Bioquell jumps as says expects 2017 earnings to be "significantly" ahead of market expectations

By Jon Hopkins / January 09, 2018 / www.proactiveinvestors.co.uk / Article Link

Bioquell PLC (LON:BQE) was one of the biggest market gainers in later afternoon trading, jumping nearly 15% higher to 324p after the company said it expects earnings for 2017 to be "significantly" ahead of the market's expectations.

In a trading update, the specialist bio-decontamination product producer said it expects its revenue for 2017 to be at around ?29.3mln, ahead of previous expectations, up from ?26.8mln last year.

Bioquell noted that there will be an exceptional gain of ?250,000 on the disposal of its Airflow business, which it sold to Crowthorne Hi Tec Services Ltd in August for an initial fee of ?169,000, with a further ?70,000 paid last Tuesday.

Elsewhere, 4imprint Group PLC gained over 10% at 2,070p after international direct marketer of promotional products, said that given 97% of group revenue are based in the US, it expects the recent US Tax Reform will have a beneficial impact on its earnings per share calculations.

The FTSE small cap firm said, for the 2018 financial year and beyond, with initial projections indicating that the group's effective tax rate would decrease from around 30% in 2017, settling in the low 20%'s from 2018 onwards.

And lika PLC rose 10% as well to 21.5p as the battery technology  developer reported a narrowing in its interim loss, as expenses dropped and revenue rose through UK grants.

The  AIM listed group reported a pre-tax loss of ?1.7mln for the first half, down from a ?2.2mln loss a year earlier, as revenue more than doubled to ?1.0mln from ?328,639.

1pm: Elegant Hotels' slides as it reports drop in full year earnings

Elegant Hotels Group PLC (LON:EHG) shares fell 7.2% to 89p as it reported a decrease in full year earnings and a key measure of revenue.

The owner of freehold hotels and a beachfront restaurant on the island of Barbados said adjusted underlying earnings (EBITDA) fell 7.6% to US$18.1mln in the year ended 30 September 2017 compared to last year.

Revenue per available room dropped 4.6% to US$227.

The company said since a majority of its customers are from the UK, it had to offer discount rates given the slump in the pound against the dollar.

"This has inevitably affected the profit margins of the business, but the group believes that the pricing environment is now much more stable," it said.

"As such, these market conditions should be seen as the new normal."

Bagir Group PLC (LON:BAGR) shares shot up 16% to 2.9p as the tailoring company said it has received the initial deposit payment from Shandong Ruyi Technology Group under their strategic partnership.

Shandong is investing US$16.5mln in Bagir in exchange for a 54% stake in the company's enlarged share capital.

11.00am: Carr's shares rise on positive trading update

Carr's Group PLC (LON:CARR) shares edged higher after the agriculture and engineering company said trading at the start of the new financial year was "significantly ahead" of the prior year.

The company said its UK agriculture business had started the year "positively" with improved farm incomes and manufactured feed volumes higher than the same period last year. 

The UK manufacturing business is trading well ahead of last year thanks to a major contract announced last July while the order book remains strong, the group added.

Shares are up 11.2% to 138p.

Kimberley Enterprises (LON:KBE) shares plunged 75% to 0.3p after announcing it will seek shareholder approval to cancel trading on AIM.

The European property developer said its directors believe the move is in the best interests of the company and its stakeholders and recommended shareholders vote in favour of the proposals at an extraordinary general meeting on 25 January. 

9.30am: Carillion slips back after brief respite

Carillion PLC (LON:CLLN) shares on Tuesday reversed the previous day's rise following weekend reports that it would reveal an new business plan this week in a bid to avoid collapse.

 In a brief statement, the troubled contractor dismissed Monday's share price gains.

"The group is not aware of any material developments that support this share price increase," it said.

"Further updates on discussions with the group's financial stakeholders will be provided as appropriate."

Tasty Plc (LON:TAST) was under the cosh after announcing the resignation of finance director Timothy Cundy and saying it will push ahead with plans to dispose of sites amid difficult trading in the restaurant sector.

The owner of Wildwood and dimt restaurants also said it expects a further deterioration in trading conditions following a profit warning in August.

Shares fell 12.9% to 4.0p.

Ortac Resources Limited (LON:OTC) shares leapt 22% to 0.5p after saying the acquisition of Casa Mining is expected to be completely "shortly" and reporting further "significant" drilling results from the Akyanga licence.

Ortac has been undertaking a review of historical drilling data at Casa, which includes more than 100 holes of exploration drilling predominantly at the Akyanga license area. The results will be announced within the next month.

Weatherly International plc (LON:WTI) shares gained after reporting record production from its Tschudi copper mine in Namibia.

Production of copper cathode rose 11.5% to 4,739 tonnes in the December quarter, bringing year-to-date output to 8,843 tonnes.

"This outcome was assisted by some short-term benefits from relatively-fast leaching of additional oxide ore mined from an interim pit pushback bringing forward some leaching output, and some early seasonal rains have had minimal impact upon the operation thus far," it said.

Shares rose 11.7% to 1.4p.

Proactive news headlines:

Ortac Resources PLC (LON:OTC)  has reported  further significant new gold assay results taken from the expansion and infill drill programme currently underway at Akyanga.

Shares in Strategic Minerals Plc (LON:SML) shot up in early deals after the miner said its Cobre operations achieved record sales in the fourth quarter. The shares, which closed at 2.10p last night, rose as high as 2.34p as Strategic Minerals said it achieved sales of US$2.14mln during the final quarter of 2017, up from US$2.04mln in the preceding quarter.

Cancer immunotherapy specialist Scancell Holdings Plc (LON:SCLP) has entered into a research collaboration agreement with European biopharma BioNTech as the two look to develop innovative T cell therapies for the treatment of cancer.

Midatech Pharma Plc (LON:MTPH, NASDAQ:MTP) said it had been given the green light by Polish regulators for an EU first-in-human study for Q-Octreotide, also known as MTD201. It has been provided verbal confirmation; formal written approval is expected within the next two weeks.

Metal Tiger PLC (LON:MTR) chief executive Michael McNeilly said that many Kingsgate Consolidated shareholders have supported the AIM-quoted company's views, even though the result of an EGM vote went against its proposals. The company proposed the replacement of Kingsgate's management. A total of eight resolutions were voted on, and 34% to 45% of shareholder votes were in Metal Tiger's favour.

SDX Energy Inc (LON:SDX, CVE:SDX) told investors that it has now put the KSR-16 well, at the Sebou project onshore Morocco, into production. The well yielded a restricted production rate of 8.43mln cubic feet of gas per day, which is the best result of the three recent new wells at the project.

Shareholders in Jubilee Metals Group PLC (LON:JBL) were cheered by news the company has placed shares at a premium to the prevailing market price. Fund manager Miton Group and international wealth firm Veddis have bought shares at 3.6p a pop, raising ?4.5mln for Jubilee in the process. The placing includes the issue of 62.5mln warrants with an exercise price 6.12p each.

Allergy Therapeutics plc (LON:AGY) has completed the recruitment to a European phase III clinical trial of its ultra-short course treatment for people allergic to birch pollen. Results from study of PQ Birch are expected in the second half of this year. Researchers will assess the efficacy of the aluminium-free inoculation alongside the safety of the injection.

Waste-to-energy company Powerhouse Energy Group PLC (LON:PHE) said in its full-year business update that its Distributed Modular Gasification system continues to generate significant interest from potential partners.

Coins ilium Group Limited (NEX:COIN) told investors that it has increased its shareholding in Indorse, a block chain-powered social network for professionals. It is paying just under ?100,000 in order to acquire a 3.5% stake, which will increase its shareholding to 6.5%, and under the terms of an option deal the company can acquire a further 3.5% to increase the stake to 10%.

Independent analysis of its 2017 drill programme has confirmed an increase of 180% in the length of the mineralised trend at Amur Minerals Group PLC's (LON:AMC) Kun-Maine nickel project. 

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