MOVERS OF FRIDAY 22 JANUARY 2021

Francesca Morgan
Market Report
16:23, 22nd January 2021

Kainos Group (KNOS) FOLLOW shares rose 18.66% to 1,348p after reporting a strong trading performance 

The IT provider, operating across two specialist business areas, Digital Services and its Workday Practice said continued momentum has driven a strong trading performance.

As a result, the company said it expects to report results for the year ending 31 March 2021 as ahead of current market consensus expectations. In particular, it noted that Smart, its specialist Workday automated testing platform, continues to drive new client acquisitions.

‘We are mindful of the on-going challenges caused by Covid-19 and EU Exit, but we believe that we are well-positioned for further growth and we remain confident in our strategy. 

Looking ahead, our robust pipeline, strong balance sheet and significant contracted backlog underpins our confidence in our outlook,’ the company told investors in a morning statement.

KNOS price chart

Ridgecrest (RDGC) FOLLOW shares continue to rise, jumping 33.33% to 2.8p 

Shares in Ridgecrest, formerly Nakama Group, continue to jump on Friday after two further significant shareholders appeared on its share register yesterday. It stated on Thursday morning that John Mahtani now holds a 4.67% stake and Ashok Patel a 3.2% holding.

On Wednesday, the company announced that it had conditionally raised £2m before expenses via a proposed placing, issuing 333.3 million shares at a price of 0.6 pence per new share.

The company said it intends to use the net proceeds of the placing for its general working capital purposes and to assist it in identifying and pursuing acquisition opportunities.

RDGC price chart

Ironridge Resources (IRR) FOLLOW shares jump again by 21.81% to 22.4p following scoping study at the Ewoyaa lithium project

The African-focused minerals exploration firm recently announced news after completing a Scoping Study on the Ewoyaa Lithium Project in Ghana, confirming it is ‘an industry-leading asset.’ 

The study supports the case for a two million tonnes per annum production operation with life of mine revenues exceeding US$1.55bn, and significant potential to extend mine life. 

During an eight-year operation, the mine is expected to produce an average of 295,000 tonnes per year of 6% Li2O spodumene concentrate, with the internal rate or return (IRR) of 125% over 8 years. The group added that the capital cost estimate for the mine is $68m. 

"Today's landmark update regarding the Company's exceptional Scoping Study confirms that the Ewoyaa Lithium Project is an industry-leading asset and transformational for IronRidge. 

"The Study outlines a robust 2.0Mtpa operation which can deliver excellent cash flows, a very quick payback and a pre-tax NPV of over $0.5bn from a modest 8-year operation, producing a coarse, premium DMS concentrate product,” siad CEO, Vincent Mascolo in a statement released on Tuesday.

IRR price chart

Mobile Streams (MOS) FOLLOW shares jump 20.93% to 0.26p as revenues remain ahead of forecasts 

The mobile content and data intelligence company posted a positive trading update showing revenues and customer growth to remain ahead of the company’s current internal forecast.

The group said monthly revenue from its streams data business equaled the net revenue brought in via the legacy business for the first time in December. It now expects revenues from Streams Data to overtake net revenue from the legacy business for the first time this month.

The group said that with its pipeline of product development and marketing it expects to see ‘significant growth’ in 2021, with additional higher price points to come. It also anticipates launching the Streams Data service in other key global markets during the next year.

MOS price chart

TUI AG (TUI) FOLLOW shares fell 14.41% to 361.4p as travel and leisure stocks take another hit

Earlier this week, the Head of the International Air Transport Association (IATA), the trade association for the world's airlines, stated that the world's airlines would need another $70-$80bn of government support to navigate the crisis caused by the coronavirus pandemic.

A sharp fall in the multinational travel and tourism company reflects the recent toll on airline and travel stocks while the stock itself has more than halved since the beginning of the year.

However, despite the stock remaining well below its pre-pandemic worth, shares in the FTSE 250 company have increased by nearly 60% in value since the beginning of November 2020.

Earlier this month, TUI CEO, Fritz Joussen, told shareholders that the group is ‘fundamentally sound’ and that it will resume “profitable operations” as soon as travel restrictions are lifted.

TUI price chart

Disclaimer & Declaration of Interest

The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

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