Softcat (SCT) shares rose 13.21% to 1,766p as it expects full-year results to surpass expectations
The IT provider informed investors that its half-year results for the six months to 31 January 2021 released today reflect “another period of strong profit growth and cash generation.”
Softcat reported strong double-digit income growth for the period in which it delivered gross invoiced income (GII) and gross profit growth of 20%, with operating profit up 41%.
Revenue, which is gross income netted down to just the margin element for cloud-based software and some other income streams, was up 10%. The group said it has ‘benefitted enormously from the way the Softcat team have reacted to the challenges of the pandemic.’
It said an interim dividend of 6.4p per share, up 18.5%, will be paid on 14 May 2021 with the shares trading ex-dividend on 31 March 2021. Looking ahead, the Board said it is confident Softcat will deliver a full year result ‘significantly ahead of its previous expectations.’
St James House (SJH) shares soared 68.75% to 67.5p following return from suspension
Shares in the lottery, software, gaming and leisure company more than doubled today following its return to AIM after the company released its half-year results this morning.
The Company, which released its final results on Tuesday, said it is in advanced discussions with an external investor to provide a working capital facility for the Company, and expects to complete arrangements shortly, at which time a further announcement will be made.
For the six months to 31 July 2020, the Group saw an improvement in its performance resulting in a loss before tax of £0.567m compared to a £1.318m loss in the previous year.
Graeme Paton, Chief Executive of St James House, commented, "We are delighted that trading in our Ordinary Shares is being restored today. This has been a difficult year for the Company, but we can now see positive signs on both the operational and financial fronts."
CPP Group (CPP) shares jumped 13.43% to 557.5p as it reinstates dividend to 25p
CPP Group, which is engaged in the provision of assistance products, published its full year results for the 12 months ended 31 December 2020 today in which it reported a revenue increase of 2% while adjusted EBITDA increased by 17% to £10.3m (FY19: £8.7 million).
CPP saw a strong recovery in India, its main market, with a better than expected return of partner and consumer confidence in 1H20, supported by a steady performance in its Globiva and Turkish operations and from a solid performance in the renewal books in the UK and EU.
Pre-tax profit nearly doubled to £2m from £1.1m in FY19. CPP said that a strong balance sheet combined with its confidence in the outlook, has resulted in the company reinstating its dividend for the first time since 2011 with a proposed final dividend of 25p per share.
88 Energy (88E) shares rose 12.96% to 1.525p following $6.48m raise
Shares in 88E have risen by over 11% since it raised $6.48m on Monday at a 225% premium to a prior placing as it continues to advance the Merlin-1 exploration well in Alaska.
The Alaskan-focused explorer said it had entered into a share subscription deal with ELKO International, one of the major contractors for the current drilling operations at Merlin-1.
88E said ELKO is buying 360 million new shares at a price of $0.018 cents a share, a price marked at a 225% premium to a prior placing undertaken by 88E back in February 2021.
The fundraising occurs as Merlin-1 is drilled down towards its primary Nanushuk targets. To date, the Merlin-1 surface hole has been successfully drilled to 1,512 feet, as planned.
Commenting on Monday’s raise, Managing Director, Dave Wall, stated, "The endorsement of the project by ELKO as we enter the critical phase of the drilling is encouraging and will serve to fund the Company's share of the recently announced cost overruns.”
AO World (AO.) shares fell 3.97% to 293p while UK Government delays online tax decision
While shares in the electrical retailer have shed nearly 30% in value since the beginning of the year, the group maintains its position as a stock that has benefitted amid the pandemic.
The stock’s value has increased over five times in a year, and in a trading update released in January, AO reiterated the ‘significant increase’ in product demand amid the pandemic.
Last month, investors reacted negatively to the announcement that the UK Government was considering an online sales tax as well as a separate raid on "excessive profits" for companies that have seen profits surge as a result of the ongoing COVID-19 pandemic.
However, the UK is now reportedly set to delay this decision on the proposed tax which would see an additional charge of around 2% added to all goods bought online. According to the Financial Times, the Government now plans to wait until the autumn before deciding.