Full year numbers from the high tech instruments specialists Oxford Instruments were issued this morning and whilst the headline figures of a 5% increase in revenues and no change in profits may have been underwhelming, it was the strategic update that arguably proved more insightful. Management noted that the business has been de risked and will operate as two distinct divisions, focusing on a more defined product set. The company has also acquired a competitor in a structured deal where there seems to be scope for performance optimisation. At 9am, shares were trading more than 10% higher giving the company a valuation of around £1.6 billion.
Shares in the exploration company Helium One slumped this morning following news of an £8m placing. This was undertaken at a 56% discount to Friday’s closing price so the fact the stock is currently down a “mere” 45% suggests that investors have some confidence here. Directors have also supported the move and funds will support the completion of a new drill site appraisal, something management note will be pivotal for the company’s development.
Another small cap struggling in early trade on Tuesday was AFC Energy who again announced the completion of a capital raise on an oversubscribed basis. The new stock was issued at a 27% discount to Friday’s closing price and whilst shares are only trading 20% lower early on Tuesday, losses were also accrued during the latter part of Monday’s session too.
Headlines we expect on Wednesday
Safestore Holdings Interim Results
This time last year Revenue £110m, Occupancy 76.7%, Underlying EBITDA £69.7m
Molten Ventures Final Results
This time last year Portfolio value £1.37bn, Post-tax loss -£243m
