Small caps news round-up
MX Oil was consolidating its Mexican assets on Thursday, signing a binding agreement to assign its 55% working interest in three of its four Land Contract Areas to local partner Geo Estratos, in return for Geo's share in the remaining area - Tecolutla - plus $1.8m cash. The AIM-traded oil and gas investing company said that, having carried out further assessment on the four areas, it decided it was best to focus its resources on what it believed had the most attractive investment opportunity.
Quadrise Fuels International took one step closer to its vision of selling a marine fuel alternative on Thursday, as it sent off the equipment needed to begin the construction of an MSAR emulsion fuel refinery. The AIM-traded emerging manufacturer and supplier of MSAR emulsion fuels said that, with respect to the contracts executed with Maersk Line and Cespa for the operational trial programme, it had now shipped equipment to Cespa's Refinery Gibraltar San Roque, and had begun civil works that are required for the installation of a Quadrise MSAR Manufacturing Unit.
Wealth manager AFH Financial Group has confirmed its takeover proposal to the board of financial adviser Lighthouse Group at 13p per share has been rejected. Worcestershire-based AFH, which is listed on the UK main market and describes itself as a financial planning led wealth management firm, said that Lighthouse had refused to meet to discuss the £17.4m cash and shares offer.
Shares in Vernalis sank to an 11-month low after the biotech company posted a half-year loss as its first prescription cough cold product, Tuzistra XR, launched during what has proved a very mild flu season in the USA. Revenue was up 7% to £6.1m in the six months to 31 December, but operating costs before exceptional items almost doubled to £19m due to the ramp-up in Tuzistra sales, marketing and other US commercial infrastructure costs since its regulatory approval last April and launch in September.
Safestyle posted a rise in full year profit as revenue increased and the company announced a special dividend. For the year to the end of December, the window and door replacement group made a pre-tax profit of £17.6m, up 7.3% from 2014, as revenue grew 9.5% to £148.9m.
Sirius Minerals released the eagerly-awaited results of its feasibility study on the potash project in North Yorkshire on Thursday, saying its net present value is $15bn at a 10% discount rate. Net present value will rise to $27bn once production begins, Sirius said. The company expects annual operational earning before interest, taxes, depreciation and amortisation to range between $1bn and $3bn a year depending on volume and price outcomes.
IT infrastructure company Softcat, which listed on the London stock Exchange last year, posted a drop in full year operating profit despite an uptick in revenue. For the year to the end of January, it reported operating profit of £15.3m from £17.2m the previous year as the company booked costs related to its listing on the LSE in November. Adjusted operating profit, however, rose 12.9% to £19.5m and revenue was up 10.4% to £293m.