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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Trinity Exploration & Production PLC, up 50% at 54.00 pence, 12-month range 35.00p-99.00p. The Trinidad & Tobago-focused oil exploration and production company said it had reached an agreement on an all-share takeover by Touchstone Exploration Inc. Under the terms of the acquisition, Trinity shareholders will be entitled to receive 1.5 new Touchstone share for each Trinity share. This equates to approximately 58.3 million shares, and will give Trinity shareholders a roughly 20% stake in Touchstone following completion. Based on Touchstone’s Tuesday closing price of 41.25 pence, this represents an implied value of 61.9p per Trinity shares, a 72% premium to Trinity’s Tuesday closing price, and values the entire company’s share capital at £24.1 million. Trinity says that 39% of shareholders have so far indicated their support of the acquisition and entered into irrevocable undertakings to vote in favour of the scheme. Both companies believe that the deal will create a ‘leading Trinidadian operator of scale’ with a combined producing portfolio of between 11,700 and 12,400 barrels of oil equivalent per day. Trinity’s directors therefore intend to unanimously recommend that shareholders vote in favour of the scheme at a general meeting, set to be held by the end of May.
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Altitude Group PLC, up 16% at 36.50p, 12-month range 27.50p-52.00p. The Sheffield-based operator of a marketplace for the promotional products industry says it experienced another strong year of trading. As a result, the company expects to ‘at least’ meet consensus expectations for the financial year ended March 31. Consensus forecasts for Altitude are currently £26.1 million in revenue and £2.2 million in adjusted earnings before interest, tax, depreciation and amortisation. In the previous financial year, Altitude delivered £18.8 million in revenue, £2.0 million in adjusted operating profit and £152,000 in pretax profit. Altitude adds that its Merchanting and Services divisions continue to grow, with the latter outperforming the wider promotional products industry. The company is scheduled to publish its annual results on July 30.
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AIM - LOSERS
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Inspiration Healthcare Group PLC, down 42% at 18.05p, 12-month range 18.05p-56.00p. The Crawley, England-based medical technology provider says a material export order due for the end of January remains outstanding. The company still expects to receive the order, though is unable to speculate on the timing of the delivery. As a result of the delay, Inspiration Healthcare has been in discussions with its bank regarding covenant tests of its debt facility, and received a waiver from its lender in this respect. Alternative covenants have been agreed until April 2025, which will need to be met ahead of any further drawdowns of its revolving credit facility. The company is also investigating alternative financing options. Aside from the delayed delivery, Inspiration Healthcare says that trading in its first quarter has remained challenging, and expects underlying growth for the full financial year to be mid-single digits.
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