The following stocks are the leading risers and fallers among London Main Market small-caps on Monday.
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SMALL-CAP - WINNERS
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S4 Capital PLC, up 5.9% at 42.82 pence, 12-month range 38.72p-249p. The firm says its fourth-quarter trading was in line with its recently-lowered expectations, though the advertising agency predicts tough market conditions will persist in the new year. After a fourth-quarter that went in line with its recently-downgraded guidance, the London-based company expects to report a like-for-like net revenue decline of roughly 4% for 2023. Like-for-like net revenue had surged 26% in 2022. Its operational earnings before interest, tax, depreciation and amortisation margin is expected to land in the 10% to 11% range, weakening from 13.9% in 2022. Executive Chair Martin Sorrell says he is not expecting to see a ‘macro-economic improvement’ this year. ‘Client caution on marketing spend will likely persist, although not at last year’s level given interest rates are likely to fall over time,’ he adds. The stock is down 81% over the past year.
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SMALL-CAP - LOSERS
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Trifast PLC, down 11% at 83.09p, 12-month range 46.70p-97.62p. The industrial fastenings firm says its third quarter saw significantly lower than forecasted volumes in its Asia operations and global distribution sales channel. It says the trends of ‘low visibility and volatile demand’ in several end market and geographic segments continued during the period. Consequently, it expects annual results for its year ending March 31 to be ‘significantly’ below its previous expectations. Revenue is expected at £230 million or so, with adjusted Ebit margin to be around 5%. Consensus forecasts had expected revenue of £254 million, with adjusted Ebit of £15.5 million. In 2022, Trifast brought in £238.5 million in revenue.
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Synthomer PLC, down 4.0% at 121.95p, 12-month range 14.44p-301.37p. The chemicals manufacturer falls, after having its target price cut. JPMorgan cuts Synthomer’s price target to 300p from 1,031p, reiterating its ’neutral’ rating.
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