Light Science Technologies Holdings shares drop on widened £1.3m pre-tax loss

Natasha Doris
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Light Science Technologies Holdings shares drop on widened £1.3m pre-tax loss

Light Science Technologies Holdings shares dropped 9% to 7.5p in late afternoon trading on Friday after the company announced a widened pre-tax loss of £1.3 million in HY1 2022 compared to £900,000 the year before.

The firm reported a slightly reduced margin of 20.9% against 23.6% in the previous year.

However, Light Science Technologies highlighted a revenue climb of 42.% to £3.6 million from £3.4 million in HY1 2021.

The company also confirmed the launch of its planned programme of investment in across the FY period.

Its post-period highlights included the commencement of its SensorGROW SaaS (Software as Services), which is set to growers with business intelligence to optimise plant growth and optimise business operations.

Light Science Technologies also reported the launch of its ‘slimline’ low profile tuneable light, which is designed to maximise growing space in Vertical farm projects, expanding the group’s reach of its nurturGROW CEA lighting solutions.

“With Group revenue increasing by 4.2% for the six months to 31 May 2022, alongside our forward order book and contracts worth £18 million, we have seen an increase in our pipeline of quoted business due to a demand for reshoring manufacturing to the UK, as customers look to increase product security and reduce risk,” said Light Science Technologies Holdings CEO Simon Deacon.

“As much as the macro trends are challenging in the short term, we are confident that the medium and long-term outlook for the Group is promising, as the market continues to grow.”

“With our experienced team, our technologies and energy saving products feeding into the growing pipeline, we are in a strong position to take advantage of the opportunities and achieve our objectives. We remain confident in our ability to achieve our revised forecasts as announced on 10 June 2022.”

Inspired trading in line with expectations as demand for ESG services grows

Natasha Doris
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0
Inspired trading in line with expectations as demand for ESG services grows

Inspired shares fell 1.3% to 12.1p in late afternoon trading on Friday, after the group confirmed its HY1 2022 results were set to come in line with market expectations in its trading update for the period.

The technology service provider announced progress in its planned strategy, with strong trading and a continued growth in underlying cash generation against HY1 2021.

Inspired, which built its business model on assisting companies in their journey to net zero, confirmed that energy had become a “high priority” for the firm.

The group commented its Energy Optimisation Services were especially strong across the financial period, with accelerating demand reported in its Inspired ESG services.

“Against a challenging market and macroeconomic backdrop, we are pleased to report a period of solid growth, with the Optimisation and ESG divisions gaining particularly good traction in particular, a trend we see continuing into the second half,” said Inspired CEO Mark Dickinson.

“The transition to Inspired plc a year ago has enabled us to strengthen our platform and leading market position as we support businesses in their response to the ongoing energy crisis and climate emergency.”

DeepVerge shares tumble as FY 2022 revenue expectations drop

Natasha Doris
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0
DeepVerge shares tumble as FY 2022 revenue expectations drop

DeepVerge shares tumbled 10.8% to 13.6p in early afternoon trading on Friday, after the group announced a lowered revenue expectation of approximately £18 million in FY 2022.

The company said the lower revenue would be reflected in a smaller projected EBITDA and a slight fall in gross margins, alongside a small increase in overheads.

DeepVerge reported a HY1 revenue growth of 95% to £6.4 million compared to £3.3 million in HY1 2021.

The firm noted a 128% surge in orders in HY2 to over £8.8 million against £3.9 million the last year.

The group added its Modern Water business saw £6.5 million in orders secured to the close of July, representing a 116% climb in one month, along with multiple £1 million installation bids still outstanding for site installations.

DeepVerge mentioned a Labskin and Skin Trust Club sales growth of £1 million, with 27,000 club members and over 300 products added to the marketplace, with an additional 200 products scheduled to be added.

The firm also commented on its prospect pipeline, which has seen success in converting its opportunities into firm orders for delivery in FY 2022, with £6.5 million in deals across China, South Asia, India and Africa.

However, the company warned there was uncertainty as to whether its conversion rate over the coming months would meet previously expected levels.

“H1 2022 has been another exceptional fast growth period for DeepVerge. Modern Water is in the right place at the right time, to deal with the global water crisis,” said DeepVerge CEO Gerard Brandon.

“Also, Skin Trust Club has hit a rich vein of consumer desire to take control by personalising the skin care industry which can be seen by the rush of skin care products being added to the Skin Trust Club marketplace, that only began in Q1 this year.”

“Although full year 2022 revenues might be lower than previously guided, sales and orders continue to rapidly expand across all divisions in the current macroeconomic and geopolitical environment. We have taken a prudent stance to guide the market on year-end revenue and will provide further updates as necessary.”

US adds 528,000 jobs in July despite recession concerns

Natasha Doris
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US adds 528,000 jobs in July despite recession concerns

The US added 528,000 jobs in July, according to the US non-farm payroll report released today.

Meanwhile, the unemployment rate fell to 3.5% across the country, coming in below the 3.6% market estimate.

The Bureau of Labour Statistics also revised the growth in June to 398,000 payrolls from 372,000 and updated May’s results to 386,000 jobs from 384,000.

The soaring results appeared to defy recession concerns and rising interest rates, with the employment figures smashing expectations despite the volatile macro-economic environment.

House prices fall for first time since June 2021

Natasha Doris
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House prices fall for first time since June 2021

House prices have fallen for the first time since June 2021, according the latest report from Halifax.

Prices dipped by 0.1% in July 2022, and the annual rate of growth eased to 11.8% from 12.5%.

Halifax noted a typical UK property currents costs £293,221, representing a £365 reduction against June 2022.

The tiny fall marks the first sign of the expected housing market slowdown, which has been on the cards for analysts over the last few months as interest rates and inflation spike.

“While we shouldn’t read too much into any single month, especially as the fall is only fractional, a slowdown in annual house price growth has been expected for some time,” said Halifax managing director Russell Galley.

“Leading indicators of recently shown a softening of activity, while rising borrowing costs are adding to the squeeze on household budgets against a backdrop of exceptionally high house price-to-income ratios.”

However, Halifax highlighted several factors that remained to keep house prices at the higher end of the range, such as pandemic savings and short property supply.


“That said, some of the drivers of the buoyant market we’ve seen over recent years – such as extra funds saved during the pandemic, fundamental changes in how people use their homes, and investment demand, still remain evident,” said Galley.

“The extremely short supply of homes for sale is also a significant long-term challenge but serves to underpin high property prices.”

The cost of living crisis has been encroaching on the market horizon for months now, however, and experts have been counting down the seconds until the gravity-defying housing market finally felt the looming UK recession bite.

Meanwhile, the recent 0.5% interest rates hike to 1.75% by the Bank of England is also expected to take some wind out of the market’s sails.


“Looking ahead, house prices are likely to come under more pressure as those market tailwinds fade further and the headwinds of rising interest rates and increased living costs take a firmer hold. Therefore a slowing of annual house price inflation still seems the most likely scenario,” said Galley.

WPP shares slide despite 10.2% revenue growth and strong profits

Natasha Doris
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WPP shares slide despite 10.2% revenue growth and strong profits

WPP shares slid 7.4% to 826.4p in late morning trading on Friday, despite a 10.2% revenue growth to £6.7 billion in HY1 2022 compared to £6.1 billion the year before.

WPP attributed its strong revenues to high client demand across most sectors and regions, with $3.4 billion in net new billings across the financial term.

The marketing company reported an 11.4% operating profit climb to £539 million against £484 million, along with a 6.1% pre-tax profit increase to £419 million from £394 million.

The group also noted a £1.6 billion net debt growth to £3.1 billion after £1.1 billion in share buybacks launched since June 2021.

The firm said £637 million in share buybacks had been completed in HY1, with a total of £800 million scheduled for completion in FY 2022.

WPP confirmed a 10.2% diluted EPS rise to 22.7p compared to 20.6p the last year.

“We have enjoyed a strong first half, with broad-based growth across our creative, media and public relations businesses. This reflects the improved competitive position of our creative businesses, with their growing capabilities in commerce, experience and technology, our continued strength in media and the resurgence in demand for strategic communications advice from our public relations agencies,” said WPP CEO Mark Read.

“Our services are business-critical – driving growth, building brands, innovating and helping clients navigate an increasingly complex marketing environment. As major advertisers increasingly look to integrate their marketing investments, we are well positioned to serve the world’s largest companies, demonstrated by our success with Coca-Cola, which we are now onboarding at pace.  The second quarter saw significant assignment wins from Audi, Audible, Danone and Nationwide.”

“Our clients are continuing to invest in WPP’s services, which reflects our attractive industry exposure in technology and healthcare, our broad global footprint, and the importance of what we do for their businesses.  The actions we have taken over the last four years leave WPP much better positioned with a more uncertain economic environment ahead.”

WPP recommended a 20% hike in dividends to 15p per share against 12.5p in HY1 2021.

Aim movers: Cornerstone fundraise and DeepVerge disappointment

Andrew Hore
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Aim movers: Cornerstone fundraise and DeepVerge disappointment

Cornerstone FS (LON: CSFS) announced a fundraising late on Thursday. This has been completed by the international payments business and it has raised £1.09m. A placing raised £860,000 at 6.5p a share and a further £225,000 through an unsecured convertible loan note. There is no interest charge on the two-year loan note, and it is convertible at 6.5p a share. Cornerstone is also issuing shares for previously announced incentive agreements. Robert O’Brien will initially receive 4.29 million shares – 9.9% of Cornerstone FS – and then a further 5.11 million at 10p when the FCA gives permission for him to own more than 10%. Robert O’Brien will also receive £2m in 6% loan notes repayable on 31 July 2025. Three other people will receive 2.1 million shares. The share price declined 11.8% to 7.5p.

Oracle Power (LON: ORCP) has raised £500,000 at 0.275p to finance the development of its green hydrogen project. Earlier this week, Oracle Power was told by the Sindh authorities that it will receive a letter of intent for establishing a 1,200MW hybrid solar/wind, green hydrogen/power project in Pakistan. Oracle Power is required to provide a $600,000 performance guarantee. Prior to that announcement the share price was 0.285p. Today, the share price has fallen 17.1% to 0.315p.

Light Science Technologies Holdings (LON: LST) increased its loss in the first half of 2022. Revenues were 4% ahead at £3.6m and investment has been increased. There was a small initial contribution from the controlled environment agriculture division. Since the end of June, the SensorGrow SaaS has been launched with a three-year subscription model. A new slimline low profile tuneable light has also been launched. Net cash is £145,000, after a £1.28m cash outflow from operations. The shares fell 6.1% to 7.75p. Last October’s placing was at 10p.

Deepverge (LON: DVRG) says interim revenues almost doubled to £6.47m and the environmental and life science company says that it is on course to achieve full year revenues of £18m. That is lower than previously expected because of uncertainty about the pace of new contract wins. There are £8.87m of orders due to be delivered in the second half, so more than four-fifths of the forecast is covered. The Skin Trust Club started earlier this year has already achieved sales of more than £1m. The share price fell 6.6% to 14.25p.

Lithium-ion battery cell technology developer AMTE Power (LON: AMTE) has secured a partnership with Cosworth for its Ultra High Power (UHP) rechargeable pouch battery cells. The share price rose 15.6% to 85p. AMTE Power raised £12.95m at 175p a share when it joined AIM in March 2021.

London Stock Exchange launches £750m share buyback as HY1 profits surge

Natasha Doris
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London Stock Exchange launches £750m share buyback as HY1 profits surge

London Stock Exchange shares climbed 4.2% to 8,496p in late morning trading on Friday, after the group announced a sweeping slate of strong profits in HY1 2022.

The company reported a gross profit growth to £3.2 billion compared to £2.6 billion year-on-year, alongside an EBITDA rise to £1.7 billion from £1.2 billion and an operating profit of £897 million against £550 million.

London Stock Exchange also confirmed a pre-tax profit of £803 million compared to £463 million the last year.

The company highlighted a total income rise of £717 million to £3.7 billion across the financial period.

London Stock Exchange reported a Data & Analytics revenue climb of £482 million to £2.3 billion, alongside a Capital Markets revenue rise of £181 million to £720 million and a Post Trade revenue increase of £37 million to £482 million.

The firm said it would be launching a £750 million share buyback over the coming 12 months on the strength of its profits and revenue, with the first tranche set to commence immediately.

The group noted a positive cash generation in HY1 and the completion of its GDC and MaryStreet acquisitions, with its acquisitions of TORA and Quantile expected to close in HY2.

The London Stock Exchange added it experienced good momentum going forward in HY2 2022, with effective cost management and strong progress in achieving synergies.

“LSEG has delivered a strong first half performance with continued revenue growth across our businesses. We are managing costs well and we continue to make progress on achievement of synergies,” said London Stock Exchange CEO David Schwimmer.

“We provide solutions solving critical issues for our customers, with a high proportion of recurring subscription revenues and structurally growing transactional revenues that benefit from volatility.”

“Our cash generation is allowing us to actively deploy capital across organic and inorganic investments, grow our dividend and commence a share buy-back programme, driving further value for our shareholders. We are successfully executing on our strategy, have good momentum going into the second half and our targets remain unchanged.”

London Stock Exchange recommended a 27% dividend hike to 31.7p per share for HY1.

Flutter Entertainment completes £1.62bn Sisal acquisition

Natasha Doris
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0
Flutter Entertainment completes £1.62bn Sisal acquisition

Flutter Entertainment announced its completed acquisition of Italian online gaming operator Sisal for £1.62 billion on Friday, after receiving all the necessary regulatory confirmations for the transaction.

Flutter Entertainment commented the acquisition was aligned with its strategy of investing to build leadership positions in regulated markets.

The Italian company has reportedly posted a strong performance since the agreement was announced.

Sisal grew its revenues 58% year-on-year to £402 million, with a 51% EBITDA climb to £120 million in HY1 2022.

Flutter Entertainment said the transaction had been completed using debt facilities agreed upon at the initial announcement on 23 December 2021.

The closed deal brought the group’s expected weighted average cost of debt to approximately 3.4% for HY2 2022.

Flutter Entertainment shares rose 0.7% to 8,762p in late morning trading on Friday.

AMTE Power signs Cosworth deal

Andrew Hore
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0
AMTE Power signs Cosworth deal

Lithium-ion battery cell technology developer AMTE Power (LON: AMTE) has secured a partnership with Cosworth for its Ultra High Power (UHP) rechargeable pouch battery cells.

This follows the announcement that AMTE Power has chosen a site in Dundee for a new 0.5GWh battery production facility. This could open in the third quarter of 2025. At full capacity, the facility could generate annual revenues of more than £200m.

UHP cells have consistent energy delivery at a very high rate. There are rapid charging and discharging times that are suitable for the automotive, aerospace and marine sectors.

Cosworth is a global technology business that used to be famous for making Formula One engines. It can design, develop and manufacture engines. Cosworth recently acquired electrification business Delta and this deal will add to the expertise.

AMTE Power has previously announced a memorandum of understanding with MAHLE Powertrain, which has a facility in Northampton. The partnership will help MAHLE to develop powertrain technology. There is also a deal with Viritech to help in developing hydrogen fuel cell electric vehicles.  

AMTE Power raised £12.95m at 175p a share when it joined AIM in March 2021. Following the latest news, the share price rose 10.9% to 81.5p. It was 65p prior to the Dundee factory announcement.

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