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EMIS moves higher after positive update and acquisition

A look at the major movers on the London market on Thursday

Another business doing better than previously expected is EMIS Group plc (AIM:EMIS).

The healthcare software and systems group said it had performed strongly during the year, with both revenue and adjusted operating profit ahead of 2020 and slightly above the top end of consensus forecasts.

Since the year end it has completed the acquisition of analytics group Edenbridge Healthcare for up to £10mln in cash, and it has secured a new £60mln credit facility.

Chief executive Andy Thorburn said: "Our business continues to build good momentum for the future, with our technology investment programme, bolt on acquisitions such as that announced today, and continued high quality customer-focussed execution from our team."

EMIS is up 5.06% at 1328p.

Steve Clayton, fund manager at HL Select, said: “EMIS is starting to show signs that the investment into technology of recent years is paying off in stronger revenue growth.

"The group is talking about potentially upping the pace of investment and making additional bolt-on deals like Edenbridge to further accelerate growth. The core GP and Pharmacy software platforms have strong market shares and reliably throw off free cash flow, so with £64mln of cash in the bank and no debt, EMIS are in a strong position to grow from.

"News of a new £60mln bank facility suggests that the group may be eyeing up bigger deals than we have seen so far.”

2.18pm: Spirent Communications (LSE:SPT) set to beat market forecasts after strong end to the year

Spirent Communications (LSE:SPT) had a strong finish to the year, leading the testing firm to forecast it will beat market expectations.

It won several important orders, despite having to deal with the current supply chain problems, and it said full year revenues grew by 10% to US$576mln.

Adjusted operating profit is now forecast to be slightly ahead of the consensus of US$116mln, with a range of expectations from US$113mln to US$121mln.

Chief executive Eric Updyke said: "We again delivered strong financial performance, despite global supply chain challenges throughout the year, which we managed extremely effectively.

"Spirent's customers continue to invest in 5G-related infrastructure, devices and services, a trend we expect to continue...

"[We] begin the new financial year with a growing orderbook with improved visibility."

Spirent shares are up 7.9% at 248.4p.

12.09pm: Aptitude Software boosted by new business and MPP acquisition

Aptitude Software Group PLC - formerly formerly Microgen plc (LSE:MCGN) - is in demand after an upbeat trading statement.

The finance and automation software firm said it had benefitted from new agreements in the insurance sector, as well as the acquisition of technology business MPP Global in October.

Annual recurring revenue excluding MPP Global rose by 10% to £34.4mln. Including MPP, the figure was £41.8 million.

The company said: "Aptitude Software enters the current financial year with increased revenue visibility due to the sales successes achieved in 2021 and the acquisition of MPP Global, a business with a high proportion of recurring revenue."

Its shares are up 8.78% or 46p to 570p.

11.04am: Wincanton set to beat forecasts after successful festive period

Wincanton PLC (AIM:WIN), a distribution and supply chain specialist, has seen its shares accelerate after it forecast full year profits would be market expectations.

It said third quarter revenue grew by 15%, including a successful Christmas trading periof for its customer fulfilment centre for Waitrose.

For its grocery customers, it delivered 25 million cases of food and drink in the week before Christmas.

Supply chain and staff issues have been a problem for businesses. But Wincanton said it had successfully managed the challenges of driver and labour shortages to make sure it could cope with the peak festive period.

New contracts included one with the Department for Environment, Food and Rural Affairs to operate an inland border control post in Kent, to manage biosecurity checks on goods coming into the UK from the EU.

Wincanton has added 12.32% to 392p.

9.30am: Zenova climbs as it receives NHS trusted partner approval

Zenova Group PLC (AIM:ZED) has been lifted by news it has been approved as an NHS trusted partner.

The fire safety and heat management firm has signed a contract with the Epsom & St. Hellier University Hospitals NHS Trust in Surrey.

The move paves the way for Zenova's products to be used to improve fire safety and insulation throughout the Trust's estate.

Chief executive Tony Crawley said: "Achieving NHS trusted partner status with Epsom and St. Helier University Hospitals NHS Trust is a considerable development for Zenova.

"Zenova IR (insulating render) and IP (insulating paint) can now be used by the Trust to improve building insulation and reduce carbon emissions, whilst Zenova FP (fire-resistant paint) can be used to improve fire safety in the Trust's hospitals and other healthcare settings for the benefit of NHS staff, patients, and their families.

"In addition, NHS trusted partner status now enables us to engage more easily with other parts of the NHS that are looking to address similar challenges."

Zenova's shares are 7.25% better at 18.5p.

8.45am: Brave Bison (AIM:BBSN) boosted by positive update

Brave Bison (AIM:BBSN) has seen its shares charge ahead after the social and digital media company said full year results would be ahead of market forecasts.

The company - which publishes content on social media channels to generate advertising revenue and also runs campaigns for the likes of Panasonic and Vodafone - said trading in the second half of the year had been strong.

Revenues and viewing numbers across its advertising network were positive and its agency won several new customers during the final quarter of the year.

Meanwhile it said the integration of digital agency Greenlight, bought in August, was well advanced.

So it now expects profit before tax to be at least £0.4mln after £0.7mln of acquisition costs, the first statutory profit in its eight-year history as a public company.

Oliver Green, Executive Chairman, said: "In the last 12 months Brave Bison (AIM:BBSN) has been able to grow revenues, make a highly accretive and strategic acquisition, deliver a maiden statutory profit and generate a significant amount of cash. We expect trading to remain strong as our customers respond positively to Brave Bison (AIM:BBSN)'s new proposition that combines an owned digital media network with a suite of social and digital marketing services. Supported by our strong balance sheet we expect to grow our footprint across the digital ecosystem throughout 2022 and beyond."

Its shares are up 21.88% at 1.95p.

Also heading higher is recruitment and professional services business Parity Group PLC (AIM:PTY).

After a change of management last June and a decision to refocus the business around its core recruitment capability, Parity said it has met or marginally exceeded market expectations for its full year results.

Revenue is expected to be slighly ahead of the £47.6mln target, with a modest adjusted profit instead of the anticipated small loss.

Its shares have climbed 14.82% to 7.75p.

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