2nd Jul 2025 10:19
(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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Topps Tiles PLC, up 10% at 37.50 pence, 12-month range 28.05p-49.60p. The Leicestershire, England-based tile retailer says adjusted sales excluding its CTD brand for the financial third quarter that ended June 28 are up 10% from the year before, accelerating from 4.1% on-year growth during the first half. Like-for-like sales in the Topps Tiles brand increase 7.3% during the quarter and are 4.4% higher on a year-to-date basis. The company notes that trade sales remain stronger than homeowner sales, though sales to homeowners are showing signs of improvement. Active trade customers rise 12% on-year to 150,000 and group online sales accelerate to 22% of adjusted sales in the third quarter against 20% of sales in the first half. Topps Tiles expects adjusted gross margins in the second half to be "slightly higher" than the first half and says the cost environment remains "challenging". The company reports around GBP4 million in further cost increases on an annualised basis from April onwards, following changes to National Insurance rates and thresholds, as well as the National Living Wage in the UK. Given the sales growth to date, Topps Tiles expects operating costs in the second half to rise at a lower rate than gross profits, and says it remains confident its CTD brand will at least breakeven by the fourth quarter. "The continued progress made in all aspects of the 'mission 365' plan give the group confidence in its ability to deliver meaningful growth in sales and profits, this year and into the medium term," Topps Tiles says.
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Secure Trust Bank PLC, up 6.5% at 850.00p, 12-month range 331.00p-908.00p. The Solihull, England-based retail bank reports it will stop new lending within its Vehicle Finance business and put the existing book into run-off, as it intends to pivot away from the division to improve its return on average equity over time. The decision reflects the historical financial performance and the medium-term outlook of its Vehicle Finance business, the bank says, predicting the action will result in adjusted pretax profit rising to GBP56.6 million for financial 2024 from GBP39.1 million the year before, assuming a completed run-off. Vehicle Finance suffered a pretax loss before exceptional items of GBP21.8 million in financial 2024. As the loan book runs down, streamlining on its cost base will enable more than GBP25 million in operating costs to be removed by 2030, Secure Trust Bank says. It expects to incur around GBP5.0 million in restructuring costs and will provide a further update in its interim results release on August 14. The bank notes that 284 roles are expected to be at risk by 2030, including 78 roles at risk in financial 2025. The group plans to increase capital allocation to its Retail Finance, Real Estate Finance and Commercial Finance businesses, which "all have a strong track record of generating attractive returns".
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SMALL-CAP - LOSERS
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Gore Street Energy Storage Fund PLC, down 2.7% at 65.30p, 12-month range 42.40p-69.00p. Royal Bank of Canada cuts the London-based investor in utility-scale energy storage projects to 'underperform', with a price target of 60 pence.
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By Emily Parsons, Alliance News reporter
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Related Shares:
Topps TilesSecure TrustGore Street En.