CMO Group shares plummet 52.26% to 37p on softer margin performance and growth warning
CMO Group forecast weaker growth than previously expected in its H1 update today. "On the supply side, CMO has experienced higher carriage costs and supplementary product price charges." the Company said.
CMO Group now expects full-year revenue to grow from £76.3m in FY21 to no less than £86m, but adjusted EBITDA is projected to stay the same at c. £3.7m due to challenging macroeconomic and geopolitical conditions.
"Given the trading challenges ... which are anticipated to continue through the second half and into the first half of 2023, the board has now taken a more cautious near-term outlook and expects to see less strong growth in the short term."
t42 IoT Tracking Solutions shares rise 31.71% to 13.5p on US$16m distribution agreement in Argentina
t42 IoT Tracking Solutions announced that, following a successful pilot programme, it has signed an agreement with a second Latam distributor to provide t42 solutions to local port authorities over four years from 2023, with an estimated total value exceeding US$16m.
t42's solution will enable port authorities to limit smuggling activities, ensure compliance with cross-border regulations, and secure significant local jurisdiction tax revenues. The agreement includes both hardware and recurring SaaS service revenues, which are expected to continue while the equipment remains operational.
ValiRX shares rise 20.93% to 13p on successful evaluation of breast cancer treatment
ValiRX announced it has completed evaluation of the impact of a peptide drug candidate against triple negative breast cancer. Over the past nine months, the candidate peptide was investigated with a range of in vitro and in vivo tests by the Company. The evaluation concluded there was "good evidence of biological activity and a strong rationale for further development".
ValiRx has thus notified the academic team and IP & Licensing team at King's College London that it wishes to proceed to full in-licensing.
Distil shares fall 14.81% to 1.15p on lower Q1 revenue
Distil Plc reported a significant decrease in Q1 revenue. In the quarter to June, Distil saw 79% lower volumes and 81% lower revenues YoY. Revenues decreased from £624K to £120K.
Distil explained the main reason for the decline was the recent remodelling of its business whereby it now sells directly to retail customers rather than using third party distributors.
Distil also pointed to a slow recovery from Covid. "The overall UK spirits market in the first half of this calendar year has been challenging as it continues to recover from the impact of Covid" said Executive Chairman Don Goulding. He also expressed confidence in a solid recovery: "We expect the change to our business model to yield significant revenue upside from 2023 financial year onwards."