Proactive Investors - Run By Investors For Investors

Edenville Energy falls as it notifies shareholders of plans to switch Nomad

A look at the day's major movers, including RM, MySale, Bilby, MC Mining and Bango
The Mopane and Generaal project mining right applications are at an advanced stage

An air of uncertainty hangs over Edenville Energy PLC (LON:EDL), which was down by one-eighth in late afternoon trading.

The company’s nominated adviser, or Nomad, Northland Capital Partners Limited, is to merge with SP Angel.

The plan is for SP Angel to take over Nomad duties for Edenville but as the AIM-listed company noted, the transition is subject to due diligence and regulatory approval.

The company anticipates a smooth and orderly transition of the Nomad role; it has until February 1 of next year to appoint a new Nomad.

2.15pm: RM raises profits guidance​

RM Plc (LON:RM.), the information technology company focused on the education sector, went to the top of the class on Tuesday … well, almost.

The company’s shares rose 10.9% - that’s practically one-ninth when expressed as a fraction, children – after the company said it expected full-year results to be slightly ahead of expectations.

Group revenues increased significantly on prior year driven by the full year benefit of the Consortium acquisition and strong international sales growth.

READ RM sees profit ahead of expectations, boosted by acquisitions and international growth​

RM bought the education & care business of Connect Group last year for £56.5mln. The business predominantly serves more than 30,000 customers through its “The Consortium” and “West Mercia Supplies” brands.

"It's encouraging to see the group's further progress and the positive performance in all three divisions," said David Brooks, RM’s chief executive.

11.45am: MySale halves as it fails to rise to challenges

It appears that even online retailers can face “challenging” conditions, as evidenced by the latest trading update from MySale Group PLC (LON:MYSL).

The online retailer surprised the market with a profit warning, saying that it expects revenue and profits for the year to the end of June will be “significantly below market expectations”.

The retailer now expects to make a small underlying loss in the first half of the current fiscal year but performance in the second half of the year is tipped to show a significant improvement.

The principal challenge – companies will go to any lengths to avoid using the word “problem” - has been greater than anticipated market disruption arising from changes to general sales tax (GST) regulations in Australia, the group's largest market.

Ill-advised price increases, since reversed, added to the companies problems – sorry, “challenges”.

The company said that while there have been challenges – that euphemism again – to profitability in the current period the group has a strong balance sheet, and, as anticipated, working capital improvements have increased cash balances in the period.

Traders found it challenging to find a reason to buy the stock and the share price halved to 16.5p.

10.45am: Chronic investors who backed Bilby get a shock

Chronic investors who followed an investment magazine’s advice to Bilby PLC (LON:BILB) are likely to be feeling miffed this morning.

The provider of gas heating appliance installation and maintenance services to residential and commercial properties saw its shares lose more than one-fifth of their value after it issued a profit warning of sorts.

Revenue in the six months to the end of September eased to £36.36mln from £38.56mln the year before while underlying profit before tax slipped to £2.43mln from £2.88mln.

Bilby said it has secured a number of contracts since the end of September and as a result, revenue visibility for the group remains strong but the full revenue and earnings benefits from these contracts will not be achieved until the next financial year.

The decision to cease servicing the Ministry of Defence properties, the delay in a gas installation programme and the review of certain activities within the three service divisions will affect this year's financial performance, the company said.  

9.45am: MC Mining lifted by Limpopo developments while Bango surges after launch of Bango Marketplace

MC Mining Limited (LON:MCM) shares were the top performers in London on Tuesday Morning after it was granted a mining right.

The South African Department of Mineral Resources granted a mining right for MC’s 74% owned Chapudi coking and thermal coal project in the Limpopo province.

The Chapudi Project, together with the Mopane and Generaal projects, comprise the company's longer-term Greater Soutpansberg (GSP) project, situated in the Soutpansberg coalfield.

"The granting of the mining right for the Chapudi Project is a key step in unlocking value from MC Mining's significant coking and thermal coal assets and positions the GSP to be a potential long-term coal supplier to the planned Musina-Makhado SEZ [special economic zone],” said David Brown, MC Mining’s chief executive officer.

“The Mopane and Generaal Project mining right applications are at an advanced stage and we anticipate that these will be granted in the near future. Following this, the company will commence with the various studies required for the outstanding water and environmental regulatory approvals,” he added.

Shares in MC were up 15.3% at 41.5p.

The second best performer early doors was Bango plc (LON:BGO), the mobile payments specialist.

READ Bango launches marketing platform, sees 2019 sales growth

The shares rose 12.7% as the company launched Bango Marketplace, a new product that increases user numbers and revenues for app developers and opens new revenue streams for mobile operators.

Bango observed that developers and merchants use a wide range of different customer offers, ranging from discounts to bundles, free periods, cash-backs and a wide variety of other incentives, and all of these can be improved using Bango Marketplace.

Building on its existing relationships with mobile operators, and initial revenue from early adopters, Bango expects Bango Marketplace to contribute materially to group revenues in 2019, alongside continued growth in its highly synergistic payment and Audiens Customer Data Platform businesses. 

Other Proactive news headlines:

The official licence certificate for the Mochetundra project in Russia has now been delivered to Eurasia Mining plc (LON:EUA). The licence was registered with the state registry of subsoil mining licences in Moscow on Monday 10 December.

Telit Communications Plc (LON:TCM) said it was working on the "smooth and fast" transfer of the automotive business to buyer TUS International as updated on trading and said it had found a further US$10mln of cost savings.

IQ-AI Limited’s (LON:IQAI) subsidiary Imaging Biometrics has had its new IB Rad Tech software platform installed at the Barrow Neurological Institute in St. Joseph's Hospital and Medical Center in Arizona.

IXICO PLC (LON:IXI), the data science company delivering insights in neuroscience, has announced the resignation of chief financial officer Susan Lowther, who is leaving to pursue other business interests.

Amphion Innovations PLC (LON:AMP) on Tuesday said its partner company, Polarean Imaging, had raised US$4mln through a share placing. The developer of medical, life science, and technology businesses said Polarean had issued 22.3mln new shares worth 14p each.

Chariot Oil & Gas Limited (LON:CHAR) has conducted a thorough analysis of drilling cost estimates for its key prospects and remains keen to take advantage of rig rates, which currently are at historically low levels.

Echo Energy Plc (LON:ECHO) has mobilised equipment that will allow it to acquire 1,200 square kilometres of three-dimensional seismic data on the Tapi Aike exploration acreage in Neuquén province, Argentina.

Kibo Energy PLC (LON:KIBO) has elected to extend the deadline for the final confirmation of the Strategic Development Agreement with Chinese power company SEPCOIII, which was announced in July. The extension will run for a further 4 months to 30 March 2019.

Bacanora Lithium PLC (LON:BCN) has moved to quell speculation over its future funding.  The statement followed a webinar held by Cadence Minerals, which is an investor in Bacanora. "The company would like to reiterate that Cadence Minerals is not an insider to Bacanora and neither it nor any other shareholder is in possession of any inside information regarding a potential equity raise or any other funding matters," Bacanora said.

Block Energy Plc (LON:BLOE), the energy company focused on the Republic of Georgia, has signed a service agreement for the provision of downhole perforation technology. Block said conventional perforation technologies have had mixed success in Georgia so it has opted for this advanced technology, which has a proven record of significantly enhancing recovery rates.

Stobart Group Limited (LON:STOB) said that further to the announcement of 3 December, a dividend of 1.5p per share will be paid on 31 January 2019 to shareholders on the register as at 28 December 2018, not 11 January 2019 as previously announced.

Arix Bioscience Plc (LON:ARIX) has announced the appointment of Dr Christian Schetter as Entrepreneur in Residence (EIR). The firm noted that Schetter has over 20 years’ industry experience across the life sciences sector, and joins Arix from German immuno-oncology company Rigontec GmbH, where he was CEO for four years before its acquisition by MSD.

Landore Resources Limited (LON:LND) has announced the appointment of Cenkos Securities as its nominated adviser and broker with immediate effect.

Active Energy Group PLC (LON:AEG) has said it is the intention of its directors to transition the company's Nomad role from Northland to SP Angel. It added that the process has already started and at present, the company anticipates an orderly transition of the role.

Aggregated Micro Power Holdings plc (LON:AMPH) has confirmed that the redemption of its Convertible Loan Notes occurred at the close of business on 10 December 2018. The group said that, of the £10.01mln nominal of Convertible Loan Notes outstanding, it received elections from 91% of noteholders to convert £9.13mln into a total of 11,702,811 new ordinary shares, therefore, the company is redeeming the remaining £0.88mln nominal of Convertible Loan Notes at par.

© Proactive Investors 2019

Proactive Investors 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