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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CMC Markets, up 12% at 148.80 pence, 12-month range 86.90p-254.00p. The company, which operates an online trading platform for retail investors and financial institutions, says it plans to cut around 200 jobs, some 17% of its total workforce, as part of a cost review that was announced in November last year. CMC says it expects to incur a one-off cost of about £2.5 million in financial year 2024, which ends on March 31. This is expected to produce annualised savings of £21 million starting from financial 2025, an 18% reduction in staff costs. ‘Cost reductions have been primarily achieved by merging support functions across multiple business lines, streamlining reporting lines and automating processes. The group will continue to seek opportunities to drive efficiencies and control costs while remaining committed to investing in growth opportunities and ensuring its technology remains market leading,’ CMC says.
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Gore Street Energy Storage Fund PLC, up 9.0% at 74.45p, 12-month range 60.00p-110.00p. The investor in utility-scale energy storage projects notes the turbulence in the market, but reconfirms its strong liquidity and its commitment to the current dividend policy. GSF reaffirms its dividend target of 7% of net asset value for its financial year. The company maintains a ‘healthy balance sheet with low debt’. At the end of 2023, GSF had £66 million in cash or cash equivalents. Chair Pat Cox says: ‘In this challenging period for the GB energy storage industry, it is crucial to acknowledge the resilience and fundamentally differentiated strategy employed by our company. The GB market’s cyclical nature has posed significant hurdles, yet we remain well-positioned to navigate these challenges - largely thanks to our investment policy and investment manager’s foresight and strategic understanding.’
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SMALL-CAP - LOSERS
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Superdry, down 4.8% at 43.95p, 12-month range 14.26p-135.80p. Shares in the clothing retailer fall back after more than doubling in Friday’s session amid indications that takeover talks are heating up. On Wednesday, regulatory filings showed that Norwegian-based investment fund First Seagull bought a 5.3% stake in Superdry. On Friday, the Times reported that First Seagull considers Superdry ‘to be ripe for a bid’. The newspaper added that Sycamore Partners, an American private equity company, and Authentic Brands Group LLC, which owns Ted Baker and Forever 21, are said to have Superdry on their radar. After market close on Friday, Sky News reported that Rcapital and Gordon Brothers have held initial talks with Chief Executive Julian Dunkerton about a bid to take Superdry private. Both specialise in investments in financially challenged companies.
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