There is no value left in our shares, warns oil firm
DEBT-laden Circle Oil warned shareholders that there could be little or no value left for them.
The oil and gas firm, which has operations in Egypt, Morocco, Oman and Tunisia had previously launched a strategic review to consider its options – restructuring its debt, selling assets, mergers, and the possibility of raising more capital. The firm, which has around £53m of debt, said yesterday that it is working to finish the review process as expediently as possible.
But it warned that taking into account the firm’s debt ‘ it is likely that there will be little or no value attributed to Circle Oil equity holders’.
It said management would continue to consider all options to maximise value for shareholders. One oil expert commented: ‘This all seems rather terminal, but if the company can find a home for any of its assets, some of which are genuinely good quality, all may not be lost.’
SP Angel has a buy rating on the stock with a target price of 11p. In a note it said: ‘Circle’s update is a sanguine reminder of the potentially destructive power of debt when the risks are not managed properly.’ It added that, debt aside, the company’s assets were solid. Circle listed on AIM in October 2004 at 15.9p a share. The stock peaked the following March at 48p a share. Yesterday shares plunged 66pc, or 1.3p, to 0.68p.
Thomas Cook has had a turbulent couple of days but its directors are, at least, still optimistic about the travel firm’s prospects.
Group chief finance officer Michael Healy snapped up 28,258 shares in the company at a total of £23,087. Chairman Frank Meysman bought 35,000, costing £28,595. They both paid 81.7p a share.
The tour operator’s shares crashed 19pc on Thursday after it revealed a sales slump following terror attacks in Turkey. Shares dropped to a three-year low of 72p. Yesterday they regained 1.7pc, or 1.25p, to 73.7p. Shares in AIM-listed biotech firm
Aqua Bounty doubled after its product was approved for sale in Canada. The US-based business has created a protein product named Aqu Advantage Salmon, which helps farmed salmon grow to full size in half the usual time.
Health Canada, the organisation responsible for public health in the country, said the product did not raise food safety concerns.
Shares finished upstream 192pc, or 26p, at 39.5p.
The FTSE 100 had its strongest day of the week, closing up 1.7pc, or 102.97 points, at 6,156.32.
By late in the trading day in New York the Dow Jones was up 0.46pc, or 80.33 points, at 17515.73.
Coca-Cola was the biggest riser of the day. Its shares fizzed up 6.2pc, or 80p, to 1366p after Citigroup raised the stock to a buy. listed Conviviality bubbled up 4.8pc, or 10p, to 219p.
The off-licence and convenience chain, which acquired wholesaler Matthew Clark in October, revealed it had now also added wine trader Bibendum to the group. In its fullyear update the firm said sales had increased 137pc to £ 864m. It opened 126 stores over the year, while closing 34.
On the mid-market, a disappointing first quarter sent Spectris shares spiralling 4.4pc, or 77p, to 1693p. Spectris has customers in pharmaceuticals, aerospace, technology, energy and utilities to name but a few. It makes measuring instruments and controls.
While overall sales ticked up 2pc that was largely driven by its Asia business. Sales in the US, Europe and rest of the world fell 4pc, 8pc, and 11pc respectively.
Spectris said it was making good progress with its restructuring measures and said it was well-positioned for the future.
Sinclair Pharma shares got an uplift when it announced a collaboration with a US firm in a four-year distribution deal. In a trading update the firm said it expects revenues to grow by 40pc this year.
The facelift specialist already achieved sales of £8.9m in the first three months. N+1 Singer has a target price of 42p. Shares augmented 8.5pc, or 2.75p, to 35.25p.