Share Talk Weekly Small Cap Movers & Shakers, Saturday 25th February 2023

During the weekly period, Zoo Digital Group saw a significant increase in its AIM market, with a nearly 25% rise at the close. The surge was attributed to the streaming services provider’s new agreement with a “major Hollywood studio,” the name of which has not been disclosed.

Despite this, CEO Stuart Green’s suggestion of a “high-profile streaming service” caused a frenzy among investors, propelling shares to over 200p, the highest in five years.

While Zoo already had a robust portfolio of entertainment studios that provided a range of technology and localisation solutions, the new contract marks a significant advancement, according to Green. The client’s identity is currently being kept under wraps, but it will be the second major entertainment company to use the ZOOstudio technology platform to streamline the process of releasing globally-targeted entertainment content, which includes thousands of outsourcing and localisation items.

The ZOOstudio technology platform will be used by a second major entertainment company to simplify the process of releasing entertainment content with a global reach. While ZOO has announced that several revenue-generating projects are currently in discussion with the client, longer-term contracts are still being finalised. However, with the constant launch of new streaming services, ZOO’s area of expertise presents unlimited potential for client expansion.

In addition to this, the digital market has been particularly active this week. System1 Group, a market research company listed on AIM: SYS1, also had a strong performance on the junior market, with its share price rising above 184p after a 9% rally on Thursday.

The company’s third-quarter trading update showed that its data and analytics revenue stream had grown by 18% to £3.4mln, a much-needed quarterly record, given the significant decline in consultancy revenues for the group. On Tuesday, Blancco Technology, a data-erasure solutions provider, also experienced a 10% surge in its share price after posting double-digit revenue growth and underlying profits of £8.4mln during its earnings call.

Looking at the junior stock market, the AIM All-Share Index performed slightly worse than the FTSE 350, experiencing a 1.4% decline during the week compared to the latter’s 1% drop.

On a negative note, Kin + Carta’s shares plummeted 30% on Friday following the company’s latest trading update, which included a profit warning due to cautious client spending and longer sales cycles across the industry.

As a result, the company now anticipates net revenue growth between 8% and 12% for the current financial year, compared to the prior year’s 38%, albeit with similar operating margins.

Turning to the industrial sectors, Star Phoenix plc made an impressive comeback to the AIM market with a 600% rally. This Australia-based oil rig operator had previously been suspended in January after removing its former auditor, resulting in significant end-of-2022 losses for its shares.

During the week, Conroy Gold and Natural Resources had a positive outcome, with the gold explorer reporting a new discovery in the Longford-Down Massif in Ireland. Chairman Professor Richard Conroy described it as a “potentially transformational event for gold exploration and development in this very large gold district,” and investors agreed, driving shares up by 18% to surpass 20p on Wednesday.

Meanwhile, buy-and-build quarried materials group SigmaRoc PLC (AIM: SRC) saw an 8% increase in shares to 57p on Thursday following a successful £30mln share placing and retail offer. According to SigmaRoc’s RNS statement, the funds raised will be used for near-term strategic acquisition opportunities and four organic growth and carbon footprint reduction projects.

However, the energy sector did not fare as well, as shares in UK clean technology firm Verditek dropped by 31% on Monday after the termination of its distribution agreement with roofing company Bradclad.

On Thursday, IGas Energy‘s shares took a hit after the company reported lower production volumes in the first half of its financial year due to equipment failures. In the group’s trading statement, interim executive chairman Chris Hopkinson recognized the importance of “optimising our existing onshore assets to better position ourselves for a lower carbon future.” As a result, investors were discouraged, and shares declined by 6% to 19.6p.

Spectral MD’s stock has experienced a modest 1.6% increase so far this year, but it may not remain overlooked for much longer. The prestigious journal Medical Technology recently highlighted the Dallas-based company’s innovative approach to burn wound assessment, utilizing AI and machine learning to create an imaging tool called the DeepView system.

This technology accurately predicts the severity of burn injuries, a crucial factor in determining the need for surgery. The system is currently being adapted for military and emergency room use, allowing for quick and accurate assessment of patients requiring treatment from a burn specialist or non-burn specialist. With ongoing conflicts in the world, Spectral MD’s progress is one to monitor closely.

Linking Shareholders and Executives :Share Talk

If anyone reads this article found it useful, helpful? Then please subscribe or follow SHARE TALK on our Twitter page for future updates. Terms of Website Use All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned

Weekly Newsletter

Sign up to receive exclusive stock market content in your inbox, once a week.

We don’t spam! Read our privacy policy for more info.