.

GenIP has identified a clear pain point for Technology Transfer Offices and corporate research institutions: They are missing lucrative commercial deals because they lack the capabilities to analyse the market opportunity properly. GenIP’s Generative AI analytics services are solving this problem by helping research organisations cost-effectively assess whether their technological discoveries have commercial legs in the real world.

What sets GenIP apart from other London-listed AI firms is the validation of its business model and proven traction in its target market. Although still in its early stages, the company has already announced orders for its Generative AI analytics services at a pace that suggests annual revenues of around £1m.

One may dare to assume this run rate increases as the company deploys funds from its recent IPO in marketing and sales.

Having provided a means of deducing a very rough earnings/sales-based valuation, there’s enough data to conclude that GenIP offers investors good value compared to the broader AI space.

AI valuation explosion

According to filings in the US, Elon Musk’s xAI raised $6bn recently at a valuation of $45bn. The Wall Street Journal reported that xAI told investors that it is on track for revenues in the region of $100m in 2024. These two numbers infer a very rough 450x revenue multiple for the round, although the actual revenue multiple could be very different as the figures aren’t publicly available.

Anthropic, the owner of Claude, the emerging leader in the field of large language models, secured another $4bn investment from Amazon in November. The deal reportedly valued the Anthropic at $40bn.

With Anthropic revenue set to hit $1bn this year, Amazon’s investment was completed on a multiple of 40x revenue.

Of course, these funding rounds represent the very pinnacle of Generative AI deal flow in a private setting, and inferences to London-listed small-cap AI shares aren’t straightforward. That said, increasing enthusiasm for listed AI-related shares globally is starting to be felt in London.

Nowhere is this enthusiasm felt more than in US-listed Palantir, an AI-powered data software company that provides businesses with solutions to improve operations. After rallying over 300% year-to-date, Palantir trades at 57x its FY2024 revenue guidance of $2.8bn.

Share price moves of this magnitude are starting to be observed in London’s riskier small-cap market. Sealand Capital Galaxy, for example, has gained over 900% in a month.

GenIP valuation

Using a base case of £1m GenIP revenue and applying a similar multiple to those observed in the fundraises of Anthropic, Xai, and OpenAI, GenIP would have a valuation target in the range of £40m—£450m. This compares to GenIP’s current £4m market cap. Direct comparisons here are fraught with constraints, but comparing and applying similar valuation multiples highlights just how undervalued some UK-listed technology shares are.

The base case £1m revenue may prove to be conservative. GenIP has barely scratched the surface of a target market of over 4,000 universities. An upcoming marketing campaign utilising IPO funds should significantly increase the annual revenue run rate.

Should GenIP’s marketing activities prove successful and the company achieve £3m revenue this year, applying the same revenue multiples observed in recent US funding rounds would infer a valuation of £120m—£1.35bn. Of course, the upper end of this range is fanciful, but it does demonstrate the valuations some institutional investors are prepared to pay to secure holdings in the world’s most exciting AI companies.

The opportunity in GenIP is further highlighted by comparisons to other players in the London AI space. Sealand Capital Galaxy’s news of a plan to break into the AI space has attributed it a valuation above £10m.

However, investors will note that Sealand is yet to complete its investment in Evoo AI, an AI firm with proprietary models that provide insights into the luxury goods market. There are also questions about how the investment will be funded.

These uncertainties make Sealand no less an exciting opportunity, but the recent rally in shares SCGL shares highlights more profound value elsewhere in the sector, particularly in GenIP.

Given that GenIP has a clearly defined market and is already gaining traction with orders, it puts it far ahead of other London-listed AI firms that have yet to launch products or announce any meaningful order flow or user numbers.

FTSE 100 falls on China concerns, Ashtead tumbles

UK Investor Magazine
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FTSE 100 falls on China concerns, Ashtead tumbles

Yesterday’s optimism around Chinese stimulus was short-lived. The hope that China would boost the economy through a mix of looser monetary policy and fiscal measures has quickly been met with scepticism about the effectiveness of their plans.

The result was a 0.5% drop in the FTSE 100 as China-focused stocks reversed much of yesterday’s gains.

“The FTSE 100 was in the red amid concerns that China’s economic stimulus measures might not have a long-lasting effect,” said Dan Coatsworth, investment analyst at AJ Bell.

“That triggered a sell-off in miners as investors worried that the Asian superpower wouldn’t have strong enough economic activity to drive a big increase in commodities demand.

“Chinese exports grew at a slower pace in November versus October and imports shrank. That doesn’t install much confidence about Beijing’s efforts to get the country back on top. The prospect of higher tariffs on Chinese goods exported to the US once Donald Trump is back in the White House also cast a dark cloud on the near-term outlook, making investors nervous about the region.”

The FTSE 100’s exposure to China means that any developments in the world’s second-largest economy have the potential to drive returns at an index level. The FTSE 100’s drop on Tuesday was almost exclusively due to concerns about China, with companies reliant on the country making up most of the top fallers. Antofagasta, Glencore and Prudential were all down over 2%.

Ashtead was the FTSE 100’s top faller, tanking over 12% after lowering its profit guidance amid slower revenue rental growth. Ashtead also dealt a major blow to London’s equity markets with plans to switch its primary listing to the United States.

“Equipment rental giant Ashtead is packing its bags and heading stateside, dealing another blow to UK markets. The move had been whispered about for a while, despite Ashtead previously insisting there were no such plans,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.

“It’s a logical leap – most of its leadership is already US-based, and the States are its biggest market. There will still be a secondary listing in the UK, albeit with less stringent requirements than a full listing. As for today’s results, they were a letdown, missing expectations across the board and topped off with a guidance downgrade. Sluggish commercial real estate is still a drag, but investors can find a silver lining in easier comparable quarters on the horizon and the longer-term tailwind of mega projects in the US.”

There was some marginal positivity in retailers such as B&M, Sainsbury’s and Tesco, but not enough to offset losses elsewhere.

Begbies Traynor benefitting from high level of insolvencies

Andrew Hore
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Begbies Traynor benefitting from high level of insolvencies

Business recovery services provider Begbies Traynor (LON: BEG) continues to grow through a combination of acquisitions and organic progress in both divisions. Although the number of insolvencies has dropped in the past year they remain at high levels and the recent UK Budget will put struggling businesses under more pressure.  

In the six months to October 2024, the AIM-quoted company’s revenues were 16% ahead at £76.3m, including organic growth of 11%. Underlying pre-tax profit was 16% higher at £11.5m, while earnings were 12% ahead at 5.1p/share. The interim dividend is raised 8% to £1.4m.

Cash generation is strong, but acquisitions meant that Begbies Traynor moved to a net debt position of £3.8m.

Business recovery revenues were 12% higher at £52.8m and in the period that was all organic growth. Higher utilisation rates meant that operating profit grew 17% to £13.6m.

Property advisory revenues were 24% ahead at £23.5m. While most of that growth came from acquisitions the organic improvement was still 8%. The profit improvement was slower than the growth in revenues.

Canaccord Genuity has upgraded 2024-25 revenues by 3% to £152.2m, although the pre-tax profit forecast is maintained at £23.1m. Share buybacks mean that earnings will be slightly higher. Higher costs mean that profit is expected to edge up to £23.3m next year.

The share price rose 5.75p to 100.15p. The prospective multiple is nine.

AIM movers: Pantheon Resources discovery and Digitalbox income upturn

Andrew Hore
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AIM movers: Pantheon Resources discovery and Digitalbox income upturn

Alaska-focused oil and gas explorer Pantheon Resources (LON: PANR) reports that the Megrez-1 well shows a large light liquids column and there appear to be three hydrocarbon bearing zones. This is in the Ahpun field. Long-term testing will start next year. The share price jumped 19.9% to 28.125p.

Digital media company Digitalbox (LON: DBOX) expects 2024 revenues to be at least £3.5m. EBITDA will be better than expected. Trading at all six digital brands has improved ahead of Christmas. Audience performance is strong, and the launch of Emmerdale Insider has gone well. The share price recovered 14.1% to 4.85p.

Insurance premium finance provider Orchard Funding (LON: ORCH) increased its loan book by 14% to £67m by the end of July 2024. Full year net total income was 23% higher at £6.89m but expected credit loss jumped from £140,000 to £1.17m. Earnings dipped 8% to 7.39p/share. There is no dividend. The share price improved 14% to 24.5p.

Victoria (LON: VCP) chief executive Philippe Hamers bought 200,000 shares at 40p each, taking his stake to 461,648 shares. Morgan Stanley increased its shareholding to 12.5%, while Vulcan Value Partners has cut its stake from 8.88% to 2.43%. Floorcoverings supplier Victoria recently reported a 7.5% decline in interim revenues to £586.8m. Underlying EBITDA was 45% lower at £50.2m. Annualised cost savings of £32m have been secured or planned. A full year pre-tax loss is forecast. The share price rebounded 12.1% to 44.6p.

FALLERS

Oracle Power (LON: ORCP) has submitted a mining lease application for the Northern Zone Intrusive Hosted Gold project in Kalgoorlie, Australia. Drilling continues on the project. The share price slipped 24.1% to 0.033p.

Shares in Trinidad-focused oil and gas producer Touchstone Exploration (LON: TXP) have fallen a further 10.8% to 20.75p. This is due to disappointing production guidance for the company. Net production guidance for 2025 is 6,700-7,300 barrels of oil equivalent/day and that should generate cash of $22m at an oil price of $71/barrel. Three-quarters of production will be gas. There are four wells planned at Cascadura, which will be most of the 2025 capital expenditure of $23m.

Alien Metals (LON: UFO) shares declined 5.56% to 0.085p after it postponed its end of year investor webinar that was due to happen on Thursday.

Media sales company Dianomi (LON: DNM) says the second half improvement was not as great as anticipated and revenues were £1m lower than expectations at £28m. That means that there will be a small loss in 2024. Net cash is £7.8m. The share price dipped 3.33% to 43.5p.

hVIVO shares rise on contract win and reaffirmed revenue guidance

UK Investor Magazine
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hVIVO shares rise on contract win and reaffirmed revenue guidance

hVIVO shares rose on Tuesday after the company announced a new contract win and reaffirmed revenue guidance, with EBITDA margin set to reach the upper end of the guidance.

hVIVO, the specialist contract research organisation, has secured a £11.5 million contract to test a new RSV antiviral drug candidate for an existing top-tier global pharmaceutical client.

The Phase 2a trial, scheduled to begin in the second half of 2025, will be conducted at the company’s Canary Wharf quarantine facilities, with revenue expected to be recognised across 2025 and 2026.

The study will be a randomised, double-blinded placebo-controlled human challenge trial, evaluating the safety, pharmacokinetics, and antiviral activity of the drug candidate. The company will use its in-house recruitment division, FluCamp, to enroll healthy volunteers for the study.

“This contract further demonstrates the trust and confidence that leading pharmaceutical companies place in hVIVO’s human challenge study models,” said Yamin ‘Mo’ Khan, Chief Executive Officer of hVIVO.

“We are proud to work with four of the top 10 global pharmaceutical companies to address unmet medical need in infectious and respiratory diseases. Our unique and established RSV model can provide valuable data on a candidate’s safety, pharmacokinetics, and efficacy, reducing the risks associated with later-stage clinical development and accelerating the pathway to market.”

hVIVO announced the new contract alongside a concise trading update confirming its financial guidance for the fiscal year 2024 and revenue of £62 million. The company expects its EBITDA margins to reach the upper end of market expectations, which currently range between 22% and 24%.

A comprehensive trading update for the year ended December 31, 2024, including the outlook for 2025, is expected to be released before the end of February 2025.

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