The following stocks are the leading risers and fallers on AIM in London on Friday.
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AIM - WINNERS
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Jersey Oil & Gas PLC, up 33% at 202.5 pence, 12-month range 146p-357p. The upstream oil and gas company updates on the Greater Buchan Area farm-out process, revealing it is in ‘advanced’ exclusive discussions with an unnamed ‘significant’ UK North Sea operator. Says head of terms have been agreed for the farm-out of a material interest in the GBA licenses to the operator, and the parties are working towards a finalised fully-termed agreement ‘in the near future’. They have agreed to an exclusivity period until the end of April. ‘We are pleased to be in advanced exclusive negotiations with a well-funded industry heavyweight and whilst there can be no guarantees of a successful conclusion, we are aiming to finalise the farm-out in the near future and look forward to updating shareholders shortly,’ says CEO Andrew Benitz.
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AIM - LOSERS
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Shearwater Group PLC, down 38% at 51.9p, 12-month range 40p-155p. The cybersecurity group warns its performance in the year ending Friday is likely to disappoint and be ‘significantly behind market expectations’. Expects annual revenue of £27.0 million, compared to £35.9 million a year before and market consensus of £37.7 million. Adjusted earnings before interest, tax, depreciation and amortisation are expected at ‘around breakeven’, compared to market consensus that it would remain unchanged from the £4.4 million achieved in the prior year. The weaker performance reflects delays in finalisation of orders in Services and Software businesses, as customers defer investment decisions or implement spending freezes amid market volatility in the final quarter. ‘Looking forward the group retains a strong pipeline on which to deliver sustainable revenue, with profits moving forward as we deliver deals to our loyal customer base, including banks and telecoms businesses,’ Shearwater says.
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Asimilar Group PLC, down 33% at 1.40p, 12-month range 1.3p-30p. The technology investor says it will suspend its shares from trading on AIM and AQSE from Monday, as it will fail to meet the reporting deadline for its audited annual results for the year ended September 30. ‘The board has been working hard with the auditor to clear all outstanding issues, however, the auditor requires additional time to complete all audit formalities,’ it says. The delay is partly due to an ‘exhaustive’ review process of independent third-party valuations on some of the firm’s unquoted investee companies.
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Emis Group PLC, down 24% at 1,376p, 12-month range 1,242p-1,918p. The healthcare software firm falls on news that the UK competition watchdog has referred its acquisition by US healthcare insurer UnitedHealth to a phase 2 investigation. Earlier this month, as part of its phase 1 probe, the UK Competition & Markets Authority found competition in the fields of population health management and medicines optimisation software would be hurt by the deal. Both Emis and UnitedHealth-owned Optum Health Solutions (UK) provide software services to GPs in the UK. In response, UnitedHealth proposed a remedy to divest of Optum’s Medicines Optimisation and Population Health Management businesses in the UK. The CMA rejected the remedy, and confirmed it would refer the acquisition for a phase 2 investigation. Emis and UnitedHealth say they are ‘disappointed’ with the decision, believing the divestment would directly address the CMA’s competition concerns.
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