The company has raised £470,000 via a share placing and subscription at 0.7p a pop.
As is becoming increasingly common in share issues in London – picking up a practice from North America – the share issue was accompanied by the issue of warrants, with one warrant attached to every two newly-issued shares. The warrants are exercisable at 1.3p.
10.00am: MITIE big share price fall
Just over 805mln new shares were admitted from the £201mln rights issue to fund the £271mln cash-and-shares acquisition.
The rights issue will dilute earnings per share by an estimated 51% in the 2021 financial year and 62% in 2022, said broker Liberum in a note on Tuesday, but will significantly reduce the debt burden, while the Interserve acquisition will enhance earnings by 27%.
9.15am: Netcall higher as it expects underlying earnings to be up 29% year-on-year
The group's board said it expects revenue for the year will be around £25.1mln, versus £22.9mln the year before, while adjusted underlying earnings (EBITDA) are expected to be roughly 29% higher at £4.4mln.
The marketing group said it anticipates that the disruptions caused by the coronavirus pandemic will accelerate organisations' digital transformation initiatives, supporting this long-term growth driver for Netcall.
The newspapers and magazines distributor said that since lockdown restrictions have been eased, it has seen more retail outlets opening, resulting in a recovery in newspaper and magazine sales.
Newspaper sales in the 15 weeks to July 4, 2020, have been 12% lower than the equivalent period pre-lockdown, while magazine sales in the same period were 18% lower, the group noted.
Proactive news headlines:
SDX Energy PLC (LON:SDX) told investors it has sold a non-core asset in the Eastern Desert of Egypt in a deal worth US$3mln. The group said it has sold a 50% working interest in the North West Gemsa licence to Gulf Energy, a private Egyptian company. Some US$1.4mln of the proceeds are being immediately used to discharge the companys remaining liabilities on the licence.
Bango PLC (LON:BGO) said it is expecting “record revenue growth ahead of expectations” in the first half of its current year, while end-user spending in the full year is expected to hit £2bn. In a trading update for the six months ended June 30, 2020, the mobile commerce firm said it expects to report revenue growth of over 50% to £4.8mln year-on-year, while adjusted earnings (EBITDA) for the period are predicted to exceed the £450,000 figure for the whole of 2019.
OptiBiotix Health PLC (LON:OPTI) said its agreement with Draco Ingredients has been extended to include a second product. As well as distributing weight management line SlimBiome in Germany, it is adding to the roster WellBiome, developed to promote gut health. “The introduction of WellBiome gives us the opportunity to extend our product portfolio of functional ingredients with scientifically proven benefits and increase the commercial opportunity,” Andre Wittke, Dracos general manager said in a statement.
Futura Medical PLC (LON:FUM) said it has submitted the product dossier for its treatment of erectile dysfunction known as MED3000 for marketing approval in Europe. A further update on MED3000's EU regulatory approval will be made alongside its interim results in September and the target remains a 2021 approval date, the group added. In the US, Futura said that after a second pre-submission meeting with the US Food and Drug Administration (FDA), a pathway to US marketing approval for MED3000 has been established.
AdEPT Technology Group PLC (LON:ADT) said it expects the coronavirus (COVID-19) pandemic will have only a modest impact on its business in the medium to long term. At the onset of the pandemic, the information technology and communication services provider conducted some stress tests to see how the company would cope with a sharp fall in activity and in this mornings full-year results statement it reported that in the main, the impact of the lockdown was nowhere near as bad as it could have been. The company had expected that the inability of sales staff to meet potential customers face-to-face would hit orders hard but revealed that new order volumes have proven to be “significantly more resilient” than it had initially modelled in respect of both recurring services and one-off projects. As for the figures for the year to the end of March 2020, AdEPT's revenue increased by 20% to £61.7mln from £51.3mln the year before.
Frontier IP Group Plc (LON:FIPP) said its portfolio firm AquaInSilico has won a €60,000 EIT RawMaterials grant to develop its software designed to optimise wastewater treatment. The IP investor said the grant from the EUs European Institute of Innovation and Technology will allow AquaInSilico to build on its collaboration with a leading European environmental, water and waste management group to commercialise its software tools. The groups technology is designed to remove phosphorus from wastewater in a more environmentally friendly and effective way than existing methods, with the recovered phosphorus then sold for use in fertilisers.
Strategic Minerals PLC (LON:SML) has boosted sales at the Cobre magnetite project in the US, despite the disruption of the coronavirus pandemic. Quarterly sales were up 89% on quarter-end June 2019 and ahead 38% year-on-year. Despite the suspension of mining activities at the adjacent copper mine, operations at Cobre continue to operate under protocols established to ensure contactless sales and have been successful in safeguarding employees and clients to date.
Power Metal Resource PLC (LON:POW) has two key strategic objectives, according to an update document released by the company today. The first is to make one or more major metal discoveries within its gold, base and strategic metal portfolio, and then crystallise the value of such discoveries for shareholders' benefit. The second is to build its working capital and 'balance sheet' toward financial self-sufficiency and to reduce forward reliance on funding from the market to achieve its business objectives.
Circle Property PLC (LON:CRC) said it has collected 91% of rents in the quarter to March 2020 despite the impact of the coronavirus pandemic. In a trading update, the property firm focused on regional offices said current rent collection for the June 2020 quarter currently stands at 77%, but with agreed monthly payments that figure has increased to 91% of rent due. The company also said it is in “constant and constructive dialogue” with its tenants and anticipates its rent collection numbers will “continue to increase”.
Trident Royalties PLC (LON:TRR) is to acquire a royalty on the Spring Hill gold project in Northern Territory, Australia, from Thor Mining PLC (LON:THR) (ASX:THR). Trident will pay A$400,000 upfront for the royalty, with further payments due later. The royalty itself is pegged to the gold price and will run at A$5.70 per ounce of gold produced if the gold price goes below A$1,500 per ounce, and at the much higher A$13.30 if gold is higher.
ADM Energy PLC (LON:ADME) has appointed a pair of oil and gas industry veterans, Darrell McKenna and Dr Satinder Purewal, as advisory members to its technical team. McKenna joins as drilling and surface engineering lead, while Purewal brings his expertise to the role of petroleum and reservoir engineering lead. Already on the technical team is Wilhelmus (Wim) Burgers who is the geologist and geophysical lead.
Regency Mines PLC (LON: RGM) has reported a positive outcome from the Wardens Hearing in Papua New Guinea concerning its Mambare nickel project. Regencys joint venture partner attended the hearing. The Warden's Hearing is an important milestone in the process of applying for a mining licence to conduct a direct shipping ore operation over a portion of the Mambare nickel-cobalt project in Papua New Guinea, and is considered a broad analogue to local community planning approval in the UK.
[email protected] Capital PLC (LON:SYME) has announced the appointment of Stuart Nelson as Head of Enterprise Risk Management (ERM), a newly created position, with immediate effect. The innovative fintech platform firm, which provides inventory monetisation services to European manufacturing and trading companies, pointed out that Nelson is a highly experienced credit analyst, with experience assessing risk across multiple product types and jurisdictions. It noted that he brings nearly two decades of experience to [email protected] and joins from S&P Global Ratings, where he served as senior director.
Clinigen Group PLC (LON:CLIN) said the 2020 financial year was one of strong organic growth, though the headwinds from the coronavirus lockdown were felt in the final quarter. In a trading update ahead of the pharma and services companys September prelims, it said revenues are estimated to have grown by around 17% at constant currencies, or 13% on a gross reported basis for the year to June 30, 2020.
Filta Group Holdings PLC (LON:FLTA), a provider of services to commercial kitchens, said it has seen a gradual improvement in activity recently as coronavirus lockdown restrictions ease. Turnover in May was 14% higher than in April while Junes topped Mays by 38%, the group noted in a trading update. The groups sanitisation and protection service, FiltaShield, which was launched in May in response to increased concerns about hygiene, has created a lot of interest and not just in the food and beverage sector. FiltaShield generated around £50,000 in revenue in the week commencing July 6 and the company is confident the top-line will head north as more outlets reopen here and in the USA.