Travis Perkins (PRK) shares ticked up 6.51% to 1,722.25p as it raises profit forecasts
Shares in the builders' merchant retailer jumped after the company released a trading update in which it told investors that, following a ‘robust’ start to 2021, the high levels of growth experienced in March 2021 have continued throughout the second quarter of 2021.
The Company said the continued robust performance was largely driven by the strength of both the domestic and commercial repairs, maintenance and improvement (RMI) markets.
Given the strong performance, the Board said it believes that adjusted operating profit for the continuing business for FY21 ‘will be materially ahead of market expectations and, assuming that there is no significant change in market conditions, will be at least £300m.’
MS International (MSI) shares soared 20.92% to 196.5p as it makes return to profit
In its final results for the year ended 30th April 2021, the Company reported a return to profitability after posting a pre-tax figure of £1.59m compared to a loss of £3.25m in FY20.
Basic earnings per share amounted to 7.2p, (compared to loss per share of 15.1p in FY20 while its balance sheet was strengthened as total cash increased to £23.56m (FY20:£16.0m).
‘Furthermore, the outlook is now much brighter than we could have imagined twelve months ago. We have lost neither skills, nor potential market opportunities and are now starting to benefit from the numerous ambitious development projects and investment programmes that we have been diligently progressing over the past few years,’ it noted.
Starcom (STAR) shares jumped 17.95% to 1.15p following industry endorsement
The stock has risen in value since Friday morning when the company informed investors that its Lokies Smart Keyless Padlock had won first place in the DHL Smart Guard Challenge.
The Challenge is a technology product contest in the field of logistics security and was part of the DHL Logistics & Supply Chain summit. Starcom said the award is ‘one of the highest recognitions that Lokies could achieve’ and Starcom’s Board added that it believes the win can be ‘a steppingstone towards potential future cooperation with DHL and others.’
Meanwhile, analysts at Allenby Capital said Starcom had seen off ‘considerable competition’ to win the challenge and that it represents ‘a high-profile industry endorsement.’
The Lokies smart keyless padlock was launched in April 2019 and initial feedback has been positive with proofs of concept running in multiple markets and initial orders placed by customers in Russia, Israel, Kazakhstan, Mexico, Bulgaria and Poland, analysts explained.
UK Oil & Gas Investments (UKOG) shares rose 15.94% to 0.217p after receiving extension
On Monday, the Company told investors that it had received a two-year extension to the time period in which its 100% interest PEDL234 Loxley-1 gas appraisal well must commence.
The drilling extension was granted by the Oil and Gas Authority granted in response to delays beyond its control caused by both the pandemic and by the Company's appeal to the Planning Inspectorate against Surrey County Council's ("SCC") decision on 15th December 2020 to refuse planning consent for the Loxley gas appraisal drilling project.
UKOG said it now looks forward to presenting a robust case for the grant of Loxley planning consent to the Planning Inspector at the forthcoming public inquiry next month.
In addition to the extension, the Group also announced on Monday that following completion of the Basur-3 appraisal well's drilling pad and finalisation of the rig contract, the Oceanmec Karahan ZJ40DZ rig has now been mobilised to the site from western Turkey.
The Company highlighted to investors that the rig-up and rig-acceptance stage is expected to continue throughout the coming week with an expected drilling start shortly afterwards.
Capita (CPI) shares fell 3.24% to 39.66p following yesterday’s £380m sale announcement
Shares fell back down in the business process outsourcing company on Tuesday following yesterday’s announcement that it had agreed on the sale of its stake in the Axelos joint venture with the UK government to certification group PeopleCert International for £380m.
Capital said the deal values the joint venture at £380m on a cash-free, debt-free basis - an 11.5x multiple on 2020 EBITDA of £33.1m. Prior to completion of the sale of Capita's 51% interest, it will receive a cash dividend of £11.1m making total net cash receipts of £183.6m.
Capita said this will provide more liquidity to ‘strengthen its balance sheet, meet upcoming debt maturities and support the ongoing implementation of its transformation plan.’
In a separate market update released on Monday, Capita said it remains on track to deliver revenue growth in 2021, for the first time in six years, despite the impact of COVID-19.
Capita said it is making ‘good progress’ with its planned disposals as it remains on track to realise combined proceeds of at least £200m in 2021. The first of these is the sale of Axelos for an enterprise value of £380m, which will generate total proceeds to Capita of £184m.