The following stocks are the leading risers and fallers among London Main Market small-caps on Tuesday.
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SMALL-CAP - WINNERS
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JPMorgan Global Core Real Assets Ltd, up 10% at 72.8 pence, 12-month range 62p-82.6p. Investment firm says board has concluded that a managed wind-down is in the best interests of shareholders. Follows news on September 3 that shareholders did not pass the continuation vote. Notes that implementation of the wind-down will require shareholder approval, after which it will ‘conduct an orderly realisation of its assets, and the investment manager will effect redemption requests to the relevant underlying private funds’. Estimates that around 50% to 60% of its portfolio could be liquidated by the end of the second quarter next year, with other redemptions satisfied over the subsequent 12 months.
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Smiths News PLC, up 6.8% at 60.8p, 12-month range 46p-65.6p. The Swindon, England-based newspaper and magazine distributor says its full-year performance was ahead of market expectations. Revenue rose 1.1% to £1.10 billion, from the prior year’s £1.09 billion. Pretax profit rose 2.8% to £33.2 million from £32.3 million. Also declares a final dividend of 3.40p per share, up from 2.75p, and proposes a further special dividend of 2.0p resulting in the total payout rising 72% on-year to 7.15p. Claims trading has started well in the current financial year, and the outlook is in line with expectations. Furthermore, Smiths notes that cost-out plans are in place and targeting continued savings of around £5.0 million per year.
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SMALL-CAP - LOSERS
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Asos PLC, down 8.2% at 345.1p, 12-month range 333.4p-446p. The London-based online-only fashion retailer’s pretax loss widened to £379.3 million in the financial year that ended September 1 from £296.7 million the year before, as revenue fell by 18% to £2.91 billion from £3.55 billion. Gross margin has held mostly steady at 40.0% from 41.1%. Adjusted Ebitda declines 36% to £80.1 million from £124.5 million, reaching the top end of market expectations. Asos says it met targets including clearing stock, embedding a new commercial model, and doubling flexible fulfilment for its ’back to fashion’ turnaround programme. Expects a ‘significant increase’ in full-price sales, leading to gross margin rising at least 300 basis points to over 46%. No comment so far on 24% stakeholder Frasers Group PLC’s suggestion of merging Asos with rival boohoo Group PLC.
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