DeepVerge climbs higher as suggests skin care arms could be spun off

© Reuters. DeepVerge climbs higher as suggests skin care arms could be spun off

DeepVerge PLC shares have brushed up 19% to 15.44p as it explores options to meet the “unprecedented demand” for its Labskin platform and Skin Trust Club, suggesting they could be spun off or could receive extra investment.

The company announced a "significant reorganisation of the group", following “interest and increased discussions” with skincare corporations, US drugstores and venture capital companies.

It is looking at options for the two components of its Health and Life Sciences division, with Labskin being a test platform that proves the impact of skincare products, and Skin Trust Club a tracking app that enables individuals to better understand their skincare needs.

DeepVerge has run its Health/Life Sciences Division independently from its environmental divisions since early June, it said.

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

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

10.44am: Morses emergency call

Morses Club PLC (AIM:MCL) shares have crashed 42% to 4.89p as it said talks are being held with the City watchdog about setting up a scheme of arrangement to deal with higher levels of customer redress claims relating to historical lending practices.

"Whilst the directors consider that Morses Club has adequate liquidity for the immediate future, they believe that without a potential scheme, the level of redress claims could jeopardise the group's future," it said.

Approval from the Financial Conduct Authority is needed, as well as the approval of the majority of affected customers and a court sanction.

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

It said a £45mln exceptional provision will be booked for the current year, with adjusted profits to be 30-40% below current analyst consensus and there will be no dividend.

9.10am: Costain's cash pile

Costain Group (LSE:COST) PLC shares were winched 11% higher to 38.5p, after the construction group said it expects to beat revenue and cash forecasts this year as it passes through increased costs with higher prices.

As well as benefitting from inflation recovery mechanisms that are built into contracts, the company said in a first-half update that work was going well on its HS2 rail and roadbuilding contracts were continuing well and a “high volume of tender activity” for new contracts.

While operating profit forecasts are still expected to be in line with forecasts, the cash performance has been “strong”, with net cash at the half-year stage of around £95mln and further positive net cash predicted during the second half.

House broker Liberum said: “Cash generation, which is key, has been excellent and we increase our FY 22 spot net cash (ex leases) from £83m to £100m, with possible upside from National Grid (LON:NG).”

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

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