1st Jul 2025 10:07
(Alliance News) - The following stocks are the leading risers and fallers among London Main Market small-caps on Tuesday.
----------
SMALL-CAP - WINNERS
----------
Synthomer PLC, up 3.3% at 113.00 pence, 12-month range 78.20p-296.00p. The London-based developer of highly specialised polymers says it has agreed with its banking syndicate to extend the period of covenant relaxation through to the end of 2026, due to "weaker macroeconomic conditions than anticipated" at the time of the last amendment in March 2024. The net debt to earnings before interest, tax, depreciation and amortisation covenant ratios now required under the group's revolving credit facility and the UK export finance facilities have been increased to 5.25x in December from 4.75x, 4.5x in June 2026 from 3.5x and 4.25x in December from 3.25x. The extension "provides the group with a longer period of additional headroom to manage the business through to the expected recovery in earnings in the medium term," says Synthomer. The company will release its interim results on August 5.
----------
CLS Holdings PLC, up 1.9% at 71.46p, 12-month range 56.80p-101.40p. The London-based commercial property investment company sells two properties in Germany for a total of EUR41.3 million. The sale of Techno Centre in Grafelfing Business Park, Munich, which is an 8,527 square metre mixed-use office and industrial building, has already completed. CLS has unconditionally agreed its disposal of Jarrrestrasse 8-10 in Hamburg, a fully-let 5,488 square metre office building, which it expects will complete in early August. Both properties are sold at a discount of around 10% below their December 31 valuations, at an average net initial yield of 6.4%. Proceeds will be used to pay debt. Pro-forma loan-to-value ratio will reduce to 47.0% from 50.7% at the end of 2024, CLS added. "We remain focused on reducing our LTV and prioritising assets where we can generate long-term upside through active asset management," says Chief Executive Officer Fredrik Widlund. "These transactions demonstrate tangible progress ahead of the disposal targets we outlined in our full year results. With occupier demand strengthening and significant opportunities within our existing portfolio, we are well positioned to capitalise on a recovering market."
----------
SMALL-CAP - LOSERS
----------
Augmentum Fintech PLC, down 4.7% at 96.75p, 12-month range 58.28p-124.00p. The London-based investor focused on European private fintech reports a total shareholder return of negative 15% for the year that ended March 31, against a positive 3.6% return the year before. Net asset value per share after performance fee at March 31 is 161.5 pence, down 3.5% from 167.4p a year before. The firm swings to a pretax loss of GBP15.2 million from a GBP13.8 million profit a year prior, as it records GBP11.1 million in losses on investments against GBP17.6 million in gains in financial 2024. The board does not expect to declare any dividends "in the foreseeable future". "After a period of necessary recalibration, the European fintech market is entering a new chapter of stability and maturity. The inflated valuation multiples of the post-Covid era have returned to more sustainable levels, and the underlying fundamentals of the sector are robust, reinforced by supportive public policy in the UK and across the continent," says Chief Executive Officer Tim Levene. "Looking ahead, we believe the next five years will be defining for European fintech. As capital increasingly flows into the region, our strong track record and robust portfolio position us perfectly to continue backing the category leaders of tomorrow and delivering exceptional value to shareholders." Augmentum also on Tuesday proposes an amendment to its investment advisory structure. Subject to shareholder approval at a general meeting on July 24, Augmentum Capital LLP will be appointed as the firm's investment advisor. "The board is acutely aware of the wide discount to net asset value at which the company's shares currently trade, and shares the frustrations of many shareholders regarding it," Augmentum says. "The board considers that the proposal will improve the competitiveness and robustness of its management arrangements which it believes could assist, and will not hinder, in addressing the discount."
----------
By Emily Parsons, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.
Related Shares:
SynthomerCLS HoldingsAugmentum Fint.