Cineworld sink another 58.27% to 4.07p on warning of significant share dilution after weak sales
Cineworld Group on Wednesday said recent admission levels had been below expectations, and the company was therefore evaluating "various strategic options to both obtain additional liquidity and potentially restructure its balance sheet through a comprehensive deleveraging transaction". The company is in active discussions with stakeholders regarding such a move that would result in a "very significant dilution" for shareholders.
The lower admission numbers are a result of a "limited film slate", which is expected to persist until November, Cineworld said. In the meantime, lower demand is likely to affect the company's trading and liquidity position.
After sinking 60.48% on Wednesday, Cineworld shares plummeted another 58.27% today. Shares have lost 80% of their value since Wednesday's announcement.
Kinovo shares soar 43.08% to 37.2p on higher revenues and profit in FY22
Kinovo announced 35% higher revenues to £53.3m and 102% higher adjusted EBITDA to £4.2m in today's FY22 final results update.
Financial performance was significantly up across the board in FY22. Operating profit was up 95% to £4.1m with strong cash conversion of 223% and £9.4m of cash generated. The company ended the year with £2.5m in cash, up from £1.3m FY21. Debt was also significantly reduced to £0.34k from £2.4m a year ago. Adjusted earnings per share doubled to 5.33p.
Broken up into categories, Renewables (21% of revenue) grew 32%, Regeneration (20% of revenue) grew 61%, and Regulation (59% of revenue) grew 30%, all year-on-year. The company credits the increased number of new contracts to significant investments in its business development.
Post-period, growth continued with 28% increase in revenues and 24% increase in adjusted EBITDA year-on-year. However, the company did record a £12.6m loss from the disposal of its construction division DCB.
David Bullen, CEO, commented:
"While the last year has been challenging for Kinovo, we are delighted with the performance of the underlying business. Revenues increased by 35% and adjusted EBITDA more than doubled, a direct result of the repositioning announced last year to focus on three key areas: regulation, regeneration and renewables. This streamlining of operations has allowed the underlying business to prioritise what it does best and flourish. Coupled with the significant investment in our people, upskilling of employees and bringing in additional expertise, Kinovo is well positioned to negotiate this difficult macro-economic environment."
Sabien Technology shares rise 12.77% to 13.25p on SAP application to triple the addressable market for its energy saving technology
Sabien said it had applied for the UK's Standard Assessment Procedure (SAP) approval. If granted, the company will gain access to the UK's residential/domestic market, increasing its potential customer base by 3x. The company's signature M2G Cloud gas reduction technology increases the efficiency of gas boilers, and should be attractive to residential customers.
In July, Sabien demoed the technology, with results showing an average 17% daily savings in gas consumption and CO2 emissions, the company claimed. This was based on a mixed customer base of 109 newly installed M2G installations.
"The savings delivered through Sabien's unique technology instantly addresses the energy crisis the UK is currently experiencing. Reducing fossil fuel use at point of consumption and reducing overall cost to the consumer on their bill." the company said.
Richard Parris, CEO, summarised:
"While further work is required to complete SAP certification and the supply of silicon chips remains challenging, I am confident this announcement represents a step-change in Sabien's go-to-market firepower. This bodes well for future sales, especially as the demonstrated average immediate saving of 17% gas heating bills is nationally significant to businesses and consumers alike."
Revolution Beauty shares fall 37.36% to 16.6p on delay of audited results
Revolution Beauty shares continued their rollercoaster ride today, this time down after the company said it did not expect to be able to release audited results for FY22 by 31 August as previously announced. If an audited report is not released by 31 August, trading of the company's shares will be suspended until the report is produced.
This news follows much volatility after the company's August 2nd's announcement of a 7% revenue downgrade for FY23 and subsequent news of audit complications. Shares had risen 16.67% on Wednesday after moving up 29.73% on Tuesday and 33.85% on Friday. Unfortunately, today's news undid that recovery.
Despite the revenue downgrade, Revolution Beauty's top line is still set to expand 15%-20% (ex Russia/Ukraine) this year and the company should still be profitable with the seasonally stronger second half, meaning it is likely to hit broker Zeus's 1.5p EPS target.