Edison Investment Research

Tungsten (TUNG); trading update: revenue up 4% y/y; 5 accounts added; strong pipeline

Stock up 0.39% to 52p at 8:15

TUNG announced trading update for Q1 2019 (ended July 2018), whereby revenue grew 4% y/y on a constant currency basis to £8.6m, with five new accounts payable customer sales (+£0.45m expected in FY19). Adjusted operating expenses declined 13% y/y to £8.5m, resulting in EBITDA loss dropping to £0.5m (Q1 2018 – loss of £1.6m).

Uber in discussion to buy Deliveroo

The business logic for Uber to acquire London-based Deliveroo is unassailable.

Uber has a comprehensive app-driven distribution system and an international reputation, while Deliveroo’s business model encompasses ownership of the delivery function, unlike Just Eat which relies on restaurants’ own delivery drivers.

Carr’s Group (CARR); acquires Animax Limited (Animax) for a total cash consideration of £

Stock up 0.67% to 150p at 8:30

CARR has announced the acquisition of the entire issued share capital of Animax. It acquired Animax, which is a producer of animal health products, for a total cash consideration of up to £8.5m.

KEFI Minerals (KEFI); Appoints SP Angel Corporate Finance LLP as joint broker

Stock down 1.44% to 02.05p at 8:35

KEFI has announced that SP Angel Corporate Finance LLP has been appointed as joint broker to the company, alongside Brandon Hill Capital Ltd.

Moss Bros (MOSB): warns that operating profits will be lower than market expectations

Adjusted profit before tax is down £3.7m year-on-year

It is not a surprise that Moss Bross warns that adjusted operating profit will materially lower than market expectation of £2.3m. As the company already said in May, like-for-like sales are negative – they have worsened from -2.4% then to -6.9% for the full six months.

GCP Student Living (DIGS); Gross proceeds of £38.1m from placement of shares

Stock down 0.13% to 150p at 8:24

DIGS announced that it has received applications for 25,512,151 placing shares at 149.50p/sh, raising gross proceeds of £38.1m. Proceeds, along with facilities, are expected to be used to fund the construction of Scape Brighton.

Osirium Technologies (OSI); wins contract with UK Fashion & Homeware Retailer

Stock flat at 142.50p at 08:06

OSI announced that it has won a contract with a major British multinational clothing, footwear and home products retailer.

Diageo (DGE): warns market foreign exchange volatility will reduce net sales by £175m

Foreign exchange volatility to impact operating profit by £45m this year

Drinks group Diageo has warned that adverse emerging market foreign exchange volatility will reduce net sales by £175m and impact operating profit by £45m this year.
The company says in a trading update that its financial year has started well and its performance is in line with its expectations.

Stobart (STOB); trading update: passenger growth at 37%; sale of processed tonnages grew c.50%

Stock down 0.82% to 240.50p at 8:38

STOB issued a pre-close trading update (for interim ending August 2018) ahead of its results expected on 24 October 2018. Under Aviation, passenger growth was 37% at London Southend. Under Energy, sale of processed tonnages grew c.50%. Commercialisation of the core operating business continued during the period.

NetScientific (NSCI); ProAxsis products selected for ERS funded BRIDGE study clinical trial

Two products of ProAxsis, a portfolio company of NSCI, have been selected for inclusion in the BRIDGE study clinical trial, funded by the European Respiratory Society (ERS). NSCI holds 54% shares of ProAxsis on a fully diluted basis.