Restaurant Group drops as Wagamama update shows slower growth

Restaurant Group PLC (LON:RTN) shares were being sent back by lunchtime on Monday, falling 6% to 137p after an update on trading at its Wagamama chain.

Like-for-like sales in the second quarter grew 6.3% in the UK with the opening of six new restaurants and one delivery kitchen helping revenues grow 11% to £93.5mln, the company revealed in a bondholder report, which was slower than growth of 15.3% in first-quarter turnover and 12.9% in LFL sales.

Underlying profits (EBITDA) grew 27.2% year-on-year to £16.7mln in the second quarter, versus 56.4% in the first.

Wameja Ltd (LON:WJA) was on the wane after the publication of third-quarter numbers for the HomeSend global payment hub, in which the company is a joint venture partner.

Shares in the AIM- and ASX-listed company, which changed its name from eServGlobal in July, dropped 7% to 5.6p despite the company saying HomeSends results were “remaining consistent quarter over quarter”.

Gross value flows were up only 0.2% over the prior quarter compared to 28% increase in the second quarter.

Among the blue chip, precious metals miner Fresnillo Plc (LON:FRES) was the biggest faller, sent diving 3% to 543p as gold prices dipped as risk perceptions began to be rebalanced.

The gold price fell to a one-week low on the back of increased optimism about US-China trade talks.

“Trade optimism is sending global equities higher and capital is fleeing away from safe havens into risk assets,” said market analyst Margaret Yang Yan at CMC Markets.

11.15am: Inspirit Energy's spirits lifted by debt reduction

Inspirit Energy Holdings PLC (LON:INSP) shares jumped 14% to 0.13p after the AIM-listed maker of combined heat and power said it has “substantially” reduced its debts.

The company converted £804,000 of the £845,000 loan notes collected last year by issuing 1bn new shares, leaving £41,000 of debt outstanding.

Chairman and chief executive John Gunn will acquire 142mln of the shares, upping his stake to 28% of the company, while finance director Nilesh Jagatia will buy an 28mln shares for a direct interest of 1%.

Two small-cap miners were topping the gainers list: SolGold plc (LON:SOLG), on the back of more investment by BHP Group PLC (LON:BHP), and Rainbow Rare Earths Ltd (LON:RBW) following results on a drilling programme.

SolGolds shares jumped 8% to 21.25p on the news that BHP Group PLC (LON:BHP) bought extra shares in the Aussie miner for US$22mln.

The new cash injection should settle short-term financial concerns, in particular regarding a pre-feasibility study at the flagship Alpala mine in Ecuador.

Rainbow Rare Earths, meanwhile, reported results from a historic drilling programme at its Kiyenzi mine in Burundi, where it analysed two boreholes.

Among the highlights were 3.87 metres grading at an average of 4.85% total rare earth oxides (TREO) and 11.64 metres at an average of 3.86% TREO.

10am: D4t4 Solutions de-rates as first-half numbers drop

D4t4 Solutions PLCs (LON:D4T4) shares dropped 5% to 204p in early trading on Monday after the data company posted weak interim results.

Adjusted pre-tax profit plummeted 78% to £740,000 as revenue tumbled 37% to £9mln, which management said was in line with expectations as this year will be more weighted towards the second half.

Boosted by new contracts, renewals of contracts won last year and a "significant pipeline" of new business in negotiation with existing clients, D3t4 anticipates stronger trading in the rest of the year.

The market was also not impressed with an update from KEFI Minerals PLC (LON:KEFI) on its Tulu Kapi gold project in Ethiopia, with shares dipping 3% to 1.54p.

After many delays, a two-year programme will kick off in January, while total investments remain unchanged.

However, the Ethiopian government can now allocate holdings to its subsidiary to strengthen social licence and ANS Mining will provide a higher initial investment than previously planned.

Topping the fallers list was Signature Aviation PLC (LON:SIG) with a seeming 96% crash in its share price, but this was as the company announced a share consolidation alongside a name change.

The services firm, previously BBA Aviation PLC, replaced every five existing ordinary shares with four new ordinary shares, leaving it with an issued share capital of 838mln shares of 37p each, of which 10mln are held in treasury.

Proactive News Headlines:

Rainbow Rare Earths Ltd (LON:RBW) has released results from a historic drilling programme at Kiyenzi in Burundi. Two boreholes were analysed and among the highlights were 13.87 metres grading at an average of 4.85% total rare earth oxides and 11.64 metres at an average of 3.86% TREO. A further 1,000 metres of drill core has been sent for analysis to enable rapid evaluation and formulation of comprehensive resource statement.

Corero Network Security PLC (LON:CNS) has announced a placing and share subscription to raise up to £3.25mln, before expenses, to be used mainly for the development of its SmartWall product.

Arkle Resources PLC (LON:ARK) is examining options for its 23.44% stake in the Stonepark zinc project after it attracted interest from “other industry participants”. Last month, FTSE 100 giant Glencore PLC (LON:GLEN) invested C$1mln in Stonepark operator Group Eleven Resources Corp (CVE:ZNG).

MTI Wireless Edge Limited advanced on Monday as profits for the first nine months of its current year leapt by 44%. For the period ended 30 September, the radio frequency and communications group reported a pre-tax profit of US$2.4mln, up from US$1.7mln a year ago, while revenues climbed 12% to US$29mln.

Fund manager M&G has taken its stake in Bacanora Lithium PLC (LON:BCN) to just under 20% through a share placing at 25p. The US$10mln proceeds will support pre-construction works at the Sonora lithium project in Mexico, which will include bulk earthworks and an upgrade to the primary access road.

IronRidge Resources Ltd (LON:IRR) has returned multiple high-grade reverse circulation (RC) drilling intersections from the latest drilling programme at the Ewoyaa, Abonko and Kaampakrom projects in Ghana, West Africa. A total of 12,669 metres of RC drilling was completed in 97 drill holes for the third phase programme. Among the highlights from Ewoyaa and Abonko were 40 metres (m) grading 1.45% lithium oxide, 34m grading 1.43% Li2O, and 31m at 1.5% Li2O.

Kodal Minerals PLC (LON:KOD) has received its environmental and social impact permit (ESIA) for the development of the Bougouni lithium project in southern Mali. The countrys environment minister has signed off the ESIA, with the company working now on mining assessment and technical reports for a full licence application by the end of 2019.

Primary Health Properties PLC (LON:PHP) has agreed a £4.92mln funding deal for the construction of a new primary care centre at Mountain Ash in Wales. The FTSE 250-listed healthcare facility builder said the property, which will contain two GP practices and accommodate 11,500 patients, will be wholly-owned after completion and then let to the Cwm Taf Morgannwg University Local Health Board for an initial term of 25 years.

Open Orphan Plc (LON:ORPH) said it has signed five unnamed pharmaceutical and biotechnology companies as early adopters of its Genomic Health DataBANK platform that is planned for launch in the first quarter of next year. They will ensure it is “fit-for-purpose” ahead of the first patient upload. This builds on the previously-announced collaboration with Empiric Logic, which is working with Open Orphan to complete the product.

Ormonde Mining plc (LON:ORM) told investors that sales of 20-tonne shipments of tungsten concentrate produced from the Barruecopardo mine in Salamanca, Spain, have recently completed with international buyers. Further containers are presently being prepared for sale. These sales are described as important milestones as the Barruecopardo ramp-up continues.

ScotGold Resources Limited (LON:SGZ) has clarified the amounts it has to spend on the exploration of its permits in Scotland. What is in the accounts reflects the potential amount if it retains all 13 licences until 2024, said the junior, and is subject to change as exploration results come in and depending on cash resources.

Sativa Group PLC (LON:SATI) is exploring a potential listing on AIM next year following a number of significant developments for the medicinal cannabis group. Sativas possible move from NEX follows a number of senior appointments to the group as it focuses on consumer products containing cannabidiol (CBD), a medicinal chemical derived from cannabis plants.

Tlou Energy Ltd (LON:TLOU) has highlighted that gas flows continue at the Lesedi coal bed methane project, with recent short-term rates seen significantly ahead of its previously reported performance. For context, the company has previously told investors that the initial gas flow rates were marked at 20,000 cubic Read More – Source