Subsea cable protection services provider Tekmar Group (LON: TGP) is recovering some of its recent losses with a 121% improvement in the share price to 16p, although it has still fallen by more than two-thirds this year. Tekmar has won a contract to supply cable protection systems for the third phase of the Dogger Bank C wind farm in the North Sea. Delivery will start in the third quarter of 2024. Tekmar is already supplying the other phases. There is no news about the strategic review or the potential strategic investor, which has exclusivity until mid-January.
X-ray screening systems developer Image Scan (LON: IGE) is the second-best performer this week following the purchase of at 2.37% stake by investment company Braveheart Investment Group (LON: BRH). The share price has jumped by 94.7% to 1.85p. Braveheart Investment bought 3.25 million shares at 1p a share and it believes that Image Scan has medium-term growth potential despite being loss making. Three Image Scan directors purchased shares following the stake announcement. The chief executive Vincent Deery bought 153,846 shares at 1.3p each and finance director Sarah Atwell King 152,985 shares at 1.2995p each. Chairman Timothy Jackson bought an initial 378,300 shares one day later at 1.85p each.
Shares in MS International (LON: MSI) jumped by 64.83% to 745p after it announced a £22.4m contract to supply new land-based mobile gun systems for air defence. They will be supplied to an overseas customer in 2023. The share price has risen by 247% this year.
LBG Media (LON: LBG) has revised guidance for 2022 and a strong second half recovery is expected. Full year revenues will be £63m. However, Zeus has cut its pre-tax profit forecast by 18% to £13.5m. Net cash has been revised downwards from £46.1m to £31m. The 2023 pre-tax profit forecast has been cut from £20.1m to £17.2m. Even so, the share price is 61.8% higher at 110p, which is 21 times prospective 2022 earnings. Chief executive Solly Solomou bought 50.000 shares at 100p each. In November, he acquired 900,000 shares at 51p each. He owns 42% of the media company.
Composite aerospace parts kits supplier Velocity Composites (LON: VEL) announced a $100m plus work package agreement with GKN Aerospace in Alabama, which provides a significant boost to its entry to the US market. This sparked a 42.6% increase in the share price to 38.5p. The 2017 placing price was 85p. The agreement with GKN, which is an existing client in the UK, covers five years. The new US production facility opens at the beginning of 2023. Once the US is fully up and running the company could move into profit in 2024. Braveheart Investment took advantage of the sharp jump in the Velocity Compositesshare price to reduce its stake to below 3%. Braveheart Investment took a 4.13% stake on 24 September 2021, and it was trimmed to 3.69% in November.
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Fallers
Shares in molecular diagnostics company Yourgene Health (LON: YGEN) slumped by 81.1% to 0.35p, following a large fundraising. In addition to the £6.4m already raised, a retail offer of up to £1m has been launched at 0.3p a share – it closes on 6 January. The subsidiary in Taiwan is likely to be sold and a strategic investor is being sought. The cash raised should last until the third quarter of 2023. Finance director Barry Hextall bought 3.4 million shares at 0.344p each, taking his stake to four million shares.
Shareholders of Star Phoenix (LON: STA) voted against the removal of the auditor and the appointment of the proposed replacement auditor, which has already started work on auditing the accounts. However, the new auditor has to be appointed by shareholders, so accounts cannot be published. Another general meeting will be held next year. This means that trading in the shares will be suspended on 3 January. The share price slumped by 55.6% to 0.6p.
City of London Group (LON: CIN) shares have fallen a 43.1% to 30p after it revealed that it is seeking shareholder approval for leaving AIM and winding up the company. As part of the liquidation, it will distribute its stake in Recognise Bank to City of London shareholders on a pro rata basis. A cash injection to Recognise Bank provides a valuation of 30p/ City of London Group share for the stake. Shareholders owning three-quarters of the company support the proposals.
Katoro Gold (LON: KAT) says its nominated adviser RFC Ambrian is resigning and a replacement needs to be found by 11 January or trading in the shares will be suspended. The minerals explorer will need to raise cash early next year to fund its iron ore project in Namibia. The share price is 41.7% lower at 0.105p. The par value of the shares is 1p, so it appears that a capital reorganisation will be required in order to issue more shares.
Egaming company Gfinity (LON: GFIN) reported a slightly lower underlying loss of £4.1m in the year to June 2022, down from £4.5m, if the gain on disposal is excluded. Revenues fell by 8% but costs were also reduced. There was a £2.57m cash outflow from operating activities. Gfinity has £2.14m in the bank. Potential deferred consideration is payable based on 30% of revenues generated by recent acquisitions over specific periods. Yet another fundraising appears likely in 2023. There are unexercised warrants that could generate £2.7m, but they are exercisable at 1.25p. The share price slumped 39.3% to 0.575p.
