SMALL CAP MOVERS: Numis accepts Deutsche Bank takeover

Numis Corporation was one of the big movers of the week after the broker announced it won’t be staying on AIM for much longer after agreeing to be acquired in a £385m all-cash deal filed by Deutsche Bank.

Listed on the AIM, Numis is one of the companies that is largely invisible, but is crucial to the smooth functioning of the small and mid-cap sector of the stock market, raising money for these companies and providing advice and M&A support to offer.

While the announcement didn’t say this, life is tough for the likes of Numis right now.

Fundraising activity is floored and the number of new companies entering the market is at an all-time low.

This was reflected in Numis’s recent trading update, which revealed a 14 percent drop in sales to £64 million in the first half.

Things are so tough there that Numis’ smaller rivals, FinnCap and Cenkos, recently agreed to what can only be called a defensive merger.

Deutsche Bank’s knockout offer of 350 pence per share values ​​Numis at about where it was during the 2021 fundraiser.

Unsurprisingly, shares sailed up 67 percent or 137p to 341p after the announcement.

Numis wasn’t the only AIM voter to announce a strike.

Asimilar Group plc saw its share price collapse by 30 percent on Monday after returning from a three-week trading pause.

It will be short-lived, however, given news that the small-cap tech investor plans to cancel its AIM listing (although it will retain a listing on AQSE).

The decision comes as the company wants to reduce operating costs and take advantage of a market regime better suited to an investment company.

Software group Smoove may also be about to join the growing role of small caps moving out of the junior market in favor of a take-private approach.

smoothing out confirmed it is in early talks with Australian electronic transport platform PEXA Group over a possible cash offer. Shares bounced 28 percent higher to 44.9 pence on the news.

As we move into the consumer sector, something of a resurgence story is brewing Naked wines.

Needless to say, Naked Wines was on thin ice leading up to 2023.

The online wine retailer’s market valuation took an 80 percent hit on Dec. 31, propelled by a less than rosy mid-year trade update.

Profit before tax had plummeted, cash reserves had halved and management felt that the group had lost sight of its goals.

Chief executive Nick Devlin did not try to abdicate responsibility, stating at the time: ‘We have increased the number of new members at the expense of quality and in the UK in particular we have been able to shift our market position to become the lowest. online player award – which is inconsistent with our ambition to be the world’s leading online quality wine platform.’

Cue a focused cost-cutting regime, a reduction in inflated inventory levels, onboarding former CEO Rowan Gormley as an advisor, a pivot to profit over growth, and an admission from Devlin that “we made mistakes,” and Naked Wines is still in the wine game, with investors reacting positively to this week’s trading statement.

Earnings for the full year ended April 3 are expected to be at the high end of guidance, demonstrating, Devlin says, that “our pivot to earnings is on track.”

As a result, shares of Naked Wines rose 13 percent to 118 pence on Thursday, and while there was a correction to 113 pence on Friday, it was still a top performer among the AIM-listed retail and consumer range.

James Fisher & Sonsthe provider of specialist services to the shipping, oil and gas sectors, also bounced off the recent doldrums as investors welcomed a new £210 million loan facility.

Fisher has sold parts of the company to deleverage and said it will continue divestments to further deleverage. Shares bounced 14 percent higher to 322.5 pence by the end of the week.

pensana was a top mover in primary industries. Shares in the rare-earth developer rose 40 percent to 33 pence on Friday after the company announced that major shareholders M&G Investment Management and the Angolan sovereign wealth fund have agreed to invest an additional $10 million to increase their combined stake to 38 .6 percent.

Chairman Paul Atherley said the couple’s additional investment “reflects their confidence in our strategy and growth prospects,” and their request to participate in future shares elicits “clear endorsement from our company, demonstrating long-term alignment with our goals.” .

The AIM All-Share Index trended down most of the week, reaching a low of 819 on Wednesday.

But an early Friday bounce triggered a reversal above 826, essentially resulting in a flat trade over the five-day period.