Ethernity Networks Ltd (AIM:ENET) shares have crackled higher, up over 11% to 44.5p, after winning an initial US$0.9mln order as part of a contract with a “well-established international wireless connectivity vendor”.
Following successful tests of the company’s UEP-20 (Universal Edge Platform) product, the AIM-listed company said it will supply its new UEP-60 product as a module integrated within the vendor’s equipment, including customisation of the platform for usage as a indoor unit router module.
The contract could lead to additional annual revenues up to US$1mln in 2022 and further growth subsequently, Ethernity said, adding that this was a second major 5G system contract.
11.05am: Fulcrum pivots
Fulcrum Utility Services is one of the biggest share price fallers this morning, down 11.5% to their lowest level since April last year as full-year results seem to have disappointed the market, with the dividend pulled.
The company, which provides utility infrastructure design, technical engineering, project management, consultancy and audit services to clients in various industries, reported a swing to a pre-tax loss of GBP11.5mln from a GBP1.3mln profit a year ago.
A GBP2.4mln cash outflow from operating activities led to the previous net cash position pivoting to a GBP1.5mln net debt position at the end of March.
The board did not recommend the payment of a dividend, considering the loss and “continuing near-term economic uncertainty”.
Chief executive Terry Dugdale, who was appointed in January, said: “Just like many businesses, Fulcrum was affected by the considerable challenges presented by the Covid-19 pandemic in the year, and this is reflected in our financial performance.
“However, we were agile, resilient and responded quickly and effectively to Covid-19, remaining operational and making progress in the execution of our strategy, with full year performance being in line with the expectations stated in our interim results.”
He said Fulcrum “still have much more to do, but we have emerged from FY21 stronger,” and since taking over as CEO the company has “renewed our focus on margin and cost discipline and are better equipped to take advantage of the significant opportunities that are presented to us as we connect the UK on its journey to a net-zero future”.
The group, which sank to a 15-year low earlier this year after previous profit warnings, reported a GBP1.72bn loss in the year to March, mainly from impairment charges for loss-making contracts and charges of GBP2bn.
Underlying profits were down 40% at GBP222mln, with revenues for the year flat at GBP4.2bn and an order backlog of GBP8.7bn.
“We have a plan in place to strengthen the group without the need for an equity issue,” said chief executive David Lockwood (more on the story here).
8.45am: Patently good news for drug developer
The specialist drug developer has been given the nod that within three months a patent will be issued to protect the rights of its preclinical SDC-1802 programme as a therapy to treat pancreatic, colorectal and kidney cancers, melanoma, and B-cell lymphoma by inhibiting TYK2 kinase.
Sareum’s chief scientific officer, Dr John Reader, said: “The granting of this patent in the US will provide a further layer of protection around SDC-1802 following the granting of patents protecting the molecule in the US and other major markets in recent years. These patents are important to enhancing the value of the programme as part of our discussions with potential partners.”
Other shares on the rise included those from Botswana-focused Tlou Energy Limited (AIM:TLOU, ASX:TOU, BSE:TLOU), climbing 4% to 2.7p after it provided an operational report on the past quarter, when it said negotiations over a 10MW power purchase agreement with Botswana Power Corporation and about securing project funding for the Lesedi project in the country “significantly advanced”.
Bound by confidentiality agreements, Tlou said it is “looking forward to bringing both of these key matters to a conclusion as soon as possible” but the timing is outside its control.
An initial 10MW gas-fired power project, it added, could generate annual revenue of approximately US$10mln and once this first generation is in place, “the project can rapidly expand”.