16th Dec 2024 11:22
(Alliance News) - The following stocks are the leading risers and fallers among London Main Market small-caps on Monday.
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SMALL-CAP - WINNERS
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Saga PLC, up 9.1% at 134.8 pence, 12-month range 99.3p-156p. The Kent, England-based provider of services to people aged 50 and over announces a new long-term agreement between its insurance broking business Saga Services Ltd and wholly-owned UK subsidiaries of Ageas SA/NV, establishing a "20-year partnership for motor and home insurance". Ageas will buy Acromas Insurance Co Ltd, Saga's insurance underwriting business, for base consideration of GBP65.0 million and additional consideration of GBP2.5 million, with completion expected in the second quarter of 2025. Saga says the partnership builds on the firms' "existing successful relationship" and "will combine the strength of the Saga brand, Saga's marketing skills and customer base and Ageas's extensive and growing UK insurance operations". SSL is owed GBP80.0 million upfront in two tranches, then contingent consideration of up to GBP30.0 million in 2026 and again in 2032, subject to "certain policy volume and profitability targets being met and the satisfaction of certain conditions". SSL also will receive commission payments based on a percentage of all gross written premiums generated over the partnership's duration.
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TT Electronics PLC, up 2.3% at 109.5p, 12-month range 73.6p-179p. TT Electronics is a Woking, Surrey-based manufacturer of electronic components. Deutsche Bank Research raises its price target for TT shares to 150p from 135p, and maintains its 'buy' recommendation. This follows TT's announcement on Friday that its 2024 outlook is unchanged and that it "continues to have confidence" in its medium-term financial outlook, following Volex PLC's announcement that it would not make a takeover offer for TT. Volex shares are up 0.2% on Monday.
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SMALL-CAP - LOSERS
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Videndum PLC, down 19% at 207.5p, 12-month range 207.5p-355.5p. The London-based provider of hardware and software for broadcasters, film studios and other media content creators says it expects GBP280 million in full-year revenue, adding that the recovery in its markets has been "slower than expected". Anticipates a GBP25 million exceptional charge against its adjusted continuing operating profit. Says however that lending banks remain supportive of the business and that it is "seeing some signs of gradual improvement" in the markets, which it expects to benefit trading in the first half of 2025. Expects around GBP135 million in net debt at the year's end, including about GBP30 million in lease liabilities. Lending banks have amended its December covenants to an interest cover of at least 1.25 times Ebitda and leverage of at least 5.5 times Ebitda. Videndum's revolving credit facility expires in August 2026, but it is "actively working" with lenders to secure an extension or refinancing during the first half. Also, Videndum says it is 80% through implementation of its GBP10 million strategic cost-saving programme, though "minimal" savings will be realised from this for the current year.
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By Emma Curzon, Alliance News reporter
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