Movers of Tuesday 13 April 2021

Francesca Morgan
Francesca Morgan
Market Report
15:30, 13th April 2021

Babcock International Group (BAB) shares soared 39.71% to 337.85p as it cuts 1,000 jobs 

Shares in the Group, which is the UK's second largest government defence contractor, soared after it unveiled that it is to cut 1,000 jobs following a strategic business review. 

It said it is reducing layers of management to create a “simpler, flatter structure” that will allow the Group to increase business flexibility and responsiveness to market conditions. 

The company stated that its expected realisable annualised savings from the move will be approximately £40m. It said the benefit in FY22 will be roughly half this due to timing. 

BAB price chart

Live Company Group (LVCG) jumps 25% to 6.25p as it prepares for recovery in UK and US 

In a business update, the live events and entertainment company said it is “well-positioned” to take advantage of the expected upturn in the sector in the second half of 2021 and 2022.  

It said this is particularly the case in the UK and USA which are leading the global recovery. 

“Not only did we manage to survive this turbulent period but we added an additional division to the Company giving us the opportunity to diversify revenues and reduce overheads,” Chairman David Ciclitira told investors in regard to 2020 performance. 

Revenue across its two divisions is expected to be around £0.5m in 1Q21 with around half of this coming from the Live Company Sports and Entertainment division and the other from Bricklive. At present, any substantial turnover is not expected until Q3/Q4, it said. 

LVCG price chart

Petroneft Resources (PTR) shares rose 21.28% to 2.85p while it gains nearly 10% in a week 

Shares in the Russian oil & gas exploration and production company have increased by nearly 10% in value since the Group converted $156,000 of debt converted to equity under the 2019 convertible loan agreement for the issuance of 10.1 million new shares last week. 

PTR price chart

Totally (TLY) shares were up 15.8% to 35.75p as it expects FY21 results to beat expectations 

The Company said it continues to make strong progress as it delivers healthcare services across the UK and Ireland in partnership with the NHS and other healthcare providers.  

The Group, which provides a range of healthcare services across the UK, said it anticipates reporting EBITDA for the year ended 31 March 2021 ‘substantially ahead’ of current expectations and its previous record of £4m in underlying EBITDA for the same 2019 period.  

It attributes its resiliency and improved trading performance to multiple factors but stated that this was primarily because of the Group being able to respond quickly to the numerous demands for its healthcare services during the pandemic, particularly for the NHS.  

As at 31 March 2021, the Company was in a healthy financial position with £14.8m of net cash compared to £8.9m in the comparative 2020 period. The Company highlighted that it has no debt financing and that all deferred HMRC payments have also been paid in full.  

TLY price chart

SSP Group (SSPG) shares fell 4.37% to 310.4p, shedding nearly 5% in value over a week 

Shares in the British food service firm have shed nearly 5% since its shareholders voted to approve the £475m rights issue it proposed last month at last week’s general meeting.  

SSP intends to use the proceeds of the rights issue to strengthen its balance sheet by extending the maturity of its term loans worth £373m from 15 July 2022 to 15 January 2024.  

SSP has seen revenues fall by over 80% from pre-pandemic levels as global travel remains restricted. It said it expects the global travel market to recover back to 2019 levels by 2024.   

SSPG 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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