The shares were heavily sold off on Wednesday on news that the company had arranged £6.5m of funding for its entry into the green energy market through a convertible loan note.
Since Wednesday around half the 498m shares in issue have changed hands bringing the shares back to levels seen before the funding news. The £6.5m has been arranged as its contribution to a JV with flexible energy group HSKB Ltd to initially build 2 gas peakers totalling 10MW of power to help the national grid in times of high demand and sustainable energy is struggling when the sun doesn’t shine and the wind doesn’t blow.
3.05pm: Boohoo drops as 12% vote to oust co-founder
boohoo Group plc (LON:BOO) dipped 2% to 326.3p after 12% of shareholders voted to remove co-founder Carol Kane as an executive director at its AGM.
“Carol plays an integral role in establishing the identities that sit behind each of the brands on our multi-brand platform, and as a co-founder of the Group her drive, enthusiasm and unwavering support for our Agenda for Change will be crucial in delivering change for the benefit of all stakeholders,” said chief executive John Lyttle.
Glass Lewis, which advises institutional investors, pushed investors to oust her and also raised concerns about company chair and co-founder Mahmud Kamani even though he won’t face re-election this year.
Investors are still worried about progress in the ESG agenda as top executives may not be doing enough to draw a line under last summer’s scandal.
“That investors did not have questions to pose [at the Boohoo AGM] after a scandal-ridden year where the company finally admitted to serious labour rights abuses in their supply chain speak volumes about their commitment to ESG,” said Thulsi Narayanasamy, Senior Labour Rights Lead at the Business and Human Rights Resource Centre.
“The only question posed related to the company’s controversial purchasing practices that ultimately drive the illegally low wage levels in Leicester and the response was characteristically flimsy. If I have heard that workers are still being paid below minimum wage in their supply chain right now, why haven’t they? We are left unconvinced by the progress made to ensure decent labour practices in their supply chain.”
2.20pm: VR Education slips after completing discounted placing
The virtual reality technology company placed 48mln new shares at 16p a pop, representing 20% of its issued ordinary share capital.
The proceeds will be used to boost investment its ENGAGE platform, which is used to train enterprise and education customers.
1.10pm: ReNeuron in demand as investor ups stake
Richard Griffiths and controlled undertakings now own 8% of the clinical-stage stem cell business, from 7.15% previously.
12pm: MediaZest higher after contract with jeweller Vashi
MediaZest Plc (LON:MDZ) was a bright spot at midday as it surged 29% to 0.11p on the back of a contract with bespoke fine jeweller Vashi.
The AIM-listed company will supply audio visual solutions to their recently opened Covent Garden flagship store.
It includes the largest deployment of the Samsung ‘The Wall’ Business MicroLED product in UK retail as part of a double-height, floor to ceiling interactive ‘Love Stories’ installation within the immersive in-store workshop, the audio-visual firm said.
10.45am: DP Poland tumbles after posting higher losses
The Domino’s pizza franchisee due to higher costs, impairments and store pre-opening expenses.
In the five months to 31 May, delivery and takeaway sales increased though the dine-in business was still hit by COVID-19 restrictions.
Elsewhere, Tesco (LON:TSCO) dipped 2% to 225.50p after posting a sharp slowdown in underlying growth.
That said, a like-for-like sales increase of 0.8% was far better than the market had been expecting.
Analysts thought the grocer’s top-line to shrink 1% in the three months, which put it up against some testing year-earlier comparisons.
9.35am: Smartspace Software early riser after new international contract
The provider of software for smart buildings and commercial spaces will initially provide its solutions to 150 sites with a potential to expand to 200 of the airline caterer’s locations globally.
The AIM-listed group said the contract represents a “significant milestone” in the evolution of SmartSpace’s sales capability in SwipedOn as it increases its focus on larger clients with a multi-location international presence.
The group has offloaded Pharm 2 Farm and Remote Monitored Systems and is now focused on five strategic investments including 100%-owned Paraytec, which is working with the University of Sheffield to develop a rapid test for identifying cancer and pathogens, including viruses such as Coronavirus (COVID-19) and diseases such as Alzheimer’s.
The AIM-listed firm posted a pre-tax profit of £14.2mln in the year to end-March 2021 (2020: loss £575,000).