Metal trader Zibao Metals Recycling Holdings PLC (LON:ZBO) was a hit with investors today after it was forced to come out and confirm that it expects turnover to show a “substantial increase” this year.
The Aim-quoted company added that full-year profits would also increase thanks to cost-cutting efforts, although it did warn that “conditions remain weak” and margins are falling.
Zibao made the announcement after a spike in the share price earlier this morning.
Investors seemed to ignore the margin pressures and concerns about the trading environment though, as the shares gained 66% to 3.1p shortly before close of play in London.
Drug discovery and development firm Summit Therapeutics PLC (LON:SUMM) jumped this afternoon after announcing that it has secured up US$62mln of funding from the US government.
The Biomedical Advanced Research and Development Authority (BARDA), an agency of the US Department of Health, awarded the contract to support the clinical and regulatory development of ridinilazole for the treatment of the C. difficile infection (CDI), including Summit's planned Phase 3 development programme.
Ridinilazole is a highly selective, novel class antibiotic aimed at both treating the initial infection and reducing recurrent disease, which is the key clinical issue in the treatment of CDI, Summit said.
In a Phase 2 proof of concept clinical trial conducted in North America, ridinilazole was shown to be highly preserving of the microbiome of patients compared with the standard of care, vancomycin, and achieved a substantial reduction in rates of recurrent disease.
Office productivity software group BOS GLOBAL Holdings Ltd (LON:BOS) stumbled after its managing director Michael Travia stepped down from his position.
The search is on for a new managing director, but in the meantime Travia’s responsibilities will be shared on an interim basis by Bill Brooks, currently Global PMO director, and executive director Mark Uren.
The former will oversee the company’s sales and international growth strategy and the latter will be responsible for the broader corporate management duties. BOS shares dipped 12.7% to 6.87p.
1.30pm...UPGS runs out of steam as it warns on "tougher" conditions
Shares in UP Global Sourcing Holdings PLC (LON:UPSG) ran out of steam today after it said it was unlikely to notch up any revenue growth this year as it bemoaned “tougher” trading conditions.
In today’s trading statement, the group blamed stagnant wage growth and rising inflation for “under pressure” consumer spending power, with retailers putting the brakes on placing orders as a result.
On top of that, UPGS said it is also having to deal with its own inflation issues given the falling value of sterling since last year’s Brexit vote.
UPGS is only a few weeks into its new financial year and investors weren’t best pleased that what essentially amounts to a profit warning is being issued so soon: shares plunged by 46% to 110.2p.
On a more positive note, Mosman Oil And Gas Ltd (LON:MSMN) flowed higher after it unveiled its latest acquisition in North America.
The junior oiler has picked up the Welch Permian basin project in West Texas in a US$310,000 deal.
Mosman said the project, located about 550km from Dallas, comprises ten existing production wells plus ten shut-in wells and seven injectors and presently produces around 34 barrels of oil per day.
9.45am...Bad start to the week for Jersey Oil & Gas and Providence Resources
Mondays are bad enough anyway, but for UK junior oil explorers Jersey Oil and Gas PLC (LON:JOG) and Providence Resources PLC (LON:PVR) today was particularly gloomy.
Providence revealed the disappointing news that Drombeg, the second and final target in its Irish Sea exploration programme, has been found to be a water-bearing reservoir.
That comes on the back of a similarly disappointing result for the well’s Druid exploration prospect and Providence confirmed that the well will now be plugged up and abandoned.
Shares dived by a third after the news broke to 5.1p, although the fallout from a similar story over in the North Sea for Jersey prompted an even bigger sell-off.
The explorer lost 77% of its value to trade at 51.3p after it revealed that the Statoil-operated Verbier well had also struck out.
Investors had pinned a lot of hope on the well, given Statoil’s presence, but drilling found the target reservoir to be full of water (rather than the black stuff) and deeper than expected.
There was some good news among the small caps though, with clean water technology group HaloSource Inc (LON:HALO) leading the way.
The company is much leaner than it was this time last year with its trimmed cost base helping to reduce net loss in the opening six months of 2017 by almost a third to US$3.2mln.
HaloSource said it is now better positioned for future growth as it is “no longer distracted” by various non-core operations which it exited in 2016.
“This focus [on core operations], along with the continued development of a new, proprietary heavy-metal removal offering, will fuel our growth and future profitability.
Proactive news headlines:
ANGLE PLC has established a co-marketing agreement with QIAGEN NV, a world-leading provider of molecular testing solutions. The AIM-listed liquid biopsy firm said the partnership will “seek to leverage the advantages of combining ANGLE's world leading Parsortix system for harvesting circulating tumor cells (CTCs) with QIAGEN's liquid biopsy solution portfolio".
North Sea focused Jersey Oil & Gas PLC (LON:JOG) has revealed that the Statoil operated Verbier exploration has been unsuccessful, finding the target reservoir to be water bearing and deeper-than-expected.
Mosman Oil And Gas Limited (LON:MSMN) has unveiled its latest acquisition in North America, picking up the Welch Permian basin project in West Texas in a US$310,000 deal. The company said the project, located about 550 kilometres from Dallas, comprises ten existing production wells plus ten shut-in wells and seven injectors. It presently produces around 34 barrels of oil per day.
Rose Petroleum PLC (LON:ROSE) has announced that a binding stock purchase agreement (SPA) has now been signed with Magellan Gold Corporation in relation to the previously proposed deal for Rose’s metal processing operation in Mexico.
Tlou Energy Limited (LON:TLOU) boss Tony Gilby has handed in his annual report card on what he called a “phenomenal year” for the company.
Michael Travia, managing director of fast-growing office productivity software group BOS GLOBAL Holdings (LON:BOS), has quit the company.
Atlantis Resources Limited (LON:ARL) noted that, as expected, its MeyGen Limited subsidiary was not awarded a 2071 contracts for difference allocation for renewable energy projects by the UK Department for Business, Energy & Industrial Strategy (BEIS). However, the AIM-listed tidal power generation firm said it has commenced a dialogue with BEIS officials to “recognise the benefits of either a bi-lateral CfD discussion or the reintroduction of a marine energy sub-category in the next allocation round, either of which would be welcomed by Atlantis.”
Be Heard Group PLC (LON:BHRD) saw “exceptional revenue growth” in the first half and expects the growth rate to pick up in the second half.
Genedrive PLC (LON:GDR), the molecular diagnostics company, said its Genedrive HCV ID kit has achieved CE certification under the EU Medical Devices Directive.
Seeing Machines Limited (LON:SEE) saw like-for-like revenues soar once again last year and the eye-tracking technology specialist has now set its sights on turning over US$100mln by the end of 2019. Like-for-like sales more than doubled in the year ended 30 June to A$13.6mln (2016: A$6.1mln), driven by another strong performance from its Guardian fleet division.
Allergy Therapeutics PLC (LON:AGY) has strengthened its clinical research team with two senior appointments. Pieter-Jan de Kam joins as clinical director, while Simon Piggott will become head of clinical science.
Diversfied Gas & Oil PLC ‘s (LON:DCOG) production surged in the half year to June as the recent package of 1,300 wells in the US contributed for the first time.
Ortac Resources Ltd (LON:OTC) has announced that from henceforth it will focus on two gold projects in Africa held as investments, Casa Mining and Zamsort. The move follows the appointments of Nick von Schirnding and Brian McMaster to the board and the passing of all resolutions at an AGM last week.