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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Metro Bank Holdings PLC, up 25% at 56.49 pence, 12-month range 34.00-157.80p. The bank announces a new deal with investors to shore up its finances. The deal includes a £325 million capital raise and £600 million in debt refinancing. Spaldy Investments Ltd, Metro Bank’s largest shareholder, is contributing £102 million and will become the controlling shareholder of Metro Bank upon completion of the transaction – with roughly a 53% shareholding. It comes after the bank’s shares tumbled last week on reports it was in talks with investors to raise around £250 million in equity funding and £350 million in debt. Daniel Frumkin, chief executive officer at Metro Bank, comments: ‘Today’s announcement marks a new chapter for Metro Bank, facilitating the delivery of continued profitable growth over the coming years.’
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Chill Brands Group PLC, up 17% at 5.90 pence, 12-month range 1.80-14.00p. The consumer packaged goods distribution company announces the sale of its Chill Zero nicotine-free vapour products into WH Smith PLC’s stores. The company will now see its Chill Zero products enter an initial 150 of WH Smith’s 1,700 stores. ‘This significant milestone marks the beginning of an exciting journey for the company and is a clear sign of things to come. We are committed to further expanding our presence in the market, developing more strategic partnerships, and continuing to deliver innovative products to consumers seeking quality alternatives to tobacco and nicotine,’ comments Chief Executive Callum Sommerton. Chill Brands says it has secured initial orders from UK retailers worth around £350,000 since the local launch of Chill Zero during August. The company says this includes sales made to more than 200 independent stores.
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SMALL-CAP - LOSERS
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BATM Advanced Communications Ltd, down 5.4% at 24.51 pence, 12-month range 20.00-33.30p. The provider of real-time technologies for networking solutions and medical laboratory systems confirms it does not expect the recent developments in Israel to have a material impact on trading. On Sunday, Prime Minister Benjamin Netanyahu warned Israel to prepare for a ‘long and difficult’ conflict a day after Palestinian militant group Hamas launched a surprise assault from Gaza. More than 700 Israelis have been killed since Hamas launched its large-scale attack, according to the Israel Defense Forces on Monday.
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AEW UK REIT PLC, down 2.6% at 96.97 pence, 12-month range 88.10-108.60p. The real estate investment trust completes the sale of its freehold high-street retail holding in Portsmouth, England for £3.9 million. AEW UK REIT says this reflects a net initial yield of 9.9% and a capital value of £251 per square feet. Adds that the sale price reflects a 22% premium to the June 30 valuation of £3.2 million. ‘We are pleased to have sold this holding for a healthy premium to valuation, having completed the asset management strategy, and therefore maximised value. Going forward, the asset presents a potential risk to the company’s shareholders, which further justifies a sale at this point in time,’ says Laura Elkin, portfolio manager of AEW UK REIT.
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