Wasabi Energy (LON:WAS) shares powered up 15% in early deals as it pointed to the possible rewards it could reap from Britain’s first nuclear power station in two decades.
Hinkley Point C in Somerset is being launched in a joint effort by the government and France’s EDF Energy and any subsequent rise in wholesale electricity tariffs for Wasabi’s heat recycling projects will bode well for the company, it argued.
“If the proposed Hinkley Nuclear Power Plant strike price of £92.50 per megawatt hour is reflected in the wholesale cost of electricity within the UK, the Kalina Cycle® projects being promoted by Wasabi Energy will become exceedingly attractive,” said chairman John Byrne.
“As the UK moves to de-carbonise the economy, large scale energy efficiency projects will become increasingly cost effective and attractive for investors and users, providing a clear platform for Wasabi Energy to expand its business in the UK.”
The company, whose Kalina Cycle technology turns heat produced from power plants back into electricity, is currently in advanced talks with a number of industrial and renewable companies to launch the technology in the UK.
Wasabi’s shares are up 92% in the past five days of trading to 0.58p each on the back of the Hinkley Point deal.
Deutsche Bank suggests the engineer could be in line for £500mln of work and could compete for further business, taking that total to more than £1 billion.
Weir Group (LON:WEIR), which claims to 80% of the world’s nuclear plants use its equipment, has risen more than 30p to £23.26 and was once again among the top risers on the FTSE 100, while on AIM, Hayward Tyler (LON:HAYT), which makes pumps for nuclear systems, has seen its shares power almost 40% higher in the past couple of days.
Deltex Medical (LON:DEMG) was among the other companies climbing up the junior ladder.
Its shares were up 8% as it launched its CardioQ-ODM+ monitor in the US after receiving marketing approval from the Food and Drug Administration (FDA).
Launched in Europe last year, CardioQ-ODM+ combines the measurement of the heart’s performance and blood flow pressure through the arteries onto one monitoring system.
Deltex built up a stock of monitors in anticipation of FDA approval and expects to have these installed within three months. Work on a second batch is underway.
However, those waiting for the breakneck pace of growth to end will have to wait a bit longer as the company reported on a year in which its number of customers rose an astonishing 42% to surpass seven million.
The 39% increase in the top line in the year to the end of August will have come as no surprise, as the group had already announced a sales figure for the year.
The profit before tax figure, however, was a bit of a surprise. Analysts had pencilled in a figure of £53.7mln, but the company topped that with £54.7mln, up 23% from £44.5mln (excluding exceptional charges) last year.
The big news though was that it is starting to dump the laminated catalogues and pens its stores are famous for.
The company has developed a digital concept store to test new innovations such as fast-track collection for customers who have already paid for products online or using a mobile device.
The new stores could have more of an Apple feel about them as store helpers will be equipped with gadgets to help customers “through their journey”.