MOVERS OF TUESDAY 26 JANUARY 2021

Francesca Morgan
Market Report
16:30, 26th January 2021

Indivior (INDV FOLLOW) shares ticked up 10.40% to 141.4p after settling $1.4bn in claims 

In a statement released yesterday, the global pharmaceutical company told investors that it has now settled the claims which Reckitt Benckiser originally filed against Indivior back in November 2020. The $1.4bn claim initially knocked around 20% off the drug company’s stock.  

RB has agreed to withdraw the US $1.4bn claim and to release Indivior from any claim for indemnity under the Demerger Agreement relating to the US Department of Justice ("DOJ") and Federal Trade Commission ("FTC") settlements which RB entered into in July 2019. 

‘The settlement with Reckitt is likely to lead to a rise in Indivior’s share price today,’ the Times wrote. It added, ‘Indivior was the prescription drugs business of Reckitt, whose consumer goods brands include Dettol and Durex. The business was spun off in 2014 and Indivior built a dominant position for Suboxone Film in America, which was facing an addiction crisis.’ 

INDV price chart

Marechale Capital (MAC FOLLOW) shares soared 170.18% to 3.85p following the group issues shares at a discount price 

The investment advice company which provides strategic, M&A and advisory services primarily to hospitality and renewable energy companies in the UK and Europe, informed investors today that it has raised £0.25m through the issue of shares at 1.25p per share.   

In an early morning statement, the company detailed that its Chief Executive, Patrick Booth-Clibborn, had bought 1.6m shares at the lowered price, raising his stake to 12.7%. 

Chris Akers, who has also participated in the Fundraise, will, on admission, also have an interest in 7,690,000 shares representing 9.9% of Marechale’s enlarged issued share capital. 

MAC price chart

GETECH Group (GTC FOLLOW) shares jumped 75.74% to 23.9p hails the hydrogen economy as ‘an exciting growth area’ alongside a new strategic partnership 

The London-listed data, knowledge and software provider announced that it has signed two exclusive strategic partnerships, which together positions the company “at the forefront of work to establish a national network of hydrogen generation, storage and retail hubs.” 

Firstly, the company said it has signed a strategic partnership with hydrogen supplier, H2 Green, which is focused on establishing a network of large-scale hydrogen generation, storage and refuelling hubs to support public and commercial transport fleets. 

The agreement includes an exclusive option for GETECH to acquire H2 Green for up to £1m, with the payment terms structured around commercial and financial performance milestones. 

Meanwhile, Getech said its work with H2 Green has advanced significantly with the signature of a Memorandum of Understanding between H2 Green and SGN Commercial Services ("SGN"), which is a part of the SGN Group, one of the UK's largest gas network operators. 

GTC price chart

Yu Group (YU. FOLLOW) shares rose 62.50% to 195p as it beats market expectations 

The company’s FY20 trading update revealed that Yu Group has outperformed market expectations at both the Revenue and EBITDA levels and upgraded expectations for FY21. 

Revenue for the period was significantly ahead of market expectation at over £100m. Yu  tendered for a record £2.5bn gas and power businesses in 2020 with Yu establishing its first digital sales channel during the period to complement their existing platform for rapid growth. 

The Company also recorded a record Bill to Cash ratio of 99% resulting in a strong cash position of £11.7m, an increase of £9.3m during 2020 (FY19: £2.4m) as at 31 December 2020. 

Looking ahead, record sales during 2H20 are expected to continue into the current financial trading period with approximately £93m already contracted at higher margin to that in FY20. 

The contracted revenue, combined with continued strong organic growth from new bookings, are expected to significantly increase analyst FY21e expectations post publication of the FY20 results. 

YU. price chart

Avon Rubber (AVON FOLLOW) shares fell 3.23% to 3,135p following Christmas slump 

Shares in the manufacturing firm have shed nearly 30% in value since the beginning of December 2021. Despite reaching an all time high of 4,650p on 1 December 2020  - meaning the stock had gained 121% since the start of 2020 - the market reacted badly to final results.  

The same occurred later that month following an unscheduled trading update which warned investors that the approval processes relating to several US contracts have been delayed.It said the outcome was not expected to have any material impact on expectations for FY21. 

Avon said trading continues as expected in 1Q21, ‘with good order intake across its portfolio of life critical personal protection systems for the world's militaries and first responders.' 

The company added at the time that, “Whilst we remain confident of completing these processes and are working with our customers to expedite the approvals, this initial delay means that first deliveries under these contracts are now expected to commence in 1H22.” 

AVON 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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