SMALL CAP MOVERS: AO World makes a bargain for MusicMagpie

MusicMagpie plc is a popular online marketplace where you can get a bargain on second-hand iPhones, PlayStations and whatnot.

This week it was musicMagpie’s turn to make the bargain when white goods group AO World plc offered just £10 million for the company, which would see musicMagpie removed from AIM.

AO World’s offer represents just a fraction of musicMagpie’s market capitalization of £208 million when it floated in 2021.

musicMagpie was founded in Stockport in 2007 by Steve Oliver and Walter Gleeson, who reportedly made £22.1 million from the initial public offering.

A profit warning in June appeared to irreparably undermine confidence in the shares, which had reached a low of 5.25p at the end of August.

Given AO World’s offer of 9.07p per share, the stock rose more than 55 percent this week to close the offer gap.

The broader AIM All-Share Index had a bearish week, falling about 1.2 percent to 737 on Friday.

Blue chips also suffered, with the FTSE 100 down 0.8 percent.

Global stocks were rocked by rising tensions between Israel and Iran, which offset more positive macro triggers earlier this week, such as a massive stimulus package for China and particularly buoyant US jobs data.

Tower Resources plc skyrocketed this week as expectations of a crucial financing deal approached.

AIM-listed explorer and producer micro said it has an outsourcing proposal to “a substantial upstream business,” and is now in discussions with the new potential partner.

Tower said the proposal should “provide sufficient resources” to drill the NJOM-3 well in Cameroon. The shares added 150 percent.

Tavistock Investments plc shot up 75 percent on its plan to sell two subsidiaries, Tavistock Partners and Tavistock Estate Planning Services, to Saltus Partnership Holdings for up to £38 million.

The sale includes an initial payment of £10.97 million and up to £15.75 million in deferred payments, with £11.03 million allocated to pay off internal debt.

Potash development company Emmerson plc rose 44 percent after an upbeat trading update.

Emmerson said it is hopeful to receive an environmental permit in the fourth quarter, at which time an updated resource estimate will also be released.

Anglo Asian Mining plc rose 27 percent on news that agitation leaching has resumed normal production at Azerbaijan’s Gedabek mine after a 12-month shutdown.

The resumption follows the approval to raise the wall of the mine’s tail dam on August 5, 2024, when the commissioning of the agitation-leach plant restart began.

Energy Pathways plc was one of the strongest risers of the week after the company announced a £5.1 million loan facility for its Marram Energy Storage Hub (MESH) project.

The financing will be phased in line with the development of the project, aimed at creating a completely carbon-free energy storage system using natural gas and green hydrogen. Shares added 70 percent.

As for the decliners, Micro salt plc took a 27 percent hit, despite announcing this week an expansion of its global patent portfolio.

The low-sodium salt innovator, which made a successful debut at AIM in February, received patent certificates in China, Mexico and Australia.

The low share price follows last Friday’s interim results, which revealed a 33 percent decline in year-on-year sales and higher net losses.

Tungsten West plc resumed trading on AIM on Wednesday after a brief three-day suspension due to delays in its annual accounts.

Shares initially fell 25 percent from pre-suspension levels, but a solid 16 percent rally on Friday managed to get things back on track.

Shares in legal services specialist RBG Holdings plc fell 60 percent after telling investors that its financial performance would be “significantly below market expectations.”

The update came alongside the company’s interim statement in which RBG said it is reducing its cost base by £4.5m.

Premier African Minerals Ltd saw a 40 percent technical write-down following the announcement that £550,000 has been raised as the company explores options for its Zulu lithium project.

Proceeds from the sale of new shares will be used to support the Zulu operations as the options for a full or partial sale are explored, alongside plans to install an additional spodumene float plant at the site.