London stocks closed higher on Friday after UK economic growth significantly exceeded expectations, although the stronger data also added to debate over the future direction of Bank of England interest rates.
The FTSE 100 closed 0.39% higher at 10,650.44, while the FTSE 250 gained 0.38% to 23,975.73. The wider small-cap market had a much tougher week, with the AIM All-Share falling around 1.5% as investors continued to retreat from riskier assets.
The decline broadly reflected weakness across London’s larger companies, with the FTSE 100 down around 1.6% over the week as escalating hostilities between the US and Iran pushed energy prices higher and raised concerns about inflation and interest rates.
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Empyrean Energy PLC (AIM: EME) was one of the standout performers in the small-cap market this week after a major funding milestone at the Mako gas field in Indonesia removed one of the biggest uncertainties hanging over the company. For years, Mako has represented Empyrean’s principal potential prize, but the question of how the small explorer would fund its exposure to development remained a significant concern for investors. The combination of reduced funding risk and continued exposure to Mako’s potential upside transformed market sentiment towards the stock, with Empyrean shares roughly doubling over the week.
One company bucking the negative mood was Eleco PLC (AIM: ELCO) after the construction software specialist agreed to a recommended takeover by private equity group Accel-KKR. The deal values Eleco at just under £208 million and represents a substantial premium to its previous market valuation, sending the shares around 70% higher.
EnergyPathways PLC (AIM: EPP) also enjoyed a strong week after appointing global engineering group Jacobs to support development of its flagship MESH long-duration energy storage project in the Irish Sea. MESH is designed as a major long-duration storage development and has been recognised as nationally significant by the UK Government. Jacobs will support planning, regulatory and consenting work, including EnergyPathways’ application to the government’s Cap and Floor regime, which could provide a minimum revenue framework for the project. The involvement of a major engineering and regulatory partner provided additional credibility as EnergyPathways advances MESH towards development, helping its shares rise around 20% over the week.
Digital advertising specialist Dianomi PLC (AIM: DNM) climbed 42% after reporting accelerating revenue growth despite difficult conditions across the wider digital advertising market. Revenue growth accelerated to 14% across July and August, supported by new publishing partners and increased activity from existing customers.
Video games publisher everplay (AIM: EVPL) was the standout riser after Wardogs sold more than one million copies following its release yesterday. The strong launch pushed the shares 14.8% higher to 336.25p.
Fallers
At the other end of the market, KEFI Gold and Copper (AIM: KEFI) fell around 42% following the serious security incident at its Tulu Kapi Gold Project in Ethiopia. KEFI suspended development work following an attack that resulted in the death of one employee and other fatalities associated with the incident. The company has subsequently confirmed that all of its employees have been accounted for, with no further fatalities or injuries among its workforce. Development will remain suspended until a full investigation has been completed and appropriate security measures established.
Beowulf Mining PLC (AIM: BEM) fell around 32% as investors focused on the company’s immediate financing requirements and the timing of regulatory approvals in Sweden. Beowulf needs to complete a £4.3 million financing, but a key investment remains dependent on Swedish regulatory approval that could potentially take several months. With the company requiring funding much sooner and employees already deferring some remuneration, the mismatch between its cash requirements and regulatory timetable has increased concerns over its near-term financial position.
Cambridge Nutritional Sciences (AIM: CNSL) was another significant faller, dropping around 24% following disappointing full-year results. Revenue declined to £7 million from £8.3 million, while the company reported a £4.4 million loss after recognising approximately £3 million of impairment charges relating to previous acquisitions. Cash reserves also declined during the period.
Phoenix Copper (AIM: PXC) fell 8.7% to 0.525p. The company reported net assets of $38.2 million, largely reflecting investment in the Empire mine. Phoenix raised a further $3.12 million after June and has repaid its short-term convertible loan. Following cost reductions, the company expects its existing cash resources to last into the fourth quarter of 2026. Work is also planned to update the open-pit pre-feasibility study for the Empire mine, with the current strength in copper prices providing a more supportive backdrop for the project.
European Metals Holdings (AIM: EMH) declined 1.96% to 12.5p. The company had cash of $721,000 at the end of June 2026 after recording a $2.09 million operating cash outflow. Development of the Cinovec lithium project continues, with optimisation work identifying potential cost savings as the project progresses.
Overall, it was another difficult week for the junior market, but individual corporate catalysts continued to produce substantial moves. Empyrean’s removal of a major Mako funding risk, Eleco’s £208 million takeover and Dianomi’s improving trading performance demonstrated that investors remain willing to reward companies where the underlying investment case changes materially.
