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Rurelec shares more than double as power plant operator confirms takeover talks

Last updated: 14:00 11 Oct 2017 BST, First published: 08:51 11 Oct 2017 BST

Power plant

Rurelec Plc (LON:RUR) saw its share more than double in afternoon trading, up 108% to 1.88p after the power plant operator confirmed that it is in the early stages of takeover discussions with a consortium led by its former chief executive officer, Peter Earl, which may or may not be funded by IEH Limited, a company connected to Rurelec's joint venture partner in Patagonia Energy Limited.

As is usual, the AIM-listed group said the discussions are at an early stage and there can be no certainty that any offer for Rurelec will ultimately be made, nor as to the terms of any such offer, should one be forthcoming.

Elsewhere, Coral Products PLC (LON:CRU) saw its shares jump 7.7% higher to 14p after the injection moulded plastic product manufacturer said that trading had continued its "improvement" since the last quarter.

In a statement ahead of its AGM today, the AIM-listed group’s chairman, Joe Grimmond said its sales were "significantly" ahead whilst margins were "broadly maintained".

And Scapa Group plc (LON:SCPA) was also a strong AIM gainer, up 6.5% to 481.75p after the firm said its first half revenue, profit and margins were ahead of last year.

In a trading update, the supplier of adhesive-based products for healthcare and industrial markets added that it "remains confident of strong progress for the year", and expects full year profit to be ahead of current expectations.

12.45pm: Alpha Financial Markets Consulting PLC nets AIM premium

Alpha Financial Markets Consulting PLC (LON:AFM) was trading at a premium at lunchtime after starting on AIM today after raising £125.4mln through an initial public offering of 22.0mln new shares  at 160p, placed with institutional investors, and the listing of 56.4mln existing shares.

Shares in Alpha, which serves the asset and wealth management industry, were changing hands at 166p each around 12.30pm, drifting back from an earlier peak of 176.5p.

Alpha’s management and employees will still own 23% of the total issued share capital of the company.

The market’s biggest riser was AIM-listed mail delivery and logistics firm DX Group PLC (LON:DX.), up 35% to 13.5p, extending its recent leap following news of a £24mln fund-raising to address its cash position short term and the appointment of a new chief executive.

And Scancell Holdings Plc (LON:SCLP) added another 8% at 13.5p after yesterday unveiling Dr Cliff Holloway from Benitec Biopharma as its new chief executive officer, succeeding Dr Richard Goodfellow.

11.15am: Greatland Gold jumps on latest exploration results

Greatland Gold PLC (LON:GGP) was a strong riser in late morning trading, jumping over 16% higher to 0.81p after the firm released its latest exploration results from the Ernest Giles East project in Australia.

The AIM-listed firm’s chief executive Gervaise Heddle described the project as having the potential to be “one of most significant gold districts to be identified globally within the last decade.”

In its statement, the company detailed multiple gold anomalies identified over 60 kilometres of strike at Ernest Giles East.

Another resources minnow on the rise was Gulfsands Petroleum PLC (LON:GPX), which added 14% at 6p after it told investors it’s been allowed to hit the reset button for its Putumayo (PUT-14) licence in Colombia.

The company has effectively now been given until 2021 to complete the first phase of exploration at PUT-14.

But on the downside, a number of companies got marked lower after their nominated adviser, ZAI Corporate Finance was stripped of its status by the London Stock Exchange, including Aplha Returns Group PLC (LON:ARGP), down 33% at 0.15p and UniVision Engineering Ltd, off 7% at 1.63p.

The LSE ruled that ZAI Corporate Finance did meet the criteria of at least three relevant transactions in the previous two years and the employment of at least four qualified executives.

10.30am: Veltyco Group jumps on esports partnership move

Veltyco Group PLC (LON:VLTY) was a good gainer in mid-morning trading as the online marketing company for the gaming industry unveiled a partnership agreement with Esports Radar Ltd.

Esports Radar, a wholly owned sUBSidiary of Esports.com Ltd, is focused on rolling out a new esports business and sees the huge potential of the esport industry in relation to gaming.

The AIM-listed firm said, to underline its commitment to the esports industry and to cement its relationship with Esports.com, Veltyco has sUBScribed for a minor interest in the share capital of Esports for a nominal consideration.

Among other AIM gainers, SDX Energy Inc (LON:SDX) added nearly 5% at 53.5p after it announced its second new discovery this month, with the KSR-14 well in Morocco unearthing gas in four intervals.

The better-than-expected well encountered a total of 20 metres of conventional gas pay, in the Guebbas and Hoot formations, and analysis is underway to determine an accurate estimate of recoverable gas volume.

And Asiamet Resources Ltd (LON:ARS) gained 4.6% at 5.65p after the metals explorer said it is increasingly confident it has found a new stand along polymetallic deposit at its BKZ prospect in Kalimantan, Indonesia.

Assays from the first of a six hole shallow drilling programme were ‘exceptional’ said Peter Bird, Asianmet’s chief executive, and consistent with a much larger deposit.

8.50am: Knee up for S&N

Smith & Nephew PLC (LON:SN.) was the top FTSE 100 gainer in early trading, up 2.9% to 1,399 after the Financial Times reported that US activist investor Elliott Associates has built up a stake in the medical products group.

The newspaper said it is not clear how big Elliott’s holding is and the hedge fund firm had declined to comment on the report.

News of the stake building comes just days after the knee replacement firm’s long-standing chief executive Olivier Bohuon abruptly announced that he was retiring next year.

Another good gainer first thing was FTSE 250-listed mail delivery firm Royal Mail Group PLC (LON:RMG), which added 2.6% at 392.5p after Swiss bank UBS upgraded its rating for the firm to ‘neutral’  from  ‘sell’.

But on the downside, blue chip clothing and homewares retailer Next PLC (LON:NXT) shed 1.7% at 5,030p on reports of a downgrade by Morgan Stanley to ‘underweight’ from ‘equal-weight’.

And South Africa-based paper and packaging firm Mondi PLC (LON:MNDI) was the biggest FTSE 100 casualty, dropping 6.5% to 1,952p as it warned that its full year profits will be below expectations, blaming cost pressures and adverse currency movements.

Proactive news headlines:

SDX Energy Inc (LON:SDX) (CVE:SDX) has announced its second new discovery this month, with the KSR-14 well in Morocco unearthing gas in four intervals. The better-than-expected well encountered a total of 20 metres of conventional gas pay, in the Guebbas and Hoot formations, and analysis is underway to determine an accurate estimate of recoverable gas volumes.

Asiamet Resources Ltd (LON:ARS) is increasingly confident it has found a new stand along polymetallic deposit at its BKZ prospect in Kalimantan, Indonesia. Assays from the first of a six hole shallow drilling programme were ‘exceptional’ said Peter Bird, chief executive, and consistent with a much larger deposit.

BATM Advanced Communications Limited (LON:BVC) has hailed the launch of the electronics industry's first ARM-based universal Customer Premises Equipment platform, which uses the group's network function virtualisation technology.

Corero Network Security PLC (LON:CNS) has signed a resell partnership agreement with a leading US based distributed denial of service (DDoS) protection provider.

London-listed wealth management group European Wealth Group Limited (LON:EWG) is to acquire US-based broker-deal and investment adviser platform operator Newbridge. The acquisition will almost double the assets under management (AUM) at the UK company to more than US$4bn and give it a strong footprint in the USA.

Silence Therapeutics PLC (LON:SLN) has been granted a US patent, which it believes significantly strengthens its claim to ownership of technology used in competitors’ late stage drugs. The award covers the innovative chemical modification technology pioneered by Silence. The AIM-listed biotech, which specialises in RNA interference (RNAi), a cellular process of silencing unwanted or harmful genes, believes it could have implications for competitor Alnylam Pharmaceuticals' Patisiran drug.

WideCells Group PLC (LON:WDC) is in the process of inking a deal worth an initial £250,000 that will take its stem cell services into the Middle East, North Africa and Asia-Pacific regions. It hopes to have brokered a formal agreement with Gulf-based White Apex General Trading by the end of the month, which will trigger the first payment to the AIM-listed firm.

Digital media and social video broadcaster Brave Bison Group PLC (LON:BBSN) has won the contract to create a video marketing campaign for All Nippon Airways – the largest airline in Japan.

Clinical stage biotech ValiRx PLC (LON:VAL) has been awarded a fifth patent for its novel cancer treatment drug VAL401. The patent has been awarded by the US Patent Office and covers the use of VAL401 in the treatment of prostate adenocarcinoma – the most common form of prostate cancer.

Avation PLC (LON: AVAP) has announced the acquisition of a Boeing 777-300ER (Extended Range) new, twin-aisle aircraft from another lessor and is scheduled to deliver it to Philippine Airlines Inc. The commercial passenger aircraft leasing company said the acquisition of the aircraft is expected to be completed by the end of the fourth quarter of 2017. In a separate announcement, Avation also announced the purchase of one Airbus A330-300 aircraft, which is currently on long-term lease to EVA Air of Taiwan.

AIM-listed Obtala Limited (LON:OBT) is in the process of appointing a new nominated adviser after ZAI Corporate Finance was stripped of its status. The Africa-focused forestry and agriculture group said it had already vetted several alternatives and is in the final stages of agreeing terms with a replacement.

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