European Wealth Group plc (LON:EWG) shares jumped 20.65% to 27.0p after reporting a 25% increase in full year assets under management and saying it has had a “positive start to the year.
The integrated wealth management group said its assets under management increased to £1.5bn in the year to December 31 2016 from £1.2bn in 2015.
European Wealth added that it was on track for achieving its short-term target of £2.0bn of assets under management.
Full year income from trading activities rose by 23% to £9.4mmln, up from £7.7mln a year earlier, due to organic growth and growth from acquisitions. The group swung to underlying earnings (EBITDA) of £346,000 from a loss of £68,000 in 2015.
Separately, the group announced it was launching an £8.8mln fundraising today designed to make it “debt free with working capital flexibility and balance sheet strength to allow it to pursue its stated strategy”.
Hurricane Energy flying higher
Hurricane Energy plc (LON:HUR) shot 15.32% higher to 35.75p a day after Macquarie Capital said it expects its shares will rise considerably in a year’s time if the oil firm can achieve project financing with a reasonable level of dilution.
The broker repeated an ‘outperform’ rating for Hurricane with a price target of 87p, saying that he focus is on the financing for the Lancaster field and the final investment decision for the project. It follows the completion of its successful exploration and appraisal programme.
Agriterra shares drop
In contrast, Agriterra plc (LON:AGTA) fell 15.0% to 0.17p as it named the buyers of its Sierra Leone cocoa assets.
The company said investors Abdul Hamid Fawaz and Amin Allie Skaikay purchased Tropical Farms Limited and Tropical Farms Plantations Limited, the local companies that hold assets comprising Agriterra’s cocoa business. The assets were sold for a consideration for US$500,000. The company decided to sell the assets after saying it was unlikely to raise the finance to continue developing cocoa plantation given the impact of Ebola on the West African region.
11.47am: Blur shares slide as it seeks funding
Blur Group PLC (LON:BLUR) shares plunged 61.8% to 3.25p as the e-commerce enabler announced plans to cut costs and seek investors to bolster its cash position.
Cash burn in 2017 has been running about US$1mln per quarter and the company had cash balances at US$1.14mln at 31 May.
The company held discussions with new and existing investors but said the conditions proposed so far included onerous conditions so it is currently evaluating alternative near-term funding sources. This will take between three to six weeks.
“If alternative sources of financing are not available the board would be required to take action to protect the interests of creditors and which could result in the value attributable to shareholders being severely reduced or becoming nil. Further announcements will be made at the appropriate time,” Blur explained.
Blur plans to streamline its business by reducing fixed salaries and fees of the management team and board towards a “more incentive-based remuneration approach”. It will also optimise overall operational costs and assess the suitability of rented office space to see if there are more efficient alternatives.
The group expects its 2018 cost base to be less than half that in 2016 which the company expects to lead to improvements in EBITDA performance.
Petropavlovsk shares higher as it appoints new chairman
On the upside, Petropavlovsk PLC (LON:POG) shares rose 1.67% to 7.32p after the Russia-focused miner appointed Ian Ashby as its new chairman to replace founder and mining veteran Peter Hambro.
Hambro was voted out of office at the company’s annual general meeting yesterday after he was opposed by a group of shareholders speaking for over 30% of the shares.
Flowtech Fluidpower gains on acquisition
Flowtech Fluidpower plc (LON:FLO) increased 1.47% to 138.0p after the supplier of specialist technical fluid power products said it bought Hi-Power Limited for £3.5mln.
The group said the acquisition of the Hi-Power, which distributes hydraulic equipment components to the mobile and transport sectors, will strengthen its power motion control business.
09.40am: SolGold shares rise, Trinity Exploration & Production slips
SolGold plc (LON:SOLG) shares rose 1.92% to 39.75p as it announced the assay results from its copper-gold porphyry project in Ecuador.
The results showed that Hole 25 returned 776.0m grading 0.77% copper equivalent from 754m depth. This included a high-grade panel of bornite mineralisation.
Separately the company said its application to list on the Tornonto Stock Exchange has been approved.
Eland Oil & Gas on the front foot
Eland Oil & Gas PLC (LON:ELA) gained 3.4% to 53.75p after it released details of an equity reorganisation to allow major shareholder Helios Natural Resources to convert some non-voting shares into voting shares, addressing the dilution of its influence created by a recent share placing.
Earlier this month, Eland raised £15.2mln through the issue of new equity – placing shares at 27.55mln at 55p each.
Trinity Exploration & Production shares fall
Trinity Exploration & Production PLC (LON:TRIN) was under the cosh after noting that production has declined “significantly” in its annual general meeting statement.
The company said production fell from average levels of 3,600 barrels of oil per day (bodp) to current levels of 2,500 bopd due to a lack of investment.
Shares fell 2.22% to 11.0p in morning trading.
Proactive news headlines…
Redx Pharma Plc (LON:REDX) has received approval from the UK regualtor (MHRA) and the Ethics Review Committee for its Clinical Trial Application for the Porcupine inhibitor RXC004.
The approval provides permission for Redx to initiate a Phase IB/ Phase IIA study of RXC004 in patients suffering from gastric, biliary and pancreatic cancer.
Clinigen Group PLC (LON:CLIN) founder Peter George has sold 500,000 shares at 875p per share. His beneficial interest in the pharmaceutical services group is now 2.81mln share or 2.44%.
Eland Oil & Gas PLC (LON:ELA) released details of an equity reorganisation to allow major shareholder Helios Natural Resources to convert some non-voting shares into voting shares, addressing the dilution of its influence created by a recent share placing.
Earlier this month, Eland raised £15.2mln through the issue of new equity – placing shares at 27.55mln at 55p each.
Falcon Media House (LON:FAL) has signed a Memorandum of Understanding with the UK arm of Indian conglomerate Tata to collaborate on a B2B streaming service aimed at brands and content rights holders.
E-commerce enabler Blur PLC (LON:BLUR) is to cut more costs and will look to bolster its cash position as it repositions its platform towards larger customers.
Trinity Exploration & Production PLC (LON:TRIN) now has a clear strategic focus, to grow reserves and production to maximise cash flow, the company highlighted in a statement ahead of today’s annual general meeting. The Trinidad-focussed company noted that whist production has declined in recent years, from 3,600 barrels per in 2014 to around 2,500 bopd due to a lack of investment, the group’s asset ‘remains intact’ and production growth will be possible with new investment.
Russia –focused gold miner Petropavlovsk PLC (LON:POG) has appointed Ian Ashby as its new chairman to replace founder and mining veteran Peter Hambro. Hambro was voted out of office at the company’s annual general meeting yesterday after he was opposed by a group of shareholders speaking for over 30% of the shares.
European Wealth Group Limited (LON:EWG) launched an £8.8mln fund-raising today designed to make the integrated wealth management group “debt free with working capital flexibility and balance sheet strength to allow it to pursue its stated strategy.” The AIM-listed firm said it has entered into a subscription and underwriting agreement with shareholders Astoria and Kingswood to raise total gross proceeds of approximately £9.2mln.
Crystal Amber Fund Limited (LON:CRS), the investment group run by veteran investor Richard Bernstein, has said it believes the recent fall in its share price primarily reflects the decline in that of Hurricane Energy PLC (LON:HUR), its largest investment.