Francesca Morgan
Market Report
16:30, 25th February 2021

Morgan Sindall (MGNS) shares ticked up 12.23% to 1,670p after strong FY20 results 

Shares in the UK construction group rose today off the back of its FY20 results. The group has built up strong cash reserves over the period. At year-end, it had strengthened its balance sheet with net cash coming in ahead at £333 million up from £193m in FY19. 

Its average daily net cash also rose significantly to £181m (FY19: £109m) despite taking a profitability hit as a result of site closures and lower production levels from COVID-19. 

The Company said a final dividend of 40.0p per share is now proposed, resulting in a total dividend for the year of 61.0p per share (FY9: 21.0p). It said this reflects the result for FY20, the strong balance sheet and the Board's confidence in the future prospects of the Group. 

MGNS price chart

​MediaZest (MDZ)​ shares soared 50.00% to 0.12p with new projects this year 

Shares in the creative audio-visual firm have increased by over 30% in value since it announced that it had won mandates for several new projects for the new financial year.  

This includes the extension of existing recurring revenue contracts with a long-standing client, and a large project for a new client to be delivered in 1H of the financial year.  

The new business wins are now expected to generate over £0.35m in revenue and include client engagements which the Directors believe ‘have the potential to grow substantially.’  

MDX price chart

Webis Holdings (WEB) shares rose 20% to 2.4p as it returns to profitability 

Shares in the global gaming group increased today after the group outlined in its half-year results for the period ended 30 November 2020 that it had seen a return to profitability. 

Turnover reported was US$7.4m (2019: US$ 8.1m), but with gross profit also increasing significantly to US$ 2.67m (2018: US$ 1.79m), a growth of 49% versus the prior year.  

This resulted in a profit on the period of US$ 0.72 million (2019: loss of US$ 0.21 million).  

The group said the turnaround of almost $1m in profit over the six months “reflects the changing business mix in the operation, again improving our overall margin derived from more "retail-style" wagering activity, especially on-line. This is encouraging for the future.” 

WEB price chart

Xtract Resources (XTR) shares rose 17.54% to 6.7p following completed third hole 

Shares in the group have increased by almost four-fold since the beginning of 2021. Earlier this week, Xtract completed drilling of the third hole of the Phase One diamond drilling programme at the Racecourse Mineral Resource on the Bushranger porphyry copper-gold exploration project located in the Lachlan Fold Belt ("LFB"), New South Wales, Australia. 

Colin Bird, Executive Chairman said this most recent hole grants further considerable insight into the geometry and extent of the mineralised system at the Racecourse deposit.  

“The copper-bearing interval in this hole was considerably longer than anticipated, suggesting the possibility that the deposit may be significantly larger than first thought.  

We await assay results, and, in the meantime, the drill rig will be moved to drill the fourth hole of the programme to the west and down-plunge of the previous holes,” he noted. 

XTR price chart

Genus (GNS) shares fell 7.25% to 4,859p as CEO said he expects slower growth 

Shares in the global animal genetics company were trading lower this afternoon despite posting positive results for the six months ended 31 December 2020 where the Group reported that revenues and profit had increased by 6% and 27%, respectively.  

It cited ‘excellent revenue growth’ of 17% in ABS, its bovine genetics business, particularly across Brazil, Russia, India and China. It said it continues to win new customers globally. 

Despite the solid results, Stephen Wilson, Chief Executive of Genus said the Group should expect growth to be lower in the second half of 2021 with increased currency headwinds. 

He added that, “Nevertheless, Genus continues to have significant growth opportunities and the Board’s expectations remain unchanged for the full year.” 

Analyst from Broker, Peel Hunt, said in a research note today that, "The company expects to deliver in line with expectations in the current year in constant currency. However, currency headwinds have increased materially, resulting in a c.3% reduction in forecasts."  

GNS price chart

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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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