Two of London’s latest IPOs, Aston Martin Lagonda Holdings PLC (LON:AML) and Funding Circle Holdings PLC (LON:FCH), are both still struggling.
The luxury carmaker fell 5% yesterday on its first full day of trading and the shares are down another 2.2% today to 1,770p – well below their IPO price of 1,900p.
As for Funding Circle, the peer-to-peer lender lost 17% yesterday and a further 5.5% today to 344.8p, almost 100p below the 440p they were floated at.
Very few firms that list in London see their stock close below the offer price in the first day or two, but the consensus among analysts is that both of these were overpriced at their IPOs.
Gfinity scores deal with Premier League to host esports tournament
International esports group Gfinity Plc (LON:GFIN) has sealed a deal with the Premier League to become the official tournament operator of the inaugural ePremier League video game tournament, sending its shares soaring.
Under the term of the deal, Gfinity will develop and manage the online qualification for the tournament on its proprietary tournament management platform.
"Gfinity is pleased to be appointed tournament operator bringing its knowledge of e-sports management and the gaming community to make this competition an unparalleled success,” said chairman Garry Cook.
Given that Cook, who joined in May, is the former chief executive of current Premier League champions Manchester City, perhaps the tie-up is unsurprising.
The ePL starts in January 2019 with every Premier League club represented, giving UK-based players the chance to compete for and represent their favourite Premier League team for the first time ever in competitive gaming. Shares are up 18.5% to 12.4p.
Argos Resources left in limbo as North Falkland basin partners pull out
Argos Resources Limited (LON:ARG) has been left in limbo after its two partners in the North Falkland basin have served notice of their intention to withdraw.
AIM-quoted Argos holds a 5% stake in licence PL001, but Noble Energy and Edison International which own the remaining 95% interest, have said they plan on exiting the licence.
“The company remains very positive about the potential of Licence PL001,” said chairman Ian Thomson.
“We have sufficient cash reserves to meet our ongoing requirements while we progress discussions with the government on the reassignment of the licence and seek to secure other partners to participate in its development.”
Shares dived 26% to 4.6p.
Summer heatwave dents DFS profits
DFS Furniture PLC (LON:DFS) reported a slide in full-year profit, blaming the UK’s summer heatwave for an “exceptional downturn in market demand” in its fourth quarter, sending its shares down.
The furniture retailer on Thursday reported a 7.6% fall in underlying earnings (EBITDA) to £76.1mln in the year to July 28 on like-for-like sales of £747.7mln – a 2% drop. Including acquisitions, it rose 14.1% to £870.5mln.
Like many of its peers, a slowdown in the housing market and a tough retail market also contributed to its sluggish performance.
The company said it suffered a disruption to ships bringing made-to-order products from the Far East in the final quarter, while the hot weather led to much lower order intake.
“Financial results for the year reflected the exceptional downturn in market demand we saw in the fourth quarter,” CEO Ian Filby said in a statement.
Ferrexpo boosted by Barclays upgrade
Ferrexpo PLC (LON:FXPO) has been upgraded by Barclays, which highlighted premium iron pellet pricing as a positive factor for the investment case.
The upgrade is driven by new supply dynamics - in other words, potential shortages - brought on by environmental restrictions in some regions, stricter emissions controls, and winter cuts.
Analyst Kennedy Nyangoni highlighted that the changing economic environment comes at “an intriguing time” amid annual pellet premium negotiations.
Barclays moved its rating to ‘overweight’ from ‘underweight’, and, more than doubled its price target to 300p from 140p.
The new target suggests some 31% upside versus the present price, which was itself boosted - up 7.5% today at 225.2p.
Intercede Group rises as half-year revenue jump helps losses to narrow “substantially”
Digital identity group Intercede Group PLC (LON:IGP) headed higher at Thursday’s opening bell after telling the market that revenues jumped in the first half of the year.
The AIM-quoted company said the performance reflected a strong end to the half, with revenue rising 11% to £4.1mln (H1 17: £3.7mln) in the six months ended September 30.
Coupled with action taken to reduce the cost base towards the end of last year, operating losses narrowed “substantially” to less than £1mln (H1 17: £3.1mln).
Thanks to a positive operating cashflow and the receipt of £1.0mln from HMRC in respect of an R&D claim, Intercede’s cash balance rose to £3.6mln (H1 17: £2.3mln). Shares rose 5% to 31.5p early on Thursday.
It’s all Triton’s fault, says Audioboom
Podcast platform Audioboom Group PLC (LON:BOOM) has blamed its botched US$185mln takeover of Triton Digital earlier this year as it warned annual losses will be higher than previously thought.
Back in February, Audioboom struck a deal to acquire Triton, a technology provider to the online audio industry, but had to withdraw its offer after failing to raise enough money from investors.
“The abortive Triton Digital transaction earlier this year led to the company losing some key content which has adversely impacted EBITDA performance versus the company's and market expectations,” read Thursday’s gloomy statement.
The AIM-listed firm now expects to post an underlying loss (EBITDA loss) of between US$4.5-5.5mln for 2018, not too dissimilar to the US$5.7mln it recorded last year. Shares dived by a third to 1.65p.
House of Fraser collapse hits Ted Baker
Ted Baker PLC (LON:TED) defied a high street downturn to deliver a 3.5% rise in first-half revenue but warned that the rest of the year would remain “challenging”.
Shares plunged 11% to 2,053p in morning trading.
The British fashion retailer posted revenue of £306.0mln for the six months to August 11, compared to £295.7mln a year ago, supported by its expansion plan.
Pre-tax profit dipped 3.2% to £24.5mln from £25.3mln last year, reflecting costs related to the expansion and a one-off £0.6mln hit from debts owed by troubled department store chain House of Fraser.
Proactive news headlines
All of the planned Phase 1 reverse circulation (RC) drilling on Europa Metals Ltd’s (LON:EUZ, ASX:EUZ) Toral project in northern Spain has been completed.
E-therapeutics PLC (LON:ETX) reported a narrowed pre-tax loss in the first half of the year, while also filing a new patent for its network-driven drug discovery (NDD) platform after the end of the period.
Metminco Limited (LON:MNC) has urged shareholders to voluntarily transfer their holdings to the Australian share registry agent ahead of the October 25 deadline.
Aminex PLC (LON:AEX) revealed that its stake in the Kiliwani North and Nyuni assets, in Tanzania, are to increase as a result of a partner’s payment defaults to the joint venture.
Mosman Oil And Gas Ltd (LON:MSMN) described itself as “extremely pleased” as it confirmed first sales from the Stanley-1 well, onshore UK.
Metal Tiger PLC (LON:MTR) has confirmed copper intersections from a potential satellite to the T3 project in Botswana.
Aggregated Micro Power’s (LON:AMPH) carbon and renewables associate Incubex will launch its first range of North American environmental products in November.
Providence Resources PLC (LON:PVR) told investors that Dr Angus McCoss has now been appointed as the company’s senior independent director with immediate effect.