Microgen plc (LON:MCGN), which provides business critical software and services, said both sides of the business had a strong first half to the year.
Aptitude Software delivered strong organic growth while Microgen Financial Systems successfully continued its transition towards a business focused on the Trust & Fund Administration market.
Shares rose 15.3% to 365p on the update as the board said it is confident the “exceptional level of demand” enjoyed by Aptitude Software in the first half of the year will continue in the second half, leading to a full-year performance “significantly ahead” of the board’s expectations.
Drawing a Blancco as smartphone data erasure firm bites the bullet
As is the way with “bad news” stock market announcements, this morning’s statement from Blancco Technology Group PLC (LON:BLTG) starts off positively enough.
“The Board is pleased to report that the positive Revenue momentum reported at the interim results has continued through the second half of the year,” the statement began.
Hurrah!
For the financial year to the end of June, the company, which provides technology that wipes clean the digital storage on corporate mobile phones, saw revenues rise by around 40% year-on-year (in constant currency).
Hurrah, again.
All of that was in line with market expectations, and now here’s the “but” clause that wiped 20% off the market value of the tech stock.
“Cash flow and net cash are below market expectations due to the non-payment of £3.5mln of receivables, the majority undertaken in the prior year,” the company said.
Now, it is possible the company may yet receive the dosh it is owned but it has taken the precaution of assuming £2.2mln of the receivables has gone down the drain.
This reflects the group's intention to apply a more prudent approach to revenue and income recognition on this type of contract in the future, Blancco said.
Well, it’s not the first growth company to have bitten the bullet on that score, and it won’t be the last.
Also getting a clobbering this morning was entu (UK) PLC (LON:ENTU), the energy efficiency home improvements group.
It also lost around a fifth of its value as it announced a strategic review that will include exploring options for new long-term financing.
Rockrose Energy back and blooming but Novae prepares to exit stage left
Shares in Rockrose Energy PLC (LON:RRE) were readmitted to the London Stock Exchange this morning after a placing of shares at 150p each.
As at 9.00am, the shares were trading at around 145p. Trading in the shares was suspended way back in September 2016 at 44.75p, so shareholders have had a long wait but with a happy ending.
The company raised £8mln through the share placing, which will go into its war chest as it looks for further acquisition opportunities.
Rockrose will focus on onshore and offshore production opportunities, power generation and infrastructure projects.
At the end of 2016, the company signed sale and purchase agreements with Maersk Oil North Sea UK Ltd to acquire the latter’s non-operated interests in the Wytch Farm, Scott and Telford fields.
Separately, Rockrose signed a conditional sale and purchase agreement to acquire Egerton Energy Ventures Limited, including non-operated interests in the Galahad (27.80%) and Mordred (8.33%) gas fields located in the Southern North Sea.
Specialist Lloyd’s insurance group Novae Group PLC (LON:NVA) has succumbed to a takeover offer from AXIS Capital Holdings Limited.
It’s an all-cash offer from AXIS at 700p a pop, which places a valuation of £467.6mln on Novae.
Novae shares promptly advanced to 708.5p, having closed last night at 581.5p.
The consideration also implies a multiple of 1.5 times Novae’s reported net tangible book value of £318.8 million as at 31 December 2016 (on a fully diluted basis), so … cigars all round in the Novae board room.
Albert Benchimol, president and chief executive of AXIS, also sounds pretty chuffed with the deal.
“We are very pleased to announce this proposed acquisition of Novae which will create a c.$2 billion player in the London specialty market, anchored as a top 10 insurer in the Lloyd’s market. The acquisition is fully aligned with AXIS’s international specialty insurance growth strategy and will combine two highly complementary businesses, substantially enhancing our depth and breadth of product, underwriting expertise, and leadership capabilities to better serve our clients and brokers,” he said.
Proactive news headlines
Motif Bio Plc (LON:MTFB) has a busy week lined up in early October, when it will be presenting three "posters" at the annual Infectious Diseases conference in San Diego.
A recent study at Berkeley Energia Limited’s (LON:BKY) Salamanca uranium mine in Spain has found that the total upfront capex (capital expenditure) required is 1% less than initially forecast.
Gfinity Plc (LON:GFIN) is looking forward to the start of its flagship event, the Elite Series, which kicks off tomorrow. The season of eSports competition begins at the Gfinity eSports Arena in London on Friday July 7, and events will run every weekend through to September 3. The competition will be broadcast online, at Gfinitiyesports.com.
Allergy Therapeutics (LON:AGY) has published data in peer-reviewed journals from two preclinical studies analysing its immuno-therapy platform as a potential vaccine against malaria and the flu.
Chaarat Gold Holdings Ltd (LON:CGH) has strengthened its management team at its Tulkubash gold project in the Kyrgyrz Republic, which remains on schedule. Frank Fenne, a mining veteran with over thirty years experience in global projects including major mine builds in Nevada and Australia has been recruited as head of geology, while Davron Vakhabov, a heap leach pad specialist, joins from Lydian, the developer of the Amulsar project in Armenia.
MySQUAR Limited (LON:MYSQ) has announced the launch of Mingalarbar Morning a new news aggregation app for its customers in Myanmar. The app is designed to address a lack of comprehensive local language news.