The lower end of the property market had a bad week, resulting in a lacklustre five-day period for junior stocks, which bucked the wider positive trend.
Purplebricks Group PLC (AIM: PURP) saw a drop of nearly 15% on Friday after announcing that it was up for sale following a profit warning. The online estate agency concluded that an alternative ownership structure would benefit the company and has started a strategic review.
Despite admitting that the implementation of its go-to-market strategy caused more short-term disruption than anticipated, Chief Executive Helena Marston remains optimistic about a return to positive cash generation in early 2024, but full-year revenues are expected to fall short of expectations.
Home REIT plc, which invests in sheltered housing for the homeless, announced on Thursday that it had received an unsolicited approach from Bluestar Group for a possible offer, but its shares have been suspended since January 23 due to criticism from short sellers of its business, financials, and management.
In the small-cap market, the AIM All-Share Index was down 0.7% at 899.99, in contrast to the FTSE 100’s 1.3% increase, which reached over 8,000 and into record territory.
Some junior market highlights included Creo Medical, which received £28.5mln in backing from a cash call, resulting in a 60% return on investment, and Kanabo Group PLC (LSE: KNB), which saw an increase of nearly 17% to 4.04p due to investor optimism about its cannabis inhaler gaining European CE approval in Q3 2023.
Among the mining and resources segments, Mkango Resources Ltd (AIM: MKA, TSX-V: MKA) fell over 21% due to a share offering comprising a placing and subscription of stock at 12.5p, while Harvest Minerals Ltd (AIM: HMI, OTC: HMIFF) received a double boost from an upbeat trading update and a positive court ruling, resulting in a 21% increase to 9.6p.
Technology Minerals PLC (LSE: TM1) was up 20% to 1.38p after reporting developments at its battery recycling associate, Recyclus, and Power Metal Resources PLC (AIM: POW) rose 6.7% to 1.20 after encountering visible gold in all three holes drilled to date in the Berringa Gold mine project in Victoria, Australia, as part of a joint venture with Red Rock Resources.
