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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Treatt PLC, up 4.8% at 616.22 pence, 12-month range 503p-1,156p. The manufacturer and supplier of natural extracts and ingredients for the beverage, flavour and fragrance industries reports record interim revenue growth of 15% to £75.9 million in the half-year to March 31, from £66.3 a year before. Pretax profit is expected to grow by around 12% to ‘at least’ £7.1 million from £6.3 million. Notes ‘resilient’ beverage volumes despite uncertainty in the macro-economic environment. In particular, notes ‘encouraging’ progress in Chinese subsidiary, with sales rising to £4.9 million from £3.5 million. It expects to report annual profit before tax and exceptional items in line with the board’s expectations. ‘We’ve had a strong half with record sales performance, particularly driven by our largest category, citrus, where we have both strengthened our longstanding relationships with some of the biggest beverage companies whilst also winning some new customers,’ says CEO Daemmon Reeve.
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SMALL-CAP - LOSERS
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De La Rue PLC, down 23% at 38.4p, 12-month range 33p-110.4p. The banknote printer says it has been hurt by demand for banknotes sinking to a more than 20-year low. It expects full year adjusted operating profit for the year ended March 25 to be ‘a mid-single digit percentage below market expectations’. De La Rue says it is seeing signs of recovery, with a ‘significant number of new tenders actively underway’, though the pace of a bounce back is uncertain. De La Rue adds: ‘The company is in discussions with its lending banks in relation to seeking an amendment to its banking covenants, reflecting the revised outlook and also reflecting the increase in the company’s funding costs resulting from higher Bank of England base rates.’ More positively, it expects revenue in its Authentication to top £100 million for the first time in the new financial year.
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Petrofac Ltd, down 16% at 60.88p, 12-month range 45.38p-113p. The energy services company expects a loss before interest and tax of about $150 million to $170 million, widened from $130 million in 2021, and higher than the $100 million loss guidance posted in December. For Engineering & Construction, it expects the Ebit loss to balloon to between $240 million and $260 million from $14 million in 2021, and to be at least 26% higher than $190 million estimates in December. Petrofac cites costs of the Thai Oil Clean Fuels for the expected widened loss.
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EnQuest PLC, down 3.2% at 18.4p, 12-month range 16.16p-31.45p. The oil and gas production company, with operations in the UK and Malaysia, falls as Jefferies cuts its stock to ’hold’ from ’buy’. The price target is also cut to 20p from 27p previously.
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