The FTSE 100 edged up by 0.07% in afternoon trading on Friday. Anglo American led the gains, rising 5.4%, followed by IMI (formerly Imperial Metal Industries), which climbed 3.3%. On the downside, BAE Systems saw the largest drop, falling 4.9%, with JD Sports declining 1.6%.
The mid-cap FTSE 250 also inched higher, gaining 0.04%. Dr. Martens and Direct Line were the top performers, up 5.1% and 4.6%, respectively.
Scholium Group Plc (SCHO) has become the latest company to consider leaving London’s stock market, adding to concerns over its appeal as a premier listing destination. The owner of Shapero Rare Books cited cost savings of at least £75,000 per year as a key reason for cancelling its AIM listing. Scholium also noted that its shares have suffered from undervaluation, a common grievance among London-listed firms, which has “significantly” hindered acquisition opportunities.
The company’s decision to delist reflects broader challenges in the junior segment of the London market, where the number of AIM-listed firms fell below 700 earlier this year for the first time since 2001.
On Thursday, Hummingbird Resources (HUM) announced a subscription agreement with CIG and Nioko Resources Corporation, involving the issuance of 863.1 million shares at 2.677p each. This will enable the conversion of £23.1 million in loan facilities into equity, executed in two tranches.
Following the first tranche, the subscriber will hold 49.9% of Hummingbird, increasing to 71.8% after the second tranche. The news spurred a 35% recovery in the share price, which climbed to 1.85p.
Webis Holdings (WEB) saw its shares recover 50%, reaching 0.21p, after releasing its final results, despite plans to delist from AIM. The US-focused betting firm reported steady revenues of $50m but noted an increased loss, rising from £745,000 to £1.06m. With net cash of $565,000, management believes leaving AIM will make the business more appealing for partnerships and acquisitions.
Mkango Resources (MKA) saw its shares surge by 45% following a series of operational updates from the Canada-based mineral explorer and developer. Key among the announcements was a feasibility study for its subsidiary HyProMag’s rare earth magnet recycling and manufacturing operations in the United States. Mkango’s CEO, Will Dawes, described the development as a “major milestone” for HyProMag, highlighting the validation of its HPMS technology and the significant opportunity to expand into the U.S. market.
AIM-listed hospitality group Loungers PLC (LGRS) surged 40% after announcing its acquisition by private equity firm Fortress Investment Group at a price of 310p per share. The cash offer, representing a 30% premium to Wednesday’s closing price, values the company’s shares at £338 million and its enterprise at £350.5 million.
APQ Global (APQ) shares resumed trading after suspension, following the publication of interim results. The company reported a net asset value (NAV) of 24.9 cents per share as of June 2024. Its strategy focuses on generating cash to settle $37m in convertible loan liabilities. Shares climbed 18.2% to 6.5p.
Gold exploration company Oracle Power PLC (ORCP) saw its value triple after releasing the final set of assay results from its recent drilling program. “The Northern Zone Project in Western Australia continues to reveal significant gold intercepts, expanding the project’s footprint while demonstrating high-grade deposits at relatively shallow depths over substantial widths within the 600m-wide porphyry,” stated Oracle’s CEO, Naheed Memon.
Northern Bear (NTBR) reported interim results showing a slight increase in revenue from £36.9m to £37.6m. However, higher overheads caused pre-tax profit to dip from £1.68m to £1.54m, though this was slightly ahead of expectations. Operational cash inflow stood at £2.2m, while net debt was £1.4m. Hybridan forecasts a decline in full-year pre-tax profit from £2.14m to £1.84m, though there’s potential for an upgrade. Shares rebounded 7.92% to 54.5p.
Botswana Diamonds (BOD) announced receiving environmental authorisation for one of two mining permit applications at its Thorny River project. A mining permit is expected within six weeks, with the project estimated to yield 1.7 million tons of kimberlite over its lifespan. Shares rose 10.5% to 0.21p.
FALLERS
Argent BioPharma Ltd (MXC) announced plans to exit the London market this week, shifting its focus to opportunities abroad. Citing cost advantages, the company revealed it would concentrate on its Australian and US listings, marking another setback for London’s financial hub. The news triggered a 42% drop in Argent’s share price over the week.
On Thursday, Beacon Energy (BCE) reported a 20% decline in reservoir performance from the SCHB-2 sidetrack well in the Erfelden field, Germany, reducing output to 45 barrels per day. The company also announced that it has been unable to reach a restructuring agreement with Rhein Petroleum creditors. As a result, some of Rhein Petroleum’s assets are being sold, and the company is likely to face liquidation. Should this occur, Beacon Energy would be classified as a cash shell.
Despite having sufficient cash reserves to sustain operations until next summer, Beacon Energy is exploring other opportunities. The news triggered a sharp drop in its share price, which fell by one-third to 0.0035p.
Shares in James Latham (LTHM) dropped 16% on Thursday after the timber specialist reported a decline in first-half profits and cautioned that full-year results are likely to be “slightly lower” than expected, as a market rebound in the second half has yet to materialize.
Meanwhile, HeLIX Exploration (HEX) saw its shares tumble 23% following disappointing results from testing a secondary target in its Clink-1 well. Although the results fell short of our expectations, there remains significant opportunity within the Ingomar project,” said CEO Bo Sears.
Atlantic Lithium (ALL) announced that the ratification of its mining lease is the final regulatory hurdle before beginning construction of the Ewoyaa lithium project in Ghana. However, this process has been delayed due to an election. The company is implementing cost-cutting measures as the weaker lithium price complicates financing efforts. The share price dropped 5%, closing at 11.6p.
