Diamondcorp persists with funding 12/03/2010
Gem miner Diamondcorp is hoping the strong recovery in rough diamond prices will facilitate its planned £5 million funding.
Confectionery and chocolates supplier Sweet China is poised for another acquisition despite its recent share price plunge.
Martin Frost, chairman of AIM-quoted Sweet China, which recently bought Hong Kong-based sweets supplier Essential Box, is bitter about the savage markdown of its shares triggered by the recent Melamin contamination of milk powder in China. But he and chief executive officer David Zulman say they are determined to press on with acquisitions to move the company into direct production and sales to the potentially huge mainland Chinese chocolate market.
London-headquartered Sweet China, which raised £2 million at 9p at the time of the Essential Box purchase, has seen its shares tumble to a mere 1.5p, despite issuing public assurances that the chocolate it uses, sourced from world leader Barry Callebaut of Switzerland, has repeatedly tested negatively for Melamin. The Chinese authorities have also given Sweet China’s chocolate a clean of bill of health, points out Frost.
Sales rose 32 per cent in the first four months of the current financial year, says Frost, adding that Essential Box is thriving under its recently appointed chief executive officer, Connie Leung, formerly of the Ferrero group. Although Sweet China’s full-year results will show a substantial loss because of the Essential Box acquisition costs, the figures are also expected to show satisfactory operational progress.
Fans suggest the company, which in June added Orbis Equity Partners as joint broker along with nominated adviser Zimmerman Adams and Hichens Harrison, could even benefit from the present economic and investment downturns in two ways. First, chocolates represent cheap treats appropriate for hard times and, secondly, potential acquisition targets are now much cheaper.
If so, Sweet China could fare better than some of its sector peers.
Growth Company Investor is the UK’s leading authority on small-cap and AIM companies. You can gain immediate access to all the recent share recommendations with no obligation, with a free 30-day trial. Click here to join today.
£7,277 That’s what you would have in your portfolio if you had invested £6,000 into the six Company Watch recommendations in our April 2009 issue.
Advertisement
Growth Company Investor, in association with the London Stock Exchange, presents the most wide-ranging and detailed examination of the AIM market: AIM in Review 2010. For more information and to order, click here or contact our marketing team on 020 7250 7056.
The report reveals the top-earning chief executives and remuneration levels at AIM's most profitable and fastest-growing companies. It also examines constituent parts, including basic salary, bonus, pensions, benefits and share-based payments. To order click here.
Free access to the latest AIM stock recommendations and news from the award-winning Growth Company Investor team. Receive our tips on what stocks to buy direct to your inbox every Tuesday and Friday. Find out more today.
Cautious? Positive? Adventurous? Choose between three levels of risk for a fund of funds from Sharefunds, our sister company. Click here for more information.
The brand new, fully updated AIM Guide 2009/2010 is now available to purchase. AIM Guide is the only fully comprehensive guide to AIM and is regarded as 'must-have' for any serious investor or professional interested in the market for young, fast-growing companies. Order your copy today and benefit from a £10 discount!
This report's principal aim is to provide business owners seeking funding with information about the amount of funds that VCTs have to invest. Click here for more information.
Business XL, the award-winning monthly magazine for growing companies, is delighted to announce the launch of a new study on cash shells. The research provides a comprehensive overview of cash shells on AIM, companies that have become a significant feature on the AIM landscape. Buy the Cash Shells 2009 Research Report today or email Halid Delkic to obtain a free two-page abstract.
Daily coverage of small-cap company stocks on London's junior markets AIM and PLUS, breaking news, stock research and latest share price information for investors. Full sector coverage with all the latest news on smaller listed companies, updated several times a day with financial reports, trading statements and links to further web resources.
Advertisement
Gem miner Diamondcorp is hoping the strong recovery in rough diamond prices will facilitate its planned £5 million funding.
Aussie-based Cape Lambert Resources is selling its Lady Annie copper mine for A$135 million to Hong Kong-quoted China Sci-Tech.
Pre-tax profits at legal and accountancy software specialist Tikit Group dropped 29 per cent last year to £2.5 million.