Lamprell PLC (LSE:LAM, OTC:LMPRF) has built up a good rise after the construction and engineering group moved closer to a key wind farm contract.
In the wake of a deal announced in January, the firm has revealed the contract involved is for the Moray West offshore wind farm, and could be worth more than US$200mln.
It has now signed a reservation agreement with the developer Ocean Winds - a 50-50 joint venture between EDP Renewables and ENGIE - to secure capacity at Lamprell's Hamriyah yard for the work.
Subject to a final investment decision, a full notice to proceed with the project is due in the second half of this year.
The contract is for the supply of 62 transition pieces - part of the support structure - which includes 60 wind turbine generator transition pieces and two transition pieces for the two offshore substations, as well as for the shipping of the 62 transition pieces to a marshalling harbour in the UK.
Lamprell said it was assessing its future financing options to deliver its strategy, improve its fabrication capacity and strengthen its balance sheet as it seeks to access higher margin, larger scope projects in both renewables and oil and gas end markets. The funding strategy may include additional equity, project specific financing, including small working capital facilities with Saudi banks, and hybrid facilities with a view to complete in the first half of 2022.
Chief executive Christopher McDonald said: "Having previously executed a large scope project for the Moray East wind farm, I am delighted that we have been able to offer a competitive solution for Moray West.
"The placing of such reservation agreements is a very positive sign of forward planning and addressing limited capacity in the offshore wind fabrication industry. We look forward to working closely with the team from Ocean Winds in the period ahead."
Lamprell shares are up 6.29% at 32.1p.
2.55pm: Esken upbeat about its energy business, while Southend airport set for recovery
Shares in Esken Ltd (LSE:ESKN) are flying higher after the aviation and renewable energy infrastructure group issued an upbeat trading statement.
The firm said its Stobart Energy business - which supplies waste wood to biomass plants - ended the year trading at the upper end of the £18mln-£20mln range it had expected.
This performance was driven by improved gate fees, increased supply of waste wood and a robust operating performance from its biomass plant customers.
The company believes its London Southend airport is well placed for recovery as travel restrictions are lifted.
Wizz Air recently decided not to restart its flights from one destination to London Southend Airport for Summer 2022. But Esken said the airport would benefit from the return of easyJet flights, with tickets already on sale for flights to Malaga and Palma, and flights to Faro were put on sale on 17 March 2022. The company is also talking to a wide range of airlines to set up agreements for Esken for Summer 2023 onwards.
It added; "While flying was constrained during the traditionally quieter winter period, the airport continued to benefit from global logistics income. Esken has maintained strict financial discipline, underpinned by £14.4m of ring-fenced cash, which will be used to support the airport as it works toward a positive cash contribution."
Esken shares are up 6.36% at 11.7p.
12.59pm: AIQ boosted by deal to supply NFT marketplace in Hong Kong
Mention NFTs and you are bound to get a reaction.
AIQ Ltd (LSE:AIQ), the IT consultancy and e-commerce business, has certainly found that to be the case.
Its shares have jumped 20% to 9p after it said its Hong Kong business Alcodes International had been awarded a contract to supply a non-fungible token marketplace and had established partnerships with two suppliers to deliver the project.
The marketplace is designed to enable art schools and education centres in Hong Kong to assist their students in publishing NFTs. Alcodes International will oversee and manage the project, with the development of the marketplace being provided by software group Accubits Technologies and blockchain developer digiXnode Technology.
It added that it would be able to extend the reach of the marketplace into China thanks to the partnership with digiXnode.
Executive directodr Edwin Li said: "We are delighted to have been awarded this contract and to have established partnerships with Accubits and digiXnode for its delivery. As we have previously stated, our strategic focus is on leveraging the demand for IT services for blockchain technology and digital assets. We're making good progress with our initial contract in this space, which is for the supply of a decentralised finance exchange, and this new project is a first step into the NFT market. We are particularly excited to be working with our new partners, and we hope to establish a long-term relationship with them."
12.05pm: Diurnal drops after losses nearly double and it seeks funding
Diurnal Group PLC (AIM:DNL) has dropped sharply after its losses nearly doubled and it said it was looking for further funding.
The speciality pharmaceutical company said half year revenues grew 75% to £2.13mln.
But its operating loss jumped from £5.26mln to £9.2mln which it said reflected increased investment in the product pipeline and preparations for the launch across Europe of Efmody, a product designed to improve disease treatment for adults with congenital adrenal hyperplasia.
At the start of the month, Efmody suffered a setback when the Scottish Medicines Consortium did not recommend it for automatic reimbursement within NHS Scotland. Diurnal said it would provide further data to support a re-submission to the SMC at the earliest possible opportunity
It said: "The company's initial assessment of the impact of the recent SMC decision is that, despite continued strong growth (expected to be in excess of 100% for the 12-month period ended 30 June 2022), near-term sales expectations for Efmody are unlikely to be met and that further funding will be required to reach profitability.
"The board remains confident that Efmody can become a profitable franchise but, based on current resource allocation, this will depend on approval of the drug in the treatment of adrenal insufficiency (AI) in 2024.
"To accelerate near-term Efmody uptake and sales growth, the company will be reallocating resources towards key territories with immediate effect. The impact of this on Efmody sales and the extent of further financing for the company to reach profitability will be assessed over the coming months. In parallel, the company is exploring financing options, including non-dilutive funding."
Diurnal shares are down 43.28% at 19p.
10.11am: Legal firm Knights loses nearly half its value after Omicron hits results
Knights Group Holdings PLC (AIM:KGH) has been knocked off course by the pandemic, with lower-than-expected activity rates.
The legal and professional services business said it had expected substantial growth in the second half after a good first six months when it grew organically by 9%.
But in a new trading update, it said: "The persistent effects of Omicron across the country have meant, in particular, greater illness rates amongst our people, resulting in the business not benefitting from a faster return to office working and the consequent advantages of our team-based culture. We have also seen a softening in business confidence, possibly due to concerns around the strength of the economy, such that there has been a slowdown in corporate work."
So it now expects underlying profits of around £18mln for the year, down on the £18.4mln reported in 2021, even though revenues are anticipated to rise to 22% £126mln.
It is also forecasting a slowdown next year: "Given the current uncertainty regarding both the economic conditions and the speed of transitioning people more fully back into offices, it is now prudent to anticipate organic growth of around c.5% for the year ending 30 April 2023, with margins rebuilding to historic levels over time."
Knights shares have slumped 47.40% to 192p.
9.22am: Fintel upbeat after full-year profits climb
Fintel PLC (AIM: FNTL) is flying after improved results and a positive outlook.
The firm, which provides fintech and support services to the UK retail financial services sector, unveiled a 5% rise in full-year revenues to £63.9mln and a 6% increase in adjusted earnings to £18.3mln.
Joint chief executive Matt Timmins said: ''We have delivered strong results during a year of significant strategic progress and continued robust financial performance.
"Revenues, EBITDA and recurring income have all increased in line with expectations driven by organic growth, strategic enterprise partnerships and the expansion of our proprietary advice technology. We are well positioned for further growth."
Its shares are up 8.87% or 18.25p to 224p.
8.48am: PCI-PAL boosted by US patent approval
Secure payment specialist PCI-PAL PLC (AIM:PCIP) has been boosted by news of US patent approval for a key product.
The US Patent Office decision protects PCI Pal's core innovation that enables its Agent Assist product to interact with phone calls.
This is the first of a number of pending patents worldwide to achieve grant approval status.
Chief executive James Barham said: "With this approval to grant, the US Patent Office has confirmed the truly novel nature of PCI Pal's invention. The approval is a strong endorsement of our innovative approach and the unique way by which we provide our customers and partners with access to our cloud-based, globally available secure payment services. We continue to look forward with optimism as we further expand our market leading partner-ecosystem, and deliver against the strategic objectives we have set ourselves."
Analyst Lorne Daniel at finnCap said: "This is the first of several applications expected to be granted. These will protect the core technology enabling Agent Assist to interface with calls that contain sensitive data in the non-invasive light-touch manner so important to the users and at the heart of the cloud solution’s success and adoption.
"We note that a number of competitor systems were reviewed – including Semafone, with whom PCIP currently has a patent dispute – and the US Patent Office is sufficiently satisfied of PCIP’s innovation to grant the patent.
"This decision has no direct bearing on the outcome of the Semafone dispute – which is expected to be heard in the US courts in 2024 – but in our view it is a positive indication."
The company's shares have climbed 16.22% to 64.5p.
Elsewhere The Pebble Group PLC (AIM:PEBB) has put on 19.44% to 107.5p after its results showed a full recovery from the pandemic.
The company, which provides digital commerce, products and related services to the global promotional products industry, saw full-year revenues rise 40% to £115.1mln.
Adjusted earnings climbed 57% to £15.4mln.
It said the new financial year had started well and it was positive about the outlook.