3.30pm: SFO investigation pummels Petrofac
Petrofac Ltd (LON:PFC) was the biggest FTSE 250 faller in late afternoon trading, dropping by almost 15% to 694p after the oil and gas services group revealed that it is being investigated by the UK Serious Fraud Office.
The company said it "believes" the investigation is related to the investigation being conducted into Unaoil, the company previously hired by Petrofac to provide consultancy services mostly in Kazakhstan between 2002 and 2009.
Petrofac said: "The company is cooperating with the authorities. Ayman Asfari, chief executive officer, and Marwan Chedid, chief operating officer, have been questioned under caution by the Serious Fraud Office.”
SFO vs Petrofac $PFC article is 10 months old https://t.co/6fSkDDnqIA
— GreedSpam (@JJScott25) 12 May 2017
Meanwhile, small cap architecture and interior design company Aukett Swanke Group PLC (LON:AUK) was also one of the market’s top fallers, plunging 17% lower to 2.38p after it warned that it expects to book an interim loss for its first financial half, following unexpected reverses in its United Arab Emirates and Continental Europe businesses.
The AIM-listed group said late bad debt provisions have hit its UAE business which it had expected to trade profitably, while its UK business has produced a net loss.
Additionally, the company said its Continental European operations have been hit by a major project cancellation in Istanbul, ongoing delays in Turkey and a delay on a significant project in Berlin.
1.15pm: UniVision leaps on Hong Kong MTR CCTV contract
UniVision Engineering Ltd (LON:UVEL) saw its shares near quadruple in value in early afternoon trading on news the closed circuit television and surveillance systems company has been awarded a contract by Hong Kong’s transportation service Mass Transit Railway Corp.
Its AIM-listed shares leapt 386% higher to 4.5p on the contract, which will see it conduct replacement works of CCTV systems for all rail stations across 11 lines of MTR's rail network, as well as provide new CCTV for 47 stops on the Light Rail.
The group said the contract, which is worth £38.1mln, will begin immediately, with the completion date set for November 2023.
Meanwhile, shares in MySQUAR Limited (LON:MYSQ) extended its recent stellar performance by another 23% to 5.5p, taking its weekly advance to over 190% since it told investors on Tuesday that it is making “significant progress” in hitting its monetisation targets after seeing revenues soar at the start of this month.
READ: Game on for mobile app developer MySQUAR
The Myanmar-language social media platform said it generated average daily revenues of US$5,000 during the first week of May, compared to around US$3,900 a day in April – an increase of almost 30%.
But Afarak Group PLC (LON:AFRK) saw its shares fall by over 10% to 82.5p after the speciality alloys maker issued a more cautious guidance for the remainder of the year, despite making a strong start to 2017.
The firm said the high prices achieved for ferrochrome and chrome ore "have not been sustainable in the long term", meaning results in the second quarter will struggle compared to the first.
12.30pm: Hummingbird sees buzz around mine build
Shares in Hummingbird Resources PLC (LON:HUM) were higher at lunchtime, adding 0.5% at 24p as investors remain focused on its Yanfolila gold project in Mali, which last month the group said is on time and on budget, with 410 people on the ground during the construction phase.
The firm has posted an impressive time-lapse video on its corporate website showing the project's development.
11.00am: Scoping study boost for West African Minerals
West African Minerals Corporation (LON:WAFM) was a strong gainer in late morning trading, taking on 7.7% to 3.5p after the AIM-listed firm said it is to look for partners for its Sanaga iron project in the Cameroon after a scoping study indicated it could be brought into production in two years.
Sanaga is near the Port of Douala, Cameroon’s second city, and the study suggested an open pit iron ore mine and concentrator, using either transportation by barge down the Sanaga River or a slurry pipeline to a port at Yoyo, can payback back the up-front costs of US$194-298mln between 2.5-4 years depending on the route chosen.
READ: West African Minerals Corporation to move Sanaga forward after scoping study
Gerard Holden, WAFM’s chairman, said: “The Sanaga Project's proximity to the ocean and access to existing road and power infrastructure allows low capital expenditures and a short timeframe to develop export infrastructure.
“On-going feasibility work and engagement with regulators and stakeholders is planned as the next steps to advance the project."
Elsewhere, Eagle Eye Solutions Group PLC (LON:EYE) rose by 5.5% to 228.5p as the software-as-a-service technology company said it has signed a three-year contract with department store operator John Lewis.
John Lewis will use Eagle Eye's AIR digital promotions platform to deliver "improved" digital customer marketing.
But on the downside, Hydrodec Group PLC (LON:HYR) shed 6% to 2.28p after the oil re-refining firm reported a continued loss for 2016 although it said its goal of generating positive earnings for 2017 is "in sight".
The company posted a pretax loss of US$6.8mln, albeit a narrowing from a loss of US$16.4mln a year earlier, as revenue doubled to US$16.8mln from US$8.2mln.
9.30am: Good reception for Filtronic trading update
Filtronic PLC (LON:FTC) was the top market gainer in early morning trading, jumping over 22% higher to 12.25p after the microwave electronics group said it now expects to report operating profit and revenue ahead of market expectations after strong trading in its fourth-quarter.
The AIM-listed firm, which makes antennas and other products for telecoms infrastructure clients, said it had seen a better-than-expected performance from its Filtronic Wireless Business in the quarter to the end of May.
It added that, as a result, despite some marginal short-term weakness from its Filtronic Broadband arm, it now expects revenue for the year to total £35mln, up from £13.6mln in the previous year.
Back in January, Filtronic had warned it expected a slowdown in growth in its second half.
Another good gainer on AIM was Symphony Environmental Technologies plc (LON:SYM) which saw its shares add 4% at 15.5p after it revealed it is benefitting from the recent decision by the Saudi Arabian government to make oxo-biodegradable plastic compulsory for a wide range of plastic products.
READ: Symphony Environmental nets more orders thanks to Saudi initiative
Symphony’s chairman, Nirj Deva will tell investors at Friday’s AGM: “As a result of this initiative within Saudi Arabia, we have started to receive new orders through our regional distribution network, and a marked growth in activity has been reported.”
But on the downside, Flowgroup PLC (LON:FLOW) extended yesterday’s sharp falls on fund raising fears, shedding another 5.5% to 1.7p as broker Cantor Fitzgerald cut its rating for the smart boiler group to ‘hold’ from ‘under review’ after slashing its price target to 2p from 21p.
In a note to clients, analysts at Cantor said: “The dilution implied in Flowgroup’s potential fund raising would reduce our valuation of the company to no more than 4.6p.
“This is based on a value for the energy supply business at £250 per customer. However, with the promise of a retail energy price cap, this valuation is now less certain.”
Proactive news headlines…
Mining royalty group Anglo Pacific Group plc (LON:APF TSX:APY) has re-jigged the composition of its board committees.
Mike Blyth is the new chair of the remuneration committee, which also comprises David Archer and Robert Stan.
Patrick Meier has stepped down from this committee but takes over as head of the nomination committee, which includes David Archer, Mike Blyth, Rachel Rhodes and Robert Stan.
Sula Iron & Gold PLC (LON:SULA) has hit its best grades yet at Ferensola in Sierra Leone and is more confident than ever that it hosts a major gold system.
Roger Murphy, chief executive, said he was delighted with the results at the Sanama Hill hole, which included a grade of 3.65 g/t over an interval of 32.6m in one hole, FDD014, with several smaller very high grade zones.
Gfinity Plc (LON:GFIN) has revealed that its shares were in high-demand as it raised £6.25mln in new equity. A share placing to new and existing institutional and other investors was oversubscribed, the company said. The eSports promoter is set to issue 31.25mln new share, representing about 16.56% of the company, at a price of 20p per share.
Alecto Minerals PLC (LON:ALO) has told investors that its Mowana copper mine in Botswana is now in full-time production.
That follows on from the first blast at the end of April and a successful trial period during which Aleecto produced saleable concentrate of up to 28% copper.
So far, the company has produced more than 1,900 tonnes of copper concentrate which is being sold to its offtake partner, Fujax.
Hurricane Energy Plc (LON:HUR) boss Dr Robert Trice, in the UK offshore oiler’s financial results statement, told investors that the company continues to progress a range of financing discussions.
It separately noted the issue of equity warrants, potentially for 25mln new shares, to its ‘house’ broker Stifel - this could see a moderate injection of capital to the company in the near term and may also add some additional liquidity for the AIM market listed shares.
Shares in Stobart Group Limited (LON:STOB) moved higher this morning after the infrastructure and support services unveiled details of a proposed share buyback scheme. Stobart is looking to buy back up to 3mln of its shares, which it will keep in treasury to be used for share awards granted to employees.
BOS GLOBAL HOLDINGS Limited (LON:BOS) has accepted a conditional £500,000 cash offer for its 75%-owned subsdiary Copper Range, a mining junior with exploration tenements in the Olympic Dam mining precinct of South Australia. Copper Range's 25% minority holder will receive £114,000 of the consideration.
Tidal wave power specialist Atlantis Resources PLC (LON:ARL) has agreed a Strategic Partnership Agreement with Hyundai Engineering & Construction that will see them work together on projects in South Korea and elsewhere. The initial objective is to design and build a 100Mw tidal stream project in the south of Korea; to help deliver other tidal stream projects Atlantis is pursuing in South East Asia and to explore the potential collaboration in tidal range or barrage/ lagoon projects globally.
Savannah Resources Plc (LON:SAV) has lodged an Environmental Impact Assessment (EIA) for the Mahab 4 copper mine development, the final part of its permit applications for two copper mines in Oman. Mahab 4 (and Maqail South) are located in Block 5 and the EIA approval process is expected to take around three months assuming all goes smoothly.
Anglesey Mining plc (LON:AYM) is to assess whether an accelerated development is the best option for a development of its Parys Mountain prospect In Wales. A scoping study is currently ongoing but Anglesey is now mulling whether a throughput of 1,000 tonnes per day rather than 500 tonnes would be more economic.
Tower Resources PLC (LON:TRP) has requested that its shares are suspended from trading on AIM pending clarification of its financial position. It comes as the group’s efforts to close a farm-out deal for its Thali asset, offshore Cameroon, has stalled.
Gemfields plc (LON:GEM) has decided to focus on opportunities that will deliver “considerably higher returns” as it withdraws from its Coscuez emerald mine transaction in Colombia and in operations in Sri Lanka. The company said will turn its attention to its portfolio of high quality assets in Africa and potential expansion opportunities in Zambia, Mozambique and Ethiopia.
Scotgold Resources PLC (LON:SGZ), the owner of the Cononish gold mine in Scotland, is to push ahead with further exploration at projects in Portugal and France as it looks to broaden its portfolio. Rock chip samples at Pomar in Portugal indicated high grades of goal and antimony, while at Vendrennes in France, Scotgold has been awarded an exploration permit and will now start to review the data from the historic antimony workings.