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AIM WINNERS & LOSERS: Safestyle expects full-year profitability hit

Tue, 29th Nov 2022 11:16

(Alliance News) - The following stocks are the leading risers and fallers on AIM in London on Tuesday.

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AIM - WINNERS

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Infrastructure India PLC, up 39% at 0.49 pence, 12-month range 0.26p - 1.00p. Announces an update of the sale of Indian Energy Ltd. The India-focused infrastructure fund now expects proceeds from the sale to be received during December, following a request from the buyer for additional time to complete the transaction. Says it has expressed concern to the buyer, AVSR Constructions, over the "continued" delays and has "opened dialogue" with other interested parties in regards to the asset. It is also discussions with third parties regarding the sale of further assets, including Distribution Logistics Infrastructure Ltd.

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Craven House Capital PLC, up 16% at USD0.10, 12-month range USD0.060 - USD0.56. In the year ended May 31, reports a significantly narrowed pretax loss of USD236,000, from a loss of USD2.4 million the previous year. Explains the valuation of its four portfolio companies remained unchanged during the year and notes "positive progress" in each. Expects advertising revenue for its Rosedog and Garimon investment to begin in 2023. Notes the brain tumour drug of its Honeydog investment is approaching the end of its clinical trials. Adds it is in negotiations for sales and distribution agreements for the heart drug and dietary supplement of investee Bio Vitos Medical. Declares no dividend for the year.

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AIM - LOSERS

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Safestyle UK PLC, down 16% at 25.93 pence, 12-month range 20.30p - 55.05p. Says order intake in the period from late September to the end of October has been "volatile". Blames this on political and economic news which it says has had an "adverse impact" on consumer confidence. Order intake in the period is 7.6% behind expectations and 2.7% behind the prior year. This will result in lower installation volume levels than expected, it adds. Further, the replacement window and door retailer says it is experiencing higher costs of acquisition than forecasts. Safestyle expects all this to "significantly" impact full-year profitability.

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Shearwater Group PLC, down 21% at 90.00 pence, 12-month range 70.00p - 155.00p. In the six months ended September 30, reports a significantly widened pretax loss of GBP1.6 million, from a loss of GBP518,000 the previous year. Blames this on the impact of weaker sterling against the US dollar during the first half. Chief Executive Phil Higgins adds that the firm's financial year is also traditionally weighted to the second-half. Revenue ticks up slightly to GBP10.7 million from GBP10.6 million thanks to "new client wins and successful contract renewals". Higgins says: "With good visibility of revenues and an expanded, global footprint, there is growing momentum across the group as we move into a more favourable macroeconomic environment in H2, with confidence levels higher than they were this time last year."

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By Heather Rydings; heatherrydings@alliancenews.com

Copyright 2022 Alliance News Limited. All Rights Reserved.

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Infrastructure India PLC - infrastructure fund investing directly into assets in India - Notes loan recall notice received by Distribution Logistics Infrastructure India Ltd from the lenders to DLI's project debt. Notes that in late March, DLI was granted a period of grace for debt servicing by its Indian lenders until February and DLI management had been in discussion with its lenders regarding settlement of its dues. Says a loan recall notice in India is a precursor for the lenders to DLI to invoke the insolvency and bankruptcy code if DLI presents no satisfactory response to the notice within two weeks from the date of issue. Infrastructure India says it is in discussions with a third party and has received preliminary terms for the sale of DLI. Says these discussions are ongoing, although there can be no guarantee that these will lead to an agreement to sell DLI. Says it is liaising with DLI on this matter and will provide shareholders with further updates "as appropriate in due course".

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IN BRIEF: Infrastructure India extends debt facility maturity dates

Infrastructure India PLC - infrastructure fund investing directly into assets in India - Agrees extension to the maturity dates of all its debt facilities, being the term loan provided by IIP Bridge Facility LLC, the working capital loan provided by GGIC Ltd and the bridging loan provided by Cedar Valley Financial. All three have been extended to February 29.

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IN BRIEF: Infrastructure India says disposals nearing completion

Infrastructure India PLC - infrastructure fund investing directly into assets in India - Says it expects to release 2023 results in the first quarter of 2024. Will be able to publish interim results immediately afterwards. Also expects to convene an annual general meeting in the first quarter. Says results delay is due to delays in the disposal of Distribution Logistics Infrastructure Private Ltd. Says this transaction allows it to remain invested in the Indian logistics sector and is expected to realise enhanced value for shareholders at the time of exit, most likely within 24 to 36 months from closing. Says both Distribution Logistics and buyer Pristine Malwa Logistics Park Private Ltd are "working diligently towards completion", with "certain complex issues" now "nearing resolution". Currently expects to complete sale by January 15. Adds that planned sale of Indian Energy Ltd to FA Power Renewables Private Ltd, closing of which was delayed due to "regulatory matters", is now close to finalisation.

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IN BRIEF: Infrastructure India agrees loan maturity extensions

Infrastructure India PLC - infrastructure fund investing directly into assets in India - Says it has agreed to an extension of the maturity dates for all of its debt facilities, which are currently provided by GGIC Ltd, IIP Bridge Facility LLC and Cedar Valley Financial. Notes its term loan provided by IIP, worth USD119 million, will be extended to January 15. Says it unsecured working capital loan and unsecured bridging loan have also been extended to January 15.

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Infrastructure India PLC - infrastructure fund investing directly into assets in India - Says it will not be in a position to publish the 2023 annual report by September 30, as required by AIM. Explains this relates to the sale, announced on September 6, of its interest in Distribution Logistics Infrastructure Private Ltd. Points out certain disclosures in the annual report in relation to the valuation of its interest in DLI are unable to be published due to Securities and Exchange Board of India restrictions. Therefore, trading in shares will be suspended from October 2. Expects to be in a position to complete the audit and to report its 2023 annual report prior to the end of 2023.

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