The following stocks are the leading risers and fallers among London Main Market small-caps on Friday.
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SMALL-CAP - WINNERS
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Mears Group PLC, up 5.5% at 220.00 pence, 12-month range 178.50p-245.00p. The housing and social care provider reports a strong financial performance in 2022 and announces a £20 million share buyback. Mears posts a pretax profit of £34.9 million, up sharply from £16.3 million the year prior. Sales revenue climbs to £959.6 million from £878.4 million. Mears says it successfully mitigated most of the problems caused by cost inflation, skill shortages and supply chain issues that affected the wider industry in 2022. Order book at year-end stands at £2.9 billion, up from £2.4 billion a year prior. Notes a positive start to 2023, with trading in-line with board expectations. Company recommends a final dividend of 7.25p per share, bringing the full-year payout to 10.50p, up from 8.0p a year prior.
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Alfa Financial Software Holdings PLC, up 4.4% at 140.90 pence, 12-month range 118.00p-187.84p. The software developer for the asset finance industry says it has seen ‘excellent’ revenue growth in the first quarter of 2023. Revenue in the quarter totals £27.0 million, up 20% from £22.5 million the previous year. Notes growth has been particularly strong in Services, benefiting from a second-half weighted growth in headcount last year. Chief Executive Andrew Denton says: ‘Last year we had a strong second half both operationally and financially and it is pleasing to see that strong performance carrying into the first quarter of 2023 to give an excellent start to the year. We are also pleased to continue our sales momentum from last year as we start work with two new important prospects. The strength of the late stage pipeline reflects robust demand in the sector and the competitive strength of our proposition gives us confidence in our expectations for the full year.’
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SMALL-CAP - LOSERS
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Non-Standard Finance PLC, down 15% at 0.50 pence, 12-month range 0.31p-3.01p. The consumer finance firm says it has faced ‘significant’ regulatory and financial challenges in 2022 and many of these challenges have continued into 2023. Company’s net loan book at end of 2022 reduces to £177 million from £208 million. Says this is due to the home credit division being put into administration back in March 2022 and continued collect out of guarantor loans. Pretax loss in 2022 widens to £56.4 million from £29.7 million. Revenue falls to £98.3 million from £131.4 million. Chief Executive Jono Gillespie says: ‘The group is working hard to resolve the regulatory challenges faced with the convening hearing for the group’s scheme of arrangement taking place later today...We are hopeful that the scheme process will conclude towards the end of June 2023 and that this will then enable us to proceed with the recapitalisation of the business, through either the proposed recapitalisation or alternative transaction as previously announced.’ If the scheme of arrangement fails, the is a material risk of insolvency, Non-Standard Finance says.
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Nostrum Oil & Gas PLC, down 7.7% at 9.00 pence, 12-month range 1.80p-33.0p. The oil and gas company reports daily production after treatment in the first quarter of 2023 averaged 10,479 barrels of oil equivalent per day, down from 14,683 barrels a year prior. Daily sales volumes averages 7,276 barrels of oil equivalent in the quarter, down from 14,059 barrels a year prior. Expects first quarter revenue in excess of $17 million, down sharply from $60.2 million in the first quarter of 2022. Company current progressing with a tie-back project, budgeted for $5 million of capital expenditures. Continues to focus on cost optimisation to help manage liquidity. Chief Executive Arfan Khan notes these results are the first following the restructuring of the company.
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