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SimplyBiz boosted by agreement to acquire financial adviser Defaqto

Last updated: 14:54 20 Mar 2019 GMT, First published: 09:19 20 Mar 2019 GMT

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SimplyBiz Group PLC (LON:SBIZ) shares were lifted 8.6% to 208p in late-afternoon on news of a deal to acquire financial advisory platform Defaqto.

The financial consultancy said it had agreed to acquire Defaqto in a £74.3mln deal which is expected to be earnings enhancing during the first 12 months of ownership.

To help fund the acquisition, SimplyBiz announced a share placing to raise £29.1mln with shares priced at 180p each, a 6% discount to its close price on Tuesday.

Meanwhile, Motif Bio PLC (LON:MTFB) (NASDAQ:MTFB), shares rocketed up 87% to 11.6p after the biopharmaceutical company said the US Food & Drug Administration (FDA) had agreed to a meeting to discuss its need for additional data related to the new drug application for Motif’s novel antibiotic, iclaprim.

The AIM-listed firm said the meeting with the US watchdog is scheduled to take place on 3 May 2019, with official meeting minutes typically received from the FDA within 30 days of a meeting.

After this, Motif Bio said it will be in a position to provide an update to the market on the path forward for iclaprim, which has been developed for the treatment of acute bacterial skin and skin structure infections.

The group's shares had previously suffered a massive plunge back in February when the FDA said it wouldn’t be giving the regulatory green light to the antibiotic.

Amphion Innovations PLC (LON:AMP), which holds a 6.78% stake in Motif, was also given a boost from the news with shares surging 13.3% to 0.42p.

1.00pm: EMIS shares in rude health as market share and revenue rises in 2018

Healthcare software firm EMIS Group PLC (LON:EMIS) was looking spry in lunchtime trading, up 8.1% at 1,036p, after recurring revenues in 2018 helped boost its total takings for the year by 6%.

The group, whose products include clinical software and online health platforms, reported revenues of £170.1mln for the year, up from £160.4mln in 2017 while adjusted operating profits ticked up 1% to £37.6mln. Recurring revenues rose 5% in the year to £140.7mln.

EMIS had also increased its share of the UK’s general practitioner (GP) market, which rose by 1% to 57%.

Elsewhere, investors in Bluejay Mining PLC (LON:JAY) were cheered as the company quashed speculation it will soon undertake an equity capital raise, sending shares 8.4% higher to 9.9p.

The company has sufficient funding in place that allows it to conduct its budgeted activities into Spring 2020, the Greenland -focused miner said in a statement.

In the fallers, stockbroker Arden Partners PLC (LON:ARDN) fell 3.8% to 25.5p after a statement at its annual general meeting (AGM) confirmed that “challenging” market conditions were expected to continue into the short term.

11.00am: IQE short circuits after full year profits miss downgraded forecasts

Shares in semiconductor maker IQE plc (LON:IQE) sank 7.7% to 77p in late-morning after it missed its adjusted earnings (EBITDA) forecasts for the year despite downgrading them in January.

The firm reported an adjusted EBITDA for the 12 months to 31 December of £26.4mln, 28.9% lower than the prior year while revenues grew 1.1% to £156.3mln.

This EBITDA figure was lower than a previous estimate in a January trading update, when IQE said it would be at least £27.5mln.

IQE has been rocked over the last year by the death of its chief financial officer, Philip Rasmussen, who was killed by a drink driver in April, as well as a “sudden disruption” to supply chains which reduced demand for its vertical-cavity surface-emitting laser (VCSEL) wafers, semiconductors used in products such as laser printers and face ID scanners.

Meanwhile, restaurant owner Tasty Plc (LON:TAST) was looking anything but, with shares plunging 20.6% to 6.7p after it swung to a loss in 2018 and warned that things are unlikely to get any better this year.

UK restaurants have been closing at a rate of knots over the past year or so as intense competition within the sector has taken its toll.

In the risers, Speedy Hire Plc (LON:SDY) shares zipped 1.4% higher to 57p after announcing the acquisition of UK-firm Lifterz Holdings Limited and maintaining its full-year guidance.

The equipment and tool hire agreed to buy Lifterz, which rents out cherry pickers and scissor lifts, for £9.6mln in cash.  Net debt of £11.9mln was also assumed in the transaction.

9.30am: Walcom Group shoots higher as it sells majority stake in Thai subsidiary to shore up finances

Animal feed firm Walcom Group Limited (LON:WALG) shot 50% higher to 0.38p in early trading Wednesday after agreeing to sell the majority stake in its Thai subsidiary for £390,000 to its second largest shareholder.

The proceeds from the sale will be used to shore up Walcom’s capital position which it said had been “severely constrained” due to difficult trading conditions and defaults on payments from one of its major customers.

Meanwhile, TI Fluid Systems PLC (LON:TIFS) flowed 8% higher to 185.4p after the car parts maker posted a sharp rise in profits in its first year as a listed company and hiked its annual dividend.

The company, which made fuel lines for the Model T Ford back in the 1920s and now counts Aston Martin Lagonda PLC (LON:AML) among its customers, generated revenue of €3.47bn in 2018, which, after accounting for currency movements, was 2.0% higher than in 2017.

A prominent mid-cap faller was FTSE 250 construction firm Kier Group PLC (LON:KIE), which sank 7.5% to 447.8p after reporting a drop in first-half profits.

The company, which appointed a new chief executive on Tuesday, saw its underlying pre-tax profit fall by 21% to £39.0mln, down from £49.4mln a year earlier, although underlying revenue increased by 2% to £2.201bn, up from £2.149bn.

The profit decline came as Kier’s operating margin reduced to 2.4%, down from 2.8% a year earlier.

Proactive News headlines:

Motif Bio PLC (LON:MTFB) (NASDAQ:MTFB), saw its shares jump on Wednesday after the biopharmaceutical company said the US Food & Drug Administration (FDA) has agreed to a meeting to discuss its need for additional data related to the new drug application for Motif’s novel antibiotic, iclaprim. Big Pic in February.

Bluejay Mining PLC (LON:JAY) has quashed speculation it will soon undertake an equity capital raise. The company has sufficient funding in place that allows it to conduct its budgeted activities into Spring 2020, the Greenland -focused miner said in a statement.

Midatech Pharma PLC (LON:MTPH) (NASDAQ:MTP) has announced a ratio change on its American Depositary Receipts from one ADR representing two ordinary shares, to a new ratio of one ADR representing twenty ordinary shares. The AIM-listed R&D company, focused on delivering innovative oncology and rare disease products to patients, said the effective date of the ratio change is expected to be 8 April 2019.

88 Energy Ltd (LON:88E) has presented a picture of a portfolio that retains multiple significant opportunities in Alaska, in the wake of the recent Winx-1 exploration well disappointment. The company, in a statement, specifically highlighted that it is closer to a deal in a farm-out process to bring a partner into the exploration of conventional prospects in the Project Icewine area.

Scancell Holdings PLC (LON:SCLP) has strengthened its intellectual property after it was granted two “important” patents in the US and Europe.

Highlands Natural Resources PLC (LON:HNR) is to set up a cannabidiol (CBD) operation in Colorado using hydrogen from its gas operation in Kansas as fertiliser.

Block Energy Plc (LON:BLOE) has announced the completion of drilling in the West Rustavi Well 16a, which has encountered significant oil and gas shows. The company, in a statement, said that the well reached a total drilled depth of 2,659 metres, following successful horizontal sidetracking operations.

Eland Oil & Gas PLC (LON:ELA) has reported US$169.2mln of revenue, a new company record, in what is described as a “ground-breaking” year. Financial results, for the twelve months ended 31 December, saw the Nigeria focused producer make a maiden annual profit before tax at US$77.6mln. 

Telit Communications PLC (LON:TCM) said it has reached a settlement with the administrators of Bartolini After Market Electronic Services (BAMES) in regard to the liquidation of the latter.

OptiBiotix Health PLC (LON:OPTI) has signed an exclusive agreement with DKSH International to distribute its SlimBiome weight management ingredient in Italy and Spain.

Asiamet Resources Ltd (LON:ARS) continues to make progress with its latest round of drilling at the Beruang Kanan Main copper project in Indonesia, where 37 resource evaluation holes have now been completed, alongside four geotechnical holes, as part of an ongoing bankable feasibility study.

Caledonia Mining Corporation PLC LON:CMCL) produced 54,511 ounces of gold from its Blanket mine in Zimbabwe during the 12 months to December 2018. That was down slightly on the 56,133 ounces produced in 2017, as grades were somewhat weaker.

Union Jack Oil PLC (LON:UJO) has conditionally raised £1.75mln through a share sale with the funds earmarked for anticipated follow-up activities to follow a successful outcome in an upcoming well at the West Newton project.

BB Healthcare Trust PLC (LON:BBH) says Dr Daniel Koller is stepping down from his role as part of the management advisory team. Bellevue Asset Management, which manages the BB Healthcare trust, said Koller will focus his attention on BB Biotech, a German sister fund run by the investment group.

Physiomics Plc (LON:PYC), a provider of technology-based solutions to predict the effects of cancer treatment regimens for the biopharma industry, revealed that it is participating in the American Academy of Cancer Research (AACR) Annual Meeting 2019, taking place in Atlanta, Georgia, 29th March to 3rd April.  The company said it will for the first time be presenting on two new topics arising from client and grant-funded projects.

INTOSOL Holdings PLC (LON:INTO), the award-winning international luxury travel company, has announced the appointment of Hybridan as its broker and advisor with immediate effect.

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