SMALL CAP MOVERS: AIM Index shows bright spots amidst turbulence

After several days of stock market turmoil fueled by the government’s mini-budget, London’s junior market ended the week and month with a small rebound and a frenzy in results releases.

A 0.4 percent rise on Friday meant the AIM All-Share Index fell 3.9 percent for the entire week, compared to a 1.7 percent drop for the internationally flavored FTSE 100 and a 5.5% drop. 6 percent for the FTSE250 mid-caps.

Even in the smoking rubble of the market, there were a number of small-cap success stories that still shine through, including: Appealingwhich rose after receiving a cash tender offer at a premium of about 71.43 percent over the previous day’s closing price.

Among those who hang out in the market, Eden Research stood out among the 80-plus companies that reported quarter-end results Friday and 100-plus in the preceding days by saying it is on track to meet its sales forecast for the year after a 32 percent increase in the turnover in the first half.

The sustainable biopesticides group helped shares rise 29 percent over the week, saying they reduced losses in the first half and entered the second with an even stronger foothold following the US approval of the products. from the company.

This, said chairman Lykele van der Broek, “opens significant revenue and growth opportunities for us, with our total addressable market in the region of US$500 million.”

7Digital also struck a chord with its results on Wednesday, with shares in the digital music specialist soaring 27 percent higher after it reported a 21 percent increase in revenue and even broke below it.

The company, which unveiled a £500,000 fundraiser last week with a loan from shareholder Magic Investments, said it had won five new license clients, three contract extensions or renewals and entered the second half with a ‘solid new business pipeline’.

Back home in the UK, Billington shares built a nice increase after the structural steel company forecast better-than-expected results for this year and next.

With sales for the first six months of the year up 22.4 per cent to £46.2 million and profits nearly doubling to £1.5 million, the Barnsley-based group said it has seen significant growth since the end of the half. amount of new work.

In particular, it said it won contracts in the data center, waste energy and industrial storage sectors with improved margins.

Chief executive Mark Smith said: “While macroeconomic headwinds are likely to continue for some time to come, particularly with regard to materials availability, price volatility and continued inflationary pressures, we see a steady stream of opportunities with better margins.”

There were some winners in the lower reaches of the mining sector, with little explorer Tertiary minerals skyrocketed 56 percent after two Zambia updates, in which it said its tribal and stakeholder engagement was “successfully completed” and it has now earned a 90 percent joint venture stake from local company Mwashia Resources.

The company said it will begin sampling soil at its copper prospect Jacks, after drilling this summer, and has hired an experienced exploration manager in the country.

MusicMagpie, co-founded by Steve Oliver (pictured), lost more than half its value over the week after concerns over the UK’s economic outlook led it to lower its profit target

Across the border with Mozambique, Pathfinder Minerals shares rose 29 percent after announcing it entered into an option agreement with a US firm specializing in international asset recovery to file a claim against the South African government’s government for expropriation of a mining license.

If the deal is approved, Delaware-based Acumen Advisory Group will pay £2 million in cash to Pathfinder to acquire 100 percent of its IM Minerals subsidiary and the rights to the claim, with legal proceedings to start within three months with the goal of achieving closing within five years and sharing the proceeds of the lawsuit.

Pathfinder said doing the deal would mean turning it into a cash shell, but could also ultimately take advantage of a potential benefit from the claim which has been “independently assessed to be valued between US$110 million and US$1.” .5 billion’.

But decliners dominated the week, with many warning of gains alongside the release of the half-year results as the economic outlook darkened.

MusicMagpie lost more than half its value over the week after concerns about the UK’s economic outlook led it to lower its profit target.

While the company’s goal is to help people earn a few pounds selling their used DVDs, CDs and electronic goods, the company expects revenue and profit growth to be weaker than previously hoped.

While the group continues to expect Black Friday to prove to be a peak trading period, it now believes it would be prudent to lower expectations for this period’s contribution due to the deteriorating economic outlook and rising cost of living for the UK. consumer. ,’ it said.

Results of Fire Angel Safety Technology were also a downer, as the home security supplier warned that while revenues were up in the first half and expected to be strong for the year, the impact of rising component costs and the weaker pound means underlying earnings will be ‘ significantly lower than what the market had estimated.

Printing Technologies collapsed after saying it would lose a full year and in talks with his bank as a recovery expected in the second half failed to materialize.

According to the engineer, this would result in it not being able to meet the requirements of its banking conditions.

Directors are engaged in a ‘constructive dialogue’ with Lloyds Bank on this, while also working with advisors on alternative financing options to replace the bank facility and potentially enable it to bring in some of the ‘key’ hydrogen projects in the pipeline.

The largest decline occurred in the data software group Glantus which fell 68 percent over the week as it warned of gains from delays and higher costs of moving to Costa Rica.