Cineworld (LON:CINE) shares increase 21.72% to 56.18p as it receives $750m lifeline
Shares in the world’s biggest cinema chain opened strong this morning after the group said it has arranged additional bank facilities of US$450 million to keep it afloat until May 2021.
The loan is part of a larger c.$750m package of extra liquidity to support Cineworld until the lockdown restrictions are eased and studios are allowed to bring their releases on screen.
The Group said its base case scenario assumes a reopening of cinemas no later than May 2021. Under this scenario, the Group said it has sufficient headroom for 2021 and beyond.
As part of its financing package, Cineworld noted that it will see all bank financial covenants waived until June 2020, an existing $111m bank facility extended until 2024, as well as accelerated tax closure to bring forward an expected tax refund of over $200m to early 2021.
"In light of the severe financial challenges facing the Group arising from the significant disruption to the entire industry, the Board is confident this additional liquidity will preserve and maximise shareholder value over the long term,” said Chair of CINE, Alicja Kornasiewicz.
Over the long term, the operational improvements we have put in place since the start of the pandemic will further enhance Cineworld's profitability and resilience,” added Mooky Greidinger, CEO of Cineworld.
Directa Plus (AIM:DCTA) shares soared 44.35% to 89.5p as its partner NexTech’s Li-S battery surpasses 400Wh/kg in full-scale pre-production prototypes
The Company said its partner, NexTech Batteries, has now achieved above 400 watt-hours per kilogram for its newly developed Li-S battery which utilises Directa’s G+ graphene.
NexTech produced several full-scale pouch format cell prototypes using its proprietary cathode and electrolyte materials producing 410Wh/kg of specific energy at a weight only slightly below 30g. Standard Lithium-Ion batteries have an energy density of 100-265 Wh/kg.
NexTech's patented nanoparticulate cathode active material combines Directa's G+ graphene nanoplatelets with sustainably sourced Sulphur, resulting from the recycling of oil refinement by-products. Such materials are fully recyclable, sustainable, and inexpensive, it noted.
Bill Burger, CEO of NexTech, said of the achievement, "We are very excited about surpassing the 400 Wh/kg mark in our pre-production prototype cells, and we look forward to shipping these next generation batteries to our long-term partners and first strategic customers."
He added, “Demonstrating above 400 Wh/kg in a practical system has been touted the holy grail for many of these applications to become a commercial reality and clearly achieving this milestone today positions NexTech in the driver seat to the EV race."
“Material science and engineering are crucial in responding to global challenges such as increased demand in energy,” commented Giulio Cesareo, Chief Executive of Directa Plus.
Quiz (AIM:QUIZ) shares jumped 23.49% to 12.2p despite Scottish store closures
Shares in the occasionwear retailer were up today despite announcing last week that it had closed more stores until next month after areas of Scotland received stricter lockdown rules.
Quiz now has 53 stores and 128 concessions closed in England, Scotland and the Republic of Ireland, however, its sites in these areas are expected to reopen on December 2 while those in Scotland will follow suit on December 11 if restrictions are not extended further.
The fashion brand experienced ‘very challenging trading conditions’ in FY20 which it said was characterised first by the challenges presented by the accelerating structural shift towards online retail and then later by significant challenges as a result of the COVID-19 pandemic.
Quiz swung to a loss after for FY20, reporting underlying loss before tax of £3.7m compared to a profit of £0.6m for FY19 while revenue and EBITDA fell 10% and 90%, respectively.
Despite rebalancing its product offering, Quiz told investors last month that these steps had not fully compensated for the decline in demand that has been experienced since March.
Shares in the retailer have more than doubled since US pharmaceutical firm Pfizer first announced that its vaccine was found to be more than 90% effective in preventing COVID-19. With more COVID-19 vaccine news coming to light, this upward curve could continue further.
Concepta (AIM:CPT) shares rose 22.22% to 1.1p after acquiring The Genome Store
The personalised healthcare company has acquired The Genome Store, a provider of home-administered postal genomic test services, for an initial consideration of £0.28m.
Concepta believes the acquisition will deliver one of its key strategic areas of focus - growing its product portfolio into other areas of personalised health and female health products.
Manchester Science Park-based The Genome Store has developed several genomic/DNA tests covering a range of female and male wellness, food intolerance and lifestyle testing.
The genomic testing service provides a complementary portfolio of products to Concepta's personalised fertility tracker, with more women’s health testing products being developed.
An initial portfolio of tests will be launched in Q420, with a pipeline of further tests to be commercialised from 1Q21. The Company detailed that the service is expected to be rebranded under Concepta ownership and the portfolio launched under a new brand.
The company said the acquisition will provide it with a compliant laboratory set up, high throughput testing capacity and further revenue streams from ‘a scalable business model.’
According to Deloitte in their Health Solutions 2020 Survey of Health Care Consumers, customer behaviour has evolved since pre-COVID, where consumers were most comfortable using at home tests for diagnosing infections.
Behaviour has changed significantly since COVID-19 - Deloitte stated that around 30% - 50% of consumers are now comfortable using at home testing for a variety of healthcare reasons.
Investec (LON:INVP) shares fell 5.27% to 182.55p after halving dividend
The investment advice company halved its dividend last week to 5.5p (49.1% payout ratio) following a difficult 1H21 due to economic conditions attributed primarily to COVID-19.
Operating income before expected credit losses was down by 24% to £729m (1H20: £959.3m) while adjusted operating profit was down 48.4% to £142.5m and adjusted basic earnings per share of 11.2p was down 50%, albeit ahead of pre-close guidance.
“We are encouraged by the resilience of our loan book, the performance of our core franchises against a tough backdrop and progress made on our strategic objectives,” said Fani Titi, Chief Executive of Investec, speaking on the group’s commitment in 1H2021.
“We entered this crisis from a position of strength and continue to have a strong capital, funding and liquidity position, leaving us well placed, both operationally and financially, to navigate this evolving environment for the benefit of our clients and other stakeholders."
Investec expects 2H21 performance to be ahead of 1H21 with improved revenue trends in 1H21 as client activity levels improve and as liability repricing aids net interest income.