Aim-listed Chinese chemicals firm Haike Chemical Group Ltd (LON:HAIK) shot higher as 2016 profits zoomed past last year’s.
Sharply reduced interest payments and a high proportion of high margin product sales lifted the total to CNY(yuan) 18.1mln (£2.17mln) from CNY4.1mln.
Revenues were unchanged at CNY 725.9mln, with sales volumes also little changed at 125,395 tons, but the changes in the sales mix had a dramatic impact.
Shares rose 112% to 26.5p.
Canadian-focused miner Landore Resources Ltd (LON:LND) notched up a 7% rise to 3.55p as it reported excellent metallurgical testing results on samples taken from its BAM East gold prospect at Junior Lake, Ontario.
Combined gold recovery by gravity concentration followed by cyanidation leach extraction of the gravity tail averaged about 98% for both composites tested, Landore said.
"These outstanding results, showing 98% recovery of gold using a simple combined gravity/leaching process, further supports our expectations that the exciting BAM East Gold deposit has the strong potential of low capex/opex costs amongst the lowest quartile of gold mining producers,” said Bill Humphries, chief executive.
Photo-Me International plc (LON:PHTM) was down 9% even after the photo booth group said trading was in line and that using photos from mobile phones was incompatible with security for official documents.
The group said its solutions have been adopted in France and trials are underway in Ireland while there are discussions with the Passport Office about equipping its UK photo booths with the system used in France.
Shares eased 10% to 154p.
12.12... Edenville Energy powers higher after Sinohydro tie-up
Shares in Edenville Energy PLC (LON:EDL) powered higher after the Tanzanian-focused coal miner announced a partnership with Sinohydro – a Chinese provider of services to the power industry.
The two parties have signed a Memorandum of Understanding (MoU) and will work together for at least the next 18 months to try and develop Edenville’s Rukwa Coal to Power project.
Sinohydro – which has 486 construction projects on the go with a total value of US$43bn – will fork out around US$1mln on completing a bankable feasibility study.
Edenville will continue to be responsible for the coal mine and fuel supply, the group said.
The two firms have been working together for a few months now, with Sinohydro completing a technical proposal and an independent financial model in the second half of 2016.
“Sinohydro's broad experience in Africa and its presence in Tanzania for over a decade give us the confidence that we have joined with a group that can bring many positive benefits to the Project and execute the construction process efficiently and cost effectively,” said Edenville boss Rufus Short.
Shares in the company were up almost 50% to 1.15p.
Flowtech Fluidpower PLC (LON:FLO) didn’t get off to the best of starts on Monday and was down 7% at the end of the morning session, despite posting year-on-year revenue growth of almost 20%.
What seemed to unsettle investors was the pre-tax profit guidance of between £7mln and £7.2mln which was below analysts’ expectations of around £7.6mln.
The specialist technical fluid power products supplier also said that the sector as a whole is struggling, with data showing a 3.9% fall in sales last year.
9am...Braemar Shipping and Lamprell hit by oil sector downturn
Braemar Shipping Services PLC (LON:BMS) hit choppy seas on another warning about trading at its oil and gas–focused technical division.
Shipbroking and ports have steadied, but freightforwarding has been weak while the extent of the oil and gas downturn has caught Braemar by surprise with replacement work now also affected.
A wide-ranging restructuring of the technical division will save £6mln from next year, but underlying profits in the year to February will now be between £3-3.5mln, compared to £13.8mln, and the final dividend will be cut to 5p from 17p.
Shares tumbled 15% to 250p.
Oil services group Lamprell PLC (LON:LAM) is another feeling the cold draught of the sector downturn.
“Most of the rigs stacked in Lamprell's facilities throughout the year remained inactive, having generated only limited refurbishment revenue," it said.
Consequently, 2016 revenue is expected to be approximately US$700mln (US$871mln) and fall again in 2017.
“Our existing revenue guidance of US$400-500mln for 2017 performance is therefore maintained, with the current market pointing towards the lower half of the range.
“As a result of our decision to retain our core competitive strengths during the restructuring programmes, we expect margin pressure at these revenue levels although we expect to sustain positive cash generation.”
Activity may start to pick later in the year said John Kennedy, executive chairman, but overall the company is ‘particularly cautious’.
A much cheerier update from natural fungicide group Eden Research PLC (LON:EDEN).
Authorisation has been received from France to sell its first product, 3AEY, as a way to prevent and treat botrytis in table and wine grapes.
Botrytis is fungal disease that causes grey mould on many fruits and vegetables leading to the rapid loss of commercially valuable crops.
3AEY will be sold in France by Eden partner SumiAgro France under the brand name "Mevalone".
"This is a significant and long-awaited milestone for the Company and will allow SumiAgro France to sell Mevalone to its established customers," said Sean Smith, Eden’s chief executive.
Shares rose 33% to 13.5p.