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Essentra dips after mixed trading update, Dechra Pharma trots up on acquisition news

Last updated: 12:50 19 Oct 2018 BST, First published: 09:59 19 Oct 2018 BST

Dechra

Shares in Essentra PLC (LON:ESNT) declined 7.5% to 356.8p after the specialist plastic, foam and packaging product maker posted mixed trading update for the third quarter.

While the Packaging division returned to revenue growth in the period and its Components business delivered “a robust organic result”, its Filters and Specialist Components divisions saw sales drop.

The Filters unit was hit by project volatility, particularly in Europe, and the Specialist Components business was hit by a continued poor performance of Tear Tapes where a strategic improvement plan is being implemented.

READ: Essentra's third quarter statement a bit of a curate's egg

More positively, Dechra Pharmaceutical PLC (LON:DPH) trotted 7% higher to 2,320p after saying it would buy Laboratorios Vencofarma do Brasil  -- a fellow animal drugs maker in Brazil – for £37.8mln.

Laboratorios Vencofarma do Brasi, A.K.A Venco, predominantly sells its 200+ products within Brazil and other South American countries, and generated revenue of £11.6mln in 2017.

Dechra also confirmed that it was trading in line with expectations in the first quarter with continued year-on-year above market growth in both its European and North American businesses.

READ: Dechra Pharma moves into South America with £38mln acquisition of Venco

“The board is confident in achieving its expectations for the current financial year, and in the continued out-performance of the markets in which it operates,” it said. 

Safestyle UK rallies as it considers "certain agreements" with shareholders of NIAMAC

Safestyle UK PLC (LON:SFE) shares shot up 12.9% to 56.70p after saying it was considering "certain agreements" with shareholders of NIAMAC Developments Ltd that could benefit its business and accelerate its recovery. 

But the windows and doors maker dismissed rumours that it was looking to buy NIAMAC, its business or assets. 

In September, Safestyle settled a court case against NIAMAC over claims of trade mark infringement, passing off, misuse of confidential information, malicious falsehood.

Going the other way, shares in Record PLC (LON:REC) fell 12.3% to 31p after the currency manager said assets under management equivalents (AUME) in the second quarter edged down 0.2% in dollar terms on the back of net client outflows of US$0.6bn.

The company also warned that it would lose seven clients in the current quarter as passive hedging mandates for two commercial relationships worth up to US$2.5bn have been terminated.

Frontera Resources shares leap after dispute resolution while Acacia Mining pulls back

Frontera Resources Corporation (LON:FRR) surged 8.2% to 0.41p after the O&G explorer said it and investment company YA II PN Ltd. have agreed to resolve their differences related to convertible shares.

AIM-traded Frontera said the resolution will come through restructuring a redemption schedule for outstanding Series A preferred convertible shares and through releasing each other from mutual claims.

Among the terms, the remaining outstanding 2,650 Series A shares will be redeemed starting November 1 on a monthly basis, for which Frontera will be making cash-redemption payments to YA of US$64,900 a month up until April 1, 2019. The resolution will remove “the inconvenient overhang of monthly conversion” and “should positively reflect on the Company's share price and market position going forward,” said Frontera.

But on the losing end, Pendragon PLC (LON:PDG) shares sank 11% to 23.50 after the UK's largest motor dealer issued a warning on 2018 profit.

The FTSE All-Share listed company forecast underlying pre-tax profit of £50mln, a drop from the £65.3mln reported in 2017. Pendragon said profit will be hurt by new EU emission tests and accelerated investment in its used-cars business.

READ: Pendragon warns on 2018 profits

Acacia Mining PLC (LON:ACA) shares fell 12% to 139.32 as the miner expressed ‘deep concern’ over an escalation of its dispute with the Tanzanian government that this week saw money laundering charges brought against some staff.

Acacia’s parent Barrick is negotiating with the government but Acacia said if no resolution is reached it will look at how to pursue its claims directly through a bilateral treaty.

READ: Acacia Mining 'deeply concerned' about turn of events in Tanzania

PhonStar LED shares jump on partnership agreement

PhotonStar LED Group PLC (LON:PSL) shares leapt 9.4% to 0.18p in Friday action, with the lighting group signing a partnership agreement with a major housing association to trial its Halcyon range of smart heating and lighting appliances.

The FTSE AIM All-Share company said the association in the south of England manages more than 80,000 homes. The trial is part of a ‘smart estates’ programme to remotely monitor heating, light and temperature.

READ: Photonstar LED shines after housing association contract

Another big gainer was Intu Properties PLC (LON:INTU) as its shares climbed 11% to 196.42p after a consortium led by its deputy chairman John Whittaker raised its takeover offer for the property developer.

Intu said the consortium lifted its offer to 215p per share from 205p per share, and that it is considering the bid.

READ: Intu considering 215p per share preliminary takeover offer

Angus Energy PLC (LON:ANGS) shares edged higher as the price evidently continues to benefit from the exit of Bergen Asset Management as significant shareholders earlier this week.

The UK oiler was up 2% at 12.24p.

Meanwhile, Horse Hill stakeholder UK Oil & Gas PLC (LON:UKOG) was down around 3% at 1.92p. 

Like Angus, UKOG has a closely followed well in England’s Weald Basin and has a major shareholder that’s said to be selling down its stake.

Also trading lower, CyanConnode (LON:CYAN.L) was dropping 15% to 1.85p after the narrowband radio network specialist proposed a share placing to raise £5.1mln to fund future growth.

The AIM-market company plans the issuance of 39,787,391 placing shares and 10,665,000 subscription shares at 10p per ordinary share. CyanConnode also proposed raising a further £500,000 through an open offer and the issuance of up to 5,142,961 open-offer shares at 10p per ordinary share. The fundraising is expected to be held on November 5.

Record PLC (LON:REC) shares slumped 14% to 30.50p after the currency manager said assets under management equivalents (AUME) in the second quarter edged down 0.2% in dollar terms.

The main market-quoted company said AUME totalled US$61.8bn at September 30, as the dollar weakened. In sterling terms, AUME rose to £47.4bn from £46.9bn. Record also warned it would lose seven clients in the current quarter as passive hedging mandates for two commercial relationships have been terminated.

READ: Record posts dip in quarterly assets on net client outflows

Proactive news headlines:

Junior biopharma HemoGenyx Pharmaceuticals PLC (LON:HEMO) will receive an investment of at least US$1mln as part of a new collaboration deal with Nasdaq-listed cell therapy specialist Orgenesis Inc. (NASDAQ:ORGS).

Lighting group PhotonStar LED Group PLC (LON:PSL) has signed a partnership with a major housing association in the south of England to trial its Halcyon range of smart heating and lighting appliances. Over 80,000 homes are managed by the association and the trial is part of a ‘smart estates’ programme to remotely monitor heating, light and temperature.

Futura Medical PLC (LON:FUM), the pharmaceutical company focused on sexual health, has conditionally raised £5.6mln through a share issue.

Life sciences investor Arix Bioscience PLC (LON:ARIX) has poured another £5.4mln into LogicBio Therapeutics as part of the gene editing specialist’s IPO in New York today (Friday).

Molendotech, a company backed by Frontier IP Group PLC (LON:FIPP), has entered into a collaboration agreement to develop water tests for G's Group.

Rockfire Resources PLC (LON:ROCK) updated investors on its inaugural reverse circulation drilling programme at the Marengo project, Queensland. Highlight results from shallow holes included gold grades up to 7.8 grams per tonne in one section.

Kibo Energy PLC (LON:KIBO) told investors that is has now submitted documentation, a formal tender qualification document, to TANESCO (Tanzania Electricity Supply Company) for the Mbeya coal to power project (MCPP).

Regency Mines PLC (LON:RGM) updated investors on September production numbers for the AIM-quoted firm’s 47% owned Mining Equity Trust. MET sold 44,020 tons of coal for the month, achieving US$1.95mln of total revenues.

APQ Global Limited (LON:APQ), the emerging markets growth company announced that as at the close of business on 30 September 2018, its unaudited book value per ordinary share was 105.96 US cents, equivalent to 81.26p. The firm said it has also published its quarterly update to the end of September 2018 which is available on the company’s website at https://www.apqglobal.com/investors/reports-presentations/

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