The Festive season may be fast approaching, but there are no signs of a Santa rally for London’s junior market, which posted its fifth consecutive day of declines on Tuesday. At the bell, the index stood just over ten points lower at 1167.4
- Tungsten Corporation +34%
- Hermes Pacific +26%
- Eve Sleep +8%
- Joules Group -26%
- Trellus Health -22%
Tungsten Corporation [LON:TUNG] topped the board on Tuesday, adding 34% by the bell. The company revealed in a filing this afternoon that it had received an unsolicited cash offer from Kofax, of 40p per share. The note also stated that the company was already in talks with two other parties over a possible sale and with the board stressing that the current offer significantly undervalues the business, this could be a drawn out affair.
Hermes Pacific [LON:HPAC] added 26% today, off the back of a change in investing policy being voted through at a General Meeting. This is however a minnow of a stock and very thinly traded with a colossal spread being quoted.
A notable mention for mattress makers Eve Sleep [LON:EVE] whose shares extended yesterday’s gains off the back of that well received trading update. However the stock still trades at a significant discount from those 2018 highs. It’s a long way back up…
Joules Group [LON:JOUL] slumped to the foot of the board today, off some 26% by the bell in the wake of a trading update. The company noted it had been hit by global supply chain issues which were particularly notable around Black Friday and left November’s trade falling below expectations. Group profit before tax for the full year is now expected to be no higher than £2.5m, down from £3.7m last year and that’s despite store revenue almost recovering to pre-pandemic levels.
A trading update from Trellus Health [LON:TRLS] did the company no favours either, despite management noting that cash burn has been lower than expected as they transition from development to early revenue generation. The company IPO’d back in May but has struggled to extend the share price and today’s slide takes the valuation to a fresh low.
