Veltyco Group plc (LON:VLTY) saw its shares slide 21.7% to 50.5p in late-afternoon trading as its forecast that half-year earnings (EBITDA) would be “marginally” below budget.
The AIM-listed marketer, which focuses on the gambling industry, said the reduction in estimates was due to the fact that its sportsbook and casino operations arm, Bet90, had grown at a slower rate than expected.
This was despite the firm’s marketing activities revenue being “ahead of its expectations” during the period.
Elsewhere, shares in Lancashire Holdings Ltd (LON:LRE) dropped 3.3% to 552.5p after the insurance group reported second quarter profits that missed analysts’ expectations.
Profit before tax in the three months ended June 30 came to US$32.5mln, down from US$38mln a year ago and below consensus forecasts of US$37mln. Foreign exchange headwinds had a US$4mln impact on profits.
Gross premiums fell to US$176.7mln from US$184.7mln last year, reflecting declines in the energy and marine markets.
Meanwhile, defence firm Cobham Group PLC's (LON:COB) shares sank 8.8% to 120p after it disappointed the market with news of a £40mln charge relating to its US KC-46 tanker programme.
The good news is that qualification testing on the centerline drogue system (CDS) to be used on the KC-46 Pegasus refuelling tankers has been completed and submissions have been supplied to support achievement of supplementary type certification of the aircraft, with CDS production deliveries having commenced in the period.
The bad news is that completion of CDS qualification has taken longer and has been more challenging than expected.
Furthermore, qualification of the wing aerial refuelling pods (WARPs) is in its early stages, with risks relating to schedule and cost.
1.00pm: John Menzies surges as it agrees to sell media distribution arm
John Menzies PLC (LON:MNZS) shares surged 8.1% to 648p in lunchtime trading after it signed an agreement to sell its print media division Menzies Distribution.
The logistics firm said it would sell the division to investment funds managed by Endless LLP for £74.5mln but would retain a 10% equity stake in the business.
The company added that the sale would allow it to focus entirely on expanding its position in the aviation services market while removing its exposure to the declining print media market.
Meanwhile, Vesuvius PLC (LON:VSVS) shares erupted after the molten metal flow engineering group delivered a record set of first-half results, jumping 6.4% to 619.5p.
In the six months to June 30, the £1.5bn company, which makes equipment used in foundries, posted an 8% rise in revenue to £897.0mln (H1 17: £831.5mln), while trading profits jumped 15% to £99.6mln (H1 17: £86.3mln).
Vesuvius said the strong performance was down to “favourable” market conditions, while the company was also able to pass on the rising cost of raw materials to its customers through price rises.
In the FTSE 100, shares in online publisher RELX PLC (LON:REL) zipped up 2.5% to 1,721p as its first-half results eased concerns that a stand-off with German and Swedish universities is hurting business.
The group which, among other things, publishes academic journals, has been at loggerheads with research institutions in the two countries for a while now, with some not renewing their subscriptions in protest at what they see as poor value for money.
Analysts had thought that the dispute could hit revenues at Elsevier – RELX’s largest division and the one responsible for scientific, technical and medical publishing.
But that part of the business saw revenues rise 3% in the opening six months of the year to £1.19bn (H1 17: £1.16bn).
11.00am: Ncondezi Energy plunges as joint development agreement delayed
Ncondezi Energy Limited (LON:NCCL) shares plunged 22.5% to 7p in late-morning trading after the firm said a Joint Development Agreement (JDA) for its power and coal mine project in Mozambique would not be completed by the end of July.
The AIM-listed coal company said it was now targeting a completion of the JDA three months after the conclusion of a workshop session between itself, the Mozambican state power utility Electricity de Mozambique (EDM) and the Ministry of Mineral Resources and Energy (MIREME) which was expected to take place in early August 2018.
In the FTSE 100, Schroders PLC (LON:SDR) reported a 9% increase in first-half adjusted profits but shares fell 3.7% to 3,102p as assets under management disappointed investors.
Profit before tax, excluding exceptional items, rose to £397.1mln in the six months ended June 30 from £361.5mln a year ago, beating market forecasts of £379mln.
On a reported basis, pre-tax profit rose 8% to £371.1mln from £342.8mln.
Assets under management stood at £435.7mln at the end of the period, unchanged from the start of the year, missing analysts' expectations of £427bn.
In the risers, higher coal and vanadium prices have lifted interim revenues at mining royalty specialist Anglo-Pacific PLC (LON:APF), lifting its shares 1.1% to 138p.
Royalty income will be in a range of £17.5mln to £18mln in the half year to June, a 10% increase year-on-year after a very strong second quarter.
Kestrel, a coal mine in Australia, will again produce the bulk of this revenue.
Royalty income from the mine is 15% higher than a year ago in a range of £14mln - £14.5mln, driven by higher coal prices and production.
9.00am: RedT Energy rockets as it inks agreement for German energy storage projects
Shares in RedT Energy PLC (LON:RED) shot up 39.6% to 6.8p in early morning trading after it signed an exclusivity agreement with Energy System Management GmbH (ESM), a German energy development company.
The AIM-listed company, which specialises in making large industrial batteries, said that under the agreement, it would deliver two 40 megawatt hour (MWh) grid-scale energy storage projects in Germany as a first phase development, with plans to roll out a further 690MWh of projects in the future.
In the FTSE 100, British American Tobacco PLC (LON:BATS) shares rose 4.7% to 4,161.5p after it saw its first-half sales and profit rise despite a slower market in Japan for tobacco heated products (THP).
The tobacco company said its sales were up 57% to £11.64bn for the half-year to 30 June 2018, with profit from operations ahead 72.4% to £4.438bn, but diluted earnings per share fell 3.3% to 117.4p.
The maker of Lucky Strike cigarettes said foreign exchange rates were a headwind of 8% in the first half of the year and are estimated to hurt sales by 5% to 6% for the full year.
Meanwhile, Franchise Brands PLC (LON:FRAN) saw its shares jump 4.2% to 85.5p swung into an interim profit as all four brands - Metro Rod, ChipsAway, Barking Mad and Ovenclean – improved their performance.
Metro Rod, the largest of the franchise operations, completed 88,000 jobs during the period, said Stephen Hemsley, executive chairman, a 15% rise on the same period a year ago.
As the Beast from the East thawed in March, it was its busiest period ever dealing with cracked pipes, but this was doubled-edged as it restricted higher value repair work.
Elsewhere, AstraZeneca PLC (LON:AZN) shares moved up 1.7% to 5,658p after reiterating full-year guidance as it posted sales growth and registered an earnings beat with the oncology business delivering on its potential.
In the second-quarter, the drugs giant posted sales of US$5.15bn, which generated earnings per share of 69 cents. While the latter figure was down year-on-year, it was ahead of consensus, which Bloomberg reckons was around 61 cents.
Full-year guidance was reiterated, meaning the company is on course to post top-line growth in the “low single digits” and earnings of US$3.30-$3.50 a share.
Other Proactive news headlines:
AFC Energy PLC (LON:AFC) has received the non-refundable deposit from Southern Oil as part of the recent order of one of its hydrogen power units. The AIM-quoted firm will now start working with Southern to confirm the final scale and cost of the unit, which is to be installed at the oil refiner’s advanced biomass facility in Queensland, Australia.
Online merchandising, search and eCommerce personalisation provider Attraqt Group PLC (LON:ATQT) expects to meet full-year expectation, it said in its interim results. The first half of the year saw revenue rise 53% to £8.4mln from £5.5mln in the same period of last year, with like-for-like (LFL) sales up 11%.
discoverIE Group PLC (LON:DSCV) maker and supplier of customised electronics, said it was on course to deliver earnings in line with expectations following a strong start to the financial year. Sales rose 12% at constant exchange rates and 3% organically, while orders increased 16% at constant currencies, or 7% organically.
Range Resources Limited (LON:RRL) (ASX:RRS) is to raise £1mln through a share issue to accelerate development of its assets in Trinidad. The company will issue 909mln shares at 0.11p a pop.
Solo Oil PLC (LON:SOLO) has named Alastair Ferguson as the successor to Neil Ritson, who is due to retire from his position as chairman. Ferguson immediately joins as non-executive director before taking the reins from Ritson, who leaves his position on 6 August and will become a technical advisor to the company.
Savannah Resources PLC (LON:SAV) has reported “encouraging” results from its ongoing reverse circulation (RC) and diamond drill (DD) programme at the Mina do Barroso project in Portugal. The AIM-listed miner said RC and DD at the Grandao and Grandao Extended Deposits (GED) had identified “significant expansions to the mineralised pegmatite bodies”, with the expansion at GED supporting further increases to the existing resource estimate of 14 Mt at 1.1% Lithium Oxide.
Higher coal and vanadium prices have lifted interim revenues at mining royalty specialist Anglo-Pacific PLC (LON:APF). Royalty income will be in a range of £17.5mln to £18mln in the half year to June, a 10% increase year-on-year after a very strong second quarter.
Kazera Global PLC (LON:KZG) has commenced a drilling campaign to establish a JORC resource at its Namibia Tantalite Investment Mine (NTI). The AIM-listed resources investment group said early drill cores from the MSA Group, which it commissioned to carry out an exploration programme in June, were “highly encouraging” with the programme ultimately intended to establish a JORC resource and understand the mineralisation on the property as well as the future value of the operation.
Capital Drilling Ltd (LON:CAPD), a leading drilling solutions company focused on the African markets, has announced the appointment of Michael Rawlinson as an independent non-executive director and the company's Remuneration Committee Chairman with effect from 1 August 2018. The group said Rawlinson will replace Craig Burton, who intends to step down from the Board on 31 August 2018.
Wolf Minerals Limited (LON:WLFE) (ASX:WLF) has advised investors that the ASX has granted the company a trading halt in its shares pending an announcement on its financing arrangements. The trading halt will remain in place until the opening of trade on the ASX on Monday 30 July 2018, or earlier if an announcement is made to the market. The company's shares will continue to trade on AIM during this period.