Dublin-based DCC (DCC) is to sell its healthcare division for £1.05bn.

The sale to HealthCo, a fund managed by European private equity firm InvestIndustrial, is expected to generate about £945mn in cash, although £130mn of this is a deferred payment due within two years. The deal is expected to complete in the third quarter of this year, after which DCC plans “a significant return of capital” to shareholders.

DCC said the sale price is a multiple of 12 times the adjusted pre-tax profit of £88.1mn generated by the healthcare arm last year, which is “significantly ahead of the group’s multiple today”. It also represents a premium of £180mn over its book value.

However, RBC Capital Markets analyst Andrew Brooke said the price was “lower than expected” and DCC’s shares fell by 3 per cent in early trading.

DCC revealed plans to sell the healthcare division in November, when it announced that it would focus solely on its energy business. Once the healthcare disposal completes, DCC will turn its attention to the technology distribution arm, which it is currently overhauling in a bid to improve its profitability ahead of a potential sale.

Argentex shares suspended due to FX volatility

Argentex (AGFX) shares have been suspended from trading following a “rapid and significant” deterioration in the company’s liquidity position.

Management said the devaluing of the US dollar, fuelled by Donald Trump’s tariff policies and government spending cuts, had caused “material uncertainty” at the currency specialist. Margin calls linked to its foreign exchange (FX) forward and options books were partly to blame. The small cap is now “considering a number of options for the business” and has taken steps to preserve cash and increase the collateral received from its counterparties.

In the event that the volatility in currency markets worsens materially then the company’s financial liquidity position, if not strengthened in the near term, would be significantly stretched, management warned.

Just three weeks ago, Argentex told investors that higher FX volatility generally acts as a tailwind for the company, as it encourages customers to hedge a higher proportion of their foreign currency transactions. Its net cash position as at 31 December 2024 was £18.4mn.

Ricardo makes room for £10mn of extra cost savings

Ricardo (RCDO) has found another £10mn in cost savings for the second half of the year, on top of £5mn already in the works. The move is aimed at cushioning the blow from order delays and currency swings, which are expected to hit profits this year.

The environmental consultancy still expects to meet analysts’ forecasts for the 2024-25 financial year. Consensus points to a 21 per cent drop in revenue to £475mn and for operating profit to almost halve to £21.3mn, according to figures compiled by FactSet.

Cash conversion, which came in at just 13 per cent in the first half, is set to surpass Ricardo’s medium-term target of 90 per cent. Net debt is expected to land at the lower end of analysts’ expectations (before restructuring costs), although still above its target of 1.25 times Ebitda. Consensus puts leverage at 2 times.

In the meantime, Science Group (SAG) raised its stake in the company to over 20 per cent in early April. Ricardo has accused the group of waging a “hostile campaign” to discredit its performance and shake up the board. In today’s update, the group reiterated that Science Group is trying to take over the business without paying a premium.

The shares fell by 3 per cent to 221p, and are down 47 per cent in the year to date.

ITM Power raises revenue guidance by 30 per cent

ITM Power’s (ITM) shares rose by 9 per cent after the Aim-traded electrolyser manufacturer revealed a big increase in its annual revenue guidance on meeting “additional contractual obligations”.

Management now expects 2025 revenue to come in at £25.5mn-£26.5mn, a 30 per cent jump against the middle of the previous guidance range of £18mn-£22mn. Cash guidance was also improved, from £185mn-£195mn to £204mn-£205mn, but the company stuck with its estimated cash profit loss of £32mn-£36mn.

Despite the positive market reaction to the update, the shares are down 12 per cent in the year to date and almost 40 per cent over the past 12 months.