News blog
AIM 50 Digest 14 February 2025
- BY: Andrew Hore |
- POSTED: 16/02/2025 |
Building materials supplier CRH has sold its 15% stake in SigmaRoc (SRC), which it acquired in a share placing at 47.5p/share in late 2023. That was part of the deal for the sale of its European lime assets to SigmaRoc. The investment totalled £81.5m and 14 months later the disposal, which was at 67p/share, raised £115m. SigmaRoc chief executive Max Vermoken purchased 32,632 shares and chairman David Barrett acquired 142,000 shares. The CRH share sale followed a year-end trading statement revealing that SigmaRoc earnings were ahead of expectations. Year-end net debt was £510m.
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Motor dealer Vertu Motors (VTU) warned that UK retail care sale volumes are at the lowest level this century, although it has outperformed the market. Meanwhile, used car margins have not improved as hoped. The zero emission vehicles mandate is a major issue for the sector. Margins are likely to be hit as car makers try to increase the market share of these vehicles to 28% in 2025. There will be an additional £10m of costs following the Budget. Progressive Research has cut its 2024-25 pre-tax profit forecast from £36.9m to £29.6m. Next year’s figure has been slashed from £43.4m to £26.5m. A further £12m share buyback is planned. Cag Vega 2 has increased its stake in the motor dealer from 9.76% to just above 10%.
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South Africa-based gold producer Pan African Resources (PAF) reported a small reduction in revenues from $191.1m to $189.3m, while profit increased by 10% to $44.6m, but that includes the one-off Tennant Consolidated Mining acquisition gain. Gold sales have slumped by 18% to 79,926 ounces and the $/Rand exchange rate also hit income. On top of that, revenues were hampered by the synthetic forward sale transaction. This is settled at the end of February. The company will then be able to receive the spot gold price, which is currently $2,680/ounce. In the first half the average sale price was $2,359/ounce. That will help the second half to be better than the first half. There should also be a significant increase in production in the year to June 2026.
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Translation and IP services provider RWS Holdings (RWS) has generated organic constant currency growth in the first quarter, but there is pressure on prices. RWS is focusing on growth areas. Growth in volumes should continue to offset price pressure. Cost savings will predominantly come through in the second half. At the AGM, there were 23.4% of votes against the motion to approve the directors’ remuneration report. None of the other votes had that level of opposition. Octopus Investments has increased its RWS shareholding from 5.04% to 7.16%. Late in January, finance director Candida Davies sold at total of 38,288 shares in two lots at 149.62p/share and 135.17p/share respectively to pay tax obligations.
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Team Internet (TIG) revealed 2024 revenues fell 4% to £803m. Even three months ago growth was anticipated. Profit also declined. The original domain names business grew revenues by 7%, while the new comparison division grew 43%. The search division, which is the rest of the online marketing business, reports a 11% decline in revenues. This is the main profit contributor and gains elsewhere were more than offset by the lower profit here. Net debt was $97m at the end of 2024. It would have fallen without acquisition costs. The Shinez acquisition has not gone as well as expected and there will be a non-cash write-down, plus legal action against the sellers.
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Steve Hatch has stepped down as chief executive of YouGov (YOU) and former boss Stephan Shakespeare will return to the role on an interim basis. The business grew modestly in the first half before the initial inclusion of the CPS acquisition. Management expects to achieve 70% of the £20m of annual costs savings by the end of June. Trading remains tough, but there should still be modest growth in the second half. The interims will be published on 31 March.
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Data and analytics information provider GlobalData (DATA) has announced a proposed move to the Main Market to enhance its profile and gain access to a broader range of investors. A £50m share buyback has commenced. The company proposes that chairman Murray Legg stay on for another three years to facilitate an orderly succession even though he has already been on the board for nine years.
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At its recent capital markets day Mortgage Advice Bureau (MAB1) set out its strategy and medium-term targets. The plan is to double 2024 revenues and generate an underlying pre-tax profit margin of more than 15%. In tandem with this, Mortgage Advice Bureau wants to double its market share. Surplus capital not required to grow the business or make acquisitions will be paid out to shareholders. In 2025, the intention is to pay 50% of underlying earnings in dividends. Mortgage Advice Bureau is considering a move to the Main Market, and it hopes to gain inclusion in the FTSE 250 index following the switch.
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Serica Energy (SQZ) says the OFAC licence and secondary sanctions assurance relating to the 50%-owned Rhum field in the North Sea has been extended until 31 March 2025. This will enable processing of the long-term licence application.
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Semiconductor wafer manufacturer IQE (IQE) says Lombard Odier and other major investors are subscribing for convertible loan notes at an 85% discount to face value, which will raise £18m. The initial term is 12 months. The conversion share price is 15p. The strategic review is continuing.
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Cohort (CHRT) subsidiary MASS has obtained an extension to the Joint Command and Staff Training contract for UK Strategic Command until July 2027. This is valued at £17.5m.
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ITM Power (ITM) has a contract to supply four Neptune V green hydrogen plant units to La Francaise de l’Energie.
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Joint chief executive Neil Stevens is leaving IFA support services provider Fintel (FNTL) at the end of June and Matt Timmins becomes sole chief executive. He has bought 34,987 shares, while finance director David Thomson has acquired 15,868 shares and chairman Phil Smith bought 18,653. The shares cost an average of just over 267p each.
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Swedbank Robur Fonder AB has built up a 5.04% stake in Renew Holdings (RNWH) over the past month.
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LBG Media (LBG) non-executive director Carol Kane has acquired 46,844 shares at 106.5p each. She owns 0.4% of the digital media company.
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Nichols (NICL) has appointed Berenberg as joint broker.
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