Some notable falls for WH Smith were posted this morning. The company has just completed a refocusing by selling off its network of UK high street stores and electing to focus on its global travel operations instead. Whilst a price for the deal had been settled and was intended to yield gross cash proceeds of £52m, a softening of the UK sales environment and an eagerness to get the deal done saw further discounting taking place. A release this morning noted that gross cash is now expected to be a maximum of £40m, sale costs remain unchanged and the upshot is the parent company’s debt pile won’t be reduced by as much as had been hoped. The WH Smiths share price fell more than 7% in early trade.
The AIM listed medical device company published an update on its strategic review this morning. Management had been concerned over the impact of tariffs given the company manufactures in China and sells largely to the US, but has now reached agreement to sort funding at 18% using convertible loan notes with a US private merchant bank. This is clearly seen as a better option than a potential trade sale or large divestment of equity so attracted early support amongst investors. However the note adds that the refinancing means today’s filing deadline for audited accounts won’t be met and shares will be suspended tomorrow. Regardless, the Belluscura share price added more than 25% at the opening bell although has since handed back some of those gains.
In a quiet start to the week for news, another small cap is on the agenda with Bitcoin mining and technology company Argo Blockchain providing a restructuring update. This results in the lender acquiring interests in Argo Blockchain of more than 30% which would ordinarily trigger a takeover offer and whilst a waiver has been applied for here, there’s no guarantee this will be passed. The Argo Blockchain share price was trading down more than 40% by 8.30am.
Most read news on Investegate this morning
Group Audited Results for year ended 31 March 2025 - - Polar Capital Holdings (POLR)
Bitcoin Treasury Update: Purchase of Bitcoin - - Vaultz Capital PLC (V3TC)
Vodafone Group Plc launches Cash Tender Offers - - Vodafone Group (VOD)
