Satellite broadcaster British Sky Broadcasting (BSY) ticks down 1p to 886.5p as analysts at Berenberg expound on their negative interpretation of the company’s talks with Twenty-First Century Fox (FOX:NDQ) to consolidate the firm’s European pay TV assets. The broker’s media experts Sarah Simon and Robert Berg slap a bearish 680p price target on the firm, arguing its plans to acquire Sky Deutschland and Sky Italia are unsurprising in light of the growing competitive pressures in the UK market. They also believe that BSkyB is at risk of experiencing at least 50% price inflation at the next Premier League rights auction as it goes head to head with BT (BT.A).
The UK's largest drug maker GlaxoSmithKline (GSK) cheapens 5.5p to £16.11, despite reports it has reached out to private equity firms concerning the sale of 50 older, patent-free treatments, as it seeks to refresh its portfolio.
Regional publisher Johnston Press (JPR) adjusts, off 73% to 4.5p, as the new shares issued as part of its multi-pronged refinancing (9 May) gain admission to trading. By virtue of this equity component being a rights issue, existing investors who participated in the fundraising will have been able to protect themselves from the dilutive impact of the deeply-discounted issue, which will greatly reduce the firm’s indebtedness. Long-term investors who might be considering initiating a new position now need to decide whether the company’s free-to-view regional publishing model is the correct one to create shareholder value.
Electronic invoice financing specialist Tungsten (TUNG:AIM) ticks up another 1.4% to 277p as the market continues to assess the significance of yesterday’s news (30 May) that the Prudential Regulation Authority has approved its banking licence. This sets the scene for the firm to begin rolling out its model in earnest.
Poor drilling results and opposition from a key investor to a $100 million fundraise hits running Play of the Week Petroceltic (PCI:AIM). The oil and gas producer announces the Shakrok-1 well in Kurdistan, Muridava-1 well in Romania and South Dikirnis-1 well in Egypt were all unsuccessful but rejects 17%-shareholder Worldview's assertion there are better financing alternatives than the proposed placing.
Family controlled car dealership Caffyns (CFYN) motors 8.8% ahead to 590p on superb full-year results to end-March. Amid buoyant new car market conditions, taxable profits surged 78% higher to £2.17 million and investors are treated to a 50% hike in the total dividend to 18p. We look at the numbers in more detail here.
Minimally invasive tool-maker Surgical Innovations (SUN:AIM) rises 2.7% to 4.8p on securing CE approval for LiquiBand Fix 8, a hernia mesh that improves a surgeon’s precision and control during surgery.
Business centre operator Serviced Office Group (SVO:AIM) slumps 13.8% to 102.5p after revealing this year's revenues and earnings before interest, tax, depreciation and amortisation (EBITDA) will disappoint due to the impact of recent new site acquisitions and the impact of operational gearing.