London’s AIM Index has started the month on the front foot, adding around 10 points by the bell to reach 1258.76.
- 88 Energy +39%
- Lekoil +27%
- Ormonde Mining +24%
- Biome Technology -24%
- 7 Digital -18%
88 Energy [LON:88E] has topped the board, jumping some 39% higher by the bell. Although a pair of RNS announcements were made earlier in the day, one regarding the issue of a modest slug of new capital and the other confirming all debt has now been repaid, it was later in the session before the real interest kicked in. One to watch?
£8m market cap Lekoil [LON:LEK] also surged today, adding some 27% by the bell. There’s no news here but shares have been under pressure of late and this could simply be some speculative bargain hunting. The 15% spread also needs to be noted.
A notable mention for Ormonde Mining [LON:ORM] which also fared well today, adding 24% off the back of news that a shareholder with a 22% stake in the company had requested the appointment of two new directors. There have been some lumpy orders coming through as a result and the closing spread is around the 10% mark, but the idea of a boardroom shake up does seem to be welcome after shares tested levels not seen for around 9 months.
Biome Technology [LON:BIOM] was the day’s biggest casualty, finishing some 24% down by the bell. A trading update this morning revealed a delay with a newly signed US customer, something which is seen as having a significant impact on the group’s expected growth in the near term. Full year revenues for 2021 and 2022 are now expected to be materially below forecasts, although management are keen to stress that underlying demand remains strong.
7 Digital [LON:7DIG] also found itself towards the foot of the table, extending the losses which started yesterday off the back of full year results. Although this included news of a margin improvement, there was also a warning in the report as to the company’s viability as a going concern, notably around pressure on short term working capital. Two major shareholders have confirmed their support for the next 12 months and the share price remains well above last year’s lows but prospective bargain hunters should beware.
