AIM listed UK Oil & Gas PLC (AIM:UKOG) fell 18% after raising £3m in a discounted share placing.
The company said it has raised the funds via a placing of 3.43bn shares at a price of 0.0875p each, a 20% discount to the closing price on Friday.
The group said that the placing will provide general working capital and help deliver its near term goals of completing its Phase 2 Turkey seismic programme and the subsequent drilling of a new appraisal well in the Basur oil discovery. It expects this will add near-term oil production in the first half of 2023.
Tate & Lyle downgraded by Jefferies to hold from buy
Tate & Lyle was a weak feature in a buoyant market following a downgrade by Jefferies to hold from buy with a reduced price target of 780p from 880p.
Shares fell 3.85% as the broker highlighted mounting cost pressures in Europe which is now a more material market for Tate, meaning it is exposed to soaring input costs.
"Relative exposure to the tricky European market has increased post-separation," Jefferies said, adding "We think Europe is circa one third of food and beverage solutions sales by origin & perhaps 45% by volume.”
"Compounding the problem is that corn & gas are respectively 1.25x & 2.5x more expensive in Europe, even in more normal times.”
“But now European corn & gas prices are ahead 60% & 85% on estimated CY22" the broker said.
Serco falls on news that CEO is to retire
Shares in Serco Group (LSE:SRP) PLC slipped 6% following news that chief executive, Rupert Soames, was to retire.
Russ Mould, investment director at AJ Bell said “Soames is widely credited as reviving Serco’s fortunes.”
“He restored the outsourcing group’s credibility after the electronic tagging scandal where Serco took responsibility for three offences of fraud and two of false accounting between 2010 and 2013.”
Mould said now “the business has returned to notably better health.”
“Its reputation has improved, debt is forecast to come down and profit is expected to go up, which means Soames can exit knowing he has made a difference” Mould said.
Peel Hunt analyst Christopher Bamberry said Soames was “highly regarded.”
But he added his successor, Mark Irwin, was “well known to analysts, having been a regular presenter at results presentations.”