The following stocks are the leading risers and fallers among London Main Market small-caps on Thursday.
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SMALL-CAP - WINNERS
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Restaurant Group PLC, up 37% at 66.40 pence, 12-month range 25.06-66.90p. The Glasgow-based owner of Wagamamas agrees to be acquired by funds managed by private equity firm Apollo Global Management Inc, soon after itself having sold off an underperforming business. Apollo is a New York-based alternative asset manager. Via acquisition vehicle Rock BidCo Ltd, it is offering to pay 65p per Restaurant Group share in cash. The offer values the equity of Restaurant Group at £506 million and the company as a whole, including debt, at an enterprise value of £701 million. The company says its board unanimously recommends the offer to shareholders, and acceptances for it already have been received from shareholders representing 19.9% of its total.
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Gore Street Energy Storage Fund PLC, up 5.4% at 70p, 12-month range 67.95p-118p. The energy storage fund says it is unaware of any portfolio-specific factors behind the recent sharp fall in its share price. The stock is down 13% over the past month. The company updates on its second quarter, which ended on September 30, citing ‘significant milestones’ and the outperformance of its GB fleet by around three times, based on average revenue per megawatt during the period. Also notes progress in its portfolio build-out after September’s energisation of 79.9MW of additional capacity. ‘Energy storage faces the same challenges as the rest of renewable infrastructure in a high-interest environment. It is important to recognise, however, that despite these difficulties, our commitment to the company’s objectives remains unchanged. We are successfully executing against the strategy laid out to investors and delivering on the commitments made,’ says CEO Alex O’Cinneide.
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SMALL-CAP - LOSERS
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SIG PLC, down 13% at 29.75p, 12-month range 25.35p-45.38p. The insulation, roofing, commercial interiors and specialist construction product supplier warns it expect weaker demand conditions to persist for the rest of the year. Reports that second-half volume performance so far has improved from the first half, but not by as much as anticipated due to ‘challenging’ market conditions across all its geographies. It cuts its annual underlying operating profit forecast range to between £50 million and £55 million, which would be a sharp drop from £80.2 million in 2022. ‘Notwithstanding short-term market weakness, we continue to progress the strategic and operational initiatives which underpin our ambition for the group. We remain confident in our ability to further improve our market positions, and to continue to improve our profitability when market conditions recover,’ it says.
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