Proactive Investors - Run By Investors For Investors

Westminster Group PLC provides a highlight on busy Tuesday for small caps

Westminster Group PLC, Forbidden Technologies PLC, KEFI Minerals PLC, Ten Alps, Sierra Rutile Ltd, RapidCloud International PLC, Allergy Therapeutics PLC, Regenersis PLC, Eckoh PLC, and Gulf Keystone Petroleum Limited were among Tuesday’s small cap highlights.
Westminster agreed a 25-year deal for security services at a Middle Eastern airport.

Westminster Group PLC (LON:WSG) has agreed terms for a possible new 25-year contract to run security operations at an airport in the Middle East.

A new memorandum of understanding (MoU) has been signed with a Middle East Civil Aviation Authority for the provision of long term aviation security services at a significant international airport, it told investors.

The airport services several million passengers each year, it added.

Forbidden Technologies PLC (LON:FBT) is gearing up for a big sales drive over the next two years after completing a heavy cost cutting programme.

“2015 represented a year of stabilisation, reorganisation and regeneration. Our intention is to make 2016 the year we begin to see sales traction,” said Aziz Musa, chief executive.

The video editing specialist reduced operating and capitalised costs by a third in 2015, to £4.5mln, lowering the overall loss for the year to £2.63mln (£3.64mln). Revenues were modest still at £709,000 (689,000), but there was an uptick in the second half.

KEFI Minerals PLC (LON:KEFI) has the potential to increase production from its flagship Tulu Kapi project in Ethiopia to 150,000 ounces of gold a year with the addition of an underground operation.

Currently designed only as an open pit, going underground would add a further 50,000 ounces to output, according to a preliminary economic assessment that looks at expansion plans. This would boost the net present value of the project to US$200mln at an estimated capital cost of US$37mln.

TV production firm Ten Alps (LON:TAL) said it had an “interesting” commission pipeline as it looked to secure bigger deals in a thriving US market.

“We have to wait until the networks let us make it public before we can talk about them. But we are building a good pipeline and in doing so raising the quality of our revenues,” chief executive Mark Wood told Proactive Investors.

The creator of daytime staples such as 'Penelope Keith’s Hidden Villages' and 'Put Your Money Where Your Mouth Is' said it was also making progress securing programme deals in the US.

The group, soon to be renamed Zinc Media, said it is seeing a trend where larger networks, namely National Geographic and Discovery, are committing to spending more money on programming to boost audience ratings.

Sierra Rutile Ltd (LON:SRX) shares surged as it extended its working capital and standby loan facilities with Nedbank for a further 14 months.

The working capital facility is for $20mln - with an interest rate of Libor plus 5%, and 1% arrangement fee - and the standby loan facility is for $15mln, carrying an interest rate of Libor plus 2%.

The new expiry date for both facilities is 30 May, 2017.

RapidCloud International PLC (LON:RCI) shares jumped nearly 40% in early deals after the AIM firm unveiled a new partnership with The new strategic partnership with AliCloud, Alibaba Group’s international business and cloud computing arm, opens up RapidCloud to a larger customer base.

It will let RapidCloud offer AliCloud's public cloud infrastructure, consulting, managed services, training and support across its offices in South East Asia, the AIM company said.

Allergy Therapeutics PLC (LON:AGY) reported higher revenues and said it had relaunched plans to enter the US market in 2019.

The allergy vaccine specialist said revenue in the six months to December 31 rose 12% to £31.5mln as its share of all major markets increased. It started a US phase II study for its GrassMatampl product in December and said it was on track for data read-out in the second half of this year.

Regenersis PLC (LON:RGS) said strong growth in its software business Blancco helped drive a 46% increase in revenues in the latest half year as firms become more aware of IT security issues.

Last month, the AIM firm agreed the sale of its repair services business as it aims to focus purely on Blancco - the data erasure (data clearing) software business, which helps firms achieve IT security and compliance. It is also in talks to sell its Digital Care business separately.

Call centre technology and payment security group Eckoh PLC (LON:ECK) has won a five-year deal to expand its business with Ideal Shopping Direct Ltd.

Eckoh, which already manages the distribution of calls into Ideal's UK and overseas centres, is expanding its service to include web, phone, email, social media and web chat channels.

Gulf Keystone Petroleum Limited (LON:GKP) has confirmed it has received a $15mln gross payment from the Kurdistan Regional Government for crude produced at the Shaikan field.

The oil company will receive around $12mln net. Last month, on February 19, the company flagged that the KRG had authorised the payment. It comprises $5.8mln is for oil exported in January, and $9.2mln of payments towards the recovery of arrears.

Following the KRG payment, Gulf Keystone said its cash position was $56mln.

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use