3.35pm: De La Rue unveils new strategy
De La Rue plc (LON:DLAR) shed 2.3% to 10.50p as the company said it’s changing strategy after European rival Gemalto earlier this year won a British government contract to make UK passports.
The FTSE SmallCap company said after a review that it has decided to refocus on its identity business on supplying higher margin security features and components such as polymer and product authentication. The company also released half-year results, including a 5% rise in revenue to £257.6mln.
Seeing even deeper losses was Cellcast plc (LON:CLTV), whose shares plunged 25% to 0.90p after the broadcaster said Brexit uncertainty reversed a positive trading environment in its second half.
The group, which operates channels across Sky, Freeview and Freesat, said it has seen “a material decline” in revenues over the last four weeks, with a corresponding drop in EBITDA performance and profitability.
READ: Cellcast shares crash as Brexit uncertainty pushes positive trading into reverse
At the same time, Walker Crips Group PLC (LON:WCW) was a mid-afternoon faller, losing 8.6% at 32p after the long-established stockbroking investment management, and wealth management group saw its first-half profit more than halve.
The FTSE Fledgling firm reported a pre-tax profit £213,000 for the six months to 30 September 2017, down from £528,000 a year earlier, as group revenues declined by 1.9% to £15.1mln. David Gelber, Walker Crips’ chairman said: "Given the background of global trade friction, Brexit uncertainty and the resultant market challenges, the first half of the financial year has been a difficult one as a result of lower transaction driven revenue.”
But in the win column was Tharisa plc (LON:THS), up 7% to 115.00p after the resources group reached a collective agreement with unionized workers at its mine in South Africa.
The AIM-listed firm said the agreement with the Association of Mineworkers and Construction Union is effective from 1 July 2018 until 30 June 2020.
READ: Tharisa inks collective agreement with trade union at South African mine
12.40pm: Blue Prism sees wider annual loss
Blue Prism Group PLC (LON:PRSM) shares were dragged 11% lower to 1,455.14p after the robot automation specialist warned that its annual loss is likely to be wider than anticipated.
The AIM-quoted company said continued investments into its growth strategy and increased sales commissions after a strong fourth quarter would lead to a larger-than-expected annual EBITDA loss. Revenue for the year ended October 31 should be slightly ahead of expectations, the company said.
Investors also beat down shares of Thomas Cook Group PLC (LON:TCG) by 23% to 37.40p after the tour operator issued a profit warning and suspended its dividend.
The FTSE 250 component said an unusually hot summer in the UK hurt demand as more consumers chose to enjoy the weather closer to home rather than travel abroad.
READ: Thomas Cook issues profit warning two days before full-year results
But shares of GB Group PLC (LON:GBG) leapt by 5% to 460.26p as the data intelligence specialist said it’s on track to meet its full-year revenue and profit expectations.
GB Group said its made good customer gains in Asia and good progress in Europe. It also said revenue for the six months to September 30 rose 9% to £57.3mln. Adjusted operating profit, meanwhile, fell 16% to £8.8mln.
11.10am: Xeros slides on fundraising plan
Xeros Technology Group PLC (LON:XSG) shares sank 27% to 8.60p after the company said it plans to raise up to £20mln through a share placing.
AIM-listed Xeros, which has developed a patented polymer bead cleaning system, proposed to raise £15mln by placing 150,000,000 new ordinary shares, with existing and new institutional investors at 10p per share. Additionally, Xeros said qualifying shareholders will have the opportunity to subscribe for up to 49,588,971 new ordinary shares through an open offer to raise up to £5mln. Proceeds will be used in part toward commercialisation of its technology with laundry-machine manufacturers.
Other share-price losers included Topps Tiles PLC (LON:TPT), down 3.2% to 63.92p as the tiles specialist said its full-year profit dropped at a time of “challenging” trading conditions.
Topps said its adjusted pre-tax profit fell in the 52 weeks ended 29 September to £16.0mln. Topps also warned that Brexit could hit consumer confidence, resulting in lower sales and also lead to staffing issues.
READ: Topps Tiles posts full-year profit drop
Meanwhile, advancers included Hikma Pharmaceuticals (LON:HIK), with shares up 1.7% to 1,740.50p after Jefferies upgraded its rating on the drugmaker to buy from hold.
The outlook for US generic drugs for Hikma has “significantly improved”, said Jefferies, adding that it views a recent selloff in Hikma's shares “as a compelling entry point”. Separately, Hikma said in a statement that it had reached a five-year agreement with Hansoh Pharmaceutical Group Co. Ltd. to market a range of Hansoh’s injectable oncology medicines in the US. Hansoh expects to file for FDA approval of the products within the next 12 months.
9.15am: GCM Resources signs MoU with PowerChina
GCM Resources PLC (LON:GCM) shares charged up 14% to 1.75p in early morning Tuesday trade after the mining company said it signed a memorandum of understanding with Power Construction Corporation of China Ltd.
The AIM-quoted company said the MoU is based on plans for it and PowerChina to develop GCM’s proposed coal mine as well as power plants generating up to 4,000MW at a mine site. The MoU also sets out steps towards completing a future joint development agreement by December 31.
Also gaining ground was Benchmark Holdings PLC (LON:BMK), with shares rising 2.5% to 1.50p as the fish breeding and genetics firm said it was successful in a patents infringement case in Thailand.
Benchmark said a court in Bangkok has ruled that Marine-Tech International in Thailand infringed upon two of its patents and that the court has ordered MTI to cease using Benchmark's technology. An unspecified amount in damages awarded in Benchmark's favour may yet be subject to appeal, the company said.
But decliners included Gooch & Housego PLC (AIM:GHH) as shares fell 5.7% to 80.00p after the manufacturer of precious optical components said its chief financial officer will be stepping down.
The AIM-listed company said CFO Andy Boteler has decided to step down from the board in the summer of 2019 as part of a succession process. Boteler has served as CFO for more than 10 years. Specialist recruitment agency, Warren Partners, has been appointed to help find Boteler’s successor.
Proactive news headlines:
Oriole Resources PLC (LON:ORR) said it has hit ‘bonanza’ gold grades at its Bibemi project in Cameroon following results from a rock-chip sampling programme.
OptiBiotix Health PLC (LON:OPTI) said that its SlimBiome weight loss product has received a CE mark as well as medical device status.
Strategic Minerals PLC (LON:SML) has hit what it says are bonanza grades from the latest drilling programme at Redmoor in Cornwall. The indications for tungsten, tin and copper were the highest yet seen and had continued into the first hole of the phase 2 programme, added John Peters, Strategic’s managing director.
Tharisa plc (LON:THS) has concluded a market related two-year Collective Agreement on Substantive Terms and Conditions of Employment with the Association of Mineworkers and Construction Union (AMCU), the recognised trade union at the Tharisa Mine in South Africa. The AIM-listed group said the agreement is effective from 1 July 2018 until 30 June 2020.
Bacanora Lithium PLC (LON:BCN), the London-traded lithium exploration and development company, announced the appointment of Citigroup Global Markets Limited to lead the equity financing of the Sonora project alongside Canaccord Genuity, both of whom shall also act as joint corporate brokers.
Allergy Therapeutics PLC (LON:AGY) has said its revenues are “up strongly” on the prior year in most of its markets as it issued a trading update ahead of its annual general meeting (AGM) later today.
Rose Petroleum PLC (LON:ROSE) has entered into new arrangements for the divestment of its non-core Vane Minerals uranium projects in the United States. It has agreed the ‘database agreement’ with enCore Energy Corporation (CVE:EU) which initially sees the AIM-quoted company receiving US$300,000 worth of shares.
Belvoir Lettings PLC (LON:BLV) has strengthened its mortgage broking operation Brook Financial with the acquisition of MAB (Gloucester) Limited for £3.6mln net in cash. MAB Glos is the largest appointed representative firm of AIM-listed Mortgage Advice Bureau PLC (LON:MAB1), one of the UK's leading networks for mortgage intermediaries.
OPG Power Ventures PLC (LON:OPG) chairman highlighted the “strong operational performance” for the Chennai plant as the company reported results for the six months to 30 September. The company noted that it generated 1.55bn units in the half, up 9% from 1.42bn units in the comparative period of last year.
Galantas Gold Corporation (LON:GAL) today reported on the three-month period, which saw the start of limited gold production from its development project, the Omagh gold mine. Since the end of September, the mining firm delivered its first consignment of concentrate derived from underground feedstock at the mine.
Savannah Resources PLC (LON:SAV), the AIM-listed resource development company, has announced the appointment of James Leahy as an Independent non-executive director with immediate effect. With more than 32 years' experience in financial services, the group said, Leahy has executive experience, having acted as interim chairman for Bacanora Minerals Ltd, and served on the boards of several listed and private companies.
MTI Wireless Edge Ltd. (LON:MWE), the technology group focused on comprehensive communication and radio frequency solutions across multiple sectors, has announced the appointment of Brigadier General (retired) Amnon Sofrin as a non-executive director of the company. The group noted that Sofrin served in the Israel Defense Forces from 1973 to 2003 and after retiring from the IDF, was assigned to a senior position within Israel's security apparatus as Head of the Intelligence Directorate of Israel's Secret Service until 2008.
Hurricane Energy PLC (LON:HUR), the UK-based oil and gas company focused on hydrocarbon resources in naturally fractured basement reservoirs, has said it was informed on 26 November 2018 that on the same date, its chairman, Steven McTiernan acquired 375,000 ordinary shares in the Company at a price of 40.61393p each. Following this transaction, it added, McTiernan holds 375,000 ordinary shares, which represents a total of 0.019% of the company's issued capital.