(Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Wednesday.
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FTSE 250 - WINNERS
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Chemring Group, up 24%. The defence technology company reported 37% revenue growth in the six months to the end of April to GBP191.0 million, taking pretax profit up to GBP19.0 million from GBP4.3 million a year ago. Chemring increased its interim payout by 8% to 1.3 pence a share. The company said its performance in the first half of its current financial year was ahead of expectations, reflecting strong performance in both segments of its business and some positive timing differences. Chemring reported good progress in securing new business in the UK, US and Australia for the supply of global countermeasures. Looking forward, Chemring said all of its businesses have remained open despite the challenges presented by Covid-19. Its full-year expectations are unchanged, despite the challenging environment, with about 95% of expected second-half revenue in the order book or delivered to date.
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Marks & Spencer Group, up 5.8%. Jefferies raised the UK retailer to Buy from Hold.
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FTSE 250 - LOSERS
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B&M European Value Retail, down 1.3%, Jefferies downgraded the UK retailer to Hold from Buy.
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OTHER MAIN MARKET AND AIM - WINNERS
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Cadence Minerals, up 42%. The company - which invests in lithium mining projects - said its joint venture partner Hastings Technology Metals entered into binding master agreement with the German automotive supplier Schaeffler Technologies for the targeted supply of its MREC, the product mined and processed from Yangibana project in the Gascoyne region, Western Australia. Hastings obligation is to supply a substantial volume of MREC over a period of 10 years as initial period. Cadence owns 30% of the Yangibana, Yangibana North, Gossan, Hook, Kanes Gossan and Lions Ear rare earth deposit, which form part of the Yangibana rare earth deposit. "This contract represents a very important milestone in the development of Hastings as an emerging supplier of rare earth carbonate from Australia to Germany, an industrialised nation with a growing demand for a critical raw material used in many advanced technologies where a permanent magnet is needed," said Hastings Chair Charles Lew.
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Bluerock Diamonds, up 22%. The diamond producer reported no cases of Covid-19 at the Kareevlei diamond mine in the Kimberley region of South Africa. Bluerock said production averaged almost 2,000 tons a day since May 11 to bring total to 41,500 tons, which is 65% higher than the average daily production in the prior record quarter to the end of 2019. "The modifications made to the primary crushing circuit and the introduction of the third pan together with the processing of softer near surface material have allowed us to increase production at minimal cost whilst also reducing operating costs," said Executive Chair Mike Houston.
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React Group, up 12% at 1.70 pence. The carpet cleaning company said it placed 83.1 million shares at a price of 1.5p each, raising GBP1.3 million before expenses. The placing was materially oversubscribed following demand from both new and existing institutional and other investors. React said it intends to use the proceeds from the fundraising to strengthen its sales and marketing activities, and support a growing contract pipeline and accelerate organic growth. In addition, the proceeds will go towards additional working capital and to strengthen the company's balance sheet to support its aspiration to secure larger contracts. "This oversubscribed fundraise recognises the progress achieved so far and provides React with the working capital and balance sheet strength to support ambitions for further sustainable and profitable growth," said Chief Executive Shaun Doak.
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OTHER MAIN MARKET AND AIM - LOSERS
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Sareum Holdings, down 16% at 0.59p. The pharmaceutical company said it has completed a fundraising, comprising a placing by Hybridan in conjunction with an offer via PrimaryBid. Sareum said it raised GBP303,722 through a shares issue at a price of 0.6p per share. Accordingly, combined with the placing, the company has raised a total of GBP1.0 million. "We believe that our TYK2/JAK1 inhibitor candidates - SDC-1801 and SDC-1802 - represent exciting prospects. The way they act continues to be a focus for the broader industry interested in treating autoimmune diseases, cancer and more recently in addressing the severe respiratory symptoms associated with advanced Covid-19. These new funds will be used to advance their preclinical studies targeting completion in at least one indication late this year, pending successful progress," said Chief Executive Tim Mitchell.
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Beowulf Mining, down 9.2%. The exploration and development company said Chief Executive Kurt Budge has written to Ibrahim Baylan, minister for Business, Industry and Innovation, the government of Sweden. "Beowulf has several thousand Swedish shareholders, who own over 67 per cent of the company. They have witnessed the government's unacceptable mishandling of the Kallak application and false promises; the opportunity cost of which is incalculable. They are demanding the government be fully transparent now and remove all uncertainty as to when a decision on Kallak will be taken," Budge wrote. Beowulf said it is ready to play its part in Sweden's economic recovery, to advance Kallak in partnership with the community in Jokkmokk.
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By Evelina Grecenko; evelinagrecenko@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
Cadence Mineral (KDNC)
Marks & Spencer (MKS)
Beowulf (BEM)
Sareum (SAR)
React Group (REAT)
Chemring (CHG)
B&M (BME)