10.32am: VR group shares jump
Virtual reality technology group VR Education Holdings PLC (LON: VRE) is doing well in the real world after a positive update.
The company’s shares have climbed 17.5% or 1.75p to 11.75p as it said revenues for its ENGAGE software had jumped 138% quarter on quarter in the first three months of 2021 to €0.4 million. This compares to total revenues of €0.6 million for the whole of last year.
Some 28 new customers have signed up since January, including the US State Department.
Chief executive David Whelan said: “ENGAGE usage continues to grow as more and more organisations worldwide see the benefits of the kind of immersive experience that ENGAGE offers versus traditional video-based communications tools such as Zoom and MS Teams. We are focused on building on the ENGAGE client, user and revenue momentum we generated in 2020. Over the coming year, we will be targeting enterprise and institutional clients in our key geographies of Europe, Asia and North America and grow ENGAGE usage.”
9.02am: Home safety group boosted by German deal
Shares in FireAngel Safety Technology Group PLC (LON:FA.) have been fired up by a significant new partnership which could be worth up to €21mln for the company.
The home safety product specialist is linking up with a German business – which supplies services to 12mln apartments worldwide – to set up an R&D programme for a new generation of smoke alarm.
The German company will fund the development phase of the alarm, with FireAngel receiving a fee of £1.4mln for use of its intellectual property during the development phase. Once production has started, a royalty fee per product will be payable to FireAngel with a multi-million volume fee agreed for the initial 30 months. Manufacturing is expected to begin in early 2024, with an estimated 7mln new devices being produced.
John Conoley, executive chairman of FireAngel, said: “This is the most significant development for FireAngel for several years and is expected to be transformational for the group. The directors estimate that, during the life of the partnership, the company should earn up to €21mln in royalty, management and support fees. [The partnership] will be materially cash positive and contribute financially to the company for the long term.”
FireAngel shares have more than doubled on the news, up 14.7p to 29.2p.
8.25am: Network group jumps after surge in revenues
The company, a specialist in smart mesh networks which allow machine to machine communication, said full year revenues were above market expectations and around 2.5 times the £2.5m seen in the previous 15 month period.
It shipped 481,000 modules to customers during the year, up from 115,000, with £5.3m of cash received compared to £4.1m.
Executive chairman John Cronin said: “I’m delighted with the progress made during the financial year ended 31 March 2021, which has delivered our highest annual revenue to date..With deployments being secured against Letters of Credit or advance payments, cash collection has significantly improved, and together with ongoing cost control, our cash position at 31 March 2021 is higher than at 31 March 2020.
“This has been an extremely challenging year due to the Covid-19 pandemic, nevertheless we have continued to pursue a number of opportunities which we expect to bear fruit in due course. We also expect revenues to materially increase during the current financial year and note market expectations of £8.8m of revenue for the financial year ended 31 March 2022.”
The optimistic tone has lifted Cyanconnode 15.28% or 1.02p to 7.67p.
Also on the move is DeepMatter (LON: DMTR), up 10.21% or 0.24p to 2.59p and more than recovering a loss of around 5% on Tuesday.
The company, a specialist in digitising chemistry, unveiled a collaboration with the University of Nottingham’s School of Chemistry, providing access to its DigitalGlassware platform to support the University’s sustainable chemistry initiatives.
DeepMatter chief executive Mark Warne said: “Having worked with the University of Nottingham previously in their Digital Teaching Laboratory, we are delighted to be working with [project leader Professor Jonathan Hirst] in his challenge to design, make and ultimately manufacture new molecules in a more sustainable fashion. We recognise that significant changes are required in the way science is organised and conducted for there to be progress towards a more sustainable environment and we are pleased that our technology will play a role in developing the industry’s sustainability.”
Professor Hirst said: ” At the moment, there are all kinds of inefficiencies, which are largely neglected in the search for new chemicals with specific desired properties. This project will provide machine learning tools for chemists and chemical engineers that will help them address two questions. How do we find greener synthetic routes to chemicals? And how do we identify greener target molecules from the outset?”