News blog

AIM 50 Digest 11 June 2021

  • BY: Andrew Hore |
  • POSTED: 13/06/2021 |

Naked Wines (WINE) generated 48% of revenues from the US last year and this has helped margins. In the year to March 2021, revenues were £340.2m and there was a small loss. Management has provided guidance of 5-10% growth in the current financial year and, so far, the figure has been 8%. Additional investment means that the loss is likely to be higher this year.
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Past investment in life sciences technology is helping photonics company Gooch & Housego (GHH) to improve its performance and return to paying dividends. Interim revenues were flat at £58.5m with 11% growth in life sciences offsetting the decline in the other divisions. Pre-tax profit improved by 84% to £4.9m. The interim dividend is 4.5p a share. There should be growth in all three divisions in the second half, even with a weaker US dollar holding back the figures. Full year pre-tax profit is expected to improve from £9.8m to £12.8m.
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Video games developer Frontier Developments (FDEV) will release Jurassic World Evolution 2 before the end of the year. There may be some delays in other games releases, though. Management expects 2020-21 revenues to reach £91m. The launch of Jurassic World Evolution 2 could mean revenues of £130m to £150m next year.
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RWS Holdings (RWS) increased interim revenues from £169.7m to £326.4m, although excluding acquisitions the underlying growth was small. Pre-tax profit jumped from £33.1m to £50.5m, with organic growth of 16%. The interim dividend was raised from 1.75p a share to 2p a share. RWS has moved back into a net cash position. The weakness of the dollar against the pound is holding back growth in revenues, although US business is improving. Ian El-Mokadem is taking over as chief executive.
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Clinigen (CLIN) has warned that its 2020-21 figures will not be as good as expected. Covid-19 has reduced the use of some of the company’s medicines, particularly related to cancer treatments. Revenues will be in line with expectations, but margins will be lower due to a change in mix of products and services. This means that the pre-tax profit forecast has been cut from £130m to £114m. The services businesses are performing well. Net debt is £330m.
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MP Evans (MPE) is benefiting from the higher crude palm oil price and increased production. Peel Hunt has increased its 2021 pre-tax profit forecast from $40m to $45m. In the first five months of 2021, the managed crop has increased by 28% to 442,900t as newer planted acreage matures. 
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Renew Holdings (RNWH) has enhanced its rail operations through the purchase of Scotland-based Rail Electrification for up to £5.3m in cash. The deferred element of the payment is £2.3m. The business is involved with overhead line electrification. Renew will benefit from the Williams Rail review which is keen on the electrification of all rail. There are 15,000 track kilometres that require electrification.
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Clean fuel and storage company ITM Power (ITM) has nearly trebled its contracts backlog to £154m over the past 12 months. Work in progress has increased from £21.8m to £35.4m.
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Jet2 (JET2) is raising £387.4m from convertible bonds redeemable in 2026. The coupon is 1.625% a year and the initial convertible price is 1806p. A new £150m loan has also been secured. Flight bookings have been taken, but the outlook remains uncertain. The additional cash will strengthen the balance sheet.
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First Derivatives (FDP) is changing its name to FD Technologies.
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Pan African Resources (PAF) has renewed its mining licence for the Baberton mine for another 30 years. Chief executive Cubus Loots has increased his interest to 0.226%. Learning Technologies Group (LTG) chief executive Jonathan Satchell’s family trust has sold 2.1 million shares at an average price of 169.77p each to fund a property purchase for his children. Founder John Dawson has further reduced his stake in Alliance Pharma (APH) from 4.5% to 3.5%.

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