Investors appear to be regaining confidence after a volatile period last week with markets marching forward across the UK, mainland Europe and Asia on Monday morning, the FTSE 100 climbing 26.4 points higher to 7,040.3 and the FTSE 250 up almost 140 points at 18,729.
Industrial components distributor Diploma (DPLM) ticks up 7.3% to £13.90 on strong full year results revealing 9% growth in adjusted pre-tax profit to £84.8m and another year of double digit earnings per share growth. Despite Brexit-related uncertainties, investors also welcome a confident outlook from proactive Diploma, which has begun to build inventory levels of faster moving product lines ‘which would mitigate the impact on their activities from a significant disruption in cross border trade between the UK and Continental Europe.'
Diploma also assures the impact on its business from Brexit-related uncertainty ‘is not expected to be significant in terms of the group’s overall profitability’, as UK-based revenues account for only 26% of overall revenues. Furthermore, Diploma’s UK businesses, as well as those based in Continental Europe, are substantially “in country” industrial suppliers of goods with limited cross border sales activity.
Mining giant BHP Billiton (BLT) rises 16p to £16.23 after settling a transfer pricing dispute with the Aussie tax authorities, relating to the mining giant’s marketing operations in Singapore between 2003 and 2018. BHP has agreed to pay A$529m to fully settle the spat, news which is welcomed by the market.
Social housing and care sector services provider Mears (MER) is marked down 4.6% to 351p as it announces plans for a £22.5m placing, priced at a discounted 331.5p per share, to help fund the acquisition of Mitie’s (MTO) maintenance services business.
Challenger bank CYBG (CYBG) improves 1.8p to 256.4p despite Chief Operating Officer (COO) Debbie Crosbie’s decision to resign after more than 20 years with the group ‘to take up an external opportunity’. The news comes on the eve of the group’s full year results statement and first formal update following the completion of the takeover of Virgin Money. Fraser Ingram, currently CYBG’s Innovation and Change Director, will fill in as COO temporarily while a successor for Crosbie is sought out.
Advanced materials play Haydale Graphene Industries (HAYD:AIM) sparks up 11.7% to 16.75p after inking a license deal with TKS, one of Thailand’s leading security printers, to use bespoke ink for an anti-counterfeiting product.
Redx Pharma (REDX:AIM) reverses 3.8% to 6.35p as the oncology and fibrosis-focused drug developer swings to an annual loss after emerging from administration in November and slashing its headcount. The company also announces the appointment of Dr James Mead as its new full time chief financial officer (CFO), replacing interim CFO Dominic Jackson.
Radiation detection technology play Kromek (KMK:AIM) clips ahead 8.6% to 25.25p after securing a five-year $7.8m bagging screening contract with an existing customer, described as a leading company in x-ray imaging systems.
Renewable energy minnow Active Energy (AEG:AIM) surges 26.5% higher to 2.15p after securing timber permits in Newfoundland and flagging solid progress towards establishing its first ‘CoalSwitch’ plant in North Carolina.
