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DeepMatter unveils placing | Babcock completes power sale

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3pm: Miller Homes deal

Funds managed by Apollo have acquired the house builder Miller Homes.

Full story here


12.30pm: London closes flat

After breaking through 7,400 the FTSE 100 ended the shortened session just 1.24 points lower 7,372.10.


9am: London higher in shortened session

London shares maintained their upward trajectory on further evidence of the more limited impact of the Omicron variant on the global economy.

The FTSE 100 was trading at 19.62 points higher at 7,392.96. The market closes at lunchtime.


DeepMatter placing

DeepMatter Group, the Glasgow-based digital chemistry data company, has announced a placing and subscription to raise gross proceeds of £2.55 million, at a price of 0.1 pence per new ordinary share.

The placing price is at an 84% discount to Thursday’s closing price of 0.63p. Shares today fell 0.23p (36%) to 0.4p following the announcement.

The company said the placing and subscription will enable it to move forward without the need to re-evaluate its strategy and outlook.

It is being financed by a small number of new professional individual investors and existing institutional shareholders and conducted by Canaccord Genuity.

The company is also raising up to £0.25 million by way of an open offer which will be available to all qualifying shareholders.

DeepMatter continues to engage with Standigm over a multi-year deal. However, the directors now believe that this contract will now be signed in 2022, which will result in revenue for 2021 being lower than directors’ expectations.


7am: Babcock completes power sale

Babcock International Group has completed the sale of its power business to M Group Services for £50 million.

The business provides engineering services in the UK overhead line electric transmission and distribution industry. Clients include National Grid, Scottish Power Energy Networks and Western Power Distribution.

Following the sale, the business will form part of Morrison Energy Services, a division of M Group Services.

The business is a part of Babcock’s Land sector. For the year ended 31 March 2021, it reported total revenues of £70 million and profit before interest and tax of around £7m before allocated overheads.


Global markets

Wall Street rose again overnight as traders convince themselves that Omicron will not have a devastating impact on the economy.

The S&P 500 rose by 0.62% to a record high, while the Nasdaq jumped by 0.82%, and the Dow Jones moved 0.52% higher.

The US Federal Reserve said last week it would accelerate tapering of its massive bond buying programme and paved the way for three interest rate hikes in 2022.

Most Asian share markets edged higher. Japan’s Nikkei inched 0.1% up, though Chinese blue chips slipped 0.32% a day after rising infections in the northwestern city of Xi’an resulted in a lockdown of its 13 million residents.

“As it looks like neither [US] tapering nor the Omicron variant will have too much of an effect on the economy, globally, money is flowing into equities,” said Steven Leung executive director for institutional sales at UOB Kay Hian in Hong Kong.

US equity and Treasury markets will be closed for the Christmas holiday, while the FTSE 100 was tipped to open marginally lower ahead of the shortened session.



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