3 Companies Rising on Good News for Tuesday 2nd May 2023

Episode 1382,   May 02, 2023, 12:14 PM

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3 Companies Rising on Good News for Tuesday 2nd May 2023

1. Longboat Energy #LBE - Norwegian Joint Venture with JAPEX

Longboat Energy announce that it has reached agreement with Japan Petroleum Exploration Co to make a significant investment into its Norwegian subsidiary, Longboat Energy Norge AS to form a joint venture.

The joint venture will be renamed Longboat JAPEX Norge AS, with a goal of building a leading Norwegian-focussed independent.

Transaction highlights

Cash investment of up to US$50 million for 49.9% of Longboat JAPEX comprised of:

- Cash investment on completion of US$16 million
- Contingent consideration of US$4 million, payable on successful completion of a production acquisition currently under review; and
- A further tranche of up to US$30 million, payable on a sliding scale following a successful discovery on the Velocette exploration well due to spud in Q3 2023.

2. Hostmore #MORE - Cost Reduction Programme, CEO Appointment, Webcast

Hostmore today is announcing a further cost reduction programme resulting in £4.1m of annualised savings. The implementation of this additional cost reduction has utilised £0.3m of cash.

The cost reduction announced today is in addition to the £1.8m of annualised savings disclosed in the Results Announcement, bringing the total aggregate cost reduction to £5.9m on an annualised basis and total cash implementation costs to £0.6m.

3. Restaurant Group #RTN - Trading Update

- Current trading continues to be very encouraging

- The Group is delivering c.£5m of incremental annualised cost savings

- This combination of encouraging current trading and incremental cost savings provides confidence that TRG is tracking ahead of management expectations on its medium-term margin accretion and deleveraging plans