Any hope that the optimistic mood for small caps would last following yesterday’s bounce was dashed by that hotter than expected UK inflation print, heaping fresh doubt on the Bank of England’s ability to cut hard pressed consumers any slack with lower rates. The AIM Index slumped in early trade and stayed subdued, finishing the day almost 10 points lower at 738.17 and posting its biggest one day percentage loss since October.
- Synergia Energy +19%
- Frontier Developments +15%
- Quartix Technologies +14%
- Cropper (James) -36%
- Oxford Biodynamics -24%
Synergia Energy [LON:SYN was the day’s best performer, adding 19% by the bell. Volumes were elevated but the closing percentage spread was in double digits. There’s JV news due from an Indian partner, so could today’s uptick be indicative of movement on this front?
Frontier Developments LON:FDEV added 15% on the day, having published interims this morning. Revenues were notably lower against the comparative but in line with recent revisions. Imminent new game releases seem to be offering some cause for cheer, but whether the statement warrants the gains remains to be seen.
Quartix Technologies LON:QTX added 14%, taking the notable mention. There have been a couple of major positions notified today but they broadly net off. Trade has also been lumpy and there’s a closing spread of more than 10%. Probably nothing to see here.
- Cropper confident on medium-term, though results disappoint
- Frontier Developments back on track
- Quartix Technologies revenue up 8.6% with new installations in January up 10%
James Cropper LON:CRPR slipped 36% to land up at the foot of the table. A trading update out this morning saw revenues in line with prior expectations, but unforeseen delays in some projects plus less than favourable government funding decisions are all weighing on the outlook. With management of the opinion many investment decisions especially in Hydrogen will now be deferred out to FY25 investors could be in for a rough ride.
Oxford Biodynamics LON:OBD slipped 24% on the day, again with results being the driver. Revenues are up – but so are costs – and whilst the headline themes are positive the note does suggest that cash is set to become significantly squeezed in the months ahead. The take away here seems to be that tapping up shareholders again remains a possibility.
