8th May 2025 10:20
(Alliance News) - The following stocks are the leading risers and fallers among London Main Market small-caps on Thursday.
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SMALL-CAP - WINNERS
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Capricorn Energy PLC, up 9.8% at 230.50 pence, 12-month range 166.00p-341.77p. The Egypt-focused oil and gas explorer says the Egyptian General Petroleum Corp has approved the consolidation of eight existing concession agreements into one single agreement. Capricorn has a 50% participating interest in the assets, held jointly with Cheiron Oil & Gas Ltd. "The integrated concession agreement is subject to Egyptian parliamentary ratification which is expected to take place in 2025," Capricorn adds. "The new concession agreement includes improved commercial terms and a refreshed primary development term to support increased investment, for the benefit of all parties." The "improved fiscal terms" include a 27% to 29% profit share, and a "merged single cost pool". "This agreement marks a key milestone in unlocking further value in our Egyptian Western Desert asset base. The three partners: EGPC, Cheiron and Capricorn have put in significant time and effort to construct a business case that allows all parties to benefit. With the improved terms and consolidation of the development leases, the joint venture partners will be able to justify increased investment to unlock significant contingent resources, leading to increased production and reserves for the benefit of all stakeholders. The development potential of these assets is fully capable of being funded by cashflows generated in Egypt," CEO Randy Neely says.
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SMALL-CAP - LOSERS
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S4 Capital PLC, down 6.0% at 24.26p, 12-month range 23.75p-66.75p. The advertising agency reports a decline in first-quarter revenue as it grapples with "volatile global macroeconomic conditions" which kept a lid on client spend. Revenue in the three months to March 31 falls 15% to GBP178.1 million from GBP210.2 million. Net revenue falls 12% to GBP163.7 million from GBP186.4 million. "As indicated previously, trading in the first quarter reflects the continuing impact of, to say the least, volatile global macroeconomic conditions. As a result, clients remain generally cautious, with technology clients, which account for almost half our revenue, in particular, continuing to prioritise capital expenditure on AI over operating expenditure, such as marketing," Executive Chair Martin Sorrell says. "As anticipated, our Technology Services Practice continued to be affected by a reduction in one of our larger relationships. Our liquidity and cashflow was much improved compared with the first quarter of 2024 and net debt was at a similar level to the year-end. This was despite the first quarter, as usual, being the lowest quarter of activity and reflecting our focus on working capital and cost control." S4 Capital said tariffs will "create short-term uncertainty, but opportunity for long-term technology adoption". Sorrell added: "The global macroeconomic environment has become even more challenging in 2025. Assessing the impact of US imposed tariffs has been added to the three principal risks around US/China relations, Russia/Ukraine and Iran/Middle-East. Clients, therefore, are likely to remain cautious. However, once the levels of tariffs are negotiated and impacts assessed, we believe clients will become more selective about the geographies in which they operate in." It maintains its annual outlook, believing revenue and operational Ebitda will be "broadly similar to 2024 on a constant currency basis".
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Kenmare Resources PLC, down 3.7% at 392.39p, 12-month range 270.00p-450.00p. Shares in the Mozambique-focused titanium minerals and zircon producer fall as it goes ex-dividend, meaning shareholders do not qualify for the latest payout.
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By Eric Cunha, Alliance News news editor
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