21st Oct 2024 11:19
(Alliance News) - The following stocks are the leading risers and fallers on AIM on Monday.
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AIM - WINNERS
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XLMedia PLC, up 37% at 12.75 pence, 12-month range 5.86p-14.15p. The London-based sports digital media company proposes a deal to sell its North America business to Sportradar AG for up USD30 million in cash, with USD20 million of that coming on completion. Sportradar is a technology company focused on sport, and it has footballing bodies FIFA and UEFA and basketball's NBA among its partners. XLMedia is to become a cash shell should the deal materialise. The move is its latest step in aim to boost shareholder value. It had previously sold its Europe and Canada sports betting and gaming assets to Gambling.com Group Ltd for USD42.5 million.
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Deltic Energy PLC, up 4.4% at 4.80 pence, 12-month range 3.50p-44.00p. It announces moves which will save costs, amid a tricky outlook for the UK oil and gas industry. Deltic says its focus over the next 12 months will be on extracting "value from its existing core UK assets", particularly the Selene prospect in the southern North Sea. The asset is operated by Shell PLC and Deltic has a 25% stake. The company adds that it will be "eliminating or deferring expenditure on non-core UK assets". "For the last decade, Deltic has invested in its UK portfolio and achieved material exploration success despite the well-publicised political and fiscal headwinds that have hampered the UK's oil and gas industry in recent years. It is clear that, while this situation persists, the UK is not the ideal place in which to invest in new oil and gas exploration or appraisal opportunities. Therefore, the board has carefully considered the best way to leverage the company's international experience and expertise to create value for shareholders going forward," it says. Chief Executive Officer Andrew Nunn adds the moves will result in savings of 40%, compared to costs the firm had budgeted for next year. "These savings are key to extending the time period in which to identify and incubate those new opportunities that we believe will help towards stabilising the business and providing a platform for future growth supporting our objective of creating positive returns for shareholders," Nunn explains.
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AIM - LOSERS
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Midwich Group PLC, down 16% at 269.96p, 12-month range 262.80p-451.00p. It reports subdued demand for mainstream products in Germany, especially in the education and corporate markets, meaning profit will decline in 2024. The Norfolk, England-based company, which distributes specialist audiovisual technology to the trade market, explains market conditions have not improved as anticipated. Midwich says it expects current market conditions to persist for at least the rest of the year. It expects 2024 revenue to be marginally ahead of 2023, when it was GBP1.29 billion. However, despite cost reductions, Midwich now expects adjusted operating profit in 2024 to be "significantly below" 2023's GBP59.6 million.
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By Eric Cunha, Alliance News news editor
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