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Photo-Me lifts forecasts after strong start to the year

Last updated: 00:42 08 Jun 2022 AEST, First published: 17:47 07 Jun 2022 AEST

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Photo-Me International PLC (AIM:PHTM) is looking bright after a positive trading update.

The firm, which operates laundrettes and food vending machines as well as photo booths, said it was upgrading its 2022 forecasts after performing ahead of expectations so far this year.

Half year revenue was up 24.2% compared with the same period last year, with its photo booths benefiting from pent up demand for passports as travel restrictions were lifted.

It said the strong start to the year came despite the current economic and consumer uncertainty, and a significant increase in supply chain and raw material costs which it mitigated through its significant pricing power.

Overall for the year it expects revenues to grow by at least 20%, with profits in the range of £47mln to £50mln, assuming no further COVID-19 related restrictions.

Its shares have jumped 13.31% to 80p.

2.33pm: National Express shares stall after update

Worries about margins at National Express Group PLC (LSE:NEX) have put the brakes on the coach operator's shares.

The firm, which saw its offer for Stagecoach lapse last month after a rival bid from German group DWS Infrastructure, said providing low UK fares and as well as unprecedented levels of wage inflation in the US would hit its margin recovery.

It is aiming for an average profit margin of 9% in the period 2022 to 2027, and recovery to pre-pandemic margin levels of around 10% in the later stages of that period.

But in the short term, a recovery in profitability is expected to lag a recovery in revenues, and it expects a 2022 margin of around 7%.

Its shares are down 9.61% at 244.6p.

12.15pm: Zenova signs Saudi Arabia distribution deal

Zenova Group PLC (AIM:ZED) has reached a deal to distribute its thermal insulation and fire protection products in Saudi Arabia.

The company has signed a sub-distribution agreement with the Ethmaar Investment Company, which has strong relationships with major organisations in the country.

This deal includes Ethmaar placing the first order of one container valued at £116,000 within 3 months of entering into the agreement and then ordering a minimum of £1.2mln worth of Zenova products within 12 months.

Chief executive Tony Crawley said: "This agreement with Ethmaar represents a very important first step for Zenova into Saudi Arabia and we look forward to working with Ethmaar as we gain a foothold for our products in this jurisdiction where our products are much needed to tackle the issues that are increasing in their significance as the local authorities focus more on temperature management, energy conservation, safety and prevention of fire."

Zenova shares have climbed 5.81% to 16.4p.

11.14am: Corcel climbs on plans to expand Canadian mine into nickel

Corcel PLC (LSE:CRCL) is climbing after the natural resources company unveiled plans to expand its 50% owned Dempster vanadium project in Canada.

It now plans to include a review of the nickel potential in addition to the existing vanadium targets.

It said: "The company believes that this project expansion is appropriate due to nickel's increased recognition as a key battery metal that is essential to creating the lithium-ion battery density demanded by buyers of electric vehicles as well as grid level energy storage installations. 

"This renewed focus on nickel can be seen in recent nickel prices movements as well as an ongoing race to secure nickel supplies by end users such as Tesla, Inc.  This expanded effort fits well with the company's existing battery metals led strategy and should ultimately make the Dempster project more valuable and more likely to be progressed to an operating mine in the Yukon."

Corcel shares are 7.59% better at 1.32p.

10.16am: Filtronic in demand after winning US contract

Filtronic PLC (LSE:FTC) is flying after a new US contract.

The firm, which makes products for the aerospace, defence, telecoms infrastructure and critical communications markets, said it had won a follow-on deal for full production units after a successful trial of its  5G mmWave modules for the test equipment market.

The contract is worth US$0.9mln, and revenues are expected to be recognised in the 2023 financial year.

The company said the deal broadens its customer base and establishes an adjacent telecommunications market it had been actively targeting for growth.

Chief executive Richard Gibbs said: "We are delighted to have been chosen as the production partner for these technically challenging mmWave products. Once again, we have been able to demonstrate the importance of our in-house manufacturing, and our ability to take a design all the way through from initial concept into full production.

"We now look forward to the challenge of delivering production units working to secure future manufacturing orders of this product."

Its shares are up 6.74% at 10.14p.

9.20am: Haydale Graphene sees revenues ahead of forecasts

Haydale Graphene Inds PLC (LSE:HAYD, OTC:HDGHF) is higher after it said full year revenues were likely to be ahead of market expectations.

The company said the figures had been boosted by a strong launch of High Tech Systems' product Hi-Therm, where it supplies boron nitride as a thermal fluid for domestic and industrial heating systems.

It also benefited from a positive settlement in a contractual dispute with a US group selling silicon carbide cutting tooling and wear-resistant solutions.

On the other hand it has seen slower than anticipated sales of silicon carbide to East Asian customers, who have been adversely impacted by the lock downs in China.

Chief executive Keith Broadbent said: "Our transition from a research and development focussed organisation to a commercial operation has accelerated during the second half of the year and we look forward to driving our business forward in the coming year and thereafter."

Its shares have climbed 6.87% to 7p.

8.47am: AMTE Power (AIM:AMTE) accelerates after electric vehicle deal

AMTE Power (AIM:AMTE) has accelerated 9.63% to 74p. after the battery cell specialist signed an agreement with powertrain developer Viritech to support the development of hydrogen fuel cell electric vehicles.

The deal paves the way for AMTE to supply its ultra high power cells for use in Viritech's battery packs on high performance electric vehicle projects, including heavy goods vehicles, light commercial vehicles, marine, aerospace, and distributed power applications and Viritech's hypercar project, Apricale.

Earlier this year AMTE said it anticipates making an announcement within 2022 on new production facilities for its cell types that will enable the business to produce UK-based cells at industrial scale. 

AMTE chief executive Kevin Brundish said: "Batteries are essential to the transition to hydrogen electric vehicles and our UHP cells are the perfect fit for this collaboration, with our carefully refined cell chemistry able to fulfil the specific power, weight and safety requirements for Viritech's power trains.  This partnership will help the EV industry move to net zero emissions while ensuring the UK remains a competitive player in automotive manufacturing."

Elsewhere BowLeven PLC (AIM:BLVN), the Africa focused oil and gas company, has bubbled up after a new partner was proposed for a key field.

New Age, the operator of the Etinde field in Cameroon where Bowleven has an equity stake, said it had agreed to transfer all its interests in the field to Anglo French group Perenco.

The transaction needs approval from the Cameroon government and the Etinde joint venture partners, Bowleven and Lukoil.

In any case Bowleven will continue to be entitled to a final investment decision payment of US$25mln from its partners, whoever they end up being.

Bowleven chief executive Eli Chahin said: "The prospect of Perenco becoming our partner and operator at the Etinde permit is very positive news.

"We believe that Perenco's proven Cameroon oil and gas developments and substantial experience provide an opportunity to accelerate our efforts to secure the final investment decision and the associated US$25mln payment to Bowleven. We look forward to engaging with Perenco and we will update shareholders in relation to Etinde developments in due course."

Bowleven has jumped 40% to 3.5p.

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