The following stocks are the leading risers and fallers on AIM in London on Wednesday.
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AIM - WINNERS
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Power Metal Resources PLC, up 8.8% at 0.68 pence, 12-month range 0.55-1.85p. The metals exploration and development company reports that extensive radon gas sampling at the Tait Hill and Soaring Bay projects in and around the Athabasca Basin in Saskatchewan, Canada, have confirmed multiple significant uranium targets. Chief Executive Sean Wade says this season’s uranium fieldwork continues to surpass the firm’s expectations in terms of quality and number of significant targets discovered. ‘Following very low acquisition costs, we believe we are now adding very considerable value to a portfolio with well thought out, methodical and inexpensive exploration, clearly demonstrating the ongoing success of our business model. We now look forward to the next stage, that of crystallising the value created for our shareholders. We are in discussion with various third parties about ways in which we can do that, and I look forward to updating shareholders on those discussions in due course,’ the CEO adds.
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Cambridge Cognition Holdings PLC, up 6.7% at 74.70 pence, 12-month range 65.35-129.74p. The company wins a ‘significant’ £1 million contract for a ‘sizeable’ later stage clinical trial, following a competitive tender. The contract combines the company’s Cantab touch-screen cognitive assessments with verbal assessments from its recent Winterlight Labs acquisition. Cambridge Cognition will supply its electronic clinical outcome assessments and provide full training for clinicians, together with quality control services, as part of the contract. Revenue from the contract is expected to be recognised over a two-year period, starting in 2023. Notes there is potential for a further contract with the same customer, of ‘slightly’ higher value, in 2024 once the initial results have been analysed. Cambridge Cognition develops and markets digital solutions to assess brain health.
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AIM - LOSERS
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Eneraqua Technologies PLC, down 58% at 39.00 pence, 12-month range 38.26-389.60p. The energy and water efficiency solution provider swings to an interim loss amid rising costs and warns of a ‘material reduction’ in profitability in the full-year. Pretax loss in the six months ended July 31 totals £441,000, swinging from a profit of £3.0 million the year prior. Loss comes as the company records a 20% rise in its cost of sales to £17.2 million, and a 31% rise in administrative expenses to £9.0 million. The rising costs offsets growth in revenue which rises 7.4% to £26.0 million from £24.2 million. Chief Executive Mitesh Dhanak adds: ‘Post-period end the group has faced dual headwinds. The continued and increased budgetary pressures on local government are leading to discussions on slowing down project delivery and deferring works into [financial 2025]. This compounds the impact of the recent unexpected [UK] government policy change in relation to net nutrient neutrality. As a result, the board now expects some projects to be delivered more slowly with revenues moving into next year and reduced operational leverage affecting margins. As a result we expect to see a material reduction in revenues and outturn in profitability during [financial 2024].’
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Jubilee Metals Group PLC, down 11% at 6.26 pence, 12-month range 6.01-13.92p. The metal processing company reports that its annual profit more than halved as surging overhead costs put margins under pressure. Posts a pretax profit of £12.3 million in the financial year ended June 30, down 54% from £26.5 million a year earlier. Profit margins shrink to 22% from 32%, as costs balloon. Cost of sales grow by 17% to £110.5 million from £94.6 million. Finance costs multiply to £5.2 million from £1.4 million. Jubilee reports revenue of £141.9 million, up slightly 1.4% from £140.0 million, with growth in dollar-denominated chrome revenue predominately offsetting a decrease in platinum group metal revenue. Notes that PGM price is now trading at $1,359 an ounce, which is 46% below the 2022 financial average and 21% below average in the 2023 financial year.
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