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Paragon Banking Group PLC raises its guidance and increases its buyback program

By on June 14, 2022 0

Paragon Banking Group PLC (LSE:PAG) is in demand after raising its earnings forecast and increasing its share buyback program.

The specialist banking group reported a 49.0% rise in half-year pre-tax profits to £143.6 million and gave a positive outlook for the rest of the year.

Chief Executive Nigel Terrington said: “Strong growth in new loans at attractive margins has supported the group’s growth in earnings and return on tangible equity, while capital levels remain comfortably above our regulatory requirements, throwing the foundations for further growth and additional capital returns in the future.

“As the UK economy faces headwinds, we have a high quality loan portfolio and are confident in our momentum, and have improved our full year guidance.”

The lender has increased this year’s share buyback from £25m to £75m.

Its shares are up 6.53% at 500.71p.

3:03 p.m .: Contango flies away after signing a supply agreement for its coking coal

Natural resources group Contango Holdings (LSE:CGO) is up sharply after unveiling a supply deal for its coking coal.

AtoZ Investments (Pty) Ltd, a coal trading company based in South Africa, has agreed to buy the first production of coking coal from Contango’s Lubu project in Zimbabwe.

After reviewing the composition and quality of the coal, AtoZ reached an agreement to purchase 10,000 tonnes per month at the prevailing market price set by the Minerals Marketing Corporation of Zimbabwe, currently at $120 per tonne.

AtoZ will take delivery of the washed coking coal at the mine gate and handle all subsequent logistics and marketing, eliminating associated marketing and transportation costs for Contango.

The first sales are expected in the fourth quarter of this year.

At prevailing market prices, Contango would expect to earn margins of approximately $70-80 per ton for its washed coal production under this contract, which would allow it to generate up to $10 million. profit per year.

He believes that the market price is significantly lower than global benchmark prices and therefore there is a high probability of an increase, which will further increase his margins.

It also wants to sell higher-margin coke, an improved product derived from coking coal, and believes the AtoZ deal will help fund the necessary infrastructure.

Managing Director Carl Esprey said: “Given the scale of Lubu’s assets, with a resource base of over one billion tonnes, we believe we can sell both coking coal and coke as two separate revenue streams in the future.Additionally, with the infrastructure in place for higher margin coking coal and coke products, there will likely be other economic markets for its range additional thermal and industrial coals For the moment, we have reached a critical stage and the horizon looks really very exciting.

Its shares are on fire, up 30.74% to 6.14p.

12:48 p.m .: Revolution Bars acclaimed with better than expected performance

Investors at Revolution Bars Group PLC (AIM:RBG) toast to a better than expected performance from the group.

The owner of Cuba’s Revolution and Revolucion brands said a strong performance across the group and a bumper holiday meant it now forecast adjusted profit ahead of the £10m market expectation.

In March, the group forecast profits at the high end of City’s current range of £8-10million.

Its shares are up 8.91% to 16.5p.

12:02 p.m .: Iomart under pressure as revenues and profits fall

Cloud computing specialist iomart Group (AIM:IOM) saw its shares tumble as earnings and revenue fell.

He said revenue was down 8% to £103m, reflecting lower non-recurring and consultancy sales, as well as the impact of lower client renewals in the first half.

Pre-tax profit fell from £12.5m to £12.2m.

In March, it entered the security sector with a partnership with cybersecurity specialists, e2e-assure, and it is also looking for acquisitions.

He said the first two months of the new fiscal year were in line with his expectations, although he admitted the broader business environment continued to be challenging.

And like everyone else, he faces rising energy prices.

He said: “While the current volatility in energy markets may require us to absorb some of the price fluctuations throughout the year, the core of our existing customer agreements, to varying degrees, allow us to ‘raise prices, and part of that has In addition, any new business, contract renewals or shorter term agreements will be adjusted when appropriate.We have various options for setting up hedging type agreements in the our electricity supply to provide certainty for our customers and our own planning.”

Following the numbers, its shares are down 7.63% to 172p.

10:52 am: Eneraqua Technologies driven by solid performance and optimistic outlook

Eneraqua Technologies PLC (AIM:ETP) saw its shares rise after its first results since joining Aim last November.

The energy and water efficiency specialist said full-year revenue jumped 148% to £36.2m, with adjusted pre-tax profits rising to £0.8m sterling to £5.61 million.

During the year, it made two strategic acquisitions, HaGePe International BV and Welltherm Drilling Limited.

It advanced its first dividend by a year, paying 1 pence per share, and said the current financial year had started well, with its order book covering revenue 95% of its full-year revenue target .

Managing Director Mitesh Dhanak said, “We continued to grow in the energy and water sectors, with recent contract wins in the UK and India. This, along with the strategically important acquisitions we have made, shows the quality of the services we now offer. able to provide our customers…

“Regulation and the growing Net Zero initiatives being introduced across the world give us confidence that we can deliver long-term value to our shareholders.”

Its shares are up 5.93% to 286p.

10:17 am: Oxford BioDynamics boosted by positive US response to flagship

Oxford BioDynamics PLC (AIM:OBD) is in demand after a positive response to a key product at a US conference.

The company said it has presented additional data to the American Society of Clinical Oncology on its flagship EpiSwitch checkpoint inhibitor response test.

The product is a simple blood test allowing clinicians to counsel millions of cancer patients who face the complex choice between powerful immunotherapy treatments, which may have low response rates and adverse events related to the immune system, and treatment options. alternative treatment.

The company said interest in its test at ASCO was high. He met with 11 pharmaceutical teams, two major US hospital networks, National Cancer Institute-designated comprehensive cancer centers, as well as clinicians and healthcare investors.

Chief Executive Dr Jon Burrows said, “ASCO has been a great opportunity to capture the attention of oncologists and the oncology community around the world.

“As a small UK biotech building our business profile, we have been overwhelmed with interest in the company and EpiSwitch CiRT. We have had many more meetings than expected with practicing oncologists, pharmaceutical clinical development teams, hospital administrators and healthcare investors, who appreciated the insight into the potential use and usefulness of CiRT. It is very encouraging that we continue to receive inquiries after ASCO.”

Its shares are up 5.11% to 18p.

8:43 am: Xeros Technology soars on licensing deal and positive test data

Investors in Xeros Technology Group PLC (AIM:XSG) are cleaning up after the company unveiled a new licensing agreement and positive test results for its washing machine filter technology.

The deal for its XFilter filtration technology is with Germany’s Hanning Elektro-Werke Gmbh & Co, a manufacturer of components for the home appliance industry, including pumps and motors for some of the biggest manufacturers of domestic washing machines in the world.

Under the terms of the non-exclusive 10-year agreement, Hanning will manufacture and sell filters incorporating the technology. This will allow washing machine manufacturers to offer consumers the ability to easily and safely capture and remove over 90% of microfibers, including microplastics, released during wash cycles. Filters are built into the washing machine and are designed to last the life of a machine.

Xeros will receive a royalty for each filter device sold by Hanning and expects to start collecting revenue from Hanning in late 2023.

Meanwhile, the German Hohenstein Institute has accredited XFilter with the highest level of performance, capturing over 99% of microplastics. The tests were carried out on behalf of a major Asian manufacturer of domestic washing machines under the test and trial agreement signed with Xeros in July 2021.

Klaas de Boer, President of Xeros, said: “These test results provide further validation of the industry-leading performance of our XFilter technology. We are confident that this will accelerate our progress with the multiple parties we are currently engaged with.

Xeros shares jumped 30.77% to 42.5p.

Meanwhile, MyHealthChecked PLC (AIM: MHC) is making progress after launching five new at-home cheek swab DNA wellness tests.

The tests, which cost £54 each, relate to intolerances and sensitivities, weight management, cardiac profile, vitamins and minerals and glucose management.

Managing Director Penny McCormick said: “This is a significant achievement as we enter a new phase of the business outside of the COVID-19 testing space.

“These initial tests are just the beginning of our consumer test portfolio, and we look forward to updating the market on future portfolio developments throughout 2022. Going forward, we will continue to engage with the market on potential opportunities and to reinvest 2021 revenue from our COVID-19 testing services to explore additional third-party technology options to further improve the customer journey for our wellness testing. We are also continuing our efforts to identify and evaluate complementary revenue-enhancing partnerships.

The company’s shares climbed 8.48% to 1.79p.