Despite spending the bulk of today’s session in positive territory, the AIM Index reached the closing bell just a fraction of a point offside at 1275.22
- Vast Resources up 42%
- Windar Photonics up 32%
- Abingdon Health down 35%
- Scotgold Resources down 24%
- 88 Energy up 14%
If there’s a prize for ambition in company names, Vast Resources [LON:VAST], the day’s biggest riser, probably deserves it. An update shortly after the opening bell on progress of a mining project in Romania was well received, although potentially of even greater interest was the reaffirmation that there would be no return to the market for funding, for the foreseeable future. Shares added 42% by the bell.
Subscribe for more stories like this, 8am weekdays - for free!
Windar Photonics [LON:WPHO] is a supplier to the wind energy industry and has seen its share price swing wildly in recent months. Mid-February saw shares rise from 25p to 42p before promptly staging an almost complete reversion. Again, today’s move, which added 32%, isn’t supported by any news but the lumpy trade perhaps hints at an expectation that an update is coming. For context the stock did close on a spread of over 10% but even so this could be one to watch.
A notable mention for 88 Energy [LON:88E] which we flagged yesterday and the stock saw a further 14% tacked on by the bell off the back of yet another operations update. The note flags the success of the adjacent Pantheon Resources drill site as being positive and investors are buying back in as a result. Whether shares can return to the heady levels seen a couple of months ago remains to be seen.
Abingdon Health [LON:ABDX] was the day’s biggest faller by the bell, sitting some 35% lower off the back of this morning’s trading update. The company is involved in rapid COVID testing and although progress is being made here, there’s uncertainty over the timing of sales and whether they will fall in the current financial year. As a result revenue projections have been downgraded and even though this leaves considerable year on year growth, another thorny issue is an outstanding £6.7m debt with the government. Abingdon’s supply contract with the Department of Health and Social Care (DHSC) expired in February – there’s a lot of detail here, but in short the DHS continues to use Abingdon supplied kit and the company has no reason to believe the debt will be disputed. However if the outstanding sums aren’t paid then they may need to reduce the cost base. One that will likely make the headlines in the coming days…
Scotgold Resources [LON:SGZ] also had a rough session, finishing 24% lower in the wake of a corporate and production update which was published this morning. The point of contention here relates to delays in ramping up production having impacted available cash. The company is exploring financing options including turning to directors, but some investors are perhaps nervous that another cash call will be made on them.