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Welcome to taking stock on...on Friday 7th July 2023
It's a look at today's top business news & investment views. Including: The indices, winners & losers, most read RNS's & RNS of the Day
A day on which the AIM All Share has hit a new low at 739. Apart from the dash for cash crash of March 2020, it hasn't been this low since 22nd July 2016!
HOT TOPIC OF THE DAY
Should AIM have a rule where new listings have to become profitable within 5 years or be forced to de-list?
WINNERS
Renalytix - KidneyIntelX evidence presented at ADA
Late-Breaking KidneyIntelX Evidence Released at 83rd American Diabetes Association Scientific Sessions
12 Months KidneyIntelX™ in vitro prognostic testing continued to demonstrate clinical actions that lead to improvement in both diabetes (A1C reductions) and kidney health (eGFR slope improvement) in patients with Type 2 Diabetes and Chronic Kidney Disease
RECENTLY ANNOUNCED:
FDA Approves KidneyIntelX.dkd™
U.S. Food and Drug Administration (FDA) has granted De Novo marketing authorization for its KidneyIntelX.dkd™ prognostic test. This affirms KidneyIntelX as a first-in-class, artificial intelligence enabled prognostic testing platform to guide care management for adults with type 2 diabetes and early-stage chronic (diabetic) kidney disease. Renalytix believes FDA authorization will lead to increasing test adoption, informing clinical guidelines, expanding insurance coverage, and pursuing additional international regulatory approvals.
MGC Pharmaceuticals - AMC Places Another US$1M Order of ArtemiC™
MGC Pharmaceuticals a European based pharmaceutical company specialising in the production and development of plant derived medicines, is delighted to announce that it has received an order for US$1m from AMC Pharma to produce ArtemiC™ the Over the Counter version of CimetrA®).
This order comes alongside AMC's new supply agreement to distribute to over 100 Holistic and Wellness Chiropractic offices in California, and Florida. This represents the start of a substantial ramp up of sales for ArtemiC™ with increasing distribution across the US.
The Company has received a second purchase order from AMC for US$1m. This represents total orders to date of over 100,000 units of ArtemiC™ By AMC. The order is secured with an immediate down payment of US$150,000.
In March 2023, MGC Pharma announced that ArtemiC™ had been listed by the US FDA as an OTC Unlicensed Drug on the National Drug Code Database.
Aptamer Group - Contract Wins
Aptamer Group, the developer of novel Optimer® binders to enable innovation in the life sciences industry, today provides an update on recent contract wins amounting to up to £507,000 over the next six months.
As noted in the trading update issued on 4 July 2024, the Group's unaudited cash balance at the end of June was £0.2 million. In addition to trading income, further funding will be required in the short-term in order to continue as a going concern.
LOSERS
OneSavings Banks - Trading Update
OSB GROUP PLC the specialist lending and retail savings Group, today issues a trading update ahead of its 2023 interim results.
- The Group remains on track to deliver c.7% growth in its underlying net loan book for 2023
- A reduction in the expected time spent on the reversion rate by Precise Mortgages customers is estimated to result in an adverse underlying effective interest rate (EIR) adjustment of £160m to £180m in the first half of 2023
- Excluding this EIR adjustment, the underlying net interest margin (NIM) for the first half of 2023 is anticipated to be marginally ahead of expectation. Second half NIM is anticipated to be broadly flat to 2022
- Administrative expenses in the first half of 2023 are slightly below expectation
- The Group’s capital and liquidity positions remain strong
Helium One Global - Drilling Rig update
Helium One Global, the primary helium explorer in Tanzania, provides a rig update in relation to the Company's contractual relationship with SOFORI taking into account today's announcement by Noble Helium (ASX: NHE).
The Company has previously issued a number of deadlines to SOFORI but continues to have concerns about the lack of operational and contractual progress required under the terms of the non-binding Letter of Intent ("LoI") and, pursuant to legal advice received by the Company, have issued SOFORI with a rectification notice.
he Company continues to review, and progress, a number of alternative options that, in the event that SOFORI do not fulfil the obligations outlined to them in the notice of rectification, will still enable Helium One to meet its targeted drilling of the Tai-C well in Q3 2023.
Most Read RNS
Vast Resources - Placing to Raise £1.7m and Company Update
Vast Resources has raised £1,701,000 gross through a placing at a price of 0.35p per Ordinary Share.
The net cash raised from the Placing will be used for working capital and to ensure the Company can meet its current corporate obligations both in Romania and at corporate level, applied to bridging any unforeseen operational related costs as well funding further expansion capital costs, and the ongoing drilling programme and mine development costs at the Company’s Baita Plai Polymetallic Mine in Romania
RNS of the Day
MJ Gleeson Plc - Trading Update and Capital Markets Day
Gleeson Homes completed the sale of 1,723 homes during FY2023 (FY2022: 2,000 homes sold).
During the second half of the year, 829 homes were sold (H2 FY2022: 1,068 homes sold), reflecting the downturn in the wider economy and the immediate impact on buyer confidence as a result of higher interest rates.
There was a significant shift in buyer demographics in the second half, with first-time buyers accounting for c. 50% of open-market reservations (FY2022: 71%), whilst over 20% of sales were to purchasers over 55 years old (FY2022: 10%).
Outlook
Whilst planning delays and economic uncertainty are causing some larger housebuilders to hesitate in completing land purchases, mid-size and regional housebuilders remain active buyers of high-quality consented land.
Group
The Group ended the year with cash balances of £5.2m and no debt (30 June 2022: £33.8m cash and no debt). This was a pleasing outcome given the significant investment during the period in bringing forward a higher proportion of new homes starts.
The Board expects the results for FY2023 to be in line with market expectations.
Most Followed Company's on Vox Market
Destiny Pharma
Chart of the Day
2 year / 10 year U.S. Yield Curve
OneSavings Bank
4GLOBAL
Top Business Stories
1. House prices have fallen for the third month in a row, according to the Halifax as mortgage rates for millions continue to climb.
The High Street lender said prices in June fell by 0.1% and were indicative of a cooling market.
The typical UK property now costs £285,932, against a peak last August of £293,992.
The Halifax said southern England had witnessed the most downward pressure on property prices.
The bank said house prices fell by 2.6% compared with a year earlier - the biggest annual fall for 12 years
2. A severe money market shift signals worse to come for personal and public finances
Money markets have begun to price in a Bank of England interest rate of 6.5%.
The interest rate on 10-year government bonds (the gilt yield as it's sometimes called) exceeded the peak it hit after the mini-budget of September last year - that one which provoked a crisis in many parts of the bond market.
The average rate on a five-year fixed-rate mortgage (the most popular maturity these days) has risen beyond 6%.
3. Twitter is considering legal action against Meta over its fast-growing rival app Threads.
Threads, which was launched to millions on Wednesday, is similar to Twitter and has been pitched by Meta bosses as a "friendly" alternative.
Twitter's Elon Musk said "competition is fine, cheating is not" - but Meta denied claims in a legal letter that ex-Twitter staff helped create Threads.
More than 30 million people have signed up for the new app, according to Meta.
INDICES
FTSE 100
H1 PERFORMANCE: 0.13%
12 MONTH HIGH: 8,014 - 19/02/2023
12 MONTH LOW: 6,826 - 12/10/2022
FTSE 250
H1 PERFORMANCE: -2.6%
12 MONTH HIGH: 20,614 - 01/02/23
12 MONTH LOW: 16,611 - 12/10/2022
FTSE AIM All-Share
H1 PERFORMANCE: -9.5%
12 MONTH HIGH: 934 - 15/08/2022
12 MONTH LOW: 739 - 07/07/2023