Somero Enterprise rallies as it sees full year earnings exceeding market forecasts

By Renae Dyer / January 12, 2018 / www.proactiveinvestors.co.uk / Article Link

Somero Enterprise Inc (LON:SOM) expects 2017 earnings and revenue will be ahead of market forecasts following a strong second half performance.

Shares in the maker of laser-guided machinery used in horizontal concrete placement rose 8.4% to 372.5p.

"The board is pleased to report that the company delivered strong, profitable growth and healthy cash generation in the six months since 30 June 2017 exiting 2017 with its strongest trading month of the year," it said.

 

"As a result of the strong H2 performance, the board now expects 2017 revenues will be slightly ahead of market expectations of US$84.7mln, EBITDA will be comfortably ahead of market expectations of US$26.0mln driven by the volume increase and effective operating cost management, while net cash at 31 December 2017 is expected to be not less than US$18.5mln, well ahead of market expectations of US$16.5mln."

1.00pm: Sirus Minerals dips on delay to Woodsmith mine excavation 

Sirius Minerals PLC (LON:SXX) shares edged lower after saying there had been some delay to excavation of the Woodsmith mine in Yorkshore due to poor weather.

In a quarterly update, the company tried to reassure investors by saying it is confident it can make up the time lost on the mine, which hosts to an estimated 2.6bn tonnes of fertiliser rich in potassium, calcium and magnesium.

The company said appointing a contractor to sink the main shaft at the mine is the next key task and all avenues are being explored to ensure this happens as soon as possible and that the impact on the overall construction programme is minimised.

Shares fell 2.8% to 23.2p.

Oracle Power PLC (LON:ORCP) has agreed to take full ownership of the company that owns the mining lease for the Thar coal to power project in Pakistan.

Shares rose 18% to 1.6p.

Oracle will pay ?3.6mln to Sindh Koela Limited (SKL) for the outstanding shares in Sindh Carbon Energy (SCEL). 

Anthony Scutt, Oracle's chairman, said: "Sindh Koela Limited now stand to benefit alongside existing Oracle shareholders as the project advances and the current disparity between the market valuation and that of the project narrows."

11.00am: Carillion shares drop after broker downgrade

Shares in Carillion PLC (LON:CLLN) fell 1% to 19p as Peel Hunt downgraded the stock and as the shadow business secretary warned the potential collapse of the company could spark a "serious crisis".

Peel Hunt cut its rating on the stock to 'sell' from 'under review', saying:  "We suspect that given its mounting liabilities, recent press comment, growing customer worries and supply chain hesitancy that Carillion will be forced (by the banks) to accelerate its financial restructuring."

Shadow business secretary, Rebecca Long-Bailey, urged the government to bring contracts from the company back to public control amid worries it could collapse.

Carillion, whose contacts with the government include work on schools, the NHS and the HS2 project, has met with lenders to discuss options to reduce debt following a series of profit warnings.

"The collapse of Carillion could provoke a serious crisis," said Long-Bailey.

"It would have major implications for the outsourced government contracts the company holds, as well as the firm's thousands of workers, those in the supply chain and those who rely on Carillion's pension fund."

On the upside, HaloSource Inc (LON:HALO) shares rose 14% to 1.20p after the clean water technology company completed the first commercial production of its filtration product with supply partner, Chematek.

The group expects to launch HaloPure(R) Adsorption Composite in the US in the first half of 2018 and sees it generating its "first significant revenues from the sale of drinking water technology in the world's largest consumer market for drinking water hydration devices".

"We expect to also power our hydration devices in China with this media in conjunction with our e-commerce partnership with Shanghai JiuBan Industrial Co. Ltd. announced on 21 June 2017," it said.

9.30am: Nighthawk Energy and Petards in the red

Nighthawk Energy PLC (LON:HAWK) shares dropped after the US-focused oil company reported a fall in production in the year to date.

Output fell to a net 282,892 barrels in the first 11 months of 2017, compared to 364,399 the same period a year ago. 

The company said production decrease was partially due to several wells requiring non-routine workovers. It expects to continue these workovers through January 2018.

Shares declined 13% to 0.5p.

Petards Group plc (LON:PEG) said it expects full year profit before tax to be above market expectations due to the positive net effect of exceptional items.

However, shares fell 4.7% to 20p as the developer of surveillance systems said ?1mln of revenues will be deferred into 2018 due to some delays in projects.

The delay involves a programme to develop additional software functionality for eyeTrain systems.

Financial adviser Lighthouse Group PLC (LON:LGT) said it expects to report full year revenue and profit ahead of market expectations, sending its shares higher in morning trading.

"The anticipated results for 2017 reflect the continuing and increasing importance of the valuable relationships the group has developed with its affinity partners, with 15,000 new client engagements undertaken during the year, as well as the on-going professionalism and effectiveness of the advisers across the group's operations," said chief executive Malcolm Streatfield.

Shares rose 13.6% to 22.50p

Armadale Capital PLC (LON:ACP) shares increased 8.8% to 2.45p after the investment firm said it had agreed to sell its interest in the Mpokoto gold project in the Democratic Republic of Congo.

The company, focused on investments in natural resource projects in Africa, will receive US$562,500 and a 1.5% royalty on gold produced for the stake.

Proactive news headlines:

Sirius Minerals PLC (LON:SXX) is confident production of polyhalite at the York Potash project will start on time and on budget. A quarterly update indicated there had been some delay to excavation of the mine, called Woodsmith, due to the weather in Yorkshire, but Sirius is confident it can make up the time lost.

Ferrum Crescent PLC (LON:FCR), the European lead-zinc explorer, has announced the appointment of Colin Bird as a non-executive chairman, with immediate effect. The AIM-listed group said Grant Button, its interim non-executive chairman, will resume his former role as non-executive director.

FFI Holdings Plc (LON:PLC) has broadened the scope of its insurance business with the acquisition of a motorsports events  specialist and expects to announce another deal this month. Subsidiary Reel Media, which FFI acquired in December, has bought the business from US broker All Risks for US$1.83mln.

Telit Communications Plc (LON:TCM) revealed that the tax  case relating to its Italian business has reared up again. Last summer, the industrial Internet of Things specialist won a court battle with the Italian tax authorities when the latter's appeal against the annulling of three VAT assessments for Tallit's Italian business was rejected. Now it has emerged that the country's authorities have submitted appeals to the Italian Supreme Court, after two tiers of lower level court found in Telit's favour.

African Potash Ltd (LON:AFPO) furthered its entry into game-changing blockchain technology - striking a deal on a joint venture with Gibraltar firm TokenCommunities Limited. The group said this will complement the FinComEco joint venture struck in November and will bolster its plans to operate a range of platforms and projects in the agricultural commodity markets sector in sub-Saharan Africa.

Oracle Power PLC (LON:ORCP) is to take full ownership of the company that owns the mining lease for the Thar coal to power project in Pakistan. Anthony Scutt, Oracle's chairman, said: "The move to 100% ownership of SCEL is a material development for Oracle, clearing a significant hurdle as the Company moves to financial close.

Goldplat plc (LON:GDP) has made a breakthrough in its dispute with Rand Refinery, as the pair have agreed a proposed full and final settlement.

Ortac Resources has changed its name to Arc Minerals Ltd (LON:ARCM) with immediate effect.  The company's new ticker will be ARCM.LN and trading under the new name is expected to commence on or around 22 January 2018.

Advanced Oncotherapy (LON: AVO), the developer of next-generation proton therapy systems for cancer treatment, has announced that yesterday Dr Enrico Vanni, a non-executive director of the company purchased 40,000 ordinary shares at a price of 54.5p each. Following this transaction, Dr Vanni now holds 1,263,946 ordinary shares, representing 1.56% of the issued share capital.

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