Welcome to taking stock on.... Monday 21st August 2023
Taking Stock: Is a look at today's top business news & investment views plus we cover the winners, losers, the most read company news & the most followed. Today this includes:
Is a house price crash coming?
MOST READ RNS
Harland & Wolff - Islandmagee Judicial Review Update
Harland & Wolff Group Holdings plc (AIM: HARL), the UK quoted company focused on strategic infrastructure projects and physical asset lifecycle management has been notified that, in relation to the judicial review of the Company's Islandmagee Gas Storage Project, the matter has been listed for judgement on Thursday 31 August 2023.
RISERS
Redx Pharma - Zelasudil granted FDA Orphan Drug Designation
Redx, the clinical-stage biotechnology company focused on discovering and developing novel, small molecule, targeted therapeutics for the treatment of fibrotic disease and cancer announces that zelasudil (RXC007), an oral, selective Rho Associated Coiled-Coil Containing Protein Kinase 2 (ROCK2) inhibitor, has received Orphan Drug Designation from the US Food and Drug Administration (FDA) for the potential treatment of Idiopathic Pulmonary Fibrosis (IPF).
Zelasudil is currently in a Phase 2a clinical study for IPF, with topline data expected in Q1 2024.
FALLERS
Ferro-Alloy Resources - Trading Update
Ferro-Alloy Resources the vanadium producer and developer of the large Balasausqandiq vanadium deposit in Southern Kazakhstan today provides a trading update in respect of recent developments at the Company's existing operations.
Supply delays & price softening due to China.
The Company anticipates that the concentrate supply delays experienced in Q3 2023, and continuing low vanadium prices, will have a material impact on the Company's financial results for Q3 2023.
REQUESTS
Audioboom
RNS WORTH READING
Crest Nicholson Hdgs - Trading Update
Against a backdrop of persistently high inflation and rising interest rates, trading conditions for the housing market have worsened during the summer of this year.
While pricing has remained resilient in a market with limited supply and few distressed sellers, the economic uncertainty is deterring prospective home movers.
Additional mortgage borrowing for those looking to upgrade or for those with low levels of equity, notably first-time buyers, has become significantly more expensive with no Government support (following the end of Help to Buy) now in place to cushion this impact.
At the interim results in June 2023 the Group outlined that it was forecasting a Sales per outlet week (SPOW) rate of 0.50 for the second half and for the 7 weeks to 18 August 2023 this has been 0.25, representing a progressively deteriorating trend.
The Group now expects FY23 Adjusted Profit Before Tax to be around £50.0m.
TruFin - Non-Binding Offer for Vertus
Vertus is a specialist lender to independent financial advisers (IFAs) looking to grow through acquisition or fund internal succession plans.
TruFin announces that it has received a non-binding, indicative cash offer from a private equity offeror for the shares it holds in Vertus Capital Ltd, a subsidiary operating company of TruFin in which the Company holds a 53.8 per cent equity holding.
The consideration payable to shareholders of Vertus would value Vertus at up to £5.9 million, with TruFin expected to receive cash proceeds of £3.2 million, due to its majority controlling stake in the company resulting in its holding being valued at the top end of the valuation range.
Rejected Indicative Offer for Oxygen - 22nd December
Oxygen is the leading provider of Early Payment Programmes and a specialist in payments control and market insights in the UK. Using its financial expertise, Oxygen helps public and private organisations trade more effectively through progressive payment practices.
TruFin announces that it recently received a non-binding, indicative offer for Oxygen Finance Limited which values Oxygen at £26 million. After considering the terms of the Offer, the Board of TruFin has rejected the Offer on the basis that it undervalues the business and prospects of Oxygen.
TOP BUSINESS STORIES
Job vacancies and starting salaries 'fall for first time this year' amid rate rise hit
There are potential early signs that the labour market is losing some of its inflationary heat, in a shift that could give the Bank of England reason to pause its cycle of interest rate hikes.
Data from a jobs search website suggested that vacancies and advertised starting salaries both fell in July - the first monthly decline for both elements this year.
Adzuna's latest report gives some evidence that the Bank's action against inflation is working.
Banks to snub Treasury meeting as UK oil and gas sector struggles for financing
The UK’s oil and gas sector faces the growing prospect of a cash crunch, with the Treasury’s latest attempts to lure lenders back to the North Sea this week likely to fall on deaf ears.
The Treasury has invited some of the world’s major banks to a meeting this Friday including multiple lenders, including British lenders such as Barclays, Nat West and Lloyds, alongside European banks such as BNP Paribas, Deutsche Bank, DNB, ING and Societe Generale and US financial institution Wells Fargo.
However, only a handful are expected to attend the meeting, with dozens of banks already pulling out of investing in domestic fossil fuels due to concerns over the UK’s poor investment climate and growing pressure to fulfil ESG obligations.
Most recently, this included BNP Paribas which followed in the footsteps of HSBC last year – which committed to stopping new oil and gas financing for freshly approved projects.
While Shell and BP are sufficiently resourced to fund projects with their own cash flows, the vast majority of producers – which actually make up the lion’s share of North Sea output – are smaller and depend on favourable lending terms from banks to finance projects.
However, the government’s decision to toughen the windfall tax last year so that it is a six-year policy has weakened investor confidence in the North Sea, with banks considering the levy to be a policy change – making their terms of financing oil and gas exploration more stringent for producers.