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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Videndum PLC, up 9.9% at 329.10 pence, 12-month range 291.55p-1,360.00p. The London-based manufacturer of hardware and software for the content creation market, including broadcasters and film studios names Stephen Harris as its next chair, replacing Ian McHoul whose planned departure at the 2024 annual general meeting was already announced. Harris is currently chief executive officer of thermal processing services provider Bodycote PLC. Also handing the stock a boost, Hollywood actors and studios reached a tentative deal Wednesday to end a months-long strike that has crippled the entertainment industry, delayed hundreds of popular shows and films, and cost billions to the US economy. The announcement paves the way for actors to head back to movie sets, an end to picket lines outside studios, and a return to employment for thousands of other jobs linked to the entertainment industry.
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SMALL-CAP - LOSERS
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TheWorks.co.uk PLC, down 27% at 29.19p, 12-month range 24.42p-48.40p. The arts, crafts, toys, books and stationery retailer expects a full-year outcome below market expectations. It expects pre IFRS 16 adjusted earnings before interest, tax, depreciation and amortisation of £6.0 million, lower than the company-compiled consensus estimate of £10.0 million. For the first half ended October 29, its total sales grew 3.4% on-year. ‘As always, trading in the six weeks between now and Christmas will have a significant bearing on the overall result for the financial year. Last year, consumers left Christmas shopping until very late in the season, and we expect that sales may follow a similar pattern this year. As such, any forecast prepared at this stage includes a high degree of uncertainty. We anticipate that trading conditions during H2 FY24 will remain challenging and consumer spend will be subdued, resulting in the continuation of the increased levels of discounting recently seen across the sector. To ensure that we offer the best value to our customers, we expect to maintain a higher level of promotional activity than envisaged at the outset of the year. We will also continue to take action to reduce costs,’ it added.
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S4 Capital PLC, down 16% at 56.61p, 12-month range 51.00p-249.00p. The advertising agency reports a decline in third-quarter revenue as clients were cautious ‘to commit and extended sales cycles’. Revenue in the three months to September 30 falls 18% to £245.9 million from £300.1 million a year prior. For the full-year, it now expects an operational earnings before interest, tax, depreciation and amortisation margin of around 10% to 11%, the guidance cut from a range of 12% to 13.5%.
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STV Group PLC, down 5.9% at 180.00p, 12-month range 175.00p-315.00p. The stock hits this 52-week low on Thursday. The television broadcaster and content producer expects annual operating profit of £20 million in 2023, hurt by ‘weak national TV advertising in Q4 and the related effect on the rate of commissioning in Studios’. This would be down from the £25.3 million achieved in 2022.
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