Volvere shares gain as it estimates record 2017 revenues

By Loreta Juodagalvyte / March 07, 2018 / www.proactiveinvestors.co.uk / Article Link

Turnaround specialist Volvere PLC (LON:VLE) said it expects record full year revenues, sending its shares higher on Wednesday.

The company estimates revenue rising to ?43.2mln in 2017 from ?33mln a year ago and profit before tax increasing to ?3.2mln from ?1.9mln.

Revenue growth was driven by a strong performance in its 83%-owned automotive consulting business, Impetus Automotive Ltd, and in frozen pie and pastry manufacturing company, Shire Foods Ltd, in which it has an 80% holding.

Shares rose 10.7% to 980p.

Tyman PLC (LON:TYMN) shares edged down 2.7% to 300p as it announced share raising to fund its US$101.0mln acquisition of Ashland Hardware, a US manufacturer of hardware for residential windows and doors.

The company, which supplies engineered door and window components, proposed a placing of up to 10% of its issued share capital with institutional shareholders.

Net proceeds from the placing will be used to support its acquisition. Tyman will also draw down its existing committed banking facilities to fund the deal.

Tyman also reported its full year results, which showed an increase in revenues and profits, supported by contributions from acquired companies Bilco and Giesse as well as favourable exchange rates.

12.00pm: Hill & Smith rallies as it hikes dividends

Hill & Smith Holdings PLC (LON:HILS) was a good gainer at lunchtime, with its shares up 5.3% to 1.301p as the supplier of infrastructure products reported its 'best ever trading performance in 2017' and hiked its final dividend by 15%.

The FTSE 250-listed firm saw its pre-tax profit increase to ?70.2mln in 2017, from ?48.3mln a year ago, as revenue rose by 8% to ?585.1mln from ?540.1mln.

Hill & Smith is increasing its final dividend to 20.6p, giving a full-year payout of 30p, up 14% on 2016's 26.4p total.

Meanwhile, a bigger mid-cap gainer was St Ives PLC (LON:SIV), which saw its shares jump 14% higher to 84.6p, as the international marketing services group reported strong half-year results boosted by the strength of its Strategic Marketing division.

St Ives' group revenue in the 27 weeks to February 2 rose 7% year-on-year to ?146.5mln, with the Strategic Marketing segment delivering like-for-like revenue growth of 23%, which more than offset an 11% decline in its Marketing Activation business

And the Restaurant Group PLC (LON:RTN) shares  took on 11.2% at 264p as the Frankie & Benny's and Chiquito brands owner maintained its dividend, reflecting confidence in the delivery of its strategic plan, even though 2017 adjusted profit and sales fell.

The FTSE 250-listed firm reported an adjusted pretax profit of ?56.7m for the 52 weeks to 31 December 2017, down from ?77.1m the year before, as its revenue fell by 4.4% to ?679.3mln from ?710.7mln a year earlier.

11.30am: Nature Group shares slump as company flags up 'uncertain' financial position

Nature Group PLC (LON:NGR) shares dropped 49% to 2.15p in late morning trading as the port reception facilities and wastewater treatment firm said its overall financial position remains 'uncertain' as a result of 'difficult conditions throughout the  second half of the year.'

The AIM-listed firm - which is in discussion to sell its under-pressure oil & gas business - said it has secured a verbal waiver from its lender, DNB, deferring the repayment of lease and debt financing facilities totaling ?1mln.

But it warned that in the event that the proposed oil & gas disposal is not concluded before late April 2018, and no further waiver is provided by DNB, Nature Group is likely to face serious liquidity constraints and that additional funding would need to be secured to ensure the continuity of the firm.

Meanwhile, Biffa PLC (LON:BIFF) was also a big faller, down 11.7% to 218.5p as the waste disposal giant highlighted cost and price headwinds arising from the recent changes in Chinese regulations for the import of recycled commodities.

The FTSE SmallCap firm said it expects these headwinds to persist in the near term, impacting divisional performance.

And MySQUAR Ltd (LON:MYSQ) shares dropped 14.1% to 1.83p as the Myanmar-language social media, entertainment and payments platform, said it is to raise ?2.11mln through the issue of unsecured convertible bonds.

Atlas Capital Markets is buying the bonds, which carry a coupon of 5%, and will also be granted warrants that, if exercised, would raise a further ?633,000 for MySQUAR in return for the issue of 20mln shares.

10am: Yolo Leisure and Technology shares rise as CEO acquires 2.6mln shares

YOLO Leisure and Technology PLC (LON:YOLO) shares rose 14.3% to 0.40p in early morning trading after the company revealed its chief executive officer has acquired around 2.63mln ordinary shares at a price of 0.38p each.

The AIM-listed firm said Simon Robinson now holds about 13.89mln shares in the company, equating to 3.15% of its issued share capital.

Meanwhile, Instem PLC (LON:INS) shares soared 23.2% higher to 231p as the IT solutions provider said it will see a rise in revenue after one of its clients - one of the world's largest chemical products companies - chose to adopt the group's Software-as-a-Service (SaaS) delivery model.

The AIM-listed firm said that the move will result in an immediate 40% rise in revenue from the client as part of a growing shift toward adoption of its SaaS offering.

Another AIM gainer was Harvest Minerals Ltd (LON:HMI), shares in which rose 12.3% to 19.8p as the  potash and phosphate development  company signed a major sales order with Agrocerrado Produtos Agricolas e Assistencia Tecnica LTDA, a fertiliser distributor in Brazil.

The firm also said additional discussions regarding sales are on-going.

The biggest FTSE 100 gainer this morning was Rolls-Royce Holdings (LON:RR.) shares, which jumped 11.8% to 927.4p as the engine maker reported a swing to an annual profit as it cut costs as part of a restructuring to turn around the business. 

The blue-chip company reported pre-tax profit of ?4.9bn for the year to December 31, 2017, compared to a record loss of ?4.6bn a year earlier.

Proactive news headlines:

Instem PLC (LON:INS) will see a rise in revenue after one of its clients, one of the world's largest chemical products companies, chose to adopt Instem's Software-as-a-Service (SaaS) delivery model.

Harvest Minerals Ltd (LON:HMI) has signed a major sales order with Agrocerrado Produtos Agricolas e Assistencia Tecnica LTDA, a fertiliser distributor in Brazil, and said additional discussions regarding sales are on-going.

MySQUAR Ltd (LON:MYSQ), the Myanmar-language social media, entertainment and payments platform, is to raise ?2.11mln through the issue of unsecured convertible bonds to fund a potential acquisition.

Sound Energy PLC (LON:SOU) told investors that the completion date for the sale of its Italian assets to Saffron Energy has moved to April 9. Saffron (which is due to be renamed Coro Energy) is due to hold a shareholder general meeting on March 29 in order to secure approval for the proposed transaction and other changes, including its ?13.4mln equity funding.

Allergy Therapeutics PLC (LON:AGY) made further market share gains as it headed into a 'pivotal' 12 months. Interim revenues at the hay fever vaccine specialist rose by 4% to ?42.2mln despite the pollen season being described as 'abnormally weak'.

Over the top, TV software specialist Mirada PLC (LON:MIRA) has arranged a new loan facility with major shareholder Ernesto Tinajero. The facility, for US$3mln, is repayable in a year's time and charges interest of 15% on funds drawn.

In its full year results, AFC Energy PLC (LON:AFC) chief executive Adam Bond told investors that the fuel cell company completed its three-year plan as promised. "The funding put in place early in 2017 allowed us to enhance the 10kW fuel cell system design to support scaling-up of this modular design basis, complete technical milestones to deliver the longevity and reliability required for power plant application and develop the strategic partnerships to underpin the future commercial manufacturing and supply of fuel cells," Bond said.

Jubilee Metals Group PLC (LON:JLP) turned a profit before non-cash operating expenses and interest in the second half of 2017.

Horizonte Minerals PLC (LON:HZM, TSE:HZM) has issued its first quarter interim update, which provides commentary around the mine developer's recent progress, including its successful funding and latest acquisition. It raised ?9.2mln in January, leaving the company fully funded for two years - a period in which it plans to deliver work programmes at the flagship Araguaia project and the newly acquired Vermelho project.

Wolf Minerals Ltd's (LON:WLFE) latest interim results statement reveals a narrowed loss, thanks in part to higher revenues generated by its tungsten mine in Devon. Revenue improved to ?23.12mln for the period, up from ?10.93 in the same period in 2016, though cost of sales rose also to ?42.72mln from ?39.27mln.

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