The following stocks are the leading risers and fallers among London Main Market small-caps on Wednesday.
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SMALL-CAP - WINNERS
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London Finance & Investment Group PLC, up 9.0% at 66.5 pence, 12-month range 35p-69.5p. The London-based investment finance and management firm, which holds strategic investments in companies such as Western Selection PLC, plans to delist from the London Stock Exchange and Johannesburg Stock Exchange and return cash to its shareholders. Says it proposes to cease its investment activities early in the new year and to return cash of about 70 pence per share to its shareholders. Early last month, London Finance & Investment said various considerations and analysis including the rising cost of being a listed company had led to its board to decide to dispose of its stock market investments. The return to shareholders is expected to be effected through a court-approved capital reduction. ‘Following completion of the proposals, the board intends to undertake an orderly winding up of the company,’ it adds.
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SMALL-CAP - LOSERS
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Schroder European Real Estate Investment Trust PLC, down 4.1% at 62.7p, 12-month range 60.4p-73p. The London and Johannesburg-listed property investor says its potential tax exposure in France is higher than earlier estimates. It has received a formal ’proposal for adjustment’ from the French tax authority, which includes a proposed penalty on any tax found ultimately due. Including interest and penalties, the potential exposure for the group is expected to be up to €14.2 million. Two weeks ago, Schroder European Real Estate had indicated that a possible exposure was between none and €12.6 million, excluding potential penalties. Company says it disagrees with the ’proposal for adjustment’ and will continue to contest its position.
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Zotefoams PLC, down 5.4% at 307.5p, 12-month range 307.5p-574p. Announces decision to pause its investment in its ReZorce packaging solution. Explains that despite reaching ‘several important technical milestones’, it still needs a strategic partner to help realise the solution’s commercial potential. So far it has been unsuccessful and does not expect to find a partner ‘at this time’. Consequently, for now it will focus all resources ‘on the near-term opportunities in the core supercritical foams businesses’, although it retains all ReZorce intellectual property and ‘know-how’ in case market conditions improve. Also, Zotefoams intends to initiate the winding-down of its MuCell business unit, which includes ReZorce and MuCell Extrusion LLC operations. Says this exit will result in a one-off impairment of up to £1.2 million. Says however that its financial performance remains strong despite a volatile market, and that it is confident in delivering full-year adjusted operating profit comfortably in line with consensus, in other words around £14.9 million for 2024. Adds that both foams businesses are doing well and the order book is robust with good visibility into 2025.
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