The junior market displayed less optimism, as evidenced by the AIM All-Share Index dropping 0.7% to 734 by Friday’s end of the week. Similarly, the blue-chip stocks experienced a downturn, with the FTSE 100 index decreasing by 0.7% over the week.
On Friday, the FTSE closed up by 0.2%. Endeavour Mining led the gains, rising by 2.6%, closely followed by packaging leader DS Smith, which increased by 2.5%. On the lower end, Sainsbury’s saw a significant drop of 5.9%, with Prudential falling by 1.7%.
In contrast, the mid-cap FTSE 250 index grew substantially, climbing 0.4%. Hochschild Mining topped the list with a 6.9% rise, and Auction Technology followed with a 3.8% increase. The most substantial decline came from Dowlais, down by 5.2%, and Ocado, which fell by 2.4%.
S&P 500 hits new record Wall Street’s benchmark index, the S&P 500, surged past 5,800 for the first time as major U.S. companies released their earnings reports. The index is up 0.5% this evening, with banking stocks leading the gains following strong earnings from several financial giants.
Wells Fargo shares have risen 6%, while JP Morgan is up 5.1%, and Bank of America, which is set to report next week, has also climbed 5.1%.
Returning to the top performers on the junior market, SEEEN plc (AIM: SEEN) spearheaded the gains with a 54% surge following an interim trading update. The media and technology platform reported a 19% increase in revenues and a 60% rise in gross profit.
Shares in Cambria Africa (AIM: CMB) surged 77.8% to 0.4p as trading resumed following the release of its 2022-23 financial statements and recent interim results. Early trading activity prompted some selling later in the morning. The shares are set to be suspended again on Monday due to the absence of nominated advisers, following a shareholder vote to cancel the AIM admission on October 22.
SkinBioTherapeutics (AIM: SBTX) is purchasing Bio-Tech Solutions for £1.25 million. Bio-Tech, a personal care product manufacturer, will enable the group to produce its own products. The acquisition is expected to boost revenues to £3 million in 2024-25, up from £2.1 million, with EBITDA potentially reaching £900,000. Following this acquisition, SkinBioTherapeutics’ cash reserves are projected to last until the summer of 2026, and its share price has risen 8.89% to 12.25p.
Adrian Stiff has acquired a 3.3% stake in the investment company Gunsynd (AIM: GUN), leading to a 16.7% increase in its share price to 0.14p.
On Wednesday, ECR Minerals (AIM: ECR) engaged in discussions with three Australian companies regarding the potential sale of its A$75 million in tax losses. The company is also anticipating rock chip results from its Lolworth gold and critical minerals project in Queensland. The share price rose by 3.7% to 0.28p.
Hercules Site Services (AIM: HERC) saw a 12% increase on Wednesday after announcing that its full-year earnings would surpass market expectations, driven by robust growth in its core UK infrastructure and construction sectors. Hercules attributed its success to leveraging ongoing demand in its key markets and securing £8 million in new investment, enhancing its financial standing for future growth.
Digitalbox PLC (AIM: DBOX), which owns Entertainment Daily, The Poke, and TV Guide, climbed 21% since last Friday following news of a potential sale of the company or other strategic options aimed at maximizing shareholder value. This strategic review, managed by the company’s independent non-executive directors, is expected to conclude with an update by the end of November.
Oxford Metrics (LON: OMG), a developer of smart sensing software, is set to acquire The Sempre Group, a Gloucester-based measurement technology company, for up to £5.5 million. Sempre, known for enhancing client productivity and efficiency with high precision metrology, complements Oxford Metrics’ earlier acquisition of Industrial Vision Systems, aiding in geographic expansion and providing diversification beyond the entertainment and health sectors. Following a slump in share price post-trading statement, OMG plans to spend up to £6 million on share buybacks, which will barely affect its substantial cash reserves of £50 million. The share price has risen by 5.26% to 60p.
Zephyr Energy PLC (AIM: ZPHR) enjoyed an 8% increase on Thursday after announcing its decision to proceed with drilling an extended lateral on the State 36-2R well in Utah’s Paradox Basin. This move, one of the anticipated strategies, is set to significantly enhance the well’s ultimate recoveries.
FALLERS
Rosslyn Data Technologies Ltd (AIM: RDT) experienced one of the steepest declines among small-cap stocks, plummeting 50% on Wednesday. This significant drop was triggered by a discounted stock offering and a convertible debt deal that could dilute existing shares. Additionally, the company initiated a retail offer to raise an extra £250,000, which was met with strong investor interest and ended up being oversubscribed.
Inspirit Energy Holdings PLC (LON: INSP) has announced its intention to transform into a cash shell and halt its current operations following the resignation of its design and development director. “The board fully understands the employee’s personal situation and is exploring the best ways to support him during this period,” Inspirit stated. “As a crucial and central figure in our team, his departure will critically impact our project.” Consequently, shares plummeted by 62%.
Sareum Holdings (AIM: SAR) is raising £2.36 million by issuing shares at 20p each. The funds will advance the development of SDC-1801, a dual inhibitor of the JAK family kinases TYK2 and JAK1, and finance toxicology studies needed for Phase 2 trials. This funding is aimed at securing an out-licensing partner for the drug. The share price has decreased by 5.45% to 26p.
Verici Dx (AIM: VRCI) has announced an expected delay in the local coverage determination for its post-kidney transplant test, Tutivia, pushing it to 2025. This postponement will defer the start of initial commercial revenues by six months. As a result, Singer has revised its revenue forecasts, lowering 2024 expectations from $7.5 million to $4 million and reducing 2025 projections from $13 million to $11.6 million. The company anticipates a 2024 loss of $6.1 million, expected to narrow to $700,000 the following year. Net cash is projected to decrease to $600,000. The share price has fallen 11.5% to 5.75p.
Centaur Media PLC (AIM: CAU) saw its shares drop 24% after issuing a warning on earnings, attributing the decline to ongoing challenges in the marketing sector exacerbated by macroeconomic conditions. This has led to reduced marketing budgets from blue-chip clients, adversely affecting the company’s revenue and profits for the second half of 2024.
Rosslyn Data Technologies (AIM: RDT), a provider of data analytics software, has successfully raised £250,000 at 5p per share through a retail offer, reaching the maximum targeted amount. Additionally, a placing generated £1.64 million at the same share price, and a convertible loan note is set to bring in another £1.2 million. Existing convertible notes will also be converted at 5p per share. The funds will be used to support growth and technology development. The share price has declined by 4.3% to 6.125p.
An interim trading update from Intercede Group PLC (AIM: IGP) did little to reassure investors. Despite a nearly doubled cash balance from the first half of 2023 and a 22% increase in revenues, shares in Intercede fell by 20%.
Gerry Sweeney is set to resign as finance director of the retail company Quiz (LON: QUIZ) in March 2025, and the search for his successor has begun. The share price has dropped 5.2% to 4.74p.
Other notable weekly decliners included Blue Star Capital PLC (AIM: BLU), which fell 27%, Conroy Gold and Natural Resources PLC (AIM: CGNR), which tumbled 27% after a discounted fundraising, CleanTech Lithium (AIM: CTL) which decreased by 20%, and AFC Energy PLC (AIM: AFC), which dropped 17%.
