The FTSE AIM-All-Share Index joined in the holiday cheer, rising by 170 basis points to end the week just over the 751 mark. The junior market slightly outperformed the FTSE 100, which saw an increase of 164 basis points at its close.
Despite concerns about a recession, the upbeat mood prevailed. Friday’s data revealed a contraction in the UK economy during the third quarter, heightening the risk of a mild recession. According to the Office for National Statistics, the UK’s gross domestic product (GDP) was reported to have decreased by 0.1% from July to September, a downward revision from an initial estimate of no change.
However, stocks remained resilient, likely buoyed by the unexpectedly significant drop in inflation to 3.9% year-over-year in November, a figure released earlier in the week.
This week, AMTE Power PLC (AIM: AMTE), a manufacturer of lithium-ion and sodium-ion battery cells, ultimately succumbed to its challenges and entered into administration.
The company announced in a statement that it had appointed FRP Advisory as its administrator, following unsuccessful attempts to secure financial backing from investors. The statement explained that the board had exhausted all other financing options within the available timeframe, concluding that the company lacked the necessary funds to maintain its operations.
Earlier in the year, AMTE experienced a significant decrease in its market value due to a substantially discounted fundraising effort in September, aimed at maintaining basic operations. This downturn followed a nearly 50% drop in July, after the company announced a critical need for financing, requiring a resolution within a matter of days. AMTE had cautioned that its shares would be suspended if it couldn’t secure the necessary funds, a situation that has now become a reality.
Meanwhile, investors found themselves uncertain about how to interpret the half-year results of De La Rue PLC (LSE: DLAR), a banknote printing company.
De La Rue’s stock initially dropped on Tuesday following its report of an increased pre-tax loss and a decrease in operating profit compared to the previous year. However, these results were better than anticipated, and De La Rue reaffirmed its full-year forecast for operating profits in the low £20 million range. By Friday, the shares had rebounded, climbing 16% as investors processed these mixed messages.
TinyBuild Inc., creators of the acclaimed Hello Neighbor survival horror game series, experienced a dramatic 90% surge in their stock following the announcement of a US$14 million (£11 million) equity investment on Thursday. The offering price of 5p per share was almost double the price at Wednesday’s market close.
In the heavy industry sector, Angus Energy‘s stock rose over 21% on Wednesday. This increase came after the oil and gas company revealed a refinancing agreement for its £20 million debt.
While trading slowed towards the end of the week, Angus Energy still ended the week with a 10% gain.
Petrofac Limited (LSE: PFC) saw its shares soar by 60% as investors who had bet against the stock started to withdraw their positions. This followed the announcement of a significant new order for the oil and gas installation company. Petrofac, known for its substantial debts, multiple profit warnings, and involvement in bribery scandals, has been heavily shorted in the London market. However, the recent news of a US$1.4 billion contract with TenneT indicates a potential shift in investor sentiment.
In the biotech sector, N4 Pharma PLC (AIM: N4P) stood out with its shares climbing over 12%. This increase was triggered by the company’s announcement of the successful oral delivery of its Nuvec particle with a DNA plasmid.
Finally, genedrive plc saw its shares jump nearly 20% over the week following the announcement of several international orders for its test for antibiotic-induced hearing loss. The MT-RNR1 test, as announced by genedrive, has received orders from various countries including France, Austria, Greece, Saudi Arabia, Turkey, and the Netherlands, in line with recent commercial distribution agreements.
Bidstack Group PLC (AIM: BIDS, OTC: FTBGF), an in-game advertising company, emerged as the standout performer. On Friday, its stock price soared, doubling after the announcement of a legal dispute resolution with its partner Azerion. Azerion has agreed to pay Bidstack €3 million, with plans for a renewed collaboration set for 2024.
The settlement seems to be on friendly terms. James Draper of Bidstack commented, “Bidstack and Azerion will move forward collaboratively after thorough discussions to resolve all outstanding issues.” Sebastiaan Moesman from Azerion also expressed satisfaction, stating, “We are excited to announce both the resolution of past disputes and a new commercial partnership between our companies.”
Indeed, it seems to be a season of good cheer.
