SMALL CAP MOVERS: Inland Homes tumbles; Inspecs jumps 80%
One of the week’s biggest casualties was Inland Homes, where forecast losses are now expected to be in the range of £90million, up from £37million.
The builder also faces an uphill struggle keeping a lid on debts which stood at £100million at last count – or four times the company’s current market capitalisation.
Chairman Simon Bennett called the last financial year ‘extremely disappointing’.
‘However, we continue to see good interest for our new homes and valuable consented land in the south and south-east of the UK,’ he added.
Inland Homes forecast losses to be in the range of £90million, up from £37million
This cut little ice with the market as the shares tumbled 37 per cent over the trading week. They have now lost almost 80 per cent of their value in the past year.
The biggest small-cap loser, down 40 per cent, was Morses Club, the troubled doorstep lender, which is set to be de-listed.
Turning to the wider market, the AIM All Share was up 1.1 per cent across the five most recent trading days. The junior stocks outpaced their more illustrious blue-chip rivals with the FTSE 100 flat over the same period.
Sticking with the fallers, it’s fair to say the 25 per cent drop in the value of Beowulf Mining this week failed to tell the entire story.
The group should probably be applauded for doing something other junior diggers are finding almost impossible – raising new funds.
In Beowulf’s case it was a not-insignificant £9.1million – the equivalent of a third of its current market capitalisation.
This, it said, it to ‘progress the pace’ of Kallak North, an iron ore deposit in arctic Sweden.
In the life sciences sector, Faron Pharma, down 7 per cent, replenished its coffers as it completed an over-subscribed £10.5million placing of new stock.
Ostensibly, the cash will be used to accelerate the development of its key asset, the promising clinical-stage cancer treatment bexmarilimab.
Chesterfield Resources saw its shares drop 18 per cent on Friday after it said it had failed to dispose of its Adeline project.
Pacton Gold was interested in the copper deposit in Labrador, Canada, but has decided not to go ahead with the purchase.
As a result, Chesterfield will again begin the process started last year, soliciting interest in the hope a buyer will emerge.
Elsewhere, eyewear group Inspecs jumped more than 80 per cent after it said its trading was in-line with revised expectations.
Learning Technologies Group, the digital training specialist, and hVIVO, the contract research group that specialises in vaccine trials, went one better than Inspecs by exceeding City forecasts. Their share prices jumped by 12 per cent and 8.5 per cent respectively.
Ilika stock was on the charge after announcing £2.8million of grant funding for its role in leading a 24-month Faraday Battery Challenge collaboration with the likes of BMW Group and Williams Advanced Engineering.
Beginning on 1 February, the UK government-backed ‘Project HISTORY’ collaboration programme will see a total £8.2million of funding for all companies involved. Ilika shares powered ahead 44 per cent.
RUA Life Sciences shares jumped 29 per cent after it announced a distribution agreement with medical devices group Corcym to market its range of large bore straight and aortic root grafts for heart surgeons.
One to watch is Shanta Gold, according to Liberum. That’s because its West Kenya project is an ‘outstanding, undeveloped gold resource’ that continues to be undervalued by the share price, the City research house reckons.
The broker’s target price is 17p, which is a 45 per cent premium to the current price of 11.74p.
Finally, as markets begin to settle down, so the investment bankers are likely to emerge from hibernation, bringing with them a host of delayed IPOs.
And we are hearing that a company called Microsalt, maker of low sodium salt, could be one of the first new listings of 2023.
It comes from the stable of TEKCAPITAL, which invests in university technology spin-outs.
Successful TEK investments include medical devices group Belluscura (listed on AIM) and Nasdaq-quoted Innovative Eyewear.
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