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Thursday has been a challenging session for the AIM Market with a retreat into negative territory early on, but by the close the index had managed to tack on just over one point, settling at 1019.43.

  • Velocity Composites up 36%
  • Somero Enterprise up 21%
  • Ide Group down 33%
  • Tanfield Group down 15%
  • Nichols down 12%

Velocity Composites [LON:VEL] found itself at the top of the board on Thursday, adding 36% by the close. The company’s shares took a beating off the back of a trading update earlier in the week, but with the company having noted previously that it is a supplier to Boeing’s 737 MAX program and with the aircraft having been recertified by the FAA, this appears to have driven some excitement. It is however worth noting that this is truly a small cap and closed on a wide spread tonight.

Somero Enterprise [LON:SOM] added 21% in the wake of a trading statement released ahead of the opening bell. A strong second half has left the company upgrading its previous guidance on revenues, EBITA and surplus cash, in turn providing investors with something worth cheering.

At the other end of the table, Ide Group [LON:IDE] slipped 33% with nothing evident behind the move. The stock only has a valuation of a couple of million and the day’s trade was brisk. This company has been under pressure for some time – shares were 100 times higher three years ago – and the recently published interims highlighted a debt pile that was increasing as profits slipped.

Tanfield Group [LON:TAN] gets another mention today, this time down 15%. However, with unremarkable volumes and a wide spread, it remains difficult to read anything into a move like this.

A notable mention for Nichols [LON:NICL], owners of the Vimto brand, who today issued a trading update. Revenues over the last nine months have been hit hard by declines in the out of home market and with the ongoing COVID uncertainty, management are reluctant to provide any guidance. A profit for the full year is however still anticipated and the company remains well funded with cash. Shares closed 12% lower.

Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Tony Cross

Tony Cross

Tony Cross is a market commentator with over 15 years of experience, producing compelling, insightful copy for journalists and investors alike. Focusing on macroeconomics, UK blue chip equities and inter market analysis, Cross's commentary is well regarded for its clarity and ability to cut through the waffle. He has been quoted in publications as diverse as The Financial Times, The Times, The Guardian and The Sun. He has also been a regular guest on both Share Radio and TipTV.

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