Keywords Studios recommends bid
Video games services provider Keywords Studios is recommending a bid from Sweden-based EQT Group, even though it is lower than the original indicative figure.
The offer is 2450p/share in cash, which is well below the previously indicated offer of 2550p/share. .The reason for that is the delayed contracts and poor trading of the business. That is a sign of the general weakness of the video games sector as games underperform and publishers run into financial difficulties. The bid values the company at £2.1bn.
Cake Box trading sparks upgrade
Egg-free cakes supplier Cake Box had a stronger than expected second half and the full year was slightly ahead of forecasts.
In the year to March 2024, revenues were 9% higher at £34.8m, although pre-tax profit dipped from £7m to £5.4m. Like-for-like growth of the store franchises was 4.4%. Pricing strategy is under regular review and there could be a small increase in prices this year.
Twenty new stores were opened last year. helped by a prepayment. The long-term target is 400 stores. Shore forecasts a recovery in pre-tax profit to £6m this year.
Windar Photonics raises £4m
Wind power measurement technology developer Windar Photonics is raising £4m at 35p/share after it was awarded a major order.
The cash will be spent on R&D and sales. The latest order is from a North American company with Vestas V82 turbines. It covers one-fifth of the company's wind turbines, so there could be additional business. The deal also includes software for the first time.
This underpins forecast 2024 revenues of €12m, which could return the company to profit. A pre-tax profit of €3.1m is forecast.
