GB Group boosted by bitcoin and share trading boom


2.49pm: Identity specialist says results will beat forecasts

GB Group PLC (LON.GBG), the identity data intelligence specialist, has been boosted by a boom in trading shares and bitcoin.

The company, which helps organisations validate and verify the identity and location of their customers, said as a result it expected its full year results to be ahead of City forecasts. It says profits were now likely to be above GBP53mln with revenues of at least GBP213mln.

It said: “Trading has been stronger than anticipated since the company’s interim results were reported last December. In particular, the company’s Identity division benefitted materially through January and early February from increased transaction volumes driven by the well-publicised spike in bitcoin market activity and retail share trading in the US and Europe. It also saw a positive impact from the financial stimulus packages in the US”

Its own shares have added 38p or 4.6% to 864p.

11.30am: Animal genetics specialist sees shares slide

Genus PLC (LON.GNS) has seen its shares take a hit despite what look like positive results.

Half year revenues at the animal genetics specialist rose 6% to GBP285.7m with profits up 27% to GBP38.7m. It did particularly well in China, Brazil, India and Russia, especially gaining market share in its pig business in China as large producers restocked after the spread of African Swine Fever in 2019.

But the company’s shares are down 376p or 7.18% at 4864p, making it the biggest loser in the FTSE 250. The problem appears to be comments from chief executive Stephen Wilson, who repeated that the second half was likely to see slower growth and increased currency headwinds.

Broker Peel Hunt, who remain positive on the stock, said: “The company expects to deliver in line with expectations in the current year in constant currency. However, currency headwinds have increased materially, resulting in a c.3% reduction in forecasts.”

10.15am: Optimistic outlook lifts gaming group

Investors are backing Webis Holdings PLC (LON.WEB) after the gaming group issued an upbeat trading statement and laid out its plans for the increasingly deregulated US market.

Half year turnover edged down from $8.1m to $7.4m, partly due to the closure of the Cal Expo racetrack in Sacramento over the summer for obvious reason. Racing restarted in November albeit behind closed doors due to the pandemic, and is expected to run until April, but obviously track revenue was lost.

But the company’s online busines has grown by 62%, helping gross profits climb 49% to $2.67m.

It said: “The Board remains optimistic regarding current operations and performance. The US operation is a much better place financially than two years ago. Equally positively, our core content of horseracing globally has performed extremely well as an “elite sport” to keep live operations to high capacity globally, contrary to some other sports.”

The company is planning to boost its presence in the US and considers its business undervalued at a time when major operators are looking at US assets.

It said: “It cannot have gone unnoticed to shareholders and observers alike that the sustained growth of US licensed expended gambling is the hottest subject in the global industry. In that regard, Webis and our principal subsidiary WatchandWager, remain very well-positioned as a licensed operator in many states, and of course in California. Almost all factors are in our favour with legislation passing or on the verge of passing in many key states, as updated almost daily both in trade and financial media.

“At the same time, many major large multi-national gambling entities continue to search for merger or acquisition of key assets in the USA…

“It now seems a certainty that more and more states will continue to legalise sports betting in the next two years, including California, the most complex but lucrative state. As a result, the Board believes that now is the time to escalate our plans to take advantage of our position. As a relatively small but well positioned company, we will upgrade our profile on several levels..

“Overall, we consider the company to be undervalued on key metrics and our potential for growth it is important that now we “fight above our weight’ to make the industry aware of this.”

It is less undervalued after these comments, with its shares up 40% or 0.8p at 2.8p.

8.35am: Music group links up with personal training specialist

Digital music group 7digital Group PLC(LON.7DIG) is stepping into the home fitness trend which has been booming during lockdown.

It has signed a two year deal with FORME Life, a personal training system, to supply its music catalogue to stream content which can be synchronised to a training video and played on demand and live.

Paul Langworthy, 7digital chief executive, said : “Our label relationships and advanced technology have positioned us as the leader in home fitness solutions by providing seamless music integration to live and on-demand programming. The deal, which is key to our strategy, is expected to be a major part of the revenue contribution from this growing market segment to overall revenues in 2021.

“As demand for online and home fitness accelerates, we’ve seen a clear shift towards content-driven workout experiences. Entrants to this market segment can use our leading global platform, and by taking advantage of our end-to-end, fully automated system for accessing licensed music for fitness it frees them to focus on innovative technologies and experiences.”

There has been a healthy response to the news from investors. 7digital’s shares have added 13.7% or 0.95p to 1.62p.

Still with music, and shares in Gear4music Holdings PLC (LON.G4M), the UK’s largest online retailer of musical instruments and music equipment, are up a tuneful 6.9% or 50p to 775p after an upbeat trading statement.

It said both its UK and European businesses had been performing strongly this year so far after Brexit, with revenues and margins coming in better than expected just a month ago. It said: “The Board now expects EBITDA for the 12 months ending 31 March 2021 will be not less than GBP18.2m, up from the guidance provided on 14 January 2021 of not less than GBP16.5m.”

In a buy note, broker Peel Hunt said: ” It is an improved and improving business and the industry should evolve in its favour.”

Proactive news headlines

Clipper Logistics PLC (LON:CLG) said it expects to materially outperform market expectations for the next financial year and beyond after winning big new contracts with retailers River Island and Mountain Warehouse.

Digitalbox PLC (LON:DBOX) has said its performance in its current financial year to date has been “ahead of our initial expectations” following an improvement in its performance in the second half of 2020.

AFC Energy PLC (LON:AFC) has launched its dedicated Anion Exchange Membrane (AEM) Fuel Cell test facility hosted at the company’s Surrey headquarters. The facility is fully fitted out and ready to move into full operation.

Incanthera plc (LON:INC) said it has prioritised discussions with two global cosmetic companies after introducing its treatment for solar keratosis to a number of potential commercial partners last year. It said it is also working with a number of potential partners to apply its expertise and technology to develop further targeted products.

Eco Atlantic Oil and Gas Ltd (LON:ECO) has renamed its new renewable energy venture Solear Ltd as it seeks a possible spin-out later this year.

Horizonte Minerals PLC (LON:HZM) told investors it has been awarded a construction licence package for the development of the power line for the Araguaia ferronickel project in Brazil.

Great Western Mining (LON:GWMO, Euronext Growth:8GW) is gearing up for a busy year on the ground in Nevada, with drilling work expected to get underway in April.

RM Secured Direct Lending PLC‘s (LON:RMDL) directors have declared an interim dividend of 1.625p per share in respect of the period from 1 October 2020 to 31 December 2020. The ex-dividend date will be 4 March.

Anglo Pacific Group PLC (LON:APF, TSX:APY) said it has raised a total of US$66mln/GBP47mln from a placing and retail offer at a price of 128p per share. The placing raised GBP43mln, while GBP3mln was drummed up via the offer on PrimaryBid, with an additional GBP374,000 from directors.

Arix Bioscience PLC (LON:ARIX) said James Noble and Axel Wieandt will be joining the board as non-executive directors (NEDs) effective from April 1.

ReNeuron Group PLC (LON:RENE) has appointed Allenby Capital as joint corporate broker with immediate effect, working alongside the company’s existing nominated adviser and joint broker, Stifel.

ReNeuron will also be presenting at today’s Proactive One2One Investor Forum, starting at 6pm. To register for the event, which brings together high net worth investors and private investors with an interest in growth stocks, investors can follow this link:

ReNeuron will also present at the Shares Investor Evening Webinar, on Tuesday 2 March, and the HC Wainwright Global Life Sciences Conference, which is taking place on 9-10 March 2021. The presentations will be made available on the company website shortly after the events, here:

Redx Pharma plc (LON:REDX) chief executive Lisa Anson will give a progress update at the Cowen 41st Annual Health Care Conference on Thursday 4 March at 4.10pm (11.10am EST). Following the event, a recording will be made available on the investor section of the company’s website.

Litigation Capital Management Limited (AIM:LIT) will host an interim results webinar for retail investor at 9am on Wednesday 17 March, following its interim results announcement on Tuesday 16 March.

Faron Pharmaceuticals Oy (LON:FARN) notified investors that it will publish its audited full-year results for the twelve months ended 31 December 2020 on Thursday 25 March 2021, with the annual report published on the same day.


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