Water utility company Pennon saw its shares tumble on Monday morning following the impact of last week’s rights issue being factored in at the open. Existing shares were marked “ex-rights”, and the new stock was admitted onto the market. As last week’s note explained, the purpose of the Rights Issue is to enable Pennon to deliver the step change in investment required through the K8 regulatory period to March 2030, whilst ensuring appropriate and sustainable gearing is maintained throughout. The Pennon share price is down 23% in early trade.
The company, which owns a number of leading home wear brands, published an H1 trading update this morning. Noting that the trading situation had improved from Q1 to Q2, management also added that the outlook offered some cause for optimism with a strong order book. However, headwinds still persist so the expectation is now that full year revenues will be broadly flat against the comparative. The Ultimate Products share price was down by more than 20% shortly after the open, although did manage to recoup some of those losses.
Gains for the low sodium salt replacement producer this morning after they announced a successful fundraising had been completed without having to offer a discount. The money will primarily be used to build inventory and to support sales and marketing, with the cash being sufficient to support the business for the next 12 months. The offer was oversubscribed and the MicroSalt share price was trading more than 20% higher around 9am.
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Trading Statement - - Speedy Hire (SDY)
