Aquis weekly movers: Chapel Down marketing boss leaves

Andrew Hore
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Aquis weekly movers: Chapel Down marketing boss leaves

The share price of health products and diagnostic services supplier Goodbody Health Inc (LON: GDBY) has recovered by 11.1% to 1.5p during the week. The share price is still 58.3% below the level at the beginning of 2022.

Shepherd Neame (LON: SHEP) issued a full year trading statement and the share price edged up 0.9% to 812.5p. The Kent-based brewer and pubs operator says revenues are recovering and Peel Hunt forecasts a return to profit in 2021-22. Net debt was reduced from £93.2m to £75.3m by the end of June 2022. The estimated 2021-22 pre-tax profit of £7.2m is expected to improve to £9.6m in 2022-23, but that is a £900,000 reduction on the previous forecast prior to the trading statement.

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Fallers

Asimilar (LON: ASLR) is the largest faller on the week with a 20.8% decline to 10.5p. The technology investment company reported its interim figures, which show a £10.6m loss due to a sharp decline in the Dev Clever Holdings share price, which is currently suspended. Net assets were 25.3p a share at the end of March 2022. A relisting of All Active Asset Capital could boost the NAV.

The departure of chief marketing officer Mark Harvey from Chapel Down Group (LON: CDGP) knocked 17.6% off the share price, leaving it at 21.5p. He has been with the wine maker for six years. The share price is well below last July’s fundraising price of 59.5p. There was £9.2m in the bank at the end of 2021, so Chapel Down should not require any more cash to finance further vineyard planting.

Blockchain and digital assets investor KR1 (LON: KR1) has fallen by three-quarters so far this year, including a 16.9% decline to 24.5p this week. Net assets were 423% higher at 122.68p a share at the end of 2021, but that figure is likely to be lower now given the weak cryptocurrency market this year. There was £3.49m in cash on the balance sheet.

There was profit taking in Valereum (LON: VLRM) and the shares fell 15.8% to 24p.

Energy storage technology developer Invinity Energy Systems (LON: IES) generated revenues of £3.2m in 2021. VSA has cut its forecast for 2022 revenues from £26.5m to £14.1m. There are already contracts won valued at £13.8m. The loss is expected to reduce from £21.3m to £17.9m. There should still be net cash of £10m by the end of 2022. The share price fell 15.1% to 45p

S-Ventures (LON: SVEN) shares also fell by 15.1% to 31p. The organic snacks supplier generated interim revenues of £4.1m, while the loss was £815,000. S-Ventures has subsequently acquired Market Rocket Ltd.

AIM weekly movers: MySale share price nearly trebles on Fraser stake buy

Andrew Hore
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AIM weekly movers: MySale share price nearly trebles on Fraser stake buy

Australia-based online fashion retailer MySale Group (LON: MYSL) shares were 186% higher on the week at 3.58p making it the largest riser on the week. Mike Ashley’s Frasers Group has acquired a 28.7% stake. Frasers would like to sell its end of line merchandise through the company’s platform. MySale Group is still 38.3% lower than at the start of the year.

Inspirit Energy Holdings (LON: INSP) shares soared to 0.074p on Monday and settled at 0.06p at the end of the week. That was a 103% increase over the week. Investors were impressed that the company’s waste heat recovery system, where waste heat exhaust is converted to energy, has completed the first phase of development. Further enhancements will be made before there are trials. Cash is limited, though. Inspirit Energy had £348,000 in the bank at the end of 2021 after a £213,000 net cash outflow in the previous six-month period. The company may decide to take advantage of the share price rise to secure more funds.

Oil and gas explorer Providence Resources (LON: PVR) more than recovered the previous week’s share price decline after the announcement of a discounted fund raising of $1.8m at 1.5p a unit (one ordinary share and one warrant exercisable at 1.5p). The shares ended the week 37.8% higher at 3.1p, which is the highest the price has been since the middle of March. Providence Resources has an 80% stake in the Barryroe oil and gas project, offshore of Cork.

Shares in gift wrap, gifting and stationery products supplier IG Design Group (LON: IGR) recovered 30.4% to 90p following its full year figures. The loss was no surprise, but investors appear to be reassured about the steps being taken to improve performance and margins. The US business is the main problem and it fell into loss, while the international business remained profitable. The customers are highly supportive, and the order book is already 71% of this year’s budgeted revenues. Directors have acquired shares at prices between 70p and 83p since the results release on 28 June.

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Fallers

The biggest faller of the week was Cornerstone FS (LON: CSFS), which admitted that its cash was running out when it reported its 2021 figures – just in time to make sure that the shares of the international payments company were not suspended. The share price fell 56.4% to 8.5p. The chairman and the chief technology officer are both leaving. Technology is the key to the business. There was £280,000 in the bank at the time of the financial statement, with a further £450,000 of loan note facilities available. Cash flow estimates show that a share issue will be needed in the coming months.

On Wednesday, LiDAR wind sensor technology supplier Windar Photonics (LON: WPHO) admitted that it would not publish its annual results by the end of June because the audit was not completed and trading in the shares would be suspended on 1 July. Before the suspension the share price fell 43.9% to 8p. Revenues halved in 2021 because of further delays to a contract, which may not go ahead.

North America-based coal miner Bens Creek (LON: BEN) has been hit by profit-taking with a 43.2% slump to 42p. The share price is still well above last year’s placing price of 10p, although it was 104p in April. At the beginning of the week, Bens Creek said that production capacity could increase to up to 80,000 tons a month when another highwall miner is up and running. Non-exec director David Harris bought 44,642 shares at 44.8p each.

Shield Therapeutics (LON: STX) is running short of money because US sales of iron deficiency treatment Accrufer and another downgrade by finnCap. The share price fell 40.4% to 7.75p – that is an 82.6% drop so far this year. Most of the 2021 revenues of £1.5m were generated in Europe. There is progress in US revenues with first quarter prescriptions double the number in the fourth quarter of 2022 at more than 3,900. Having failed to raise money via a share issue, management has obtained a $10m loan, which can be converted into shares, from major shareholder AOP Orphan. That may give Shield Therapeutics enough cash until the end of the year. The loan is secured on the US IP for Accrufer.

FTSE 100 trades sideways after dismal June

Natasha Doris
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FTSE 100 trades sideways after dismal June

The FTSE 100 was down marginally on Friday as the market ended the week on a tepid note, following a 5% drop over June marking the worst month for the FTSE 100 since the first shock of the Covid-19 pandemic in 2020.

US markets also had a dismal June which culminated in the worst quarter for the NASDAQ since 2008.

Meanwhile, the S&P 500 closed up 1% on Friday as bargain hunters stepped into to provide some support.

“We already knew this year’s stock market performance had been miserable but when we see headlines flashing about the worst first-half for US equities since 1970 and the worst month for the FTSE 100 since the pandemic-induced market crash in 2020, the brutal severity of the losses really hits home,” said AJ Bell investment director Russ Mould.

Fears of a global slowdown on recession worries sent commodities groups falling, with Anglo American down 1.4% to 2,894.2p, Antofagasta sliding 1.9% to 1,132p, Endeavor tumbling 2.2% to 1,6645p, Fresnillo falling 2.5% to 747p, Glencore dipping 1.6% to 437.8p and Rio Tinto declining 1.1% to 4,860.5p.

However, analysts sought to find a sliver of light at the end of the tunnel, and assured investors that prices would rise again once the gloomy outlook had cleared.

“Whether you’re paying into a retirement savings pot through your workplace, or running your own personal pension, the drop in the market means your savings are worth that bit less,” said Mould.

“But this is not a time to panic. Stock markets go up and down, businesses go through good and bad cycles, and economic growth certainly does not travel in a straight line. The key is patience and hopefully the current state of despair will fix itself in time.”

The price of oil rose to $111 per barrel for benchmark Brent Crude, after supply fears in Libya and worries of a shutdown in Norway caused the price to rally.

Shell shares gained 1.5% to 2,166p, however BP shares slid 0.4% to 386.5p despite the rise in prices.

AIM movers: Gyllenhammar buys Rurelec stake, plus MySale, Itaconix, BlueRock Diamonds

Andrew Hore
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AIM movers: Gyllenhammar buys Rurelec stake, plus MySale, Itaconix, BlueRock Diamonds

Peter Gyllenhammar has acquired a 3.12% stake in South America-focused power generator Rurelec (LON: RUR). The share price was unchanged when the holding was announced yesterday, but it has subsequently risen by 9.5% to 0.575p. Askar Alshinbayev, the founding partner of Meridian Capital Ltd, had previously acquired an 8.6% stake. Rurelec had a net asset value of £11.7m at the end of 2021. It is loss-making, but that is well above its market capitalisation of £2.9m.

Australia-based online fashion retailer MySale Group (LON: MYSL) is the largest riser today, following yesterday’s 0.5p increase on news of Mike Ashley’s Frasers Group holding a 28.7% stake. The share price has risen a further 97% to 3.25p. Frasers would like to sell its end of line merchandise through the company’s platform. Sports Direct, as Frasers was then known, bought a 4.8% just after MySale Group floated in 2014 but that stake was sold in May 2019. MySale Group was planning to cancel its AIM quotation and move to the ASX, but it dropped its plans last autumn. Frasers stake is high enough to block any AIM cancellation.

Plant-based polymers developer Itaconix (LON: ITX) says that first half revenues are substantially ahead of the previous record level. This makes the board confident that Itaconix can meet expectations for this year. Demand is growing from new and existing customers in the detergents and hygiene sectors. Itaconix is still expected to lose money this year, but the cash outflow should be lower. There will be a trading update in the middle of July. The share price, which can be volatile, jumped 29.2% to 5.75p.

BlueRock Diamonds (LON: BRD) more than doubled 2021 revenues from £3.6m to £7.85m, while the loss was reduced from £2.99m to £1.35m. There was a £2.4m cash inflow from operations. The South Africa-based diamond miner has commissioned a new plant at the Kareevlei mine that will more than double capacity to 1 million tonnes per annum. The resource has been upgraded by 49% to nearly 10.4 million net tonnes. Management is positive about the prospects for diamond prices. Even so, the share price has fallen 7.4% to 12.5p.

Oxford BioMedica agrees 3-year extension to AstraZeneca Covid-19 vaccine deal

Natasha Doris
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Oxford BioMedica agrees 3-year extension to AstraZeneca Covid-19 vaccine deal

Oxford Biomedica shares were up 3% to 468p in late morning trading on Friday after the firm announced it had entered into a three-year Master Services and Development Agreement with AstraZeneca.

The Agreement would reportedly facilitate the potential future manufacturing opportunities for the AstraZeneca Covid-19 vaccine.

Oxford Biomedica noted the deal represents an expansion of the original Master Supply and Development Agreement announced between both groups in September 2020.

The working relationship is set to have Oxford Biomedica complete its manufacture of AstraZeneca Covid-19 vaccines in Q4 2022, followed by Oxford Biomedica providing the use of its 84,000 square foot manufacturing facility for AstraZeneca to take advantage of on an as needed basis after 2022.

Oxford Biomedica confirmed an expected recognised revenue of approximately £30 million from AstraZeneca in the current financial year in line with the terms of the original Agreement and inclusive of all batches of vaccine manufactured in HY1 2022.

“I am delighted that our close partnership with AstraZeneca has been extended. I am proud of the work of all our colleagues at Oxford Biomedica that has enabled us to deliver more than 100 million doses of lifesaving COVID-19 vaccine,” said Oxford Biomedica CEO Dr. Roch Doliveux.

“While contributing to the efforts to fight the pandemic, this has also demonstrated Oxford Biomedica’s ability to expand the scope of our innovative process development services and deliver high-performing manufacturing solutions beyond lentiviral vectors.”

“We look forward to continuing to work closely with AstraZeneca and execute on our strategy to become a global leader across all viral vectors, enabling Cell and Gene Therapy companies to deliver their life-changing therapies to patients.”

Croda completes £667m businesses divestment to Cargill

Natasha Doris
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Croda completes £667m businesses divestment to Cargill

Croda shares increased 0.6% to 6,512p in late morning trading on Friday after the group announced its completed divestment of its Performance Technologies and Industrial Chemicals businesses to a wholly-owned subsidiary of Cargill.

Croda reported the gross proceeds from the transaction would be approximately £667 million, subject to small adjustments for cash, working capital and debt-like instruments.

The group commented the divestment and the associated proceeds excluded Croda Sipo, a Chinese joint-venture in which Croda holds a 65% stake.

The firm highlighted its continued discussions with its joint-venture partner regarding the acquisition of its holding in Sipo in order to complete a subsequent sale by Croda to Cargill of 100% of the group for a total price of €140m.

“This divestment accelerates Croda’s transition to being a pure-play Consumer Care and Life Sciences company” said Croda CEO Steve Foots.

“We will redeploy capital and resources to scale our consumer, health and crop care technologies, helping to deliver consistent, superior sales growth and even stronger profit margins.”

Block Energy narrows losses on enlarged assets portfolio

Natasha Doris
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Block Energy narrows losses on enlarged assets portfolio

Block Energy shares were up 0.6% to 1.5p in early morning trading on Friday after the firm announced a revenue growth to $6.1 million from $1.2 million in FY 2021.

The group reported a swing back to gross profit of $231,000 compared to a loss of $3.2 million in the previous financial year, alongside an operating loss of $4.7 million against $5.6 million.

Block Energy highlighted a pre-tax loss for the year of $4.7 million from $5.5 million year-on-year, and a narrowed diluted loss per share of 0.7c from 1.3c the year before.

The company mentioned its successful integration of its SRCL assets acquired from Schlumberger and its definition of an asset wide field development and production enhancement plan in its highlights for the financial period.

The firm confirmed it completed several objectives on its FY 2021 roster, including fully integrating its technical database, following its completed acquisition of SRCL, and the completion of a risking and ranking process focused on short-term drilling and production enhancement opportunities across its enlarged portfolio.

It further defined a two-well drilling programme consisting of a new horizontal well, which was designed to appraise areas of low fracture density in the XIF license and a side track of an existing well in the newly acquired XIB license.

Block Energy also noted its simultaneous execution of a workover programme to reverse the natural decline of its baseline production.

“The Company swiftly integrated and advanced the appraisal and development opportunities throughout its enlarged portfolio in 2021. It also delivered on a key milestones, including commencing gas sales and execution of a multi well drilling campaign,” said Block Energy CEO Paul Haywood.

“This relentless drive to advance the Company and maintain consistent momentum has placed it in a stronger position to continue to create value for all shareholders in the current year. The planned three project strategy is designed to efficiently deploy existing cash reserves into further development drilling, throughout the XIF and XIB licenses.”

“This, combined with our enhanced understanding of the subsurface and the Company being profitable, sets the stage for what we forecast to be a rewarding year and we look forward to updating shareholders on short and medium term milestones as we advance.”

Zanaga Iron Ore records $1.8m loss in FY 2021

Natasha Doris
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Zanaga Iron Ore records $1.8m loss in FY 2021

Zanaga Iron Ore shares were down 7.3% to 1.9p in early morning trading on Friday after the company announced a pre-tax loss of $1.89 million against $1.82 million in FY 2021.

The mining group reported a total comprehensive loss of $1.9 million compared to $1.8 million the last year, and a rise in general expenses to $1.2 million from $1 million year-on-year.

Zanaga Iron Ore confirmed a net asset value (NAV) of $37.7 against $37.6 million in FY 2020, comprised of a $37.3 million in its Jumelles project, $400,000 in cash balances and $80,000 of other net current assets.

The company mentioned a selection of highlights for its financial year, including a funding update in its Shard Merchant Capital equity subscription agreement, with the transaction of 21 million shares subscribed for by the firm resulting in £1.1 million in proceeds received to date following 18 million shares placed by Shard Merchant Capital and a further three million remaining ordinary shares to be placed.

The group commented the proceeds have been applied to general working capital, including the financing of additional contributions to the Zanaga project’s operations.

“During 2021 it was pleasing to conclude an updated costing exercise, using independent technical experts to evaluate the Stage One development costs,” said Zanaga Iron Ore CEO Clifford Elphick.

“Furthermore, an update exercise was undertaken to evaluate the Ore Reserve for the Project. This resulted in the reconfirmation of the Zanaga Ore Reserve – which remains one of the largest ore reserves globally.”

“The Zanaga Project Team have continued to progress key initiatives at the Project. Significant work is underway to evaluate options to move the Early Production Project forward in collaboration with other projects in RoC.”

AIM movers: Shield Therapeutics, Cornerstone FS, Kefi, Tower Resources, ex-dividends

Andrew Hore
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AIM movers: Shield Therapeutics, Cornerstone FS, Kefi, Tower Resources, ex-dividends

Poor sales progress and the need for more funding has hit the Shield Therapeutics (LON: STX) share price, which had already been plummeting. It fell a further 38.5% to 7.375p. Shield Therapeutics launched its Accrufer iron deficiency treatment in the US last July and sales are taking longer than initially indicated to build up. Having failed to raise money via a share issue, management has obtained a $10m loan from a major shareholder lasting until the end of 2023. This is secured on the US IP for Accrufer, which are the main attraction of the business. finnCap forecasts net debt of £20.9m by the end of 2023 and continuing cash outflows.

Cornerstone FS (LON: CSFS) is making progress with its strategy to consolidate and grow international payment businesses by using its own cloud technology. Gross margin has improved but the group is still loss-making. In fact, the interim underlying operating loss increased from £1m to £1.44m. The increase was greater if transaction costs and share-based payment charges are included. There was cash of £348,000 at the end of 2021. Cash outflows, including capitalised software development, should reduce with further growth but financing growth will be difficult with the share price slumping 46.8% to 10.25p.

Kefi Gold and Copper (LON: KEFI) says that the project finance syndicate for the Tulu Kapi gold mine has signed a funding umbrella agreement. The Ethiopian authorities have confirmed that the Tulu Kapi mining licence has not been cancelled. The plan is to launch the project at the start of the dry season in October. Kefi says that the intrinsic value of its assets, based on the net present values of the company’s three projects, is 9p a share. This does not appear to take account of any liabilities for the holding company. The share price jumped 43.2% to 0.7305p.

Oil and gas explorer Tower Resources (LON: TRP) shares have had a chance to react to last night’s news has secured a bank loan covering 40% of the $18m cost of the NJOM-3 well on the Thali block in Cameroon. The share price rose 17.7% to 0.3p. Estimates for the NJOM-1 well are slightly higher than previously announced. The NPV10 of the mean recoverable case for the whole structure is $305m.

Ex-dividends

Anglo Asian Mining (LON: AAZ) is paying a 3.5 cents a share final dividend and the share price was unchanged at 97.5p.

Insurance businesses investor BP Marsh (LON: BPM) is paying a 2.78p a share final dividend and the share price fell 6p to 301p.

Duke Royalty (LON: DUKE) is paying a 0.7p quarterly dividend and the share price was unchanged at 35p.

Fluid power products distributor Flowtech Fluidpower (LON: FLO) is paying a 2p a share final dividend and the share price fell 0.25p to 117.75p.

Ideagen (LON: IDEA) shareholders are receiving a 0.29p a share dividend before the completion of the takeover of the software company. The share price fell 0.5p to 349.5p. The bid is 350p a share.

iEnergizer Ltd (LON: IBPO) is paying a 13.8p a share final dividend and the share price fell 21.5p to 455p.

Medical technology company Inspiration Healthcare (LON: IHC) is paying a 0.41p a share final dividend and the share price fell 9p to 88.5p. At the AGM, it was warned that ordering patterns could be second half weighted.

Learning Technologies Group (LON: LTG) is paying a 0.7p a share final dividend and the share price fell 4.55p to 111.05p.

Property investor Panther Securities (LON: PNS) is paying a 6p a share final dividend and the share price is unchanged at 295p.

Leather processor Pittards (LON: PTD) is paying a 0.5p a share final dividend and the share price fell 2.5p to 54p.

Real Estate Investors (LON: RLE) is paying a 0.81p a share quarterly dividend and the share price fell 0.25p to 34.5p.

Packaging manufacturer Robinson (LON: RBN) is paying a 3p a share final dividend and the share price is unchanged at 87.5p.

Oil and gas producer Serica Energy (LON: SQZ) is paying a 9p a share final dividend and the share price fell 8p to 286p.

Skillcast (LON: SKL) is paying a maiden dividend of 0.28p a share and the share price is unchanged at 24p.

Smart Metering Systems (LON: SMS) is paying a 6.88p a share final dividend and the share price fell 21.5p to 826.5p.

Financial services business STM (LON: STM) is paying a 0.9p a share final dividend and the share price is unchanged at 24p.

Think Smart Ltd (LON: TSL) is paying a A$0.0414 a share dividend and the share price is unchanged at 24.5p.

Vertu Motors (LON: VTU) is paying a 1.05p a share final dividend and the share price fell 1.45p to 55.05p.

Oil and gas company Wentworth Resources (LON: WEN) is paying a 1.16p a share final dividend and the share price fell 1p to 23.5p.  

Wynnstay Properties (LON: WSP) is paying a 14p a share final dividend and the share price fell 5p to 690p.

FTSE 100 tumbles as housing market cools and recession alarm rings

Natasha Doris
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0
FTSE 100 tumbles as housing market cools and recession alarm rings

The FTSE 100 tumbled on Thursday as stocks across Europe tanked and the gloomy macroeconomic forecast seemed to finally sink in for investors as recession alarms rang.

“Stock markets were in a terrible mood across Europe, with the FTSE 100 down 1.7%, the CAC 40 dropping by 2.3% and the Dax falling 2.5%,” said AJ Bell investment director Russ Mould.

“There really is a lack of good news for investors to cling onto, and the near-term outlook looks bleak which is shattering confidence.”

Meanwhile, the US markets spiralled, with NASDAQ pre-open trading down 1.8% to 11,479 and the Dow Jones down 1.2% to 30,625.

BAE Systems and Bunzl

At the time of writing, the only two risers on the FTSE 100 were BAE Systems, with a 0.4% climb to 830.4p, and Bunzl with a 0.3% uptick to 2,681p.

BAE Systems is no doubt raking in the cash after G7 leaders renewed their commitment to Ukraine as Putin’s war escalates, sending demand for heavy arms soaring.

Meanwhile, Bunzl increased its forecast revenues guidance on the back of higher than expected HY1 revenues growth of 16% as a result of higher inflation levels and a series of acquisitions.

“The list of risers on the FTSE 100 won’t take investors long to read. [Bunzl], the provider of products that companies need to do business but not actually sell to customers nudged ahead … after upgrading its guidance for the year,” said Mould.

Bunzl CEO Frank van Zanten added: “Bunzl has delivered another period of strong growth. We continue to demonstrate the strength of our business model, supported by the depth and resilience of our supply chains and the agility of our people who have responded to the inflationary environment so successfully.”

“Our acquisition momentum remains strong, with our active pipeline supported by a strong balance sheet.”

Housing cooldown knocks housebuilders down

Housing stocks were hit particularly hard, as the latest figures from Nationwide revealed a slowed housing price growth of 0.3% compared to 0.9% the last month.

“The price of a typical UK home climbed to a new record high of £271,613, with average prices increasing by over £26,000 in the past year,” said Nationwide chief economist Robert Gardner.

“There are tentative signs of a slowdown, with the number of mortgages approved for house purchases falling back towards pre-pandemic levels in April and surveyors reporting some softening in new buyer enquiries.”

“The market is expected to slow further as pressure on household finances intensifies in the coming quarters, with inflation expected to reach double digits towards the end of the year. Moreover, the Bank of England is widely expected to raise interest rates further, which will also exert a cooling impact on the market if this feeds through to mortgage rates.”

Barratt Developments shares tumbled 4.3% to 455.4p, Berkeley Group fell 3.1% to 3,659p, Persimmon dropped 3.8% to 1,841.7p and Taylor Wimpey slid 3.8% to 1,841.7p.

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