Cineworld shares plummet 60.46% to 8.22p on warning of significant share dilution after weak sales
Cineworld Group said recent admission levels have been below expectations, and the company is 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.
Revolution Beauty share rise another 16.67% to 28p as rebound continues after August 2nd's revenue downgrade
Revolution Beauty continued its recovery today, rising another 16.67% after moving up 29.73% yesterday and 33.85% on Friday. This follows much volatility after the company's August 2nd's announcement of a 7% revenue downgrade for FY23, and subsequent news of audit complications.
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.
The stock is up 121% since bottoming out on August 11th, however it is still down 40% from pre-announcement levels.
FY 2022 results are expected on 30 August.
Gem Diamonds shares fall 15.83% to 40.4p on quarterly production decrease
Gem Diamonds reported 6% lower quarterly production to 26,727 carats in Q2, although it reported higher revenues half-on-half, and said strong demand and robust prices for its diamond site in Lesotho reflected continued positive sentiment in the diamond market.
Gem Diamonds reported revenues of US$99.6m in H1 2022, a 2.3% increase from US$97.3m in H2 2021. The average price stayed roughly the same at $1,745 per carat.
Clifford Elphick, CEO, commented:
"We continue to see a firm diamond market for the high quality Letšeng diamonds in 2022. We are managing the economic impact of global events which are contributing significantly to the slowing down of global economic growth and which are materially impacting energy and commodity prices and disrupting supply chains worldwide.
The sanctions imposed on the Russian diamond producer Alrosa have exacerbated a shortage of rough diamonds in the market, supporting continued strong demand and robust prices for Letšeng's high-quality rough diamonds."
Cellular Goods shares rise 23.08% to 2.4p on new CEO appointment
Cellular Goods announced the appointment of Bruna Nikolla as its new CEO, effective 22 August. Nikolla will take over from Simon Walters who will continue with his role until 1 September 2022 to ensure an orderly transition.
Cellular Goods said Nikolla will bring more than 15 years of financial, strategic, and commercial experience across several sectors, including eCommerce, luxury retail, international technology, software, and telecommunications. Nikolla previously served as finance director of Trinny London, leading its pricing and commercial strategy. Between 2018 and 2020, she served as finance director at Tom Davies.