The following stocks are the leading risers and fallers among London Main Market small-caps on Thursday.
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SMALL-CAP - WINNERS
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De La Rue PLC, up 9.6% at 40.00 pence, 12-month range 36.05-43.00p. The security products maker says it is seeing ‘encouraging signs of recovery’ following a significant downturn in printed currency demand over the past 18 months. Swings to a pretax loss of £29.6 million in the year ended March 25 from a profit of £24.2 million the year prior. This largely reflects lower revenue from its Currency division, adverse product mix, and an increase in operating expenses, De La Rue explains. Back in April, De La Rue said it expected full-year adjusted operating profit in financial 2024 to be in the low £20 million range. On Thursday, it says trading in the first two months of the year has been in line with this and thus the low £20 million range remains its expectation for the full-year. In financial 2023, adjusted operating profit totals £27.8 million, down from £36.4 million the year before.
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Ondo InsurTech PLC, up 8.1% at 20.00 pence, 12-month range 5.00-25.80p. The company announces a new proof-of-concept pilot with Firemark Collective, the innovation and venturing arm of Australia and New Zealand’s largest general insurer IAG. Firemark Collective selects LeakBot as its chosen solution to help prevent water damage claims. Under the fully funded deal, the testing and development of an outside ‘all weather’ version of the LeakBot product will be trialled over the next 12 months. All intellectual property created as part of the development will be owned by Ondo. Chief Executive Craig Foster says: ‘Australia was not part of our roadmap but when approached by one of the largest insurance companies in the region wanting to partner with us exclusively it makes perfect sense for us to stand-up this project. Beyond Australia, we can also see the applicability of this product version in other hot climatic regions like southern Europe where the stop taps are also outside’. Ondo provides claims prevention technology for home insurers.
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PPHE Hotel Group Ltd, up 5.5% at 1,113.00 pence, 12-month range 1,005.00-1,530.00p. The hotel and resort operator says the strong trading conditions seen in the first quarter of the year has been maintained through the second and into the third across all its main markets. As a result, PPHE now expects that interim revenue will be in excess of £177 million, above pre-Covid levels of £155 million in the first half of 2019. Revenue per available room is expected to be around £109, up from £93 pre-Covid. PPHE says that forward booking momentum remains ‘encouraging’ as it enters its strongest trading period. Expects to report revenue of at least £400 million in 2023 and earnings before interest, tax, depreciation and amortisation of £120 million. This is ahead of analyst consensus which sees revenue in a range of £352.0 million to £370.0 million, and Ebitda in a range of £106.3 million and £111.0 million.
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SMALL-CAP - LOSERS
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Cineworld Group PLC, down 14% at 0.43 pence, 12-month range 0.32-24.45p. The cinema chain says a US bankruptcy court has confirmed its third amended joint Chapter 11 plan of reorganisation. This paves the way for the company to implement its restructuring transactions and to emerge from its Chapter 11 cases in July. The plan involves the release of around $4.53 billion of the company’s funded indebtedness, the execution of a fully backstopped rights offering to raise gross proceeds of $800 million, and the provision of $1.46 billion in new debt financing. It is expected Cineworld will enter into administration shortly prior to the emergence from its Chapter 11 cases. There will not be any recovery for holders of Cineworld’s existing equity.
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