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McKay Securities reveals possible rival to agreed offer from Workspace

Last updated: 11:15 29 Mar 2022 EDT, First published: 03:27 29 Mar 2022 EDT

takeover

A bid battle could be on the cards for property investment company Mckay Securities (LSE:MCKS).

At the start of the month McKay agreed a takeover by Workspace worth 209 pence in cash and  0.115 new Workspace shares.

At the time that valued McKay at 297p a share or £272mln in total.

 Since then Workspace shares have fallen from 769p to 705p, valuing McKay  at around 290p.

Now a rival in the form of Slate Asset Management has stepped in.

Slate has told McKay it is considering making an all cash offer, but for the moment McKay is still recommending the Workspace deal.

Meanwhile the Takeover Panel has given Slate until 20 April to decide whether to proceed or not.

McKay shares are currently up 4.05% at 295.5p.

3.42pm: Thungela Resources warns investors of fraudulent share offer

Thungela Resources PLC (LSE:TGA), the coal company spun out of Anglo American PLC (LSE:AAL) last June, has warned investors of a possible fraud.

The company said: "Shareholders and investors are advised that it has come to the attention of the company that a third party, operating without authorisation and under the name and style of JSE [Johannesburg Stock Exchange] Limited - Preference Shares Department, is attempting to solicit subscribers for a purported offer for subscription in respect of redeemable preference shares ("Purported Offer").

"The Purported Offer amounts to share fraud and has been reported by the company to the JSE Limited, the South African Financial Sector Conduct Authority and to the United Kingdom Financial Conduct Authority for investigation."

Its shares are down 6.27% at 849.93p.

2.59pm: MISSION possible as profits beat expectations

MISSION Group (LSE:TMG) is heading higher after profits came in higher than expected.

The communications and advertising group has reported headline profit before tax for 2021 of £7.5mln, up from £1.2mln and ahead of market forecasts.

It said trading in the current year had started well and was in line with the board's expectations.

It has also been on the acquisition trail since the year end, buying youth focused consultancy Livity.

Non-executive chair Julian Hanson-Smith said: "We have delivered a sustained improvement in revenues and profitability, as well as reinstating the group's progressive dividend policy.

"The board is optimistic for 2022, notwithstanding the current macroeconomic uncertainty and the implications of increasing general costs and in particular wage inflation.  Trading year to date is in line with our expectations, and we continue to explore opportunities to add additional capabilities in dynamic areas of our markets."

Its shares have added 12.84% to 61.5p.

12.43pm: Ten Entertainment back in profit and upbeat about outlook

Investors in Ten Entertainment Group PLC (LSE:TEG) have been bowled over by the company's latest results and a positive outlook statement.

The ten-pin bowling specialist said revenues rose to £67.5mln in 2021, from £36.3mln in the pandemic-hit previous year.

It moved from a £17.7mln loss to a £4mln profit despite being closed for 40% of the year, and said 2022 was expected to beat the current market expectations.

It said: "In the first half of the year, the business laid the foundations for a successful reopening, with significant investment in our centres, the execution of a highly successful digital strategy, and enhanced training.  Those preparations enabled the group to deliver an extremely successful second half and return to profitability for the full year. 

"Sales momentum has continued and accelerated into the first quarter of 2022, although this is expected to temper slightly with the return of foreign holidays over the spring and summer period and the uncertainty created by the ongoing crisis in Ukraine.

" It is still very early in the year, with volatility in the external market, but we have demonstrated that our business is resilient and are confident that it will continue to grow.  We expect the full year profit to be ahead of current market expectations."

Its shares have added 7.26% to 266p.

12.41pm: Fire Angel boosted by reduced losses despite supply chain issues

An improved full year performance has lit up shares in Fire Angel Safety Technology Group PLC (AIM:FA.), the developer and supplier of home safety products.

Revenues for the year rose from £39.9mln to £43.5mln, and losses were cut from £9.3mln to £3.7mln. During the year it successfully raised new funds of £9.8mln.

The company said severe supply chain disruption and inflation in the second half of 2021, especially in the fourth quarter, prevented an even better outcome for the year.

Demand for its products was much higher than its ability to supply them, a situation which has continued into the first few months of 2022.

On a positive note, the company this week announced an agreement with Techem Energy Services to develop a new generation smoke alarm primarily for the German market.

Executive chairman John Conoley said: "We have made excellent progress in 2021 against our primary goal, to drive margin expansion and, in doing so, return to profitability, with the aim of becoming cash generative at the end of 2022. Despite seeing further impact from the pandemic and its strong knock-on effects to global supply chains, I am pleased with how the group has performed."

10.56am: genedrive jumps as key test receives positive news

Shares in genedrive PLC (AIM:GDR), the molecular diagnostics company, are heading higher after positive updates.

The company said it had received initial orders for its point of care COVID-19 test after it signed distribution agreements covering Spain, Portugal, Oman and the United Arab Emirates.

In the UK the test received a CE mark in December and was submitted for sales approval with a decision pending.

Meanwhile the UK National Institute of Clinical Excellence has today issued a Medtech Innovation Briefing on the company's MT-RNR1 test to screen infants for a genetic variant that will cause life-long hearing loss when carriers of the variant are given certain antibiotics. Those that carry the variant can then be given alternative treatments following detection by the test.

Medtech Innovation Briefings are designed to support NHS and social care commissioners and staff who are considering using new medical devices and other medical or diagnostic technologies.

The company is still loss making although these edged lower in the first half of the current year, down from £2.9mln to £2.8mln.

Chief executive David Budd said: "We have achieved some key milestones in this period, namely the CE marking of our Genedrive POC COVID-19 test, which was closely followed by a number of distribution agreements with key territories... we have managed our cash position carefully and are poised to progress with our expanded portfolio."

Its shares are up 21% at 30.25p.

 

9.38am: Driver drops by nearly a third after lower profits and departure of finance director

Driver Group (AIM:DRV) has seen its shares crumble after a disappointing trading update and the departure of its finance director.

The company, a consultancy for the construction and engineering industries, said profits for the first half were now expected to be between £300,000 and £500,000 compared to £1mln in the corresponding period last year.

It had a difficult second quarter due to a problematic loss-making contract in the Asia-Pacific region and an unexpected drop in revenues in the Middle East.

It said: "The board recognises that despite the actions previously taken, this statement provides further evidence of loss-making and inconsistent performance within the Middle East and APAC regions."

After a review, it believes it can cut annual operating costs by more than £1mln by reorganising its businesses in both regions, including the closure of marginal locations and a reduction in headcount.

At the same time David Kilgour has tendered his resignation as chief financial officer and will leave the group to pursue other ventures.

Driver's shares have dropped 29.49% to 27.5p.

8.27am: Mulberry in demand as it forecasts better than expected profits

Luxury goods group Mulberry Group (AIM:MUL) is in style after saying sales and profits would be better than expected.

Its shares are up 10.5% or 30p at 320p as it said a strong sales trend in the first half of the year has continued into the second six months.

So full-year revenues would be moderately ahead of current expectations with gross margins maintained.

It has increased its marketing spend to boost global brand awareness, but even so profits were also likely to be ahead of forecasts.

AJ Bell investment director Russ Mould said: "It appears that, in contrast with some other luxury goods firms, posh handbags seller Mulberry doesn’t have a huge number of Russian customers as it lifts guidance thanks to robust sales.

"The company is putting a strong balance sheet to good use by investing in marketing to boost awareness of the brand globally.

“This is exactly what companies should be doing, namely investing in the business for future growth.”

Elsewhere Trakm8 Holdings PLC (AIM:TRAK) has accelerated 3.95% to 19.23p.

The telematics and data insight provider said a contract with Drvn, a joint venture between several roadside assistance companies in Europe, had been extended for a further three years.

In addition, the contract has been extended for Trakm8 to provided further services and support.

John Watkins, executive chairman, said: "The contract with Drvn has been in place for four years and it is pleasing to extend the scope and duration of the contract. We hope that now lockdowns are behind us that take up of connect car policies with the various European clubs will increase."

 

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