Alternative Networks, Croma, Horizonte Minerals

“A rally in commodity prices and optimistic economic UK data nudged the FTSE 100 into positive territory,” says AJ Bell Investment Director Russ Mould.

“IT and telecoms providers Alternative Networks’ confidence of better times ahead failed to convince investors and its shares tumbled as first half adjusted earnings fell by 27%. The group has taken measures to mitigate the financial impact of changes to roaming tariffs and remains optimistic about future growth.

“The group increased its interim dividend despite lower revenues and profits and expects the full-year pay-out to grow by no less than 10%. A high level of backlog and a healthy pipeline of new business, together with cost reductions, are expected to support second half performance. Its shares were down by more than 9% in lunchtime trading.

“Asset protection specialist Croma Security Solutions Group’s shares slumped after it warned profits will be materially below forecasts due to correcting overstated results for 2015 and the first half of this financial year. An admin error led to an overstatement of £142,250 for the 2015 results and the mistake was repeated in the results for the six months to the end of December where the profits were overstated by £47,216. Croma will take a hit in this year’s results by making a one-off adjustment to correct the errors. Croma’s shares were down by nearly 16%.

“Horizonte Minerals’ shares jumped after it was granted a preliminary environmental licence for a nickel mine and beneficiation plant at its Araguaia project in Brazil. The project is a key economic driver for the region with the potential to provide around 1,000 jobs during construction and about 500 jobs when operational. Horizonte’s aim now is to show the project can make money in a very low nickel price environment.”

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