Imaginatik Plc (LON:IMTK) shares collapsed 43% to 0.62p in late-afternoon trading as the software company ended its sale process.
The company put itself up for sale in February after saying it did not believe its share price reflected either the value of the platform or its growth prospects.
The firm added that chief executive Ralph Welborn had left with immediate effect and would not receive any compensation. Chairman Matt Cooper also resigned with immediate effect and waived his entitlement to receive payment in place of notice.
In the blue-chips, shares in media giant WPP PLC (LON:WPP) fell 2.9% to 1,214p after German bank Berenberg cut its stance to ‘Sell’ from ‘hold’ as it expects the advertising giant’s situation “to get worse before it gets better.”
In a note to clients, Berenberg’s analysts said: “Regardless of the reasons for recent management change, WPP’s Q1 relative performance versus peers (particularly in North America) showed that all is not well from an operational perspective: we think that this will prove more difficult and costly to fix than consensus expects.”
They added: “The historical margin expansion trend has slowed to a crawl more recently, but margins could now start to step down. In FY 2018 our forecast of a 60bp (basis point) decline was already below guidance and consensus (flat) given the need to refill incentive pools and the mix effect of revenue weakness in the company’s most profitable region of North America.”
In the risers, KEFI Minerals plc (LON:KEFI) saw its shares jump 4.3% to 2.6p after the firm said it was pleased to note that the Ethiopian Parliament today lifted the official State of Emergency in the country, two months ahead of schedule.
The gold exploration and development company, with projects in the Kingdom of Saudi Arabia as well as the Federal Democratic Republic of Ethiopia, confirmed that throughout the State of Emergency day-to-day operations at its Tulu Kapi gold mine were unaffected.
1.15pm: Phaunos Timber Fund rises on news of cash offer
Phaunos Timber Fund Limited (LON:PTF) saw its shares rise 11.4% to 0.48p in lunchtime trading after it confirmed an all cash offer from Stafford Capital Partners to buy the group.
The investment fund said the offer was made for the entire share capital of Phaunos at US$0.49 per share, an 11% premium on the closing price of US$0.44 on 4 June, implying a total equity value for the company of around US$244.2mln.
Elsewhere, shares in Europa Oil & Gas PLC (LON:EOG) jumped 14.1% to 4.8p after the explorer revealed a major upgrade to its prospective resources in the South Porcupine Basin, Atlantic Ireland, following the analysis of new 3D seismic data.
The inventory for the Frontier Exploration Licence 3/13 increases by 93% to 2.9bn potential barrels of oil equivalent.
It highlighted that 3D seismic confirmed and verified the Beckett, Shaw and Wilde prospects, with Beckett and Shaw now seen as a fan sequence – the explorer now believes the targets are much thicker and span a much wider area than it previously thought.
In the fallers, shares in Carclo PLC (LON:CAR) dropped 3.1% to 87.2p after the plastic components manufacturer reported a dive in profits during a “disappointing” year of trading.
A profit warning back in January helped to prepare investors, with Carclo stating at the time that unexpected delays in securing big contracts in its Technical Plastics and Wipac units would negatively affect results.
For the 12 months through to March 31, the Yorkshire-based group posted a 6% rise in revenues to £146.2mln (2017: £138.2mln).
But pre-tax profits fell by almost a fifth to £9.9mln (2017: £12.0mln), with Carclo also blaming “some weaknesses in operational performance” for the dip.
11.00am: Ecsc Group shares jump as it launches cyber security AI
Ecsc Group PLC (LON:ECSC) shares jumped 11.9% to 117.5p in late-morning trading as it launched its new KEPLER Cyber Security Artificial Intelligence (AI) product at the Infosecurity Europe show in London.
The AIM-listed cyber security provider said KEPLER was the culmination of over 18 years of cyber security Managed Services development and delivery and formed the heart of the latest ECSC 24/7/365 security monitoring and breach detection services.
Meanwhile, shares in Altitude Group PLC (LON:ALT) soared 22.1% to 96.5p as it reported increase in revenues, boosted by contribution from new acquisitions in the US and UK.
The AIM-listed technology and information company said for the year ended 31 December 2017, its revenues increased 41.2% to £6.1mln from £4.3mln.
The company said its gross profit increased £0.8mln to £4.3mln from £3.5mln, while technology revenues stayed at £2.4mln.
In the fallers, newspaper publishing firm Johnston Press PLC (LON:JPR) dropped 17.6% to 7p as it reported a decline in revenues, impacted by higher paper costs and new data privacy rules.
In a trading update, the newspaper publishing firm said its revenues declined by 9% in the period from 1 January 2018 to 31 May 2018.
The group said its trading environment remained extremely challenging, exacerbated in recent months by uncertainty around future paper costs and the impact of General Data Protection Regulation (GDPR) on digital advertising revenues.
In the blue-chips, Royal Bank of Scotland Group PLC (LON:RBS) shares dropped 3.5% to 270.9p following news after the close on Monday, that the UK government is selling around 925mln shares in the state-controlled lender for about £2.6bn.
UK Government Investments Limited (UKGI), the unit managing the taxpayer’s stake in the FTSE 100-listed bank said the shares being sold amount to 7.7% of RBS's issued share capital, reducing the government's stake to 62.4% from 70.1%.
9.15am: Gama Aviation nosedives on flat trading update
Gama Aviation PLC (LON:GMAA) saw its shares dive 8.8% to 206.5p in early trading after it reported trading across its Air and Ground divisions had been flat compared to last year.
The aviation services provider said trading conditions in Europe had been “somewhat challenging”, although it added that conditions in the US were supporting strong growth.
The group also said that it had settled four out of ten previously disclosed legal proceedings against it by various entities.
In the risers, Metminco Limited (LON:MNC) shares shot up 23.8% to 0.65p after it commenced diamond exploration drilling on its Tesorito gold prospect in the Quinchia district, Colombia.
The 1,500 metre diamond drilling program is designed to confirm and expand the gold mineral system previously intersected in drilling by a previous operator.
This included one hole which reported 384 metres grading 1.1 grams per tonne gold from surface to end-of-hole.
Meanwhile, shares in discoverIE Group PLC (LON:DSCV) were lifted 3% to 439p after the electronics manufacturer saw profits more than treble last year as it reaped the rewards of its efficiency and cost reduction programme.
The London-listed firm implemented its efficiency plan in the 16/17 financial year which saw it shut its unprofitable Spanish business, trim management numbers and make a series of improvements to its infrastructure and manufacturing processes.
In other news, AO World PLC (LON:AO.) shares rose 1.7% to 155.2p as it reported double-digit sales growth for the year just gone.
Revenues climbed 14% to £796.8mln in the year ended March 31 2018 (2017: £629.7mln), with UK sales – the group’s core market – rising 8.1% to £680.8mln.
Group chief executive Steve Caunce said: “Whilst we remain cautious on outlook given economic and competitive pressures on the UK electricals market we are confident of achieving our stated goals of future growth in the years ahead.”
Proactive news headlines:
Europa Oil & Gas (Holdings) PLC (LON:EOG) has a major upgrade to its prospective resources in the South Porcupine Basin, Atlantic Ireland, following the analysis of new 3D seismic data. The inventory for the Frontier Exploration Licence 3/13 increases by 93% to 2.9bn potential barrels of oil equivalent.
discoverIE Group PLC (LON:DSCV) saw profits more than treble last year as the customised electronics supplier and manufacturer reaped the rewards of its efficiency and cost reduction programme.
Sound Energy PLC (LON:SOU) has launched a farm-out process for the Sidi Moktar onshore gas project, in central Morocco, which is believed to have multi-TCF (trillion cubic feet) exploration potential. The AIM-quoted explorer currently owns 75% of the project alongside the Moroccan state petroleum company (ONHYM) with the other 25%.
Global project management and technical consultancy WYG PLC (LON:WYG) said a strengthening order book provides a sound basis for current year expectations and medium-term confidence.
FairFX Group PLC (LON:FFX) has hailed “continued strong growth” in the first part of 2018 as it issued a statement to be read at its annual general meeting on Tuesday. Chairman of the AIM-listed international payments provider, John Pearson, said in the statement that the acquisitions of CardOne and City Forex earlier in the year had been “transformational” for the company and had enabled the company to broaden its growth opportunities.
Widecells Group PLC (LON:WDC) said trading had been strong as it published its full-year results. The stem cell specialist said following the release of its figures, it was working with the Financial Conduct Authority to have its share suspension lifted.
88 Energy Ltd (LON:88E, AS:88E) told investors that analysis of the fracture system in the Icewine-2 well suggests there’s been no degradation during the winter shut-in period. As result, no remedial work will be needed prior to the restart of the well programme. The company added that it remains on-track to resume well testing operations next week, on June 11.
Cash shell Kin Group PLC (LON:KIN) is back in business, having agreed to invest £400,000 in software company, bidstack, a company with technology that places tailored advertising in real-time into computer games.
Custodian REIT PLC (LON:CREI) has reported a 34% increase in profit and raised its 2019 target dividend as the company released its annual results for the year ended 31 March 2018. The UK commercial and real estate investment company said its profit after tax jumped 34% to £528.9mln from £418.5mln a year ago, while portfolio value rose to £528.9mln from £418.5mln.
OPG Power Ventures PLC (LON:OPG) has reported a record production year in 2018 as well as tariff increases for the coming year.
Southend Airport owner Stobart Group Limited (LON:STOB) has received a nomination for a new chairman from former chief executive Andrew Tinkler and Woodford Investment Management.
Arc Minerals Ltd (LON:ARCM) has increased its ownership of Zamsort Limited, following the acquisition of a 6% interest from Terra Metals Limited. The acquisition of the additional stake in Zamsort is on the same commercial terms as Arc’s acquisition of a 35% stake in a deal announced on 15 May 2018.
Metminco Ltd (LON:MNC) has commenced diamond exploration drilling on its Tesorito gold prospect in the Quinchia district, Colombia. The 1,500 metre diamond drilling program is designed to confirm and expand the gold mineral system previously intersected in drilling by a previous operator.
African Battery Metals PLC (LON:ABM) has now completed two auger programmes at its 53 square kilometre Kisinka permit in the Katanga Province of the Democratic Republic of Congo. The company has now made over a second US$50,000 payment to give it 70% of the property, although work on potential dealflow elsewhere has meant it has opted to defer a further payment to the same vendor due on another property.
Premier African Minerals Limited (LON:PREM) has entered into a loan agreement with a company owned by a trust of which George Roach is a beneficiary, for a gross value of US$300,000. The loan is non-interest bearing and has a maturity of 60 days. It will provide additional general working capital while the company looks to conclude negotiations currently underway in Zimbabwe in respect of both the Zulu lithium project and the RHA tungsten project.
Acquisitive Keywords Studios PLC (LON:KWS) said it has completed the new €105mln revolving credit facility it flagged in its results statement in April.