Maestrano Group (MNO) stock surged more than 100% after it bagged a contract with the Australian Rail Track Corporation (ARTC). The Government-owned ARTC will use technology developed by Maestrano’s Airsight division to record data and images about the ‘rail corridor’ – the area around the tracks – which will help to detect any problems. Maestrano did not say how much the contract was worth.
NMC Health (NMC) has launched an investigation into its own finances following an attack from a feared short-seller. US hedge fund Muddy Waters targeted NMC last month, issuing a 32-page roasting that queried the value of its assets, the amount of cash it had as well as debt levels and profits. In an update yesterday, NMC named the four independent board members who will oversee the review of its books – former Ernst & Young partner Jonathan Bomford, Tarek Alnabulsi, Salma Hareb and the colourful City figure Lord Clanwilliam. It will start by confirming the amount of cash it had on December 15, while the wider probe will be completed ‘well in advance’ of its full-year results, which last year came out in May. The update came under fire from Muddy Waters on Twitter, with the group dismissing its plans to start with the cash balance as ‘an incomplete exercise’ if the company does not also provide a full overview of its debt.
Plus500 Ltd (DI) (PLUS) was also in the red early yesterday after it warned that regulatory crackdowns will hit revenues and profits. Plus 500 reckons its annual revenue will come in at £271million, less than half that of the year before, while profits will be about £144million – almost two-thirds down on 2018. It follows regulators clamping down on contract-for-difference bets, which let punters guess the price movements in shares and commodities.
Hikma Pharmaceuticals (HIK) was knocked by a downgrade on its stock from ‘neutral’ to ‘underweight’ by brokers at JP Morgan, who chose AstraZeneca (AZN) as their top pick among major medicine makers. The assessment should have been a shot in the arm for Astra, but as economic data showed a rebound in the services sector, the pound rose, which knocks the dollar-denominated earnings of companies such as Astra.
Hornby (HRN) products flew off the shelves over Christmas after it released a swathe of new toys and models. The toy and hobby company said that sales and profit margins ‘have continued to be ahead of last year’. Since chief executive Lyndon Davies, a toy industry veteran, took over in late 2017 he has been pushing to reduce costs, improve the supply chain and bring out a range of products under brands such as Airfix and Scalextric. This year, the firm is planning to release Scalextric sets which can be controlled by mobile phone apps, to attract a new generation of model enthusiasts. On top of the Christmas success, Hornby has managed to persuade its largest shareholder, Phoenix Asset Management, to increase the loan it had extended.
