Tern PLC (AIM:TERN), which specialises in Internet of Things technology businesses, is on the move after a couple of positive updates.
Earlier this month the company participated in the Sure Valley Ventures UK Software Technology Fund, which has now made its first investment.
The fund has led a £2mln investment round, providing £1mln itself, in RETìníZE Ltd, a creative-technology company based in Belfast, Northern Ireland. RETìníZE is developing Animotive, a software product using virtual reality technology for 3D animation production. The investment is designed to support RETìníZE's growth plan for the next two-years and the global rollout of Animotive.
Meanwhile Device Authority Ltd, where Tern has a 53.8% holding, has been included in a project focused on IoT security standards in conjunction with Crossroads Innovation Group (LSE:TIG), a Virginia-based consulting firm. Led by the Virginia Innovative Partnership Corporation with funding from the Virginia Smart Community Testbed and the US Department of Homeland Security, this project will evaluate best-practices and technology standards related to securing IoT infrastructure.
Tern shares are up 13.46% at 14.75p.
2.28pm: Avacta moves higher after selling animal health business
Avacta Group PLC (AIM:AVCT) has moved higher after selling its veterinary business to Sweden's Vimian Group AB for up to £2.3mln.
The business, Avacta Animal Health, already sells immunotherapy products from Nextmune, a Vimian Group company, to veterinary clinics across the UK. The business also provides testing kits to veterinary laboratories across Europe.
It made a loss of £0.3mln in the year to December 2020 and was valued in the books at £1mln.
Avacta has received an upfront payment of £0.9 million and will receive a deferred consideration of up to £1.4mln dependent on performance.
The sale proceeds will be used to fund the development of Avacta's diagnostics and therapeutics divisions.
Avacta shares are 4.76% better at 57.67p.
12.15pm: IP Group unveils record results helped by Oxford Nanopore flotation
IP Group PLC (LSE:IPO), the intellectual property specialist, has issued a smart set of results.
The company reported record full year profits of £449mln, up 142%, with a strong performance across all its sectors.
In particular it realised a cash return of £84.1mln from the £3.4bn flotation of one of the firms in its portfolio, Oxford Nanopore Technologies PLC (LSE:ONT).
That helped lift its total realisations from £191mln to £213.4mln. Net asset value rose 30% to £1,738.1mln or 167p a share.
That has fallen since, after a drop in the price of Oxford Nanopore - where IP still owns 10% - since the float.
Chief executive Greg Smith said: "2021 was a landmark year for IP Group as we celebrated our 20th anniversary by recording our best set of financial results to date, including record profits, cash realisations, portfolio investment, and a return on NAV of almost half-a-billion pounds. It was fitting that some of our most exciting portfolio companies also completed landmark corporate transactions, with the highlight being Oxford Nanopore's multi-billion-pound flotation."
Its shares are up 6.16% to 94.8p. Analysts at Berenberg issued a buy note and raised their price target from 162p to 170p.
AJ Bell investment director Russ Mould said: “The departure of long-time chief executive Alan Aubrey and chief investment officer Mike Townend and a slide in the share price of Oxford Nanopore have weighed on sentiment toward intellectual property incubator IP Group, but new boss Greg Smith will be pleased to see how record full-year results from the FTSE 250 firm are drawing a positive response from investors.
“A 40% drop in Oxford Nanopore’s shares since the end of 2021 has shaved £233 million, or nearly 22p a share, off the net asset value (NAV) of IP Group’s portfolio but all other things being equal that still leaves NAV at 145p. At 95p, the shares trade at a 35% discount to that, so some investors may be taking the view that IP Group now looks attractively valued."
11.03am: China funds recover as authorities pledge to support markets
The lockdowns in China following a growing number of Omicron cases undermined companies with exposure to the region earlier this week.
But news that Chinese authorities had pledged support for financial markets has seen a revival in sentiment.
So JP Morgan China Growth and Income PLC is up 13.07% at 350.5p, Fidelity China Special Situations PLC (LSE:FCSS) is 10.76% better at 242p and Baillie Gifford China Growth Trust has added 9.36% to 298p.
But Paul Donovan, chief economist at UBS Global Wealth Management, said: "Markets have been a mess in recent days, with the focus on spin not substance. Chinese lockdowns today are nothing like those of two years ago, but markets struggled to get past the word “lockdown”. Now the Chinese government is pledging “support”, and so “support” is the only word that matters."
(Read more on the story here.)
10.17am: Eagle Eye Solutions in demand as it moves into profit
Eagle Eye Solutions Group PLC (AIM:EYE), the digital marketing specialist, has caught investors' attention after it moved into profit and gave an upbeat outlook.
The company, whose customers include major supermarkets as well as the likes of Pizza Express and Greggs, said first-half revenues rose 40% to £15.1mln and it turned a £0.1mln pretax loss into a £0.6mln profit.
It said the third quarter had made a positive start, with trading in line with its expectations.
Its new business pipeline is growing at a record level, including deals with Halfords, a large US grocery retailer as well as food and pharmacy group Giant Eagle since the end of the half.
Chief executive Tim Mason said: "With the pandemic having accelerated the digital strategies of retailers around the world, personalised digital engagement with consumers is more relevant than ever. The strong revenue and profit performance in the period, growth of our international customer base and continued successful consolidation in the UK, demonstrates our ability to execute on this opportunity."
Its shares are 8.16% better at 434.8p.
9.09am: Pennpetro Energy soars after Tunisian deal
Pennpetro Energy PLC has flared up after unveiling a deal in Tunisia.
The independent oil and gas company - which is currently focusing on production in the Gonzales Oil Field in Texas - has reached a deal to take an 80% working interest in a joint venture between Upland Resources (LSE:UPL) and the Tunisian state oil company.
It will also operate the project at Upland's Saouaf permit area. The current work programme needs to be carried out prior to the current expiry of the Saouaf permit on 23 December 2022.
Pennpetro also agreed to reimburse Upland for the 80% of its prior costs in Tunisia, which is capped at no more than £290,000 and will consist of ordinary shares.
Pennpetro chief executive Tom Evans said: "Today's announcement marks an important strategic milestone under Pennpetro's expansionary petroleum initiatives. We are excited to partner with Upland in their Tunisian venture. Upland has done a lot of excellent technical and commercial work to this point and have built an excellent relationship with the Tunisian authorities.
"Our timing couldn't be better given the critical burgeoning need for additional gas and blue hydrogen supplies to Europe, especially given the fact that the Saouaf permit area is situated under the existing TransMed gas pipeline feeding gas from Algeria to Italy with spare capacity."
Pennpetro's shares have jumped 37.27% to 37.75p.
Elsewhere Bytes Technology Group PLC (LSE:BYIT, JSE:BYI) is better after an upbeat trading statement.
The software and cloud services group said full-year results would be ahead of expectations, with invoiced income up more than 26% to around £1.2bn. Adjusted operating profits rose by approximately 23%.
Chief executive Neil Murphy said: "We continue to build positive momentum in our business as we further invest in new talent and maintain our focus on customer service. The last year has seen Bytes continuing to strengthen its market position in cloud, security and annuity software and services, working with some of the world's most successful software companies. We are making good progress with our strategy and are well positioned to deliver on the significant opportunity ahead of us."
Its shares are up 8.66% to 459.2p.