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London Capital Group shares drop as 2016 results hit by Brexit uncertainty

Last updated: 00:30 30 Jun 2017 AEST, First published: 18:42 29 Jun 2017 AEST

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London Capital Group Holdings plc (LON: LCG) fell 16.0% to 2.625p and saying its 2016 results were affected by lower market volatility as investors exercised caution ahead of the Brexit vote.

The financial services company said uncertainty in the lead up to the European Union referendum last June had deterred market participation for existing and new clients.

Nevertheless, the group narrowed its adjusted underlying loss (EDITDA) to £4.8mln in the year to 31 December 2016 from a loss of £14.5mln. Revenue rose to £23.2mln from £15.5mln.

"Despite the tough trading conditions seen during the first half of the year, the group has seen strong revenue growth as a result of increased revenue capture compared to prior periods,” said chief executive,  Charles-Henri Sabet.

“The integration of new technology, continued investment in innovative marketing and a focus on customer service and retention coupled with a resilient and loyal client base continues to see LCG grow both in existing and new markets.”

The group also responded to calls from the Financial Conduct Authority for radical reforms of the investment sector to protect client. LCG said it was “fully supportive of the efforts of global regulatory bodies to ensure that client interests are served at all time”.

Snoozebox gains as it narrows annual loss

Portable hotel company Snoozebox plc (LON:ZZZ) shares jumped 23.08% to 0.40p as it narrowed its full year loss.

The loss before tax in the year ended 31 December, 2016 narrowed to £8.9mln from £18.9mln, as the company cut costs and avoided uncommercial deployments.

Revenue fell to £2.4mln from £5.8mln, but this was expected.

Cash flows improved with an outflow of £3.1mln compared to £7.2mln as the trading performance picked up.

Snoozebox said trading in 2017 so far has been in line with expectations with an adjusted underlying loss of £0.4mln in the first four months of the year, compared to a £0.5mln loss last year.

“In general, and as a result of the operational changes implemented in 2016, we are seeing an early trend of increased underlying contribution to central overheads from deployments both in the semi-permanent and events divisions.”

Greatland Gold shares shimmer

Greatland Gold plc (LON: GGP) shares edged up 5.82% to 0.54p after saying it found several additional targets conducive to gold mineralisation following a survey on its Ernest Giles gold project in Western Australia.

The company said it collected over 360 line kilometres of gravity data across the Empress, Wishbone and greater Meadows area.  “The data collected from this extensive gravity survey further highlights the potential of the Ernest Giles project to host several, very large, mineralised systems,” said chief executive Gervaise Heddle.

Zanaga Iron Ore slides as it struggles to secure financing

Zanaga Iron Ore Company plc (LON:ZIOC) fell 9.09% to 6.50p as it highlighted the continued challenge of securing funding for large scale developments in 2016.

The group said it took further steps to reduce costs and warned that if it fails to obtain sufficient financing, it could “materially and adversely affect the company's business, results of operations, financial condition and prospects”.

The funds will be used to support the first stage of the Zanaga Project. The company will not generate any material income until the first stage of the project is constructed and mining and export of the iron ore has successfully commenced at commercial volumes.

 

11.37am: Wincanton declines on profit warning

Shares in logistics company Wincanton plc (LON:WIN) fell 8.21% to 268.50p after warning that it has experienced a weaker-than-expected performance in some of its transport-related contracts.

In a trading update for the period from 1 April to date, the group said this poor performance has created trading profit headwinds in the first quarter.

Still, Wincanton expects full year pre-tax profit will be in line with expectations as it improves operational efficiencies during the rest of the year. It also achieved revenue growth during the period, driven by the retail and consumer sector.

React Group dips on wider half year loss

React Group’s shares dipped 6.90% to 0.675p after the cleaning company reported a wider half year loss as it restructured the business.

The operating loss in the six months to 31 March was £164,000, compared to £30,000 the previous year.

During the period, the company closed its environmental waste cleaning subsidiary EPUK Ltd and concentrated on improving its core business React Specialist Cleaning Ltd businesses and other divisions, including React Occupational Hygiene Ltd and React Environmental Services Ltd.

Frontera Resources and Lansdowne Oil & Gas shares climb

Frontera Resources Corporation (LON:FRR) shares increased 13.24%  to 0.1925p as the oil and gas company said it has improved its balance sheet.

The company said since the end of 2016 it has “significantly restructured its balance sheet” by eliminating US$32.2mln of debt.  "The combination of significantly restructuring our balance sheet since Q4 of last year and advancing our current plans for growth will serve to materially accelerate value creation from our holdings,” said chairman Steve Nicandros.

 

Lansdowne Oil & Gas plc (LON:LOGP) edged up 11.43% to 0.975p as it confirmed a £350,000 loan agreement with major shareholder Brandon Hill Capital. With the loan, which comes on top of a previously secured £100,000 with Brandon, the company has sufficient capital to fund its current operations until the end of the first quarter of 2018.

 

09.42am: Utilitywise shares slide on profit warning

Utilitywise plc (LON:UTW) shares slumped after warning 2017 profits will be hit as it has to pay back commission to Energy Company following under-consumption in a number of contracts.

The group has agreed to make repayments in commissions of £7.6mln between June 2017 and December 2020 to the major energy company.

The Energy Company assessed the latest consumption levels on its total portfolio of about 4,400 live contracts placed by Utilitywise. It found that consumption levels were much lower than initially expected at the start of the contracts.

Utilitywise said it will recognise an accounting charge of about £11.2mln in its 2017 income statement to reflect the impact. About £7.7mln of this charge is expected to be recognised as an exceptional item, while the remaining £3.5mln will reduce underlying profit before tax.

Shares fell 31.42% to 74.75p in early trading.

Westminster rallies as it moves closer to finalising Middle East contract

Secuirty services company, Westminster Group (LON:WSG), gained after saying that it has made “substantial” progress in finalising a long term airport contract in the Middle East.

Westminster’s aviation security division has signed a memorandum of understanding with a Middle East civil aviation authority to supply services for up to 25 years. The Middle East project is expected to deliver revenue of more than £35mln per year.

“I am pleased to report that we have made substantial progress with this complex project,” said chief executive, Peter Fowler.

“Following extended discussions over recent months around the scope of works, preparations are now being made for certain board members and myself to travel to the country concerned for what we hope will be final negotiations, although with complex projects of this nature there can never be certainty as to timing or outcome.”

Shares rose 14.95% to 15.38p in morning trading.

Sphere Medical edges higher 

Sphere Medical Holding PLC (LON:SPHR) shares rose 9.38% to 8.75p after confirming the compatibility of its acute respiratory and metabolic monitoring system with patient monitor player, Philips IntelliVue.

The company’s Proxima monitoring system is sued in critical care and enables rapid and frequent blood gas, glucose and electrolyte measurements directly at the bedside without the caregiver leaving the patient.  Its compatibility with Philips means that Proxima's results can be recorded and displayed alongside other critical monitoring information, such as blood pressure, ECG, EEG, respiratory rate, cardiac output and temperature.

Mineral & Financial Investment shares decline on cautious outlook

Mineral & Financial Investment Limited (LON:MAFL) dropped 10.38% to 11.875p after warning that the mining investment markets are “currently undervaluing risk”.

“As the United States has finally initiated a program of increasing administered reference interest rates, our view is that this will generally put upward pressure on global interest rates. We believe that this will affect global economic growth and asset valuations. Therefore, we remain cautious, as ever,” the mining finance house said.

 

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Sirius Minerals PLC (LON:SXX) said it enjoyed a “productive” three months as it updated on progress at the giant Woodsmith operation in North Yorkshire, host to a potash-type fertiliser called polyhalite.

It said mine enabling work is complete, site preparation is “well advanced” and construction of a diaphragm wall that sits at the head of the pit shaft will get underway in the third quarter.

Seeing Machines Ltd (LON:SEE), whose eye-tracking and facial recognition technology could be integral to the next generation of semi-autonomous cars, said its automotive business is unaffected by the bankruptcy of Takata.

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Wood chip and boiler specialist Aggregated Micro Power Holdings plc (LON:AMPH) hailed a step change in the scale of the  business as it swung into profit. After a string of acquisitions, revenues jumped to £19.7mln (£1.3mln), while the AIM-listed group also posted a profit of £930,000 (£7.7mln loss).

Westminster Group PLC (LON:WSG) saw its shares jump as the global security and services specialist said it is moving closer to finalising a long term airport contract in the Middle East, which is expected to lead to revenues of over £35mln a year.

Real Good Food PLC (LON:RGD) has launched a major upgrade of two of its plants to capitalise on rising demand for Yum Yums and cake decoration ranges. The icings and bakery specialist has raised £15.5mln through new loans and shares to fund the investment.

Shares in Sphere Medical Holding PLC (LON:SPHR) climbed smartly as its Proxima 4 criitcal care blood gas monitoring system can now work with electronics giant Philips' IntelliVue Patient Monitoring Systems.

Stem cell therapy specialist Reneuron PLC (LON:RENE) is making good progress on all of its clinical trial candidates and also in the lab, chief executive Olav Hellebo said today. "Our therapeutic development programmes have continued to progress well during the period, the highlight being positive Phase II data from the PISCES II clinical trial of our CTX cell therapy candidate for stroke disability.“

AFC Energy plc (LON:AFC) boss Adam Bond has told investors he is “extremely pleased” with the group’s strong technical progress. Specifically, AFC is working towards and is ‘on track’ for the unveiling of a commercially deployable fuel cell by the end of 2017.

Stobart Group Ltd (LON:STOB) has told investors that it is trading in line with its own expectations, as it prepares to hold its annual general meeting later today. The London-listed logistics group highlighted that it is on track for important milestones in key business areas – namely, it expects to hit a 2.5mln passenger target at London Southend Airport.

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