logo-loader

Redcentric shares slip as it downgrades outlook for 2019

Last updated: 15:25 08 Jun 2018 BST, First published: 08:50 08 Jun 2018 BST

Hand on keyboard

Shares in Redcentric PLC (LON:RCN) slid 9.5% to 90.5p in late-afternoon trading after the IT services provider downgraded its expectations for 2019.

The firm said the loss of some public sector business and a recent softness in sales would impact trading results for its 2019 financial year.

As a result, the group forecast a 5% reduction in revenue and a 10% reduction in underlying earnings (EBITDA) against its previous expectations.

Meanwhile, MITIE Group PLC (LON:MTO) saw its shares fall 5% to 185.3p as City broker Numis downgraded its rating to ‘reduce’ from ‘hold’ with a 160p price target, saying that risk remains.

In a note to clients, analysts at Numis said that MITIE’s financial year 2018 results were in line with expectations, but expectations had been reduced through the course of financial year 2018.

The analysts said although management is confident in the transformation programme and its ability to now grow the business, they believe that risk remains.

Elsewhere, UK Oil & Gas Investments PLC (LON:UKOG) shares dropped 20% to 1p after the onshore driller admitted it is working on an equity raise.

UKOG, in a statement, acknowledged recent speculation and said it was considering raising funds.

It comes as the company advances plans for new drilling and well testing across southern England, where it has a number of assets.

1.00pm: Alpha Growth jumps after securing services of Devonshire Warwick for asset raise

Shares in Alpha Growth PLC (LON:ALGW) jumped 12% to 1.4p in lunchtime trading after it retained the services of Devonshire Warwick LLP to raise assets for its life settlements investment strategy.

The asset management firm said Devonshire Warwick is a placement agent that for a number of years has raised assets for a variety of alternative investment strategies.  Its clients include family offices, fund of hedge funds, high net worth investors, wealth management companies, private banks, pensions funds, insurance companies and other institutional investors around the globe.

Meanwhile, Sound Energy PLC (LON:SOU) shares rose 2.8% to 46p after it told investors that it had applied for a development concession for the Tendrara gas discovery.

It marks another step towards taking Tendrara into production, following on from the week’s earlier news that it reached an agreement with a key contractor for front end engineering design to develop gas infrastructure.

Chief executive James Parsons described it as an “important milestone” for the project.

Elsewhere, Auto Trader Group PLC (LON:AUTO) saw its shares lifted 2.4% to 394.5p as Berenberg upgraded its rating saying that risks appear better understood and expectations are more reasonable.

The German bank upgraded the FTSE 250-listed firm to ‘hold’ from ‘sell’ and increased its price target to 365p from 350p.

In a note to clients, analysts at Berenberg said many of the concerns on Auto Trader’s medium-term growth remains, notably with regards to the outlook for the used-car market and the impact from competition.

11.00am: Amerisur Resources slumps as flooding continues to affect work on Pintadillo-1 well

Amerisur Resources PLC (LON:AMER) shares slumped 14.4% to 15.4p in late-morning trading as extensive flooding continued to affect operations at its Pintadillo-1 well.

The AIM-listed oil & gas producer said work at the Putumayo basin in Colombia was continuing despite the weather conditions but it had necessitated the installation of additional drainage in civil works for the road to the Pintadillo-1 well.

Meanwhile, Games Workshop Group PLC (LON:GAW) saw its shares fall 4.9% to 2,900p after an “as you were” trading update.

The FTSE 250-table top war gaming company had raised full-year expectations with a trading update in May and traders were evidently hoping for another upbeat trading statement; however, the company, best known for its Warhammer franchise, merely confirmed that results for the year to June 3 would be in line with current market expectations.

The company said it expected group sales for the year to be around £219mln, with a pre-tax profit of no less than £74mln and royalties receivable of licensing at around £10mln.

Elsewhere, Synthomer PLC (LON:SYNT) shares dropped 2.4% to 528p after news that it is to be included in an investigation by the European Commission into practices relating to the purchase of styrene monomer.

Styrene monomer is an oily liquid that is used to make plastics, paints, synthetic rubbers, protective coatings and resins.

The investigation is restricted to companies operating in the European Economic Area.

Polymers supplier Synthomer has been included in this investigation. As part of the process, the Commission visited Synthomer's London office this week

9.00am: Versarien soars on news of agreement with Arrow GreenTech

Shares in Versarien PLC (LON:VRS) jumped 12.3% to 118.5p in early morning trading after the company said it had secured a “wide ranging agreement” with Indian listed company Arrow GreenTech Ltd.

The AIM-listed advanced materials maker said the agreement included an exclusive commercial arrangement to supply its graphene inks to Arrow as well as a collaboration to explore the potential benefits of using graphene within security threads for banknotes and passports.

Meanwhile, Crusader Resources Ltd (LON:CAS, ASX:CAS) shares were lifted 1% to 2.4p after it delivered some exciting drill results from three gold prospects in Brazil.

The high-grade Juruena and Novo Astro deposits are sited within the Alta Floresta belt in the west of the country, an area that is generating interest for a number of the industry's major players.

This latest pass focused on the main trend line at Juruena and used smaller drill rigs that allow work to carry on the rainy season.

Elsewhere, Distil PLC (LON:DIS) shares rose 7.9% to 2.3p after it reported a jump in its pre-tax operating profits for the full-year as increased marketing investment in its brands paid off.

The AIM-listed spirits maker reported a pre-tax operating profit of £157,000 for the year, up from £10,000 the year before while revenues climbed to £2.01mln from £1.64mln previously.

In other news, shares in Papua Mining PLC (LON:PML) were up 6% to 0.88p as it said a geophysics survey at the Marengo gold/copper project had defined quasi linear IP and resistivity anomalies at One Mile Mountain, which may be related to high gold zones sitting on the edge of deeper porphyry system.

The AIM-listed firm said a total of 20 line km of gradient array and 1.5 line km of dipole-dipole geophysics were completed by geophysical contractor Fender Geophysics with a focus on the One Mile Mountain and Homeward Bound Prospects within the Marengo Project.

Other Proactive news headlines:

Midatech Pharma PLC (LON:MTPH, NASDAQ:MTP) said patient enrolment has begun for a clinical trial that could expand the market for its cancer treatment.  Gelclair is already prescribed for an after effect of radiation and chemo therapies called oral mucositis, a painful and debilitating inflammation and ulceration of the surface of the mouth.

Sound Energy PLC (LON:SOU) told investors it has applied for a development concession for the Tendrara gas discovery. It marks another step towards taking Tendrara into production, following on from the week’s earlier news that it reached an agreement with a key contractor for front end engineering design to develop gas infrastructure.

Strategic Minerals PLC (LON:SML) (USOTC:SMCDY) has amended the contract with the major client of its Southern Minerals Group (SMG) subsidiary at the Cobre magnetite stockpile in New Mexico, USA. It added that the client is to pay SMG, quarterly in advance, a non-refundable prepayment of US$375,000 against future deliveries, with payments due in June, September and December 2018.

Airport and energy group Stobart Group Limited (LON:STOB) has rescheduled its Annual Meeting for 6 July. Former chief executive Andrew Tinkler has already indicated he will vote against the re-election of chairman Ian Ferguson and has put forward well-known retail entrepreneur Philip Day as his replacement.

HemoGenyx Pharmaceuticals PLC (LON:HEMO), the biotechnology company developing novel therapies to transform bone marrow, or blood stem cell, transplantation for the treatment of blood diseases, is to hold a presentation for investors on Tuesday 26th June 2018. The group said the briefing by Dr. Vladislav Sandler, CEO of Hemogenyx, will take place at Copper Bar, Balls Brothers, 6 Adams Court, Old Broad Street, EC2N 1DX from 4.30pm for a 4.45pm start and will be followed by drinks and networking.

Tlou Energy Limited (LON:TLOU), the AIM and ASX listed company focused on delivering power in Botswana and Southern Africa through the development of coal bed methane projects, has today issued letters to eligible and ineligible shareholders regarding the non-renounceable entitlement offer announced on 6 June 2018.

Thor Mining PLC (LON:THR) today announced on the Australian Securities Exchange the closure, on Friday 1 June 2018, of the CHESS Depositary Interest (CDI) Sale Facility for holders of less than a marketable parcel of CDIs in the company. The ASX Listing Rules defines a "Marketable Parcel" as those holdings of CDIs with a market value of A$500 or more.

Caledonia Mining tackles 2023 challenges with optimism for 2024 as it...

Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL) chief executive Mark Learmonth tells Proactive's Stephen Gunnion the company faced a challenging 2023, primarily due to poor production in the first half of the year at its core asset, the Blanket Mine in Zimbabwe, and an underperformance...

1 hour, 10 minutes ago