Stocks are bouncing back after yesterday’s Apple-inspired bout of weakness, with London’s FTSE 100 gaining 50.6 points to trade at 6,743.3 on Friday on hopes that next week’s talks between the US and China can help temper the tensions on trade.
However, online musical instruments retailer Gear4music (G4M:AIM) crashes 44% lower to 287.5p on a warning full year earnings before interest, taxation, depreciation and amortisation (EBITDA) is now expected to be ‘slightly below’ 2018 levels.
Gear4music reports a 41% surge in total sales to £48.7m and improved margins for the four months to 31 December. Unfortunately, Gear4music’s York distribution centre reached maximum capacity during the peak period between Black Friday and Christmas, constraining further sales growth ‘in excess of expectations’.
Elsewhere, cadmium-free quantum dot technology developer Nanoco (NANO) sparks up 5.3% to 40p after inking a partnership with Plessey Semiconductors to produce smaller, higher-resolution and more energy efficient microLED displays using Nanoco’s quantum dots.
Speciality pharma business Circassia Pharmaceuticals (CIR) slumps 9.1% to 50p after downgrading full year revenue guidance to a £48m-to £52m range. This reflects higher rebates for Tudorza, its chronic obstructive pulmonary disease treatment, during the second half, as well as delayed recognition of revenue in China.
Electronic components business TT Electronics (TTG) improves 8p to 200p on the news non-executive director Michael Baunton has acquired £9,900 worth of shares at £1.98.
Franchised motor dealer Cambria Automobiles (CAMB:AIM) ticks 0.5p higher to 55p on the reassuring news trading in the first three months of the year to November 2018 was ahead of 2017 despite declining new and used car markets. Cambria highlights improved gross profit in new vehicles with a boost from new outlets representing Bentley, Lamborghini and McLaren, not to mention ongoing improvement in used car gross profit per unit.
Management remains cautious about the economy and consumer backdrop, yet insists ‘the continued progress made through 2018 with the group’s franchising and property development has further enhanced Cambria’s excellent portfolio of dealerships’, leaving the retailer ‘well positioned for the year ahead, with strong representation across the premium and high luxury segments of motor retail.’
Workwear provider Johnson Service (JSG:AIM) jumps 2.8p to 118.8p on the soothing news full year results are expected to be in line with market expectations. There’s also a confident outlook from CEO Peter Egan, who insists ‘the capital investment across our estate continues with the planned building of a new laundry which will significantly increase the capacity of our high volume linen business to meet our customers’ needs and to underpin future organic growth’.
Smart home solutions minnow LightwaveRF (LWRF:AIM) surges 19% higher to 8.5p on a positive first quarter update. Revenue rocketed 156% higher to £1.15m in the quarter ended 31 December, boosted by a record e-commerce Black Friday week performance and process improvements instigated by CEO Jason Elliott.
