SMALL CAP MOVERS: Harland & Wolff shares jump after Royal Navy contract win; Parsley Box removed from AIM
Shipbuilding in the UK may be an industry in decline, but there is one business trying to revive.
Harland & Wolff jumped 180% to 25p this week after winning a major contract.
Based in Belfast, the shipyard and offshore construction company are renowned for building the Titanic.
He has now been selected as the preferred bidder for a £1.6billion contract to build three ships supplying munitions, stores and provisions to Royal Navy aircraft carriers, destroyers and frigates.
Harland & Wolff jumped 180% this week after winning a contract to build three ships
Belfast Dockyard will build the three 216-meter-long ships, which when completed will be the second-longest British naval vessels behind the two Queen Elizabeth-class aircraft carriers.
Harland & Wolff has secured MoD contracts in the past, but not on a scale of this magnitude.
Taken into administration in 2019 but refloated, the shipyard’s iconic yellow cranes are known to locals as Samson & Goliath, a symbol of Belfast’s once mighty shipbuilding industry.
This latest contract win “will be a significant boost to the UK shipbuilding industry… creating around 2,000 jobs in the UK and showcasing state-of-the-art British design,” Defense Secretary Ben Wallace said.
Production is expected to begin in 2025, and the three support vessels are expected to be operational by 2032.
As part of the proposal, a group called Team Resolute has pledged a £75million investment in infrastructure to support the UK shipbuilding industry.
Poolbeg Pharma was another booming Irish business, climbing 27% to 10.5p as a consortium it is part of won a €2.3m government grant from the Irish government to develop a vaccine platform oral.
The consortium plans to develop at least one oral anti-infective vaccine candidate to a phase one trial-ready state in three years.
Elsewhere, it was good news for cows as BSF Enterprise announced that wholly-owned subsidiary 3D Bio-Tissues had successfully produced three prototype lab-grown meat, pushing its share up 42% to 11.3p.
The investment company said in a statement that three small fillets of meat, approximately 30mm high and 15mm in diameter (smaller than a 5p piece), weighing five grams, were produced by the subsidiary company.
Overall, it was a decent week for the London junior markets, with AIM100 up 0.39% at 4,034, although again lagging Footsie, which was up more than 0.8%.
Among the fallers was Firering Strategic Minerals, losing 17% to 13.2p after an initial set of assay results from its drilling program at its Atex lithium-tantalum project in the Ivory Coast.
Firering liked the results and there has most likely been an element of profit taking as the shares have doubled over the past month.
A second phase of exploration with Ricca Resources is being prepared, he said, following a recent $18.6 million investment deal.
Ready-meal supplier Parsley Box has decided to delist after just a year and a half on AIM
Eco (Atlantic) was less confident and its value halved to 19.3p as it revealed the Gazania-1 well off South Africa had run dry.
Further work will be undertaken to analyze the data, the oil company said.
Finally, another company from the 2021 IPO rush came to an inglorious end with Parsley Box deciding to delist after just a year and a half on AIM.
The shares, which launched in March 2021 at 200p for an initial market capitalization of £83m, subsequently lost more than 99% of their value.
The ready-meal supplier is holding a shareholders’ meeting to approve the delisting decision after it was unable to raise funds.
The cancellation of Parsley Box follows ‘Class of 21’ member Made.com’s collapse in administration earlier this month, while other alumni like In The Style, Revolution Beauty and Seraphine have seen their values plummet.
“Another day and another recent IPO goes up in smoke,” said Russ Mould, chief investment officer at AJ Bell.