3.30pm: Aminex bounces higher after EGM vote
The farm-out of a 50% interest by Aminex PLC (LON:AEX) in the Ruvuma production sharing agreement to The Zubair Corporation looks set to go ahead.
The resolution proposed at the extraordinary general meeting (EGM) to approve the farm-out was passed by shareholders.
Technically, completion of the farm-out remains subject to the satisfaction or waiver of the conditions summarised in the circular sent to shareholders but the market did not seem duly concerned at this and marked the shares up by one-sixth to 1.75p.
READ Aminex farm-out agreement should kick-start Ruvuma PSA development, says Shore
In exchange for a 50% working interest in the Ruvuma PSA, Zubair will conduct a minimum work programme including the drilling, completion, and testing of the Chikumbi-1 well; a 3D seismic data survey over 200 square kilometres within the Ntorya project area; and establish an early production system to achieve first gas at Ntorya to a rate of 40mln cubic feet of gas per day (MMcf/d).
2.30pm: ReNeuron surges after hooking up with US biopharma company
A US biopharmaceutical company is to run the rule over ReNeuron Group PLC’s (LON:RENE) exosome drug delivery platform.
Under the terms of the collaboration agreement, the biopharma company will explore the use of exosomes as a potential delivery vehicle for synthetic oligonucleotides used in gene therapy.
Oligonucleotides are short nucleic acid polymers used in research, genetic testing and forensics.
ReNeuron will provide the exosomes as well as sequence-based know-how while its new partner will provide its expertise in the field of synthetic oligonucleotides to optimise their loading into exosomes.
Shares in ReNeuron were up 6.2%.
ReNeuron’s chief financial officer, Michael Hunt, who has been in the Proactive studio more times than some of our presenters, explains more about the deal in the video below, albeit from a remote location.
11.30am: Investors switch off 7digital after radio programmes producer warns of possible contract loss
While Gear4Music remains the day’s worst performer, it has a rival for the unwanted accolade in 7digital Group PLC (LON:7DIG).
Shares in the corporate radio services provider plunged to 1.07p from 1.89p overnight after the company said Juke GmbH, a wholly owned subsidiary of European retailer MediaMarktSaturn (MMS), had been speaking to 7digital about the future of the Juke music service.
The company has agreements with Juke for some £4mln of revenues in 2019 but MMS has indicated that it may wish to change the current arrangements and this could involve 7digital taking more responsibility for certain aspects of the service or the service being closed with a resulting termination payment becoming due and payable to 7digital.
The company had more bad news in the form of a hearing for a winding-up petition for 7digital Trading, a wholly-owned subsidiary of 7digital.
The petition relates to sums due to the tax-man of around £417,000. The hearing of the petition is listed for 16 January 2019 but 7digital is confident that the full amount due to HMRC will be paid in advance of the hearing.
On the plus side, the company said it had completed the planned platform consolidation and re-structuring of the group's operations in the final quarter of 2018, reducing the company's cost base by an annualised £6.2mln.
Several operations and offices have been closed or discontinued and staff numbers have been reduced in all locations.
All of the company's operations have remained stable during the restructuring and the move to a single technology platform for 7digital's customers.
10.15am: Glenveagh delivers a corker of a trading update
House-builders were out of favour in the stock market last year but Irish operator Glenveagh Properties PLC (LON:GLV) has brought some cheer to the sector.
The company’s chief executive, Justin Bickle, hailed a “very productive” 2018.
The company said it is ahead of schedule as it delivers on the promises made at the time of its 2017 stock market flotation – namely its strategy to acquire land, build houses and sell them.
It highlighted revenue of €84mln for the twelve months ended 31 December, with 275 house sales described as a strong performance and some 10% ahead of prior guidance.
The shares were up 7.8% at 0.779p.
Glenveagh buys land in Cork capable of delivering 500 homes https://t.co/8dGgE6piRg pic.twitter.com/s24lP9VjkD
— Independent Business (@IndoBusiness) January 4, 2019
9.15am: Gear4Music aims for a high note and misses
The Christmas trading updates from retailers are starting to emerge, so it is time to be afraid … be very afraid.
It is clear that the trading updates won’t all be as benign as the one yesterday from clothing retailer Next PLC (LON:NXT) and if this morning’s shocker from online musical instruments retailer Gear4Music Holdings PLC (LON:G4M) is anything to go by, it won’t just be bricks & mortar operators suffering.
READ Next shares jump on well-received Christmas trading update
Gear4Music saw two-fifths of its market value wiped out after it warned its underlying earnings (EBITDA) for 2019 were now expected to be “slightly below” 2018 levels as capacity constraints held back sales growth.
In a trading update for the four months to 31 December, the online musical instruments retailer reported total sales growth of 41% year-on-year to £48.7mln, with UK and Rest of World sales rising 36% to £25.5mln and 47% to £23.2mln respectively.
While the period had seen an improvement in margins compared to the first half of the 2019 fiscal year, the capacity limitations prevented sales growth compensating for the lower gross margins.
The stock has been something of a stock market start since floating at 140p in June 2015, rising as high as 840p in late 2017 before ebbing to 520p at last night’s close.
The musical equipment industry has a long tradition of offering a discount for cash so for you, guv, the shares are now available at 281p.
Reach PLC (LON:RCH), the company formerly known as Trinity Mirror, had some bad news for shareholders.
Simon Fuller, who was announced as the new chief financial officer (CFO) of the company way back in July 2018, has still not taken up his position on the board.
It was announced today that Fuller, who is joining the company from Mc’Coll’s Retail Group PLC (LON:MCLS), will likely join the company on 1 March after helping the new McColl’s CFO, Robbie Bell, settle into the job.
READ McColl’s opts for experience as it appoints Robbie Bell as new CFO
Reach shares were off 2.5% at 61.4p while McColl’s shares were down 3.6% at 54p.
Proactive news headlines:
Remote Monitored Systems PLC (LON:RMS), the company which was formerly known as Strat Aero, has been successfully accepted into the EU's KEEP+ funding innovation programme. The company’s specialist surveying and inspection business, Geocurve, will receive modest financial support from KEEP+ as it works with the University of Essex on “groundbreaking knowledge exchange, collaboration, contract research and innovation in the Virtual and Augmented Reality spaces (VR/AR)”.
An unnamed US biopharmaceutical company is to run the rule over ReNeuron Group Plc’s (LON:RENE) exosome drug delivery platform. Under the terms of the collaboration agreement, the biopharma will explore the use of exosomes as a potential delivery vehicle for synthetic oligonucleotides used in gene therapy.
Circassia Pharmaceuticals PLC (LON:CIR) said its cost containment efforts were showing results as it gave an upbeat assessment of the company’s growth prospects and provided revenue guidance for the 12 months just gone. Ahead of a meeting to approve its move to AIM, the speciality pharma, which is focused on respiratory disease, told shareholders it had a healthy cash cushion of £41mln.
Franchise Brands plc (LON:FRAN) has announced a continuation of its share buy-back programme, with up to £200,000 of shares to be purchased before 30 June. The cash generative group said the programme is an offset to the dilutive impact of employee share option awards.
Keywords Studios PLC (LON:KWS) said, further to its announcement on 21 December 2018, it has completed the acquisition of Sunny Side Up Creative Inc from its founder, Thomas Giroux, after all of the conditions were fulfilled.