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SMALL CAP MOVERS: AIM Index shows bright spots amidst turbulence

Bright spot: Amid market turmoil, London's AIM junior market closed the week and month with a small rebound and a frenzy of earnings releases

After several days of market turbulence triggered by the government’s mini-budget, the London junior market ended the week and month with a small rebound and a frenzy of earnings releases.

A 0.4% rise on Friday means the AIM All-Share Index fell 3.9% for the week as a whole, compared with a 1.7% drop for the internationally flavored FTSE 100 and a drop of 5.6% for the mid caps of the FTSE 250.

Even in the smoldering rubble of the market, there were a number of small-cap success stories that still shone bright, including Attraqt, which surged after receiving a cash takeover bid at a premium of around 71.43 % over the previous day’s closing share price.

Bright spot: Amid market turmoil, London's AIM junior market closed the week and month with a small rebound and a frenzy of earnings releases

Bright spot: Amid market turmoil, London’s AIM junior market closed the week and month with a small rebound and a frenzy of earnings releases

Among those remaining in the market, Eden Research stood out among the more than 80 companies reporting their quarter-end results on Friday and more than 100 in the previous days in saying it is on track to meet its guidance. in sales for the year after announcing a 32 percent jump in revenue in the first half.

Helping to boost market share by 29% during the week, the sustainable biopesticides group said it cut losses in the first half and entered the second on an even stronger footing after the approval by the United States of the company’s products.

This, said Chairman Lykele van der Broek, “opens up significant revenue and growth opportunities for us, with our total addressable market of around US$500 million.”

7Digital also hit the right notes with its earnings on Wednesday as well, with the digital music specialist’s shares up 27% after reporting a 21% increase in half-year revenue and hitting underlying breakeven.

The company, which unveiled a £500,000 fundraise last week with a loan from shareholder Magic Investments, said it had secured five new licensed customers, three contract extensions or extensions and was entering the second half with a “solid new pipeline”.

Back in the UK, Billington shares rallied after the construction steel company predicted better than expected results for this year and next.

With revenue for the first six months of the year up 22.4 per cent to £46.2m and profits nearly doubling to £1.5m, the Barnsley-based group said that he had gotten a significant amount of new work since the end of the semester.

In particular, it said it has won contracts in the data center, waste-to-energy and industrial warehousing sectors with improved margins.

Managing Director Mark Smith said: “While the macroeconomic headwinds are expected to persist for some time, particularly with respect to material availability, price volatility and continued inflationary pressures, we are seeing a steady stream of opportunities at better margins.”

There were some winners in the lower parts of the mining sector, with small explorer Tertiary Minerals climbing 56% after two updates from Zambia, where it said engagement of tribes and stakeholders had been “successfully completed” and has now achieved a 90% joint interest. participation of the local company Mwashia Resources.

The company said it was beginning soil sampling at its Jacks copper prospect, after drilling this summer, and has hired an experienced in-country exploration manager.

MusicMagpie, co-founded by Steve Oliver (pictured), lost more than half of its value during the week after worries about the UK economic outlook led it to cut its profit target

MusicMagpie, co-founded by Steve Oliver (pictured), lost more than half of its value during the week after worries about the UK economic outlook led it to cut its profit target

Concentrated across its border with Mozambique, shares of Pathfinder Minerals jumped 29% after it announced it had entered into an option agreement with a US firm specializing in international asset recovery to file a lawsuit against the government of southern Africa for the expropriation of a mining operation. Licence.

If the deal is approved, Delaware-based Acumen Advisory Group will pay £2 million to Pathfinder to acquire 100% of its subsidiary IM Minerals and the rights to the claim, with legal proceedings to be initiated within three months in the goal of reaching conclusion within five years and sharing the proceeds of the lawsuit.

Pathfinder said closing the deal would mean it would turn into a cash shell, but could also potentially enjoy a potential benefit from the claim which has been “independently assessed to be worth in the range of $110 million. dollars to $1.5 billion”.

But fallers dominated the week, with many warning on earnings alongside the release of half-year results as the economic outlook darkened.

MusicMagpie lost more than half of its value during the week after concerns about the UK economic outlook led it to cut its profit target.

Even though the company’s goal is to help people make a few dollars by selling their used DVDs, CDs and electronics, the company expects sales and profit growth to be weaker than intended.

“While the group continues to expect Black Friday to prove to be a peak period, it now believes it is prudent to lower its contribution expectations from this period due to the deteriorating outlook. economics and the growing pressure of the cost of living on the UK consumer.,’ It said.

Fire Angel Safety Technology’s results were also a wet squib, as the home safety products provider warned that while revenue grew in the first half and is expected to be strong for the year, the impact of rising cost components and the weaker pound means underlying earnings will be “significantly lower” than the market had expected.

Pressure Technologies slumped after saying it would make a full-year loss and was in talks with its bank as an expected second-half recovery failed to materialize.

This, the engineer said, would prevent him from meeting the requirements of his bank terms.

The administrators are in “constructive dialogue” with Lloyds Bank on this, while working with advisers on alternative financing options to replace the bank facility and potentially allow it to win some of the “significant” hydrogen projects in its pipeline.

The biggest drop was recorded by data software group Glantus, which fell 68% during the week as it warned of profits due to delays and higher costs associated with its relocation to Costa Rica.

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