RTC Group plc (LON:RTC) leapt higher this afternoon after the specialist recruiter’s Ganymede Energy division won a new long-term contract with energy giant SSE plc (LON:SSE).
The AIM-quoted outfit has been selected to source, train and provide at least 250 dual fuel installers for SSE’s smart meter rollout programme.
The ink on the contract is still wet having only been signed earlier today, and it will run through until the end of 2020.
RTC said the provision of workers will start in November of this year followed by a phased training and deployment plan.
Commenting on the award, RTC chief executive Andy Pendlebury said: “I am delighted that Ganymede Energy has been chosen to partner SSE plc on this exciting long-term project.
“This partnership is another significant step for our Ganymede business in establishing itself as the market leading provider of personnel to safety critical environments.”
Shares added a hefty 30% on the back of the deal to trade at 71.55p.
Virgin Money sinks as full-year net interest margin to be at lower end
Virgin Money Holdings (UK) PLC (LON:VM.), which is one of many challengers seeking to challenge the dominance of the Big Five banks in Britain, saw its shares tumble as it said full-year net interest margin would be at the lower end of its guidance range.
The lender said its decision to accelerate draw-downs from the Bank of England’s term funding scheme to support additional lending would result in full-year net interest margin (NIM) being towards the lower end of its guidance range of 1.57 to 1.6 percentage points (i.e. 157-160 basis points).
The half-year update from Virgin Money came in the wake of speech last night in Liverpool by Alex Brazier, the director for financial stability at the Bank of England, who indicated the central bank is getting increasingly worried at the complacency of banks over the rise in household debt.
“Lenders have been the lucky beneficiaries of the benign way the economy has evolved. In expanding the supply of credit, they may be placing undue weight on the recent performance of credit cards and loans in benign conditions,” Brazier said.
Meanwhile, having joined in May 2015, chairman Glen Moreno has signalled his intention to retire from the role in 2018 and head back home to the USA. The search is on for a replacement.
1.50pm...Cadence Minerals booms on latest Macarthur Minerals update
Cadence Minerals Plc (LON:KDNC) has boomed this afternoon on the latest update from Macarthur Minerals’ Reynolds Springs lithium project in Nevada.
AIM-quoted Cadence has a 20.2% stake in Macarthur, which today announced the results of a geochemical soil sampling program at the project which confirmed that there is a lot of lithium underfoot.
Samples of up to 405 part per million (ppm) of lithium were recorded on the Railroad Valley playa.
More than 85% of the samples collected had recordings of over 100ppm, with 19% registering grades in excess of 200ppm.
“These results are considered high in comparison to the majority of non-lithium producing playas and amongst the highest we have seen outside of the Clayton Valley,” Macarthur said in a statement.
“Macarthur Minerals believes that the combination of anomalous lithium in soils (+250 ppm) and anomalous lithium in thermal spring waters (230 parts per billion) indicates that the Reynolds Springs area is favourable for further exploration.”
As for next steps, Aussie-listed Macarthur said it is considering entering into joint ventures to assist with the exploration of both Reynolds and its nearby Stonewall project.
Fever-Tree pops on interim results
Sticking with AIM, premium tonic maker Fevertree Drinks PLC (LON:FEVR) once again upgraded its full-year guidance as its rapid growth showed no sign of losing its fizz.
During the first six months of the year, revenues surged 77% to £71.9mln (H1 2016: £40.6mln), ahead of the 69% revenue growth it registered during the same period last year.
Despite the jump in revenues, gross margins remained stable at 54.5% (H1 2016: 54.8%), while underlying profits (EBITDA) soared to £25.2mln – 102% higher than the £12.4mln posted last year.
“Given the strong performance in the first half of the year, the board anticipates that the outcome for the full year will be materially ahead of its expectations.”
Acacia hit with US$190bn tax bill
Without doubt one of the stories of the day involves Acacia Mining PLC (LON:ACA), which has been hit with a US$190bn tax bill from the Tanzanian government.
The figure – which is made up of US$40bn in taxes and US$150bn of penalties – is part of Acacia’s ongoing dispute with the authorities in the East African country.
The government there alleges that the miner under-declared the amount of gold it was shipping from its four mines in the country and as such claims it is owed A LOT of money in back taxes.
For its part, Acacia denies any wrongdoing and has maintained its position throughout the saga that it has always fully declared all revenues.
Regardless of who is right and wrong, the number being demanded is pretty incredible; it’s 266 times more than Acacia’s market cap on the FTSE 250.
Despite the almost unbelievable demand from the Tanzanian government, shares are ‘only’ down 9% at the money to 167.8p.
Acacia has lost almost two-thirds of its value since the issue first came to light back in March.
9.45am...Arena Events surges on first day of trading
It's been a successful start to AIM life for Arena Events Group PLC (LON:ARE) which began trading on the junior market this morning.
Shares in the temporary seating provider have surged by a third in early as investors fight to get their hands on the stock.
Arena took the decision to join AIM as it looks to take advantage of a fragmented international market.
It raised £59.3mln from the IPO and, if those investors were to cash in now, they would already net a tidy return on that initial investment. Shares are 33.7% to 59p.
Elsewhere, luxury shoemaker Jimmy Choo plc (LON:CHOO) shares jumped as it agreed to be taken over by US retailer Michael Kors for US$1.2bn (£896m).
Jimmy Choo, made famous by celebrity fans including Princess Diana and singer Beyoncé, put itself up for sale in April after majority owner JAB signalled its intention to focus on consumer goods.
Michael Kors, best known for its affordable luxury handbags, has been expanding into dresses and menswear in an effort to address declining same-store sales in recent quarters.
Shares in the shoemaker rose 17% to 228.3p in early deals, just shy of the 230p being offered.
In typical AIM fashion, drug development services group Proteome Sciences plc (LON:PRM) was down 20% to 3.5p despite a fairly solid first half update.
The AIM-quoted company saw revenues rise by21% in the six months ended June, while gross profits soared by a third to £780,000.
Proteome said it was pleased with the first half progress and expected a “stronger second half” of 2017. The only slight negative was that the loss after tax remained around the £1.5mln mark.
Proactive news headlines
The new financial year has got off to a strong start at Acal Plc (LON:ACL), the supplier of customised electronics to industry, with revenue up 14% year-on-year on a constant exchange rates basis in the three months to the end of June.
A newly published long-term study of the Amryt Pharma PLC (LON:AMYT) drug Lojuxta has further confirmed its efficacy in lowering high cholesterol levels resulting from a rare genetic disorder. The assessment of Lojuxta, also known as lomitapide, followed the progress of patients with Homozygous Familial Hypercholesterolaemia (HoFH).
The acquisition of Crusader Resources by Stratex International plc (LON:STI) continues, as Stratex has agreed to reschedule a previously existing convertible loan owed by Crusader to a director, and to take on share-based payments agreed in relation to the acquisition of a gold asset.
Strategic Minerals Plc (LON:SML) has been given permission by local authorities in Western Australia to undertake a 2,000 metre drill programme at its Hanns Camp project. Hanns Camp is prospective for cobalt and for both nickel laterite and nickel sulphide mineralisation.
Challenger Acquisitions Limited (LON:CHAL) has played down reports that the New York Wheel project could be abandoned after a key contractor was fired last week. Reports from New York said the project is set for major delays after Mammoet-Starneth, the design/build contractor, downed tools in May claiming developer NY Wheel hadn’t paid it.
Dekeloil Public Ltd (LON:DKL) has formally kicked off Guitry, its second palm oil project, in Côte d'Ivoire. Guitry will, like the group’s flagship Ayenouan project, be developed as a vertically integrated palm oil operation including nursery, company-owned estates and a mill producing crude palm oil.
Atlantis Resources Ltd (LON:ATL) has told investors that it has now closed its £5mln ‘green’ bond, with full subscription. The tidal power firm said that together with its recent £4.1mln share placing the company intends to use the new capital to grow the business, repay its more expensive debt and for working capital purposes.