The AIM index has essentially spent the whole day underwater with the admittedly modest losses worsening into the close.
Concerns over how the Fed will react to rampant inflation have knocked US markets from their highs and this is being reflected in confidence on this side of the Atlantic. As a result the junior market reached the bell just over seven points lower at 1243.66
- Westminster Group +40%
- Sareum Holdings +24%
- MobilityOne -26%
- TP Group -19%
- Tekcapital +13%
Westminster Group [LON:WSG] topped the board by jumping 40% by the bell off the back of news that it had won a contract for at least the next 20 years to provide security services at 5 airports in the Democratic Republic of Congo. Despite current depressed passenger levels, the contract is expected to be worth at least $6m in the first year, a number which will grow as the industry recovers.
Sareum Holdings [LON:SAR] is back on our radar, coming in at second place today having tacked on another 24%. This morning the company announced that they had issued another £1.47m worth of equity to the same investor who came onboard at the start of the month. The terms of the discount were favourable so the strong share price reaction certainly shows confidence in the stock.
The notable mention goes to Tekcapital [LON:TEK], who added 13% today. The company issued a slew of share options to executives which have an exercise price of 19p and are contingent on 8% NAV growth per annum being delivered. Looking at the recent history of the share price this certainly seems achievable and has delivered support as a result.
MobilityOne [LON:MBO] was the day’s biggest faller, off 26% by 4.30pm. The company released a trading update this morning and whilst there were no obvious red flags in here, it did come with the caveat that as a result of lockdowns in Malaysia, the company needs longer to complete the annual report. The stock has had a good run over the last month or so, with today’s news arguably being an excuse for some to book profits.
TP Group [LON:TPG] shed 19% in the wake of its results. Revenues were up but profits fell as timing issues and COVID interruptions took a toll. There was an exceptionally high volume of trade reported, but given the buy/sell imbalance, the move may prove to be overdone – at least in the short term.