(Alliance News) - The following is a round-up of updates by London-listed companies, issued on Monday and not separately reported by Alliance News:
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Zoltav Resources Inc - Russia-focused oil and gas explorer and producer - Subsidiary Diall Alliance enters into two non-revolving credit facilities with PJSC Sberbank of Russia. The first loan has a maximum facility of RUB7.7 billion, or around USD105.6 million, and will be used to finance investment costs associated with the commercialisation of the eastern fields of its Bortovoy Licence. The second is for VAT on capital expenditure and will have a maximum facility of RUB700 billion. Financing has conditions restricting intra group transfers and cash outflows from Zoltav's main operating subsidiary, Diall. As such, says it needs to cut costs and it may be "challenging" to maintain its licence obligations with regards to the Koltogor Licences, its offshore corporate structure, and the listing of shares on AIM.
"The board and management will conduct a thorough and comprehensive analysis of alternative options...However, given the company has for some time been unable to attract either public or bank finance, it is likely that the company will be unable to maintain the listing of its ordinary shares on AIM beyond the next few months," it says.
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Quadrise Fuels International PLC - London-based residual oil technology licensor - For financial year ended June 30, records revenue of GBP17,000 versus none a year before, while pretax loss slims to GBP4.4 million from GBP5.0 million. Says that it has the resources in place to reach forecasted sustainable commercial revenue in the first quarter of 2023, with cash at year end almost tripling to GBP7.0 million, from GBP2.4 million a year before. Looking ahead, notes public attitude towards renewables and low emission fuel options is increasing the market opportunity in various sectors, with Quadrise's Research & Development team focused on finding new net zero carbon future fuel solutions.
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JKX Oil & Gas PLC - hydrocarbon exploration and production company - To sell 100% stake in Russian operating subsidiary Yuzhgasenergie. The decision to seek buyers for its last remaining non-core asset is driven by a greater focus on the "most prospective opportunities" within its portfolio. Proceeds from the sale will be used to finance on-going activities and possible further acquisitions in Ukraine, where it sees the most prospective opportunities, JKX states.
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Castings PLC - Brownhills, England-based iron casting and machining company - Notes underlying demand for heavy trucks, which makes up 70% of revenue, remains very strong. However, warns that the conversion rate of forward schedules to actual sales is significantly below what it would normally expect, mainly due to raw material shortages preventing the building of trucks at the rate required to satisfy high demand. Due to production difficulties, revenue and profit have been negatively impacted in the second quarter of the financial year. It is not possible to forecast when the supply chain restrictions will ease, Castings says. Despite difficulties, Castings reiterates that balance sheet is strong and management expects to at least maintain interim and final dividends.
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Marlowe PLC - London-based safety services and software provider - Buys e-learning and compliance software firm VinciWorks for initial cash payment of GBP39 million and a contingent consideration of around GBP15 million. Also announces purchase of Sheffield-based water treatment and air hygiene business Hydro-X for GBP30 million, payable on completion. The acquisition of Hydro-X is expected to complete by October 21.
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React Group PLC - South Derbyshire, England-based cleaning, hygiene and decontamination firm - Fidelis unit wins GBP550,000 3-year cleaning and hygiene services contract within the education sector. React also wins a number of smaller to medium-sized contracts in past few weeks, five of these being in contracted maintenance cleaning and hygiene services, all on three-year contract terms. Chief Executive Shaun Doak comments: "These recent contract awards along with a steadily growing pipeline of opportunities point towards a return to business-as-usual for a number of our customers."
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By Will Paige; willpaige@alliancenews.com
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Marlowe (MRL)
Castings (CGS)
React Group (REAT)