19th Feb 2025 10:42
(Alliance News) - The following stocks are the leading risers and fallers among London Main Market small-caps on Wednesday.
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SMALL-CAP - WINNERS
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Pharos Energy PLC, up 2.1% at 24.10 pence, 12-month range 18.05p-27.98p. The energy company with assets in Vietnam and Egypt has entered into a deal with the Egyptian General Petroleum Corp for the merger of the El Fayum and North Beni Suef concession agreements. It has entered into the deal with EGPC alongside IPR Lake Qarun Co. "IPR and Pharos, in their capacity as the contractor parties under the concession agreements, submitted a request to EGPC to merge the two assets and replace them with a new consolidated concession agreement. The consolidated Concession Agreement is expected to unlock significant value in the Western Desert by improving certain fiscal terms, extending the term of the concessions and committing the contractor parties to additional work programmes aimed at increasing production from the areas," Pharos says. "EGPC and the contractor parties agree to use their best efforts to conclude negotiations on the new consolidated concession agreement as soon as possible, with a view to the agreement receiving government and parliament approval and then being signed by all parties at the earliest opportunity. Further updates will be provided to the market in due course."
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SMALL-CAP - LOSERS
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Conduit Holdings Ltd, down 8.5% at 400.00p, 12-month range 396.61p-549.74p. The firm, which is the parent of Conduit Re reinsurance business, reports a decline in annual profit and warned of a hit from wildfires in California, "likely one of the costliest insured catastrophes in history". Total comprehensive income in 2024 falls 34% to USD125.6 million from USD190.8 million in 2023. Reinsurance revenue rises 29% to USD813.7 million from USD633.0 million. Net unrealised gains on investments fall steeply to USD1.0 million from USD30.6 million. Gross premiums written rise 25% to USD1.16 billion from USD931.4 million. "The California wildfires are a tragic event for the families and communities impacted, as well as a significant loss for the industry, from which Conduit is not immune. From an industry perspective, we expect that the wildfires will impact rates in areas of the property portfolio which will flow through to an improved underwriting environment and provide continued opportunities for the company," Conduit says. On the wildfires, its preliminary ultimate loss estimate across all divisions is between USD100 million and USD140 million, net of reinsurance recoveries and reinstatement premiums. "The financial impact on Conduit of this event will be reflected in the interim results for the six months ended 30 June 2025," it adds.
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On the Beach Group PLC, down 5.2% at 238.95p, 12-month range 127.75p-265.50. Shares fall in a negative read across after Jet2 PLC cautioned that UK holiday makers continue to book later than in the past and it faces rising costs. Jet2, a Leeds, England-based airline and package holiday operator, warned that it faces cost increases ahead of headline UK consumer price index inflation. These include higher wage and National Insurance costs following changes made in the recent UK government budget. It also faces higher costs for hotel accommodation, aircraft maintenance, and general airport and air traffic control charges. As well, the mandated increase in sustainable aviation fuel in its aircraft fuel mix will result in more than GBP20 million of incremental costs, Jet2 says. Jet2 shares were 10% lower on AIM.
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By Eric Cunha, Alliance News news editor
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