26th Sep 2023 09:52
(Alliance News) - The following stocks are the leading risers and fallers among London Main Market small-caps on Tuesday.
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SMALL-CAP - WINNERS
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Synthomer PLC, 805.81 pence, multiplied from 40.30p, 12-month range 40.76-898.56p. The chemicals company announces that, following the approval of a capital reorganisation at a general meeting, 23.4 million of its shares have been admitted to trading on the London Stock Exchange. Explains that, as part of the capital organisation, its existing shares have been consolidated so that shareholders will receive consolidated shares on a ratio of 1 consolidated share in substitution for every 20 existing shares.
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SMALL-CAP - LOSERS
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MGC Pharmaceuticals Ltd, down 48% at 0.055 pence, 12-month range 0.050-0.98p. The pharmaceutical company says it finds itself at a "critical financial juncture" due to "underwhelming" fundraising efforts and the failure of its share price to appreciate. As a result, says it has been forced to design a restructuring plan to secure long-term financing. Says the plan will reduce its reliance on "constant" capital raising and allow it to complete an 18-month work plan. "We understand this restructure will be difficult for many shareholders. However, in light of dire alternatives, the board and management believe this is a necessary action to help to sustain the company's future and financial security beyond the short to immediate term," Managing Director Roby Zomer says.
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Videndum PLC, down 28% at 394.27 pence, 12-month range 385.00-1,360.00p. The hardware product and software solutions provider reports a sharp drop in profit in the first half of 2023 amid a number of ongoing macroeconomic headwinds. In the six months ended June 30, Videndum reports a pretax profit of GBP3.1 million, down sharply from GBP22.9 million the year prior. Revenue in the half falls to GBP165.0 million from GBP219.4 million. Company blames the drop in profit on ongoing macroeconomic headwinds, the effects of destocking the writers' strike in the US. Adds that given the ongoing strikes in the US, there will be no interim dividend. Plans to resume dividend payments "when appropriate." Looking forward, says there is a "wide range" of potential outcomes for the full-year due to the strikes and thus is unable to provide financial guidance. Separately, Videndum announces that Chair Ian McHoul will not stand for re-election at the company's 2024 annual general meeting. The search for his replacement begins.
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Card Factory PLC, down 5.3% at 105.28 pence, 12-month range 40.21-117.00p. The greeting card retailer says that in the six months ended July 31, pretax profit rises to GBP24.7 million from GBP14.3 million the year prior. Revenue climbs to GBP220.8 million from GBP198.0 million. Less positively, cost of sales rise to GBP139.5 million from GBP132.2 million and operating expenses rise to GBP53.2 million from GBP45.8 million. Card Factory says it is "confident" in delivering a good outturn for the year following the strength of its first half performance. Notes that trading since August has been in line with its expectations.
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By Heather Rydings, Alliance News senior economics reporter
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