DeepVerge PLC Goes Higher, Suggesting Skincare Arms Could Be Separated

Shares of DeepVerge PLC rose 19% to 15.44p as it explores options to meet ‘unprecedented demand’ for its Labskin and Skin Trust Club platform, suggesting they could be spun off or could receive additional investment.

The company announced a “significant reorganization of the group”, following “increased interest and discussions” with skincare companies, US pharmacies and venture capitalists.

It is exploring options for both components of its Health and Life Sciences division, Labskin being a testing platform that proves the impact of skincare products, and Skin Trust Club a tracking app that allows individuals to better understand their skin care needs.

DeepVerge has run its Healthcare/Life Sciences division independently of its environmental divisions since early June, he said.

Elsewhere, Tungsten West PLC (AIM:TUN) continued to rise this morning, up 30% today and 57% this week to 32p, after saying yesterday morning that it will have to spend less than expected to restart the Hemerdon tungsten and tin mine. in Devon.

Following a technical and commercial review, the Board of Directors has given its approval to proceed with the detailed engineering design and to commence construction of the Hemerdon project with immediate effect.

10:44 a.m.: Morses emergency call

Shares of Morses Club PLC (AIM:MCL) tumbled 42% to 4.89p as it said talks were underway with the city watchdog over putting in place a recovery plan. arrangement to address higher levels of customer redress demands related to historical lending practices.

“While the directors consider the Morses Club to have sufficient liquidity for the immediate future, they believe that without a potential plan, the level of reparations claims could jeopardize the future of the group,” he said.

The approval of the Financial Conduct Authority is required, as well as the approval of the majority of the customers concerned and a legal sanction.

Morses, as well as saying he is in talks about extending his current £35m funding facility from its current end in March 2023, is also to agree a new business model with the FCA and secure its funding as its current facilities are in place until March 2023.

He said a one-time provision of £45million would be booked for the current year, with adjusted earnings 30-40% below current analyst consensus and there would be no dividend.

9:10 a.m.: the Costain checkout

Shares of Costain Group (LSE:COST) PLC rose 11% to 38.5p, after the construction group said it expects to beat revenue and cash forecasts this year as it weathers a increased costs with higher prices.

In addition to benefiting from the inflation clawback mechanisms built into the contracts, the company said in a first half update that work was progressing well on its HS2 rail and road contracts was continuing well and a “high volume of ‘tenders’ for new contracts. .

While the operating profit guidance is still expected to be in line with expectations, cash performance has been “strong”, with net cash at the half-year stage of around £95m and additional positive net cash expected. during the second semester.

Property broker Liberum said: “Cash generation, which is essential, has been excellent and we are increasing our net cash position for FY22 (excluding leases) from £83m to £100m, with a possible National Grid hike.”

Analysts noted that cash levels are now above the group’s last closing market cap.

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