Movers of Tuesday 6 April 2021

Francesca Morgan
Market Report
15:30, 6th April 2021

TBC Bank Group (TBCG) shares ticked up 5.69% to 1,077p as it receives upgraded rating 

Shares in the Georgian bank jumped today after the group released a statement in which it outlined several changes to its Board committee, including the resignation of Non-executive Director, Nikoloz Enukidze from  the Remuneration Committee and the Supervisory Board. 

Arne Berggren, Chairman of the Board of TBC and the Supervisory Board of TBC Bank, has now been appointed as a member of the Remuneration Committee with immediate effect. 

Meanwhile, and in line with TBC's "Mirror Boards" policy, it said Mr. Berggren has also been appointed as a member of the equivalent committee of the Supervisory Board of TBC Bank. 

Last week, TBCG noted the Bank's revised outlook from global ratings agency Fitch Ratings. It said the revision of the Outlook to ‘Stable’ from ‘Negative’ reflects “reduced pressure on the Bank's credit profile from the health crisis and contraction of the Georgian economy.” 

‘The Bank has entered the crisis with healthy capital cushion and good performance metrics and Fitch believes the rating can tolerate further moderate deterioration of asset quality.’ 

TBCG price chart

Oilex (OEX) shares jumped 32.20% to 0.39p as it settles Cambay field dispute with GSPC  

Shares in the oil and natural gas explorer rose again after it released news on Thursday stating that it had made further progress in regard to its dispute of the Cambay field.  

Oilex said it has now received approval from Gujarat State Petroleum Corporation Limited (GSPC), granting the company permission to go ahead with its US$2.2m purchase. With approval from the state government of Gujarat and GSPC, Oilex will own 100% of the field.  

The completion of the transaction, which will require the finalisation of a binding sales and purchase agreement as well as funding arrangements, is expected to occur within 2Q21.  

The completion and transfer of GSPC's PI to Oilex is also subject to the approval of the Indian Government which has been kept ‘appropriately informed at all stages of discussions with the aim of securing approvals for the PI transfer in a favourable time frame.’  

Commenting on last week’s news, Oilex’s MD Mr Joe Salomon wrote, “The long-awaited resolution provides the Company with a pathway to evaluate the significant gas resource potential identified at Cambay. Oilex and GSPC continue to work together to finalise past pending costs related to certain field costs and regulatory spending prior to 2018.”  

OEX price chart

Kore Potash (KP2) shares rose 29.82% to 1.85p as the group signs MoU for Kola Project 

The potash development company, which owns 97% of the Kola and DX Potash Projects in the Sintoukola Basin located within the Republic of Congo, said it has signed a non-binding MoU to arrange the total financing required for the construction of the Kola Potash Project. 

The non-binding MoU, which the Group has signed with Summit Africa, outlines a roadmap to ‘optimise, fully finance and construct’ Kola via a mix of debt and royalty financing. 

The Group said Summit and its technical partners SEPCO Electric Power Construction Corporation and China ENFI Engineering Corporation will work alongside Kore to undertake an optimisation study to reduce Kola's capital cost with a target of less than US$1.65bn.  

Once in production, the Kola Project is anticipated to be one of the lowest cost potash producers globally, ideally located to supply nearby African and South American markets. 

KP2 price chart

MyHealthChecked (MHC) shares jumped 25.00% to 6p as it secures Boots deal 

The consumer home-testing healthcare company announced that it has entered into an agreement via its subsidiary Concepta Diagnostics Limited with the UK retailer, Boots. 

The Group is to launch the MyHealthChecked™ COVID-19 at-home nasal swab kit and PCR laboratory testing service via as well as across Boots stores in Great Britain. 

It said general testing and pre-travel services will be launched online at Boots ‘shortly’ and will also be available at 507 Boots stores in England, Wales and Scotland from this month. 

The MyHealthChecked™ COVID-19 testing kit allows customers to take a nasal swab themselves at home and send samples safely and securely via the Royal Mail Tracked 24 service to be tested using established laboratory-based PCR detection methods.  

Testing is undertaken at the Manchester-based laboratories of MyHealthChecked and Yourgene Health and results are provided within 24-48 hours, via an online portal. 

MHC believes the agreement will have “a significant impact on the future performance of the MHC business and whilst volumes are unquantified at this stage, it is likely to result in substantial revenue growth in the current financial year ending 31 December 2021.” 

MHC price chart

Homeserve (HSV) shares fell 3.05% to 1,175p but US growth offsets profit fall 

The international home repairs and improvements business posted a trading update today in which it stated that the group’s underlying profits will increase to around £191m (FY20: £181m) for the financial year ended 31 March 2021 in line with consensus expectations. 

The group highlighted that the UK had seen a higher income per customer from a smaller customer base over the year, to end the period with 1.6m customers (FY20: 1.8m).  

Despite this, the US saw further strong organic customer growth of 7% to 4.7m to finish the year with its affinity partner relationships providing access to 66m households (FY20: 64m). 

In addition, the Group noted that its buy-and-build strategy in HVAC continued in the second half, with a further 13 acquisitions taking the total to 22 for the year (FY20: 15). 

HSV 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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