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Penny Share Review 204

Monday 6 October 2003

The Financial Mail on Sunday talked of a major acquisition by Air Music and Media (AMU), which is to be announced this week. The Company is set to buy a similar European business for £3m and will pay an initial £375,000 in cash with the balance in shares and profit-based payments running up until 2005. The shares at 9.32 were trading at 9.75p having moved forward by 1.25p from Friday's close.

Alltracel Pharmaceuticals (AP.L) is featured in Saturday's Telegraph. The paper noted that the shares reached a new 12-month high on the back of Thursday's upbeat trading statement. The shares were unchanged at 38.25p from Friday's close.

Friday's "mixed update" from Fulcrum Pharma (FUL) was reported on by the Weekend FT. The Company said that full-year results would fall below market expectations due to lower than expected contract wins in the third-quarter, combined with the step-up costs associated with its growth in Europe, Japan and the US. Despite this trading so far in the first quarter was ahead of forecasts. The shares were up 0.5p from Friday's close and stood at 7.38p at 9.43.

According to Saturday's Daily Telegraph "traders were keeping an eye on" Grosvenor Land (GVR.L). Volumes were heavy as one transaction of 2m shares representing 5.8% of the group at 13p, registered on the screens, the paper reported. At 9.33 the shares were unchanged from Friday's close.

The acquisition of Pipex by GX Networks (GXN.L) featured heavily in many of Saturday's papers. The £55m deal will see GX pick up 119,000 customers or 6% of the UK market for high-speed internet and be renamed Pipex Communications. GX will pay £50m in cash and issue £5m in shares to the Rickards family, who owned 100% of Pipex. David Rickards, Pipex's managing director will join the board of the enlarged group. The acquisition will be funded with £27.7m in new shares already placed with institutions, a £15m debt facility and about £10m from cash balances. The Weekend FT commented, "GX has displayed amazing connection skills in hooking together so many ISPs so quickly. Its Pipex acquisition puts it ahead of better-known providers such as Tiscali and Demon in broadband market share and it has the scale to play a big role in providing Internet services to business and consumers. It becomes cash flow-positive immediately. Pipex had a pre-tax profit of £10.1m in its last financial year on turnover of £31.6m. GX had an operating loss of £3.7m on turnover of £11m for the half-year to June. GX's moves will be seen as a precursor to further sector consolidation." The shares were unchanged from Friday's close at 9.31.

Saturday's Daily Express picked up on rumours that a predator could be lining up a bid for Motion Media (MMD.L) and this drove the price up on Friday. The shares were trading at 14p at 9.32, up 0.75p from Friday's close.

Ultimate Finance Group (UFG) is featured in Sunday's The Business, which concluded that although conditions "may yet prove challenging for factors…Ultimate may just be the one that offers most upside over the long-term." At 9.31 the shares were ahead by 0.5p to 24.50p from Friday's close.

Today's Announcements

The following companies, in which City Equities customers may have an interest, released announcements to the market this morning. These can be found by entering the relevant company name or ticker code in the search box on this site.

Cambridge Mineral Resources (CMR) - Issue of Equity.
Country & Metropolitan (CRY.L) - Final Results.
Sopheon (SOP.L) - Launch of Accolade Version 5.0.

Look Out For This Week

October 6, Monday - Country & Metropolitan (results for 10 months).
October 7, Tuesday - nothing of note.
October 8, Wednesday - Incepta (I).
October 9, Thursday - UK interest rate decision.
October 10, Friday - nothing of note.

The next Penny Share Review will be posted on Monday, 13 October 2003.

Compiled by A McLintock

Penny Shares Online - penny shares research and information service.




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