MARKET REPORT: Battery cell maker AMTE Power falls as it fights for survival

Shares in AMTE Power crashed to a record low after the Scottish battery cell maker warned investors could get wiped out if it fails to raise fresh funds within four weeks.

The group, whose lithium-ion and sodium-ion cells are used in electric vehicles and energy storage for renewable power in places without grid access, said it is running out of cash as it aims to bring its products to market.

‘Should the company be unable to secure additional funding, the prospects for recovery of value, if any, by shareholders would be uncertain,’ it said. 

Shares, which floated at 175p in 2021, tumbled 74.9 per cent, or 38.2p, to 12.8p.

In December, AMTE said it needed a cash injection by April so it could continue to run the business. 

No funds: AMTE Power, whose lithium-ion and sodium-ion cells are used in electric vehicles and energy storage for renewable power off grid, said it is running out of cash 

It had forecast there would be ‘minimal disruption’ to operations until June, and accessed two loans worth more than £1.5million in March and April.

It remains in talks with investors to raise more funds and must do so within four weeks. ‘There can be no certainty of the outcome of discussions,’ the company added.

Alan Hollis, chief executive, said: ‘We are active in our engagement to raise funding and to communicate the importance of developing a home-grown battery manufacturing industry to enable a just transition to net zero, support the UK’s energy security and unlock green industrial growth.’

The FTSE 100 rose 0.3 per cent, or 25.52 points, to 7628.26 while the FTSE 250 was down 0.7 per cent, or 136.09 points, to 19,039.41.

Equity markets struggled for direction as investors digested the latest interest rate decisions.

In Europe, Germany’s Dax fell 0.1 per cent while France’s Cac 40 slid 0.5 per cent as the European Central Bank raised its benchmark borrowing costs by 0.25 percentage points to 3.5 per cent, in contrast to the US Federal Reserve, which on Wednesday left rates unchanged for the first time in 15 months.

Back in London, Informa was among the top blue-chip risers after the exhibitions organiser cashed in on a return to live events. Its revenue rose 24.5 per cent in the first five months of the year.

Stock Watch – Eden Research

Eden Research soared after it hired a new distributor to sell its sustainable biopesticide in Colombia.

The Oxford group hopes to receive regulatory approval to use mevalone on freshly cut flowers to treat a fungal disease, which damages many species. Once approved, its biopesticide will enter the Latin American market.

Cut flowers are Colombia’s sixth most-exported product.

Shares, up more than 80 per cent this month, soared 22.4 per cent, or 1.5p, to 8.2p.

Informa has run more than 60 major events this year and hailed a recovery in Asia and Greater China. 

As a result, it has increased its revenue forecast for 2023 to a range of £2.95billion and £3.05billion, up from £2.75billion and £2.85billion.

Profit is likely to be between £750million and £790million, above the £675million and £725million it first expected The upgrades mean more than £650million will be returned to shareholders this year, compared with the £550million last year. 

Shares added 3.4 per cent, or 24p, to 728.4p.

There was some good news for M&C Saatchi after the advertising group formally welcomed the former chief executive of Future to its board.

Zillah Byng-Thorne, who led the magazine publisher from April 2014 until March 2023, was appointed chairman in March.

It marked another milestone this week after almost 39 per cent of participating shareholders voted against its executive pay report on Wednesday, just hours after it warned the challenging advertising environment would continue to hit revenues. Shares dipped 0.6 per cent, or 1p, to 158p.

Robert Walters clawed back some of the losses made a day after the recruiter issued a profit warning. Shares inched up 2 per cent, or 8p, to 410p.

And miner Anglo American signed an agreement with one of China’s largest copper producers to collaborate on mining, processing and bringing the metal to market. 

It said Jiangxi Copper aims to contribute to efforts to decarbonise and become greener.

Its shares inched down by 0.1 per cent, or 2.5p, to 2580p.

This post first appeared on Dailymail.co.uk