Aquis weekly movers: S-Ventures plans fundraising

Andrew Hore
-
0
Aquis weekly movers: S-Ventures plans fundraising

Aquis Exchange (LON: AQX) chief executive Alasdair Haynes bought 10,000 shares at 325p each, while non-exec chairman Glenn Collinson acquired 7,500 shares at 326.5p. Shares in the owner of the Aquis Stock Exchange improved 4.55% to 345p.

Technology marketing business Inteliqo Ltd (LON: IQO) generated initial revenues of $558,000 in the year to September 2023 and it moved from a loss of $428,000 to a pre-tax profit of $185,000. There is $384,000 in the bank, after a cash inflow of $195,000. Inteliqo should continue to be profitable this year as it builds up sales of smart translation Ipedia earbuds and the Langaroo language app. The share price edged up 1.61% to 15.75p.

FALLERS

Healthy snack foods supplier S-Ventures (LON: SVEN) plans to raise at least £2.5m to pay deferred consideration and provide working capital. The fundraising has been announced ahead of time so that more investors can become involved. In the year to September 2023, gross revenues improved from £8.6m to £16.9m, while net debt is £6.8m. The main growth came from an initial contribution by gluten-free products company Juvela and technology platform Market Rocket. S-Ventures was loss making and the level is likely to depend on impairment charges. The share price slumped 18.8% to 4.75p, which is just above the all-time low.

Tap Global Group (LON: TAP) has appointed Tennyson Securities as its broker. The share price declined 10.6% to 2.1p.

Premier Miton has taken a 5.05% stake in Global Connectivity (LON: GCON). The share price fell 5.08% to 1.4p.

Shepherd Neame (LON: SHEP) director George Barnes bought 1,000 shares at 800p each. The share price slipped 0.625% to 795p.

AIM weekly movers: Gama Aviation disposal

Andrew Hore
-
8
AIM weekly movers: Gama Aviation disposal

Quantum Blockchain Technologies (LON: QBT) says that its proprietary Method A and Method B software is available as a SaaS platform. Potential bitcoin mining clients were interested in the software, but the company did not want to give up the source code, so it has developed the SaaS platform. The share price soared 110% to 1.625p.

Gama Aviation (LON: GMAA) is selling its Jet East business for $131m. Adjusting for debt and transaction costs the net amount is $100m, which is equivalent to 125p/share. That could allow a 55p/share dividend. The share price is 64.8% higher at 86.5p. The rest of the cash can be reinvested in the remaining aviation services businesses. Gama Aviation recently won air ambulance and offshore helicopter contracts.

CoStar Group Inc is bidding 110p/share for On The Market (LON: OTMP), which values the property listings company at £99m. The share price jumped 60.9% to 107p, compared with the February 2018 placing price of 165p. CoStar Group Inc says that On The Market provides a good entry point to the UK residential property market. The purchaser owns US-based Homes.com.

Craven House Capital (LON: CRV) investee companies Garimon and Honeydog – it has 29.9% of each company – are planning to reverse into the Amigo Holdings shell on the Main Market. These are music streaming and digital publishing businesses. The Craven House share price rose 44.8% to 21 cents.

FALLERS

Networking technology supplier Ethernity Networks (LON: ENET) has lost 64.5% since returning from suspension on Monday and ended the week at 0.275p on the back of allotting 37.1 million shares at 0.2p each. This relates to a settlement notice for $90,000 from 5G Innovation Leaders Fund. The remaining outstanding balance on the facility provided is £1m.

eDrive systems developer Saietta (LON: SED) shares returned from suspension on Thursday afternoon after it published results to the year to March 2023. There were problems with the accounting for the new agreements with Consolidated Metco Inc, which included an upfront payment of €3.3m and an inventory write-down of £2.1m. The share price has fallen 51.3% to 18.5p. Revenues from continuing operations more than doubled to £4.8m, but the group loss was higher. Orders are in place to build up revenues. There was cash of £7.2m left at the end of March 2023, but by September this was down to £400,000. More cash will be required to finance the delivery of orders.

Fashion retailer Sosandar (LON: SOS) has decided to reduce promotional and discounting activity on its website and open retail stores. There will be four shops by next spring. This will hold back short-term revenues but could accelerate progress in 2026-27. Singer has cut its full year revenues forecast by 19% to £46.8m. This means that having made a profit last year, this year Sosandar will be back to breakeven, and it will take two years to beat the £1.6m profit made last year. The initial reaction was negative with a two-fifths decline in the share price to 11.25p. That is the lowest share price for more than three years. In February, cash was raised at 22p.

Revolution Bars Group (LON: RBG) reported full year figures broadly in line with expectations. The Peach Pubs business is trading well with like-for-like sales 14% ahead, but the Revolution bars have been hit be train strikes. Cavendish retained its flat 2023-24 pre-tax loss forecast of £2m, even though trading has been tough. The share price slipped 26.3% to 2.69p. This is just above the all-time low.

FTSE 100 falls at the end of a disappointing week for UK stocks

UK Investor Magazine
-
1
FTSE 100 falls at the end of a disappointing week for UK stocks

The FTSE 100 was set to close lower on Friday and end a week many investors will be pleased to see the back of. The tragedy unfolding in the Middle East and nagging concerns around interest rates have hit sentiment, sending major global equity indices lower.

London’s leading index was down 1.1% at the time of writing on Friday.

Only 16 of the 100 FTSE 100 constituents gained on the week as investors choose to sell cyclical sectors and those exposed to interest rates.

Defensive names were the best performers on the week. However, gains were limited with only one share, Endeavour Mining, gaining more than 2%.

“The FTSE 100 is on track to end the week nearly 2% lower, the result of a challenging period for investors worried about war in the Middle East, interest rates potentially staying higher for longer and mixed messages from large corporates in the US,” said Russ Mould, investment director at AJ Bell.

There was little in the way of major corporate news on Friday, with InterContinental Hotels standing out after providing a Q3 trading update.

“InterContinental Hotels echoed the positive sentiment seen earlier this week from Whitbread,” said Russ Mould.

“Hotels are in rude health as demand is strong which enables operators to push up room rates. InterContinental has been busy buying back shares and it looks as if shareholders will get an update next February on future plans to spend surplus cash.

“However, the key sticking point for investors is the rate of growth for revenue per available room, which slowed in the third quarter versus the first-half period.”

InterContinental Hotels was down 3.7% at the time of writing.

Rentokil Initial had another bad session, losing 4%, after issuing a warning on their North American business yesterday.

Ocado was the FTSE 100 worst performer as the food distribution company lost 5%.

Lynas Rare Earths is temporarily shutting down its Malaysian operations

Eve Katz
-
0
Lynas Rare Earths is temporarily shutting down its Malaysian operations

On Friday, Australian-listed Lynas Rare Earths, which operates only in Malaysia and Australia, said in a press release that it was temporarily shutting down all of its Malaysian operations as the country’s government continuously expressed concerns over the radiation levels emitted during Lynas’s extraction process.

All of the operations, except for the mixed rare earth carbonate processing plant, are to be shut down temporarily.

During the interim shutdown, the mixed rare earth carbonate processing plant will continue to process a minimal amount of the raw materials.

Lynas shares were flat in Australian trade.

During the shut-down of Malaysian operations, the working crew based in the country will be deployed to Australia, where they can continue to work on a rare-earths processing facility start-up in Kalgoorlie, Western Australia.

Oil continues to gain as Gaza invasion looms

Eve Katz
-
0
Oil continues to gain as Gaza invasion looms

The conflict in the Middle East drove oil prices higher on Friday, with Brent and WTI heading towards the second straight week of gains.

According to Sophie Lund-Yates of Hargreaves Lansdown: “The oil price has topped $92 a barrel as concerns about recent conflict spreading throughout the Middle East rise. If Iran were to be pulled into the situation, there are fears the oil price could top $150 a barrel for Brent crude. While the demand picture remains muddied, the market is very much reacting to anxiety over supply.”

WTI crude was up 0.74% on Friday, while Brent crude is up 0.65%.

As Israel prepares for a potential ground invasion into Gaza, the concerns around oil supply from the Middle East continue to grow.

On Thursday, the Israeli Minister of Defence told the troops gathered at the border that they should be prepared to move into Gaza soon.

Russia and Saudi supply

In addition to concerns around the Middle East conflict, there are ongoing oil supply shortages from Saudi Arabia and Russia.

According to the official S&P Global Commodities at Sea data, total Russian shipped oil and oil products exports consisted of an average of 5.27 mb/d, the lowest supply of oil from the country since September 2022.

Russia has banned exports of oil and oil products to some countries as the price cap continues to be enforced.

Iofina progresses new plant

Andrew Hore
-
0
Iofina progresses new plant

AIM-quoted iodine producer Iofina (LON: IOF) has confirmed that development of the new iodine plant IO#10 is progressing, and it has signed a new brine supplier.

US-based Iofina is building the new plant next to the recently opened IO#9 plant. The new plant should increase capacity to 750 tons. The timing of the start of production has not been confirmed.

Iodine prices remain strong due to strong medical demand and the lack of additional supply. Cash generated from operations should fund the new plant construction.

Canaccord Genuity is maintaining its 2023 pre-tax profit forecast at $9.8m, up from $9.3m in 2022, while the 2024 estimate is $10.7m. The 2023 earnings estimate is 3.8 cents/share, rising to 4.2 cents/share next year.

The forecasts are based on an iodine price of $65/kg, falling to $55/kg in the second half of 2024, which is below the current price. Each additional $1/kg adds $300,000 to EBITDA.

The share price fell 1% to 24p, continuing a decline that has been going on since the summer. The 2023 prospective multiple is eight, falling to seven next year. Net cash should reach $1.9m at the end of 2023.

Chinese property stocks at their lowest since 2009 as the crisis continues to unfold

Eve Katz
-
0
Chinese property stocks at their lowest since 2009 as the crisis continues to unfold

The Chinese post-pandemic recovery continues to be under threat as the country’s leading real estate companies face a potential collapse and investments in property hit a 9-month low.

The latest Chinese government data shows that for the first nine months of the year, local property investments dropped by 9.1%. Chinese property stocks are at their lowest since 2009.

Chinese real estate mega-giants Evergarande and Country Garden are both in debt. On Thursday, Country Garden missed a $15 million coupon repayment, according to Reuters, based on the information obtained from their sources. The company is now closer than ever to default, a fate that has already met many Chinese big real estate companies.

Evergrande also continues to remain in the centre of the country’s real estate sector-based crisis, with their shares falling more than 5% on Friday.

Reuter’s National Bureau of Statistics-based calculations show that Chinese new home prices are down 0.2% in October, but the drop has lessened since the month-on-month decline that saw August’s new home prices drop by 0.3%.

According to the National Bureau of Statistics of China, the property crisis continues to be fueled further by a lack of investment in the construction of new homes.

Property developers say that, following a short-term increase in sales in Beijing and Shenzhen earlier this year, the market is once again stagnant, as many first-time buyers prefer to stay on the sidelines in this uneasy climate.

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said that “Chinese economic data is relatively upbeat apart from property sales and investment, and it’s this differentiation that’s causing alarm bells to ring. The uncertainty surrounding the sector is reverberating in markets, and investors are watching for signs of support measures from the government.”

Harland & Wolff shares jump on major contract win

UK Investor Magazine
-
0
Harland & Wolff shares jump on major contract win

Harland & Wolff Group Holdings has won a major contract from Canadian oil giant Cenovus Energy to undertake the mid-life upgrade of the SeaRose Floating Production Storage and Offloading vessel.

The £61 million deal follows a letter of intent signed in July 2023 and will see the vessel arrive at Harland & Wolff’s Belfast shipyard in the first quarter of 2024 for a three-month refurbishment.

Harland & Wolff shares jumped over 10% on the news on Friday.

Preparatory work including steel procurement and block fabrication has already begun, expected to generate £10 million in revenues for Harland & Wolff in the 2023 fiscal year.

When work gets fully underway next year, the project will require around 1,000 personnel and subcontractors at its peak.

The SeaRose upgrade will form a significant component of Harland & Wolff’s projected revenues of £100 million and £200 million in 2023 and 2024 respectively.

John Wood, CEO of Harland & Wolff Group Holdings plc, commented on the deal:

“I am delighted that Cenovus has chosen Harland & Wolff as its preferred yard to undertake the mid-life upgrade of the SeaRose. The vessel first came into Belfast in 2012 so we will use our existing knowledge of this FSPO, in addition to applying the latest technologies and innovations for these kinds of highly specialised projects.”

ProCook cautious about outlook

Andrew Hore
-
0
ProCook cautious about outlook

Kitchenware retailer ProCook Group (LON: PROC) is still having a tough time. The share price slumped 15% to 18.225p because of caution about current trading.

Revenues fell 4% to £26.3m in the first half. The second quarter decline slowed to 2%. This was helped by a good summer sale performance in July and August. However, trading has been poorer in September and October and customers are seeking promotional offers.

The ecommerce revenues slumped by one-fifth to £9.1m in the first half and this was partly offset by increased high street sales. Net debt was £3.2m, while there are available facilities of £12.8m.

A new electricals range has been launched. Normally, three-fifths of revenues are generated in the second half. Lee Tappenden has been chief executive of ProCook for a few weeks, so he has not had much time to adapt strategy.

Main Market listed ProCook sells kitchenware, including cookware, tableware and cutlery online and through 58 retail sites. There is a flagship store in Tottenham Court Road. The November 2021 placing price was 145p.

AIM movers: Harland & Wolff contract and Saietta returns from suspension

Andrew Hore
-
0
AIM movers: Harland & Wolff contract and Saietta returns from suspension

William Currie continues to acquire shares in Brandshield Systems (LON: BRSD) ahead of the cancelation of its AIM quotation on 23 October. His shareholding has increased from 10.3% to 14.75%. The share price improved by 15% to 3.75p – it was 4.5p ahead of the proposal to leave AIM.

Harland & Wolff (LON: HARL) has been awarded a £61m mid-life upgrade contract for the SeaRose floating production storage vessel. The work will be carried out in Belfast and will last three months. It should start in the first quarter of 2024. The share price moved ahead by 13% to 12.75p.

Good Energy (LON: GOOD) has appointed chief operating officer Fran Woodward to the board. She has been with the renewable energy supplier for more than one decade. The recent rise in the share price continues and it is up 11.5% to 243p.

Blue Coast Equity has raised its stake in Everyman Media (LON: EMAN) by buying 2.5 million shares at 55p each. This takes the stake in the cinemas operator to 22.9%, which has increased from 19%. The share price rose 5.45% to 58p.

FALLERS

Networking technology supplier Ethernity Networks (LON: ENET) has lost two-thirds of its value since returning from suspension on Monday and it has declined a further 35.1% to 0.25p on the back of allotting 37.1 million shares at 0.2p each. This relates to a settlement notice for $90,000 from 5G Innovation Leaders Fund. The remaining outstanding balance is £1m.

Eco Buildings Group (LON: ECOB) is another company where the shares have returned from suspension after publishing the 2022 results and the 2023 interims. The share price was unchanged yesterday after trading in the shares restarted, but it has subsequently slumped 31.4% to 17.5p. The Eco Buildings business reversed into the Fox Marble shell on 2 June and the placing at the time was at 55p. The modular housing supplier has transferred equipment from Dubai to its new factory in Durres.

eDrive systems developer Saietta (LON: SED) shares returned from suspension on Thursday afternoon after it published results to the year to March 2023. There were problems with the accounting for the new agreements with Consolidated Metco Inc, which included an upfront payment of €3.3m and an inventory write-down of £2.1m. The share price initially fell from 37.5p to 27p and it has fallen a further 14.8% to 23p. Revenues from continuing operations more than doubled to £4.8m, but the group loss was higher. Orders are in place to build up revenues. There was cash of £7.2m left at the end of March 2023, but by September this was down to £400,000. More cash will be required to finance the delivery of orders.

Marketing services provider Jaywing (LON: JWNG) has appointed Spark Advisory as nominated adviser and Turner Pope as nominated broker. The share price slipped 10.6% to 3.8p. This is the lowest share price for three years, following an increased loss in the first half of 2023.

1...386387388...1,762Page 387 of 1,762