The AIM All-Share Index dropped 2.1% as concerns grew ahead of Labour Chancellor Rachel Reeves’s upcoming Autumn Budget.
Investors are wary that the Budget, set for next Wednesday, could eliminate inheritance tax reliefs tied to AIM stocks. While Reeves has not specifically mentioned targeting these reliefs, there is speculation that all options may be considered as she works to address a £22 billion gap in Britain’s finances.
Seascape Energy Asia plc (AIM: SEA) led the AIM movers, rocketing 160% after securing a 28% stake in a Small Field Asset Production Sharing Contract within the DEWA Complex Cluster off Sarawak, Malaysia.
Deltic Energy PLC (AIM: DELT) soared 70% following the success of its Selene exploration well in the North Sea and the announcement of a strategic review aiming to redirect the company’s focus. With North Sea windfall taxes potentially increasing, Deltic’s new CEO, Andrew Nunn, stated that the board is exploring opportunities in regions with more favorable oil and gas policies.
Yulia Kirianova has stepped down from the board of Enwell Energy (LON: ENW), an oil and gas company. Interim CEO Oleksiy Zayets, appointed by Smart Energy (CY), which holds a 6.95% stake, has joined the board. Zayets has served as interim CEO since March and has been with Enwell since 2018. The company’s shares rose 13.1% to 26.75p.
Ariana Resources PLC (AIM: AAU) rallied 23%, capitalizing on record gold prices. Ariana’s recent update revealed a target of at least two million ounces of gold at its Dokwe project in Zimbabwe, following a promising internal data review.
Cybersecurity software provider Intercede Group (LON: IGP) launched a £1 million share buyback program, motivated by uncertainties regarding AIM tax incentives. The buyback will run until the end of 2024 or until the allocated funds are fully used. This announcement lifted the stock price by 6.69% to 167.5p.
Prospex Energy (AIM: PXEN) recently secured a 7.2365% working interest in Spain’s onshore Viura gas field, which resumed production last week. Its Viura 1B well encountered substantial gas shows in the Utrillas-A reservoir and a newly discovered gas-bearing interval. This could lead to a significant increase in recoverable reserves as European gas prices rise.
Helix Exploration plc (AIM: HEX) surged 27% after announcing the successful re-entry and deepening of its Clink #1 well at the Ingomar Dome in the Montana Helium Fairway. CEO Bo Sears described it as a “significant milestone” for the company.
Oxford BioDynamics (LON: OBD), a diagnostics firm, announced the publication of a study on its Covid Severity Test, based on the EpiSwitch platform. The study demonstrated a high positive predictive value for high-risk disease outcomes, even identifying two cases initially classified as mild.
FALLERS
Adams has proposed canceling its AIM listing and liquidating its investments, many of which are also AIM-quoted, to distribute cash back to shareholders. Ahead of this, Adams plans to repurchase shares at 4p each, with the estimated NAV per share at 3.72p. Limited liquidity exists due to Richard Griffiths holding a 94% stake in the company. A general meeting is scheduled for 27 November, and, if approved, the AIM cancellation will take effect on 5 December.
Kooth PLC (AIM: KOO), a digital mental health platform, dropped over 30% amid reports that its major contract with California for the Soluna mental health app might be jeopardized due to state budget cuts. Kooth countered, stating that the report “fails to raise any legitimate concerns regarding Kooth, its partners, or third parties” and instead undermines efforts to address California’s youth mental health crisis.
Plexus fell 26% despite returning to profitability, with sales revenue reaching £12.7 million, a substantial increase driven by an expanded rental contract.
Ethernity Networks plummeted 40% after a warrant exercise issued 195 million shares at 0.1p each, significantly diluting its share price, which had started the week at more than twice that level.
In the biotech sector, Faron Pharmaceuticals Limited (AIM: FARN) declined 17% after a trading update indicated ongoing talks with potential partners for funding its Phase III development of the bexmarilimab drug, though no agreements had yet been finalized.
In management consultancy Elixirr International, existing shareholders, including all six directors and other employees, sold 3.85 million shares at 650p each. Following this sale, the share price dropped 6% to 658p.
Kestrel Partners has continued to increase its stake in IT managed services provider Redcentric, acquiring shares at 120.73p each, bringing its holding to 20.7%. Oliver Scott represents Kestrel on Redcentric’s board. The share price, however, declined 5.81% to 109.5p.
Recruiter Empresaria Group plc (AIM: EMR) dropped 25% after warning of deteriorating market conditions, citing “extremely subdued” demand for permanent recruitment, aligning it with larger firms Hays PLC (LSE: HAS) and PageGroup PLC (LSE: PAGE), which also faced challenging hiring conditions in 2024.
