The following stocks are the leading risers and fallers among London Main Market small-caps on Monday.
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SMALL-CAP - WINNERS
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Foxtons Group PLC, up 4.4% at 41.77 pence, 12-month range 27.05p-47.8p. The London estate agent firm confirms the acquisition of Atkinson McLeod for £7.4 million, to be funded from existing cash reserves. Atkinson McLeod is an estate agent operating in central and east London with four branches, bringing in around 90% of its revenue from around 1,100 tenancies. The acquisition is part of Foxton’s strategy to acquire lettings businesses ‘that deliver an attractive return on invested capital, enhance earnings and improve the resilience of the group’s earnings’, as well as strengthening its lettings brand. The acquisition is expected to be accretive to earnings this year, it says. Atkinson McLeod booked operating profit of £900,000 on revenue of £3.1 million in the financial year that ended March 31, 2022. Foxtons reports its own 2022 earnings on Tuesday. Monday’s announcement confirms a report by Sky News on Sunday.
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MacFarlane Group PLC, up 1.6% at 108.7 pence, 12-month range 85.2p-133.5p. The packaging and label company acquires Cambridgeshire-based specialist protective packaging manufacturing business A.E. Sutton Ltd, which trades as Suttons Performance Packing. The transaction is valued at a maximum of £9.0 million, including an earn-out consideration of up to £2.5 million, dependent on the achievement of profit growth targets. ‘Suttons is a profitable, well-invested company with an experienced management team that is fully committed to the business going forward. The acquisition is being funded using our existing bank facility and will be earnings enhancing,’ says CEO Peter Atkinson.
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SMALL-CAP - LOSERS
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James Fisher & Sons PLC, down 5.3% at 370p, 12-month range 241p-553p. The marine services provider sells James Fisher Nuclear Holdings Ltd, or JFN, and associated properties to Myneration Ltd, which is a wholly-owned investment vehicle of Rcapital Partners, for nominal consideration of £3. Will impair value of goodwill and tangible fixed assets in its annual results for 2022. Says it’s part of effort to ‘rationalise and focus’ its portfolio. Says £1.2 million loan made available to JFN will remain outstanding following completion, and will make available secure interest-bearing loan facility of up to £3.5 million available to JFN. Fisher also says it expects revenue from continuing operations to increase to £475 million in 2022, but underlying operating profit from continuing operations will be in line with 2021. It also commences discussions with its lending group about existing borrowing facilities, which are due to mature between October this year and September next year.
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