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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DFS Furniture PLC, up 4.9% 112.45p, 12-month range 101p-170p. The sofa retailer continues to win UK market share in a ‘very tough market’ during its financial year, which ended on June 25, and outlines a path to improving margins. DFS says revenue from continuing operations fell 5.2% year-on-year to £1.09 billion from £1.15 billion, as pretax profit slumps 49% to £29.7 million from £58.5 million. Underlying profit before tax and brand amortisation is £30.6 million, which is in line with its interim guidance. DFS expects underlying profit before tax and brand amortisation to improve by a low single-digit percentage in financial 2024 to a £30 million to £35 million range. This assumes market volumes fall 5%, DFS notes. ‘We are confident the market will recover; however we can’t predict how quickly that will happen. We have a clear route to a 5% [profit before tax] margin without market recovery, supported by further margin improvement, new cost efficiencies, and continued growth in Home,’ DFS says.
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Oxford BioMedica PLC, up 5.4% at 283.50 pence, 12-month range 236.50-575.00p. The cell and gene therapy company adds to Wednesday’s gains after it announced exclusive talks with Institut Meriueux SA about buying ABL Europe, a pure-play European contract development and manufacturing organization. As part of the deal, Institut Merieux would become one of its major shareholders. The stock is down 16% over the past month however.
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SMALL-CAP - LOSERS
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James Fisher & Sons PLC, down 2.5% at 345.14p, 12-month range 241p-427.5p. The marine services swings to a pretax loss in the first half of 2023 of £4.4 million from a profit of £5.2 million a year before. This comes despite revenue rising 17% £252.0 million from £215.0 million. The loss is due to £9.3 million in refinancing legal and advisory costs, as well as higher interest rates, offsetting a positive operating performance, James Fisher explains. ‘All three divisions delivered revenue and profit growth against the first half of 2022, with a particularly strong increase seen in the Energy division,’ says CEO Jean Vernet. Trading in July and August is in line with its expectations, and James Fisher leaves its full-year expectations unchanged.
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