SMALL CAP MOVERS: Revolution Beauty Collapses on Audit Probe; Afentra doubles upon return to the stock exchange
A little over a year ago Revolution Beauty came on the market with much fanfare and a valuation just a tad shy of half a billion pounds.
It was the culmination of a lot of hard work for Adam Minto and Tom Allsworth who founded the group in 2014.
And the IPO allowed them to cash in on some of their chips as they and other existing investors made about £186 million from the IPO.
Revolution Beauty shares, which traded at 160p last July, went below 8p on Thursday
The pair weren’t quite sure what awaited their business as it stepped out into the churning open sea of the public market.
Today, Revolution is less than a tenth the size it was when it made its debut (at least in terms of market cap).
A profit warning earlier this month was followed on Thursday by an admission that accountants had identified accounting issues that could have a material impact on Revolution’s full-year results.
Shares, which traded at 160p last July, fell below 8p at one point on Thursday after the latest blow to investor confidence.
As for the broader market, the AIM All Share was up just seven points at 928.10 after a quiet week in the markets. That only marginally lagged the performance of its benchmark, the FTSE 100, which rose just under 1 percent.
Holding on to the losers of the week, Eco Animal Health fell 22 percent after the pet and livestock pharmaceutical company said it expects to pay £2.25 million as part of a tax settlement.
Under the risers, afentra stood out with a stunning return to trading, causing the stock to double in value.
The stock was suspended in October and bounced back with a bang on Wednesday after the group said it secured two potentially transformational deals in Angola.
Afentra, the vehicle for a group of former Tullow Oil executives, said the acquisitions will create a net 27.7 million barrels of oil reserves and 4,700 barrels per day of production.
The latter has the potential to generate $36 million in free cash per year for the next five years at a conservative $75 barrel.
Holding on to the oil and gas sector, iGas continued its rise in the wake of investment by Crispin Odey’s hedge fund, which appears to have risen marginally over the past week.
The net effect was a further 49 percent increase in the stock price, which is up 462 percent in the year so far and more than doubled in the past month.
At the same time, Egdon Resourceswhich is also a British onshore game, rose 32 percent in hopes that the government would allow companies to start exploiting shale gas resources.
In Trinidad and Tobago, Touchstone Exploration environmental permit filed to begin work on a potential transformation gas asset on the island. This, and a reassuringly solid set of quarterly results, primed the pump for a 32 percent rise in its share price.
Also in the elevator this week Artemis Resourceswhich increased 68 percent.
The catalyst for interest was drilling results showing that the Western Australia-based mining developer had intercepted copper and gold in significant concentrations.
Finally, here’s one to keep an eye on for the coming months. Eco (Atlantic) oil and gas said a drilling rig has been sent that will drill a potentially transforming oil well 16 miles off the coast of South Africa.
It is aiming for 300 million barrels of oil, but not blindly. Shell and Total have made important discoveries in the area.
Shell’s Graff-1 well on the Namibian side of the sea border is said to have uncovered 2 billion barrels of crude oil, although this has not been officially confirmed by the Anglo-Dutch giant.
According to City broker Peel Hunt’s oil and gas exploration team, Eco’s Gazania prospect, while south of the other two discoveries, is in the same geological basin. Historic wells in the Eco Atlantic area have even discovered light crude.
Shares climbed about 5 percent this week and are up 57 percent this year. It’s a good bet they’ll go even higher if Eco finds what it’s looking for.