31st Jul 2024 11:24
(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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Metro Bank Holdings PLC, up 22% at 48.86 pence, 12-month range 28.30p-123.00p. The high-street lender ups its outlook and believes a return to profit is in the offing this year. Total underlying revenue in the six months to June 30 declines 18% to GBP234.0 billion from GBP285.6 billion a year prior. Swings to pretax loss of GBP33.5 million from profit of GBP15.4 million. Makes an underlying pretax loss of GBP26.8 million, swinging from profit of GBP16.1 million a year earlier, but easing from GBP33.0 million in the second half of 2023. Chief Executive Officer Daniel Frumkin says: "Metro Bank has made significant underlying progress during the first half of 2024. We have built real momentum in credit approved pipelines across commercial, corporate and SME lending, whilst expanding spreads in retail mortgages and repricing deposits. At the same time, our continued cost discipline is creating a simpler, more agile bank that is fit for the future." Metro Bank expects a "return to profitability" in the fourth-quarter. Its return on tangible equity outlook has been increased to "mid-to-upper single digit in 2025, double-digit in 2026 and mid-to-upper teens thereafter". Its RoTe outlook was previously "low-single digit in 2025, increasing to high-single digit in 2026 and low-mid teens thereafter".
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Ferrexpo PLC, up 8.8% at 60.60 pence, 12-month range 40.75p-94.25p. The producer of iron ore pellets in Ukraine reports a 64% rise in revenue to GBP548.5 million for the first half of 2024, from GBP334.0 million a year prior. Its pretax profit more than doubles to GBP75.7 million from GBP35.4 million. "For the first six months of the year, our business demonstrated its resilience from a financial perspective. The strong rebound in production resulted in revenues increasing 64%. We achieved excellent progress managing our controllable costs on a unit basis, however costs did increase overall due to additional mining and maintenance activities, higher energy costs and towards the end of the period a big jump in electricity prices," Chief Financial Officer Nikolay Kladiev says. Ferrexpo notes that towards the end of the half year Ukraine mandated that large firms import 80% of their electricity from European neighbours. "This policy was established in response to Russian attacks on Ukrainian power generation and transmission infrastructure, estimated to have reduced domestic electricity supply capacity by 50%. It is noticeable that the reduction in available domestic energy has also been affected due to maintenance at several domestic nuclear power plants during this time of year. At the current time, we are sourcing electricity from our European neighbours, however, the costs are higher and indeed quite volatile," the CFO adds.
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International Personal Finance PLC, up 7.8% at 148.80 pence, 12-month range 99.20p-153.00p. The company, which offers credit products and insurance services in nine countries, announces the launch of a GBP15 million share buyback. This is on the back of "strong trading and financial performance over the last two years". In the first half of 2024, the firm's revenue decreases 2.2% on-year to GBP371.7 million from GBP380.0 million. Its pretax profit falls 3.4% to GBP36.5 million from GBP37.8 million. Pretax profit before exceptional items, however, rises 25% to GBP47.3 million from GBP37.8 million. IPF lifts its interim dividend by 9.7% to 3.4p from 3.1p. It expects 2024 pre-exceptional pretax profit between GBP78 million and GBP82 million, ahead of current market expectations of GBP71.4 million.
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SMALL-CAP - LOSERS
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NARF Industries PLC, down 18% at 0.90p, 12-month range 0.60p-1.70p. The cybersecurity company reports revenue of USD7.6 million in the 15 months to March 31, rising from the USD2.5 million reported for 2022. Its pretax loss narrowed to USD1.4 million from USD18.7 million.
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By Eric Cunha, Alliance News news editor
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