Investors flock to Berkeley (BKG) as it reveals plans to pay even greater dividends to shareholders than previously targeted, sending the share price up 7% to £35.88. The housebuilder says it will pay £16.34 per share by 2021, up from the £13.00 goal made in 2011. The company has already dished out £4.34 in dividends to investors under this cash returns scheme.
In contrast to Berkeley's early Christmas present, the broader market is having a lacklustre session. The FTSE 100 is down 0.2% to 6,261.3, yet there are several bright spots among mid and small cap stocks.
Retail lender Secure Trust Bank (STB:AIM) shoots up 9.8% to £33.38 on news it will sell Everyday Loans for £107 million cash and £20 million of shares in the acquirer, Non-Standard Finance (NSF). The deal reduces Secure Trust’s unsecured personal lending exposure. The proceeds will boost its point of sale and small business operations. We take a closer look at the news in this article.
Retail star turn JD Sports Fashion (JD.) sprints another 16p higher to £10.24 following a positive trading update. Building on a stellar first half, management says 'relatively strong trading has continued' into the second half and expects full-year pre-tax profit will smash the £125 million consensus estimate by £10 million.
Visitor attraction design company Paragon Entertainment (PEL:AIM) rises 5.2% to 2.5p on news it has signed a five-year agreement with international toy brand Hamleys giving it the right of first refusal to design and build theme-park style attractions within its stores. Investors like the news, yet there are negative issues to consider as we discuss here.
Veterinary services provider CVS (CVSG:AIM) clips ahead 2% (14.5p) to 743.5p as investors cheer two new acquisitions - vet surgeries-to-veterinary buying business Albavet and The Pet Crematorium – and the signing of new banking facilities to support organic and acquisitive growth.
ZincOx Resources (ZOX:AIM) soars by 47.6% to 0.78p as investors regain confidence in the stock following financial problems over the past week. It needs to raise at least $5 million this month to avoid having to give the majority of a metals recycling plant to financier Korea Zinc.
News that Ferrex (FRX:AIM) has started work on a gold project in Australia gives a boost to its share price, up 12.5% to 0.45p. Read our recent story on how the small cap miner is reinventing itself in the wake of lower commodity prices.
TV technology firm Motive Television (MTV:AIM) falls 25% to 0.02p as it reveals it remains in discussions with holders of outstanding convertible loan notes worth nearly £3 million which are due to mature at the end of 2015. If an agreement cannot be reached funds will need to be raised to meet this liability and if no funding is available management says it would have to consider whether the company 'would be able to continue to trade'.
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