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EARNINGS AND TRADING: Northamber loss widens; Ethernity contract boost

28th Mar 2024 13:44

(Alliance News) - The following is a round-up of earnings and trading updates by London-listed companies, issued on Thursday and not separately reported by Alliance News:

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Northamber PLC - London-based distributor of audio-visual and information technology equipment - Revenue in the six months to December 31 falls to GBP29.2 million from GBP33.6 million while pretax loss widens to GBP413,000 from GBP250,000. Notes broader macro-economic factors and market sentiment impacted the industry. Explains softer demand resulted in slower stock turns, leading to an increase in stock at period end of GBP10.3 million compared to GBP9.6 million. Proposes unchanged interim dividend of 0.3p. Remains cautious short term as the UK market continues to be challenging but notes industry analysts expect a recovery through 2024 in demand levels as business confidence hopefully returns.

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Ethernity Networks Ltd - Israel-based supplier of data processing semiconductor technology for networking appliances - Announces business update. Highlights positive engagement with a number of potential new customers, including two OEM vendors which, following an extensive evaluation of Ethernity's Universal Edge Platform have indicated an interest to adopt and launch the product to their customer base. Talks continue with these two vendors on potential contracts that could lead to significant business for Ethernity. Estimates the contracts could contribute between USD2.2 million and USD3 million to revenue in 2024, plus "significantly higher revenues in 2025 and beyond".

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Rurelec PLC - gas producer focused on operations in Latin America - Reports pretax profit in the six months to December 31 of GBP559,000, swinging from pretax loss of GBP2.9 million. Earnings per share total 0.09 pence compared to LPS of 0.51p. Administration expenses decline to GBP0.31 million from GBP0.48 million. Explains the board's strategy is now to seek a reverse takeover "through which to generate value for our shareholders, and to give the company access to further resource thereby allowing more time to achieve a sale of the two Siemens 701 turbines." Adds: "While we continue to hold discussions with credible potential purchasers of the turbines, these initiatives are at an early stage following the withdrawal of counterparties to our earlier discussions for reasons unconnected with Rurelec. The timing of any potential sale of the turbines remains highly uncertain owing to the limited demand and infrequent occurrence of projects into which the turbines could be injected."

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Sareum Holdings PLC - Reports pretax loss in the six months to December 31 widens to GBP3.3 million from GBP1.7 million. No revenue was disclosed as per the year prior. Operating expenses rise to GBP2.5 million from GBP1.7 million. Basic and diluted loss per share totals 3.6 pence compared to 2.1p. Further, raises GBP1.5 million via placing, subscription and retail offer at 10p per share. Intends to use proceeds to complete Phase 1a clinical studies on its SDC-1801 TYK2/JAK1 inhibitor and, together with the receipt of an anticipated R&D tax credit of GBP0.7 million for general working capital purposes.

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Team PLC - wealth, asset management and complementary financial services group - Plans to raise GBP1.1 million via GBP700,000 placing and GBP400,000 subscription at 20 pence per share. Explains funds will be used for the financing of acquisitions and deferred consideration, as well as providing cash for working capital and general corporate purposes. Notes fundraise is supported by existing and new shareholders. Further, intends to raise GBP750,000 via retail offer.

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First Tin PLC - London-based tin development company focused on advanced, low-capital expenditure projects in Germany and Australia - Reports pretax loss in 2023 narrows to GBP2.3 million from GBP3.2 million the year prior. Diluted loss per share totals 0.85 pence compared to 1.40p. Says 2024 is shaping up to be "another busy year" with the definitive feasibility study at the Taronga asset soon to be completed and the finalisation of the mineral resource estimate at the Tellerhauser asset in the third quarter. "Our outlook for the tin market remains bullish, and we are already seeing strong signs of tin price recovery. The demand for tin remains ever-present as tin becomes increasingly recognised as crucial to the global energy transition and digital revolution," company states.

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Home REIT PLC - London-based real estate company, which focuses on investing in accommodation for homeless people - Sells 63 properties for GBP6.1 million, around 1.8% of the company's portfolio by value. Notes gross proceeds from the sales are GBP0.5 million, below the draft August 2023 values. Explains the majority of the properties sold are below portfolio average lot size which may cause a greater percentage variation when comparing sale price to the August draft valuation. Since August 2023, the company has completed on the sale of 451 properties and exchanged on a further 257 properties. Sale proceeds will be used to reduce borrowings and provide working capital.

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React Group PLC - Birmingham, England-based cleaning, hygiene and decontamination firm - Issues trading statement ahead of Thursday's annual general meeting. Reports that revenue for the first five months of the current financial year ending September is ahead of the same period in last year. Says: "Each division has performed well and the group continues to benefit from cross selling opportunities which not only enhance our offering but also contribute to the organic growth. It is particularly pleasing to deliver revenue growth in a challenging market environment where our customers are always striving for the best in class service that we offer."

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Westminster Group PLC - London-based provider of security services, for sensitive places such as ports, airports and commercial buildings - Revenue in the six months to December 31 falls to GBP2.9 million from GBP3.5 million the year before, while pretax loss widens to GBP1.9 million from GBP287,000. Loss per share totals 0.58 pence compared to 0.09p. Chief Executive Peter Fowler says: "We continue to battle against probably one of the worst world economic and political backgrounds in recent times." Explains revenue fell largely due to the economic climate delaying some capital-intensive orders. Fowler adds: "We started 2024 with an order book of GBP1.1 million and recurring revenues of GBP3.7 million which provide a healthy start for the year. With DRC expected to come on stream and other potential projects in the pipeline we believe the months and year ahead will be transformative for the group."

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By Jeremy Cutler, Alliance News reporter

Comments and questions to [email protected]

Copyright 2024 Alliance News Ltd. All Rights Reserved.

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