The following stocks are the leading risers and fallers on AIM in London on Monday.
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AIM - WINNERS
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Renold PLC, up 15% at 28.54 pence, 12-month range 20.6p-30.4p. The supplier of industrial chains and power transmission products provides an upbeat trading update for the financial year that ended March 31, expecting annual revenue to jump 27% year-on-year to £247.1 million. Group order intake rises 16% to £260.3 million. Now expects underlying trading profit and margin to be ‘materially ahead’ of previously upwardly revise market expectations. Cites company-compiled consensus as revenue of £238.3 million, underlying operating profit of £19.8 million, and underlying pretax profit of £14.3 million. The upgrade is a ‘result of the stronger sales, the impact of the YUK acquisition, benefits of cost reduction and efficiency programmes, and the successful implementation of inflation cost recovery programmes’, Renold says.
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AIM - LOSERS
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DeepVerge PLC, down 42% at 0.85p, 12-month range 0.6p-17.74p. The Dublin-based environmental and life science group says that, following a review of major contracts, revenue for a ‘number’ of contracts has been incorrectly recognised ‘in excess of work completed’. Accordingly, in 2022, it now expects to recognise just 45% to 55% of its January guidance of £17.2 million. ‘Whilst it is extremely disappointing that 2022 revenues are likely to be so far below the figures provided by the previous executive management team, I’m confident that the new management has robust plans in place to deliver the order book during 2023 and 2024,’ says Chair Ross Andrews. In February, DeepVerge had appointed Andrew Waters as its new chief financial officer with immediate effect, replacing Camillus Glover.
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Quiz PLC, down 17% at 12.83p, 12-month range 8.95p-18.5p. The Glaswegian fashion brand warns on weaker consumer confidence, which is set to continue into its new financial year. This reduces its visibility on likely results for the year, given that consumer demand may take a hit. Nevertheless, in the financial year that ended March 31, Quiz saw a 17% increase in revenue year-on-year to £91.7 million from £78.4 million. Gross margins were in line with management’s expectations and around the previous year’s levels. It expects annual pretax profit to more than double to ‘no less’ than £2.0 million, compared to £800,000.
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Omega Diagnostics PLC, down 11% at 2.6p, 12-month range 2.12p-4.88p. The medical diagnostics firm says it expects annual revenue in the year that ended March 31 to be £7.5 million from continuing operations, down from £8.6 million a year before. This is in line with its guidance provided in January. Due to ‘lower-than-expected’ production yields and higher costs for raw materials, its loss before interest, tax, depreciation and amortisation is now expected to be around £2.0 million. Back in September, at the time of its annual results, Omega had targeted breakeven Ebitda. Then in January, it guided for an Ebitda loss of around £1.0 million. The firm also notes its dispute continues with the Department of Health & Social Care over a £2.5 million payment related to Covid-19 lateral flow tests. A formal mediation meeting is scheduled to take place late this month. ‘It is not clear what the outcome of this meeting will be or whether the outcome will be disclosable due to confidentiality arrangements,’ Omega says.
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