German bank Berenberg has slashed its target price for roadside recovery outfit AA plc (LON:AA) from 100p to 65p.
The rating was already 'sell' so there is no change there and the bank offers little prospect of change in the near-term, either, in a research note headed "a long road to recovery".
"When the AA went public in 2014, its investment case focused on reversing declines in paid personal members, reducing back-office costs and gradually deleveraging the business. The company's profit warning on 21 February has shown that this plan has failed," Berenberg said.
Since the flotation, Berenberg notes, the number of paid-up personal members has fallen by 8%, margins will contract by 7.3 percentage points to 36.5% this year, and net debt will increase to 7.7 times annual underlying earnings (EBITDA).
"With the AA's new management team planning to increase the level of capex and opex investment to drive growth, the planned deleveraging of the business looks more uncertain and further away," Berenberg declared.
Shares in the AA were down 10.4% at 77.1p.
There was happier news from Summit Therapeutics (LON:PLC), the dual-listed drugs developer.
The company has announced further positive findings from PhaseOut DMD, a Phase 2 open-label, multi-centre clinical trial of the utrophin modulator ezutromid in Duchenne muscular dystrophy (DMD).
PhaseOut DMD is a 48-week open-label clinical trial that has enrolled 40 patients with DMD, a muscle wasting disease that primarily affects boys and young men.
David Roblin, Summit's chief medical officer and research & development president said. "The 24-week interim analysis has shown encouraging signs of ezutromid activity in PhaseOut DMD. These MRS-T2 findings show a positive impact on downstream muscle health."
Shares in Summit were up 8.5% at 184.5p.
Hardman & Co, which produces research notes on behalf of sponsoring companies, has banged one out on Collagen Solutions PLC (LON:COS), the collagen biomaterials producer.
Last week, the company's shares soared after it released details of a clinical study of its ChondroMimetic implants, and the stock was on the move again today, rising 17% to 4.91p on the back of Hardman's research note.
The research house said: "ChondroMimetic fulfils COS's stated strategy to move further up the value chain. These exceptional eight-year clinical outcomes will significantly differentiate it from competing therapies. In order to maximise returns, COS needs to conclude commercial arrangements in readiness for a European launch in 2H'18, and with a strong partner capable of undertaking the trials needed to launch the product in the US."
Full-year results from specialist reinsurer Hiscox Ltd (LON:HSX) were described by the company as "a good result in an historic year for catastrophes".
Profit before tax, excluding foreign exchange fluctuations, more than halved to ?93.6mln from ?202.1mln the year before; throw in those foreign exchange movements and the bare numbers look even worse, with profit collapsing to ?30.8mln from ?354.5mln the year before, when the company's profits were flattered by a ?152.4mln gain on currency movements.
The shares were down 40p at 1,356p, having fallen as low as 1,283p at one point.
Crisis-ridden doorstep lender Provident Financial PLC (LON:PFG) appears to be short of a bob or two and is reportedly planning a ?500mln rights issue.
The shares were off 9,5% at 594.4p after media reports over the weekend suggested it is in discussions with investors over a rescue rights issue.
The company is set to report its results tomorrow and the market is not expecting an upbeat statement, while the credit provider is also facing two separate investigations by regulators that could end up with it being hit by big fines.
Also reported to be mulling a fund-raising is Chariot Oil & Gas Limited (LON:CHAR).
It lost around a quarter of its market value as it confirmed that it is working on new funding arrangements that will allow it to add a new exploration well to its 2017 campaign.
It would test Prospect S, offshore Namibia; the testing would be in addition to the 10%-owned Rabat Deep exploration well, offshore Morocco, which will be drilled later this year by Eni.
I am not sure who is paying much attention to announcements at 4.24pm on a Friday but by Monday morning, the market had caught up with director shareholding news at PCG Entertainment PLC (LON:PCG).
The shares were up 11.5% at 0.223p early doors after it was revealed that Richard Poulden, the chairman of PCG, holds roughly 90mln shares, which is equivalent to 9.2% of the company's issued share capital.
Things have been looking up for the Asia-Pacific-focused gaming and media distribution company since it settled with its former chief executive officer, Nick Bryant, over the termination last year of his management contract.
Results from veterinary drugs group Dechra Pharmaceuticals PLC (LON:DPH) had investors scratching their heads.
The initial reaction was positive, with the shares surging to 2,470p from 2,326p overnight, but then the shares slipped to show a 44p loss on the day at 2,282p.
Numis Securities was in the positive camp, saying it was a "strong first-half performance".
Revenues rose 11.2% on a constant currency basis to ?194.1mln, which was ahead of Numis's forecast of ?192.4mln. Underlying earnings (EBIT) rose 22% to ?47.4mln, which was comfortably ahead of the broker's forecast of ?43.7mln.
Numis's rating is "add"; its target price is 2,640p.
"We continue to believe Dechra offers upside potential from successful delivery of its pipeline products (alongside those acquired with AST Pharma) together with further penetration into global markets e.g. APAC and LatAm where market leader, Zoetis demonstrates the significant addressable market opportunity available," the broker said.
An enigmatic tweet from the HemoGenyx Pharmaceuticals PLC (LON:HEMO) Twitter account sent the blood cancer's specialists shares soaring on Monday morning.
A serious breakthrough in the lab @HemoGenyx #HEMO
- HemoGenyx (@HemoGenyx) February 25, 2018All the tweet said was "A serious breakthrough in the lab"; the shares soared by 71% to 3.625p, making them far-and-away the best performers in London this morning.
In a distant second place was Conroy Gold & Natural Resources PLC (LON:CGNR), which was up 17% at 27.5p after reporting the discovery of an extensive gold zone from the first drill hole completed on the company's wholly-owned Clontibret gold deposit.
Savannah Resources PLC (LON:SAV) chief executive David Archer said the 200% increase in the resource at Mina do Barroso marked it out as one of Europe's most promising lithium projects. The company said it will press ahead with "second pass" metallurgical test work. A scoping study should be commissioned soon, which would then lead to a definitive feasibility study later this year.
Digital technology and media group Falcon Media House PLC (LON:FAL) has signed what it called "a landmark deal" with Indian cable operator, JPR Network. The company has agreed to provide live and on-demand digital streaming technology to JPR Network, the Mumbai-based cable network provider.
Connemara Mining PLC (LON:CON) is raising ?900,000 through a placing. Metal Tiger PLC (LON:MTR) will invest ?200,000, and directors John Teeling and Jim Finn will also convert outstanding salaries amounting to ?199,500 into shares as part of the same transaction. Patrick Cullen is appointed chief executive officer with "full executive authority."
Goldplat PLC (LON:GDP) turned in operating profits of ?1.578mln for the six months to December 2017, as recovery operations in South Africa performed well and the mine in Kenya delivered significant improvements. The company held more than ?900,000 on its balance sheet at the end of the period.
Medical imaging technology firm Feedback PLC (LON:FDBK), continues to see strong demand for its technology, which was reflected in revenue growth over the last 12 months that was in double digits in percentage terms.
Eckoh PLC (LON:ECK), the provider of secure payment products and customer contact solutions, has landed a contract with a big US retailer. Eckoh will provide its secure payments solution, CallGuard, to a US Fortune 250 retailer, for four years in a deal that is worth a minimum of US$1.9mln.
Civil airline lessor Avation PLC's (LON:AVAP) fleet is now worth over US$1bn, following a spate of purchases in December. Avation started to re-jig its portfolio last June when it sold six ATR turbo-prop planes, which it replaced with its first twin-aisled jet (a Boeing 777-300ER) and three others in December.
Tissue Regenix Group PLC (LON:TRX) has announced the launch of a new business unit as well as unveiling an exclusive distribution deal for its flagship product. The wound care specialist has set up TRX BioSurgery to further promote its DermaPure graft as surgical application following success in this sphere and the growing adoption of the product.
Gfinity PLC (LON:GFIN), the esports entertainment group, has been named by Microsoft Corp's (NASDAQ:MSFT) Turn 10 Studios as the Global Tournament Operator for the Forza Racing Championship (ForzaRC) 2018 and Forza Racing World Championship to be held in October at the Gfinity Esports Arena. Under the agreement, Gfinity will manage all league operations, including online qualifiers and LAN-based events, together with adjudication framework which supports all competitive gameplay.
Cabot Energy PLC's (LON:CAB) soon to be acquired Civita gas field, in Italy, has been affected by temporary operational problems In June 2017, the company agreed a deal with Rockhopper Exploration PLC (LON:RKH) which sees it acquire a portfolio of Italian assets including Civita, but, on Monday, Rockhopper revealed that production at the field has been suspended due to pipeline problems.
Stratex International PLC (LON:STI) has relayed information about one of its partially own associated companies, Aforo Resources, which has sold out of assets in Cote d'Ivoire and inked a deal for new projects in Burkina Faso. Aforo has banked US$225,000 of gross proceeds from the sale of the Cote d'Ivoire assets.
Caledonia Mining Corporation PLC (LON:CMCL) has expressed its regret and sincere condolences after a fatality on the night shift at its Blanket gold mine in Zimbabwe. The fatality occurred in the Blanket Quartz Reef of the mine.
Good wind speed and more acquisitions kept Greencoat UK Wind PLC (LON:UKW) on course for its dividend and capital growth targets. The UK-focused fund has stakes in 29 off- and onshore wind farms, which generated 1,457GWh of electricity over the past year or enough for 620,000 homes.
Vast Resources PLC (LON:VAST), the AIM-listed mining company with operating mines in Romania and Zimbabwe, announced the appointment of Will Maberly as country manager for Zimbabwe. The group said Maberly's appointment is in line with its updated strategy to increase its footprint in Zimbabwe, seeking new opportunities and revitalising historic claims, in line with the amelioration of the political and economic environment in the country.
Rambler Metals and Mining PLC (LON:RMM) (TSXV:RAB), the copper and gold producer, explorer, and developer has announced that its president & chief executive officer, Norman Williams is attending the BMO Capital Markets 27th Annual Global Metals & Mining Conference in Hollywood, Florida from February 25-28, 2018.
International Ferro Metals PLC (LON:IFL) announced that Stephen Oke and John Ballard, non-executive directors of the company, resigned from the board with effect from 23 February 2018.
Instem PLC (LON:INS), a leading provider of IT solutions to the global life sciences market, announced that its chief executive officer, Phil Reason and chief financial officer, Nigel Goldsmith have each been granted nil-cost options over 80,000 ordinary shares under the company's long-term incentive plan (LTIP).