SMALL CAP MOVERS: Frasers Group will increase stake in Hornby

Mike Ashley’s Frasers Group’s urge for food for distressed retailers continues to develop by the day.

On the menu this week was Hornby plc, the mannequin prepare maker whose roots return to the early 1900s.

Frasers, which alongside Sports Direct has stakes in boohoo, Currys and Asos, upped its possession stake in Hornby – whose merchandise are already stocked in Frasers-owned GAME shops – to eight.9 per cent per a Friday announcement.

‘Hornby’s portfolio of distinctive heritage manufacturers are already a part of GAME’s product provide and we sit up for exploring alternatives to additional leverage our scale in retail logistics and distribution. This is according to our technique of pursuing strategic pursuits to reinforce worth for all stakeholders,’ mentioned Frasers’ chief monetary officer Chris Wootton.

‘We sit up for exploring industrial alternatives in working collectively to unlock the total potential of Hornby’s much-loved manufacturers,’ Hornby boss Olly Raeburn commented.

Going additional: Frasers Group upped its possession stake in Hornby – whose merchandise are already stocked in Frasers-owned GAME shops – to eight.9 per cent per a Friday announcement

‘Profit warnings have been extra common than the quantity 8 bus to London Victoria,’ mentioned Russ Mould, funding director at AJ Bell on Hornby.

But long-suffering Horby shares rallied to the highest of the small-cap scene following the Friday announcement, including 40 per cent to 29.2p.

Things had been much less encouraging for the small-cap inventory market as a complete, with the AIM All-Share Index falling round 10 factors, or 1.3 per cent, to 748 throughout the week.

The lead index additionally underperformed, with the FTSE 100 closing 24 factors decrease, thanks largely to a midweek dip after a number of weak outcomes from blue-chip corporations (hey HSBC) pushed the index decrease.

Weak financial progress projections from Centre for Economics and Business Research (CEBR) boss Nina Skero did not assist both.

Yet there have been some stand-out risers on the AIM market, not least Marlowe plc.

Marlowe plc shares jumped 48 per cent, the strongest among the many AIM set, because the software program agency introduced the £430million sale of a few of its property to Inflexion Private Equity.

Proceeds represented 121 per cent of Marlowe’s market capitalisation with the cash earmarked to repay debt and return money to shareholders.

‘The valuation achieved demonstrates the substantial potential inside our enterprise and can reset our capital construction, giving Marlowe strategic agility,’ chairman Kevin Quinn mentioned.

Advertising and promotions minnow SpaceandPeople plc hailed a better-than-expected second half of 2023, significantly from its Brand Experience arm, the launch of its ‘Rock Up and Pop Up’ retail kiosk service and the additional restoration of its German retail enterprise.

Sales got here in at round £5.8million, up from £4.7million in 2022, and shares rallied 23 per cent all through the week.

Harvest Minerals Ltd continued to pen positive aspects after the AIM-listed fertiliser producer reported a 70,000-tonne order goal for 2024 on the tail finish of final week. Shares continued to ramp up one other 28 per cent this week.

Empyrean Energy plc led the cost within the power sector, with traders welcoming an replace from the Mako discipline improvement venture in Indonesia, the place key industrial phrases have now been authorised by the federal government.

It is seen as a major milestone that now permits the venture operator to finalise totally termed gasoline gross sales agreements and advance the venture nearer to manufacturing. Empyrean shares rallied 27 per cent in consequence.

Powerhouse Energy Group plc shares rallied by 1 / 4 following the announcement of a groundbreaking five-year framework settlement with National Hydrogen of Australia.

This deal marks a major growth for Powerhouse, because it might see its cutting-edge waste-to-energy expertise deployed in Australia, Italy, Switzerland, and Hong Kong.

TomCo Energy plc witnessed a technical markdown after elevating £300,000 of latest funds by way of an fairness elevate course of, with the proceeds offering working capital to progress its venture in Utah.

Shares dipped 40 per cent.

Shares in Horizonte Minerals PLC had been slashed in half following the announcement that the invoice to complete its Brazilian nickel mine had nearly doubled to $1billion.

Despite the setback, Horizonte expects to spit out its first metallic early in 2026, which appears optimistic given the extra money required is but to be discovered.

Lastly, it will be remiss to not point out fundamental market-listed CAB Payments Holdings plc, which has parted firm with its chief government after a disastrous interval because it floated in July final yr.

CAB has shed 70 per cent of its worth since its IPO, most of which adopted a revenue warning simply three months after it listed.