The following stocks are the leading risers and fallers on AIM in London on Thursday.
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AIM - WINNERS
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Venture Life Group PLC, 16% at 30.70 pence, 12-month range 23.00p - 56.70p. Acquires three new ear-nose-throat brands after buying HL Healthcare Ltd for up to £13.0 million. The acquisition includes an initial consideration of £8.0 million alongside a £3.0 million contingent consideration based on revenue performance and the issue of a £2.0 million subordinated loan note, which matures in 2024. Venture Life also issues a trading update, saying it had signed a new long term distribution agreement with Blau Farmaceutica in Brazil. The consumer self-care products firm adds it remains confident that it is on track to deliver revenue and adjusted earnings before interest, tax, depreciation and amortisation in line with market expectations for the full-year.
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Facilities by ADF PLC, up 13% at 62.00 pence, 12-month range 41.18p - 88.80p. Buys Location One Ltd, a TV and film location service and equipment hire company, for an initial consideration of £4.4 million in cash alongside the issue of 3.4 million new ADF shares. Says there is an additional contingent earn out consideration of up to £2.7 million, which can be paid in cash instalments over a 36-month period. Says Location One’s customer base includes Amazon Studios, Netflix, Warner Brothers and the BBC. Adds it will provide complementary services to that of ADF. The production facilities provider expects the acquisition to be immediately earnings accretive.
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AIM - LOSERS
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Pelatro PLC, down 32% at 13.49 pence, 12-month range 13.00p - 37.00p. The customer engagement software firm says a ‘significant’ proportion of its revenue is now in Indian rupees rather than US dollars. As a result, says it is exposed to currency fluctuations on revenue as well as costs. The continuing weakening of the rupee to the dollar is expected to results in a shortfall against management expectations for INR-denominated revenue on translation to USD. Notes that rising interest rates have also negatively impacted the value of some of its contracts under its revenue recognition policy. Expects the impact to total between $700,000 to $800,000. This, it explains, will likely hit profitability. Expects earnings before interest, tax, depreciation and amortisation to fall below current market expectations.
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Tribal Group PLC, down 27% at 41.00 pence, 12-month range 37.00p - 107.25p. Says that changes to the scope and delays to the implementation and delivery of its contract with Nanyang Technology University have resulted in ‘substantially’ increased costs and lower recognisable revenue in 2022 than originally expected. The contract is now expected to make a loss of £12 million over its life. As a result, the software and services provider to the education market expects a negative impact on earnings before interest, tax, depreciation and amortisation for the year of £9 million, below expectations. Adds it continues to sign new contracts and says that, excluding the Nanyang Technology University contract, trading for 2022 is in line with expectations.
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